Bingu’s children, govt battle over K65m

Children of former president Bingu wa Mutharika are demanding back K65 million (US$162 500) the Registrar General authorised to be withdrawn from their father’s estate, arguing that the money was obtained illegally.

The children, working under administrators of the estate, said alternatively the money should be converted as part payment of estate duties government is demanding from the estate, according to lawyer Kalekeni Kaphale, one of the administrators of the late Mutharika’s estate.

The company that conducted the valuation, YMW Property Investment Company Limited, received K40 million, the law firm that assisted in the process, Ralph and Arnolds, got K13 million (US$32 500) while government pocketed K12 million (US$30 000) as part payment of the estate duty, according to documents we have seen.

Speaking to Nation on Sunday on Thursday, Kaphale said the law stipulates that the person or organisation that seeks valuation of an estate should pay for the process.

“That money was illegally obtained. It was government that initiated the valuation and it has to pay for the services. We have agreed with government that another valuation must be made and we are in the process of starting a new valuation.

“It was the duty of the trustee to make a declaration to government and if government was not satisfied with what the trustees declared then government could have brought in their own valuers. It was also strange that government used money in Mutharika’s estate to pay for the valuers and their lawyers,” he said.

Kaphale based his assertion on Chapter 43:02 of the Laws of Malawi on Estate duty, Section 22(2), which reads in part: “Where the commissioners require valuation to be made by a person named by them, the reasonable cost of such valuation shall be defrayed by the commissioners.”

Government initiated the process a year after Mutharika’s death and hired assessors who valued the estate at K61 billion.

However, administrators of the estate and the Attorney General have agreed to set aside the earlier assessment and make a fresh valuation on the basis that the process did not follow procedures.

But valuer Yeremiah Chihana of YMW Property Investment Company Limited said this will not affect payment for the work he carried out.

“I only received K40 million (US$100 000) of which I used K18 million (US$45 000) while K22 million (US$55 000) was given to Tapiwa Mutharika who accompanied us to identify Mutharika’s property outside the country,” he said.

A Nedbank cheque number 009742 worth K22 million was issued in honour of Tapiwa Mutharika under account number 035900000012 on June 3 2013.

But Kaphale wondered why the money was paid to Tapiwa.

Chief state advocate Zolomphi Nkowani said in terms of the agreement the two parties reached, Bineth Trust will carry out new valuation and government will validate it.

“All matters regarding Mutharika’s estate were resolved. We agreed to forget what happened in the past. We acknowledge that there was a mix-up in the Mutharika’s estate evaluation and we agreed to do the right thing.

“We agreed that Mutharika’s estate be evaluated within 30 days and all payments that were wrongly made be taken into account.

“They have not done the evaluation which is a breach of the agreement. The K65 million issue is no excuse for not paying the estate duty,” said Nkowani.