At torney General (AG) Thabo Chakaka- Nyirenda has declined a K150 billion out-of-court settlement offer from businessperson Leston Mulli.
Mulli and five of his businesses are suing the State for K270 billion as losses over three years, starting September 5 2012, during the Joyce Banda administration, following an alleged ban on government business with his companies.
Both the AG and Mulli’s lawyer Lusungu Gondwe confirmed the development in separate interviews this week.
In a WhatsApp message response on Thursday, Chakaka-Nyirenda said: “The demand is ridiculous, and so is the offer. It’s an extravagant offer.”
On his par t, Gondwe observed that out-of-court discussions are encouraged by the Rules of Court and expressed his displeasure that the matter has leaked to the press.
“I have no instructions to speak to the press on the substance of the matter, mainly as the matter us still in court. However, Mulli Brothers instructs me to convey to you that it is bewildered by the immaturity displayed by your source at the Attorney General’s Chambers.
“Holders of those Chambers must not easily get orgasmic. Out-of-Court discussions are encouraged by the Rules of Court. A mature holder of the office of the Attorney General Chambers would jump on the opportunity to settle amicably and keep confidential the essence of the negotiations.
“If, indeed, it is true that the material for out-of-court negotiations grew wings and flew out of the Attorney General’s Chambers, then the appointing authority has some thinking to do next time he fills that office. Those chambers require mature men and women.”
When asked how the figure of K150 billion was arrived at, Gondwe said his client’s financial experts were better-placed to provide the breakdown.
Last year, High Court Judge Al l an Muhome dismissed an application by the AG to throw out the lawsuit, arguing that the State did not provide sufficient grounds for dismissal.
The AG had contended that the claimants failed to comply with Section 4 of the Civil Procedure (Suits by or against the Government or Public Officers) Act and that the matter could not be brought to court after more than six years since the cause of action arose.
The claimants argue that an order by the then Minister of Justice and Constitutional Affairs, the late Ralph Kasambara, led ministr ies, departments and agencies (MDAs) to cease trading with them and froze payments for previous contracts.
Among others, Mulli is seeking approximately K966.3 million for suppliers and staff salaries, K602.5 million for interest charges on litigation cases, and K131 million for excess interest on loans due to late repayment, restructuring and increased repayment time.
He also seeks about K104.8 million for loss of earnings and K33 million for loss of profit between 2012 and 2017.
The amended statement of the case reads: “The claimants therefore claim from the defendant the total sum of K270, 448,222,520.00 as damages for public misfeasance and/or causing loss by unlawful means, with interest at 10 percent above the commercial base lending rate from the time the tort(s) were committed to the time of full payment.”
Mulli’s businesses under MBL Holdings include Zao Marketing Agencies, Mulli Brothers Limited (MBL), Celcom Limited, National Bus Service Limited and Sunrise Pharma.
In 2022, Chakaka-Nyirenda issued a memo advising MDAs to stop conducting business with MBL Holdings or allowing the group of companies to participate in public procurement.
On May 12 2022, the Public Procurement and Disposal of Assets Authority (PPDA) also withheld a ‘No Objection’ in a contract where MBL was to provide warehousing and distribution services of long-lasting treated nets (LLNs) to the Ministry of Health.
However, the company applied for judicial review and a stay of the decisions to blacklist it, arguing that the AG had no authority to make such decisions.
The cour t g ranted MBL Holdings both permission for judicial review and a stay of the decision, allowing it to participate in government contracts.
