Bingu family opts for out-of-court settlement on vehicles

The family of former president the late Bingu wa Mutharika has proposed to the Malawi Revenue Authority (MRA) to settle out of court a matter where the authority wanted the Mutharika to pay duty for 41 vehicles.

The vehicles were imported duty-free as per late president’s status where the Presidents Benefits and Salary Act allowed him to import goods duty-free.

One of the family lawyers, Chancy Gondwe, said in an interview on Wednesday he got instructions to ask MRA for an out-of-court settlement of the over 41 vehicles MRA wanted to seize.

Gondwe said he wrote MRA on Monday (January 5 2015) and made the out-of-court settlement proposal and is waiting for a response.

Said Gondwe: “After the change of things [when Bingu’s brother Peter Mutharika won the May 2014 elections], the family felt it was not necessary to have such matters proceed in court.

“The family has proposed an out-of-court settlement to resolve that and instructions were given to me.”

Following Bingu’s death in April 2012, MRA in 2013 wanted to seize 41 vehicles belonging to the fallen leader, arguing the duty-free status the deceased enjoyed was only for him.

The revenue collecting body wrote Peter Mutharika, leader of the Democratic Progressive Party (DPP), when Joyce Banda was head of the State, demanding the duty.

But the family challenged MRA’s action and obtained a court injunction, stopping MRA from proceeding to seize the vehicles.

The High Court later in July 2013 ruled in favour of the family, quashing the MRA’s decision to demand the duty or seize the vehicles.

Then High Court judge Dunstan Mwaungulu, now a Supreme Court of Appeal judge, described the MRA’s action as unfair and unreasonable.

He argued in his ruling that the provisions [of the Presidents Benefits and Salary Act) are silent on what happens to goods bought duty-free for a president’s use in case of death.

The family appealed against the ruling and the matter was expected to come for an inter-partes hearing, but that did not happen until Gondwe got instructions for the out-of-court settlement.

Lawyer Justice Dzonzi of Justice Link said in an interview yesterday that ordinarily, there is nothing wrong with a party to a matter proposing an out-of-court settlement.

Dzonzi, however, said the only concern is whether MRA would be negotiating with an influential family in good faith.

Said Dzonzi: “On one hand, you have a strong family in a ruling party and MRA are almost like their employees. Will MRA be in a position to negotiate in good faith? That will be the concern.”

MRA could not respond to a questionnaire sent to them on Tuesday this week when asked to comment on the matter despite several reminders.

The Presidents Benefits and Salary Act (1994) allows a president to import goods duty-free, including vehicles for personal use, and there is no limitation on how many vehicles a president may import.

All former presidents, the first multiparty president Bakili Muluzi, Bingu and lately Joyce Banda, have during their tenures imported 100 plus vehicles each duty-free but assigned them to party operations across the country.