Court to withhold Lutepo firm sale proceeds
Ministry of Justice and Constitutional Affairs says the courts will withhold part of the proceeds of the sale of Woget Cotton Ginning Company, a firm owned by Cashgate suspect businessperson Osward Lutepo, which NBS Bank is selling to recover a K1 billion loan.
Ministry spokesperson Apoche Itimu said this in an interview in response to an e-mailed questionnaire on the implications of the sale transaction and pending court cases against Lutepo.
She said the sale of Woget was started by NBS Bank before the court proceedings against Lutepo began last November on charges of theft and money laundering of K2.6 billion in public funds.
Said Itimu: “When proceedings against Lutepo were commenced, we applied and were granted a restriction order in relation to properties owned by Mr. Lutepo. However, in this particular case, NBS Bank applied that the restriction notice should not be applicable to Woget because they had already been granted an order to sell the property.”
Itimu said when their application was not successful, the court ordered that Woget be sold by NBS Bank.
According to the invitation for bids, Woget Cotton Ginning Company located at Lunzu in Blantyre comprises land, buildings, office equipment and a cotton ginnery, as well as used motor cycles and vehicles.
In an interview on Monday, Lutepo said he owed the bank over K1 billion which he obtained before his name was embroiled in Cashgate.
Said Lutepo: “Since the issue came out, no bank is free to give me loan facilities and my businesses are crumbling. If I had Cashgate money as it is alleged, I would have repaid all these loans. It looks like I have been proven guilty even before the case starts in court.”
He said his assets and bank accounts were frozen following his November arrest and subsequent charges and at one point claimed he could not pay the K50 million bail bond which the High Court in Zomba imposed on him.
During peak demand season, Woget Cotton Ginning Company was employing 1 000 people and 100 people off season.
