MRA wants K131m from Masangwi
Malawi Revenue Authority (MRA), through the High Court in Blantyre, is demanding K131 million (US$354 054) from Democratic Progressive Party (DPP) regional governor for the South Noel Masangwi.
But Masangwi, owner of Elvis Freight, has filed a counter-claim, demanding K89 million(US$240 540) from MRA for loss of business and income due to MRA’s directive to revoke the company’s clearing licence.
In the matter which is yet to be heard, MRA states in a statement of claim that between January 2010 and September 2012, discoveries were made that the clearing agent Elvis Freight had outstanding declarations that were lodged at Dedza Border, Lilongwe and Blantyre stations.
Reads the statement in part: “Some of the declarations were not paid at all, some were pending duty top-ups and others were still on the physical examination stage.
“As a result of the said outstanding declarations, the defendant (MRA) suffered loss and damage occasioned by underpayment of customs duty during the said period for the said imports amounting to a total of K131 034 680.09.”
MRA, in the claim statement filed on July 30 this year, demands payment interest at three percent above the commercial bank lending rate from the date the amount became due and payable to the date of payment.
But Masangwi, in the counter-claim statement filed on September 3 2013, says despite being a licenced clearing agent, he lost business and income because of MRA’s unwritten directive not to extend any business to his company although there was a court order stopping MRA from proceeding with that directive.
Masangwi also demands interest at three percent.
In reply, the public tax collector argues it was never served with any court order stopping them from provoking the clearing licence of Elvis Freight.
However, MRA says it is empowered under regulations 131 of the Customs and Excise Regulations to revoke any licence, arguing Elvis Freight did not comply with terms of the licence by having accumulated outstanding declarations.
The public tax collector, in the reply filed on October 8 this year, also argues that Section 153 of the Customs and Excise Act grants MRA immunity against any suit for conduct done in good faith under the powers conferred by the Customs Laws.
The court will set a date for hearing of the matter.
Masangwi was an influential figure during the reign of DPP and MRA only acted after the DPP was pushed out of power following the death of former president the late Bingu wa Mutharika in April 2012.
