Mulli sues for K270bn
Businessperson Leston Mulli has filed a suit against the Attorney General (AG) demanding K270 billion for losses suffered following the government’s decision to restrict its entities from dealing with his businesses.
In an amended statement, Mulli, through his lawyers Lusungu Gondwe and John Kalampa, argued that following a restriction letter dated September 5 2018 issued by then Minister of Justice and Constitutional Affairs, who was also the AG, government ministries, departments and agencies (MDAs) stopped trading with his businesses.
In the claim, Mulli seeks about K966. 3 million for suppliers and staff salaries interests, K602.5 million for interest charges on ligation cases and K131 million as excess interest on loans due to late repayment, restructuring and increased repayment time.
Further, he seeks about K104.8 million for loss of earnings while about K33 million is for loss of profit he made between 2012 and 2017.
Reads the amended statement of the case in part: “The claimants therefore claim from the defendant the total sum of K270 448 222 520.00 being damages for public misfeasance and/or causing loss by unlawful means and interest on any such sums 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 include Zao Marketing Agencies, Mulli Brothers Limited (MBL), Celcom Limited, National Bus Service Limited, Sunrise Pharmaceuticals Limited and Chombe Foods Limited.
But a notice of adjournment prepared and filed by the Attorney General chambers dated February 12 2024, shows that the State has filed an application to dispose of the matter on point of law. This means that the application seeks the court to continue hearing the matter, but without parading witnesses.
Attorney General Thabo Chakaka Nyirenda in 2022 also issued a memo to MDAs advising them to stop conducting any business with MBL or allow the company to participate in any public procurement.
On May 12 2022 the Public Procurement and Disposal of Assets Authority (PPDA) also wrote the Secretary for Health withholding a ‘No Objection’ in a contract where MBL was to provide to the ministry warehousing and distribution services of long-lasting treated nets (LLNS).
However, the company applied for permission for judicial review as well as stay of the decisions to blacklist it on grounds that, among others, the AG had no authority to make such decisions.
But upon hearing the applications together with the AG’s opposition last year, the court proceeded and granted MBL both permission for judicial review and stay of the decision.
The court found that there were issues worth to be heard in the judicial review, and the injunction issued against AG effectively permitted MBL Holdings, owned by Mulli, to participate in government contracts.
