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| National |
| Muluzi faces bankruptcy |
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by
Pilirani Semu-Banda, 13 September 2004
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11:26:42
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Former President Bakili Muluzi, who also chairs the ruling UDF, is facing bankruptcy for failing to pay rentals amounting to about K9 million ($833,333) for Everest House in Blantyre, where he had initially installed equipment for his Joy Radio and television station.
Muluzi has since moved from Everest House, which is owned by Everest Investments Limited, and opened the radio station in another building within Blantyre but the television station has not been opened.
Court records indicate that Muluzi was served with summons on August 26, 2004 at his BCA residence which were hand-delivered by a lawyer representing Everest Investments Limited, Edwin Banda.
Banda refused to comment on the matter on Sunday but court records showing Civil Cause Number 2224 signed by the assistant registrar of the High Court Dorothy Kaunda commanded Muluzi to either satisfy the claim against him or tell the court if he is contesting the proceedings within 14 days.
The documents did not show Muluzi’s challenge against the proceedings.
The court summons were preceded by a notice from Everest Investments Limited which indicated that bankruptcy is a possible action against the former President.
And a statement of claim attached to the High Court order indicates that a tenancy agreement was agreed upon between Everest and Muluzi on March 13, 2000 to run between March 1, 2000 and February 28, 2003 where the former President was expected to pay K60,150 per month payable six months in advance that the amount was subject to revision according to market levels in year two and three of the lease.
The statement said after March 2003, Muluzi was in arrears with the rentals in the sum of K2,488,900 plus interest of K1,863,274 and that the former President was also responsible for utility charges at 35 percent for space occupied.
“Moreover, the defendant held over the premises and verbally expressed the willingness to continue with the tenancy, and/or did not take any positive steps to discontinue the tenancy, or give vacant possession to the plaintiff,” said the statement.
The records also show that Everest embarked on recovering the money owed to it on June 24, 2003 but that up to now Muluzi has honoured payments and the figure has risen to about K9 million.
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