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STARDY MWALE SUED OVER $530, 000

By GRACE CHAILE LESOETSA

FORMER Defence Permanent Secretary Sturdy Mwale has been sued by Simonga Farms Limited for allegedly failing to settle $530, 000 being balance for the purchase of farm in Mazabuka.

In the alternative, Simonga Farms want the Lusaka High Court to order for the re-possession of the farm together with all the machinery and poultry equipment from Mr Mwale.

It is also seeking an order for repayment all the income collected from the operations of the farm since August 1, 2018 as well as damages for breach of contract.

Simonga Farms wants an order that Mr Mwale pays all NAPSA contributions  and outstanding penalties that have accrued on the Simonga Farms account during the time he has been operating on the farm  on account  of being an agent or officer.

It also seeks an order of interim detention or preservation of equipment and an order that Mr Mwale indemnifies it the sum of K39, 624 incurred in ZRA penalties.

Simonga Farms want interest on all amounts due and an order for unjust enrichment.

According to a statement of claim, Simonga Farms stated that it was the registered owner of farm number 132a while Mr Mwale purchaser of the same farm.

It stated that sometime in or around 2017, Mr Mwale bought a subdivision of farm number 132a.

Sometime in July 2018, Mr Mwale expressed interest to buy the remaining part of the farm, consisting of a viable poultry farm.

Simonga Farms stated that prior to that, it was not operating the farm as a poultry farm and had an estimated income of K400, 000 per month from the sale of the poultry produce.

“Subsequently, the plaintiff shall state at trial that the plaintiff and defendant entered into a verbal agreement for the purchase of the remaining extent of the side farm as a going concern, at total consideration price of the sum of US$530,, 000,” it stated.

 Simonga Farms said that the purchase of the remaining extent was to be financed by Mr Mwale in such a way that 50 percent of the purchaser price (US$275, 000) was to come from a bank loan with First National Bank (FNB) and balance from other sources.

It stated that after the shareholders of the company relocated to Australia sometime in August 1918, they begun to make several attempts to secure a payment for the farm, but that all efforts proved futile.

The farm alleged that Mwale used its farm to import goats from Namibia and the farm was pursued by Zambia Revenue Authority (ZRA) for not paying duty.

Subsequently, a Garnishee order was subsequently placed on the Simonga farm and in the consequences, the farm has suffered loss and damage.

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