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Stardy Mwale in trouble over $530, 000 farm

Stardy Mwale in trouble over $530, 000 farm
DIRECTOR and shareholder of Simonga Farms Limited, Mike Arnold, has submitted to the Lusaka High Court that former Defence Permanent Secretary Stardy Mwale does not deserve any compensation as he has not only failed to settle the $530, 000 debt but also removed all assets and equipment from the farm.
This is a matter where Simonga Farms wants Mr Mwale to pay $530, 000 being balance for the purchase of the same farm located 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.
According to a witness statement, Mr Arnold who resides in Australia stated that around 2016/2017, Mr Mwale did buy subdivision of the farm 132a of about 800 hectares at a cost of US$800, 000.
However, in 2018, Mr Mwale expressed interest to buy the remaining extent of the farm which consisted of a viable poultry farm which had an estimated income of K400, 000.00 per month from the sale of the poultry produce and was a successful poultry layer operation for the past 32 years with contracts with Shoprite, Game Stores and other major supermarkets.
Mr Arnold stated that a purchase price of $550, 000 was agreed and the defendant also agreed to buy all the assets on the farm.
“The agreement was to the effect that 50 percent of the purchase (US$275, 000.00) was to come from a bank loan and the balance from other sources of the defendant,” he stated.
He stated that Mr Mwale assured them that he would pay the said amount and was already in talks with Cavmont Bank which had already agreed to give him the loan.
“Based on this assurance and at the defendant’s request, my wife and I agreed to allow the defendant to take possession and operations of the poultry farm section and we also allowed the defendant to be signatory on the plaintiff’s bank account FNB so that he could continue the business as we were relocating to Australia,” the witness stated.
But after taking over the farm, Mr Mwale begun to use the cash flow from the poultry section and other facilities on the farm including their homestead.
He said that to date, they have only made deductions from the farm account to the sum of $31, 000.
“Further ,the defendant has made no renovations to the farm and has instead contributed to its decline by removing all assets and equipment thereon, including but not limited to a tractor, chicken little trailer, boat, van, mower, Dyna truck, small diesel generator, plough, ripper, welding machine, air compressor and tractor driven grinding mill. He is therefore not entitled to any form of compensation,” Mr Arnold stated.
“In view of the above, it is my prayer that this honourable court grants me the reliefs as prayed for in the statement of claim,” he submitted.

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