By LUCY PHIRI
A WITNESS has told the Lusaka magistrate court that he was engaged by Konkola Copper Mines liquidator, Milingo Lungu, to undertake legal instructions relating to the discharge of a mortgage and subsequent purchase of Plot 7394 in Lusaka.
Mr Zachariah Muya of Muya and Company narrated in court yesterday how he was engaged by Lungu to undertake legal institutions relating to the discharge of mortgage and subsequent purchase of plot 7394 in Lusaka.
Mr Muya of Kasenshi, Ndola said on April 13, 2020, the law firm was engaged by Lungu on instructions relating to the discharge of the mortgage and subsequent purchase of the plot.
He explained that there were two clauses in the mortgage agreement which included the mortgage to be undertaken and fees to be paid.
He also told the court that according to a letter of agreement, Lungu had complained that the proposed six percent interest rate was too high but that he was willing to pay a negotiated amount because he was expecting funds from his engagement with KCM.
“There are two clauses in the agreement, instructions to be undertaken and the fees we are to be paid. Instructions were to negotiate and discharge equitable mortgage with Mwambazi Financial Services and someone from the financial services kept calling the firm asking when the money would be paid,” Mr Muya said.
He said the firm later received some money on June 19, 2020, and it was Lungu who called them that he had sent the money into their account “Muya and Company.”
“We confirmed having received K4.4 million from Mr Lungu and we were instructed to pay K3.5 million to Mwambazi Financial Services Company through ABSA Bank,” Mr Muya said.
Also, K500, 000 cash and the balance was paid to Mr Milingo and a lady from Mwambazi Financial Services.
Mr Muya said after discharging the mortgage they were about to go to the next stage of drawing up the agreement and changing of title deeds but it was then they started receiving queries from the Drug Enforcement Commission (DEC) that there were issues concerning the money used to buy the property.
Another witness, Lute Buumba, 45, of Nyumbayanga in Lusaka, a managing director and shareholder at Mwambazi Financial Services Limited informed the court that she was Lungu’s relative.
She said that she was related to the accused through marriage as he is her husband’s cousin.
Ms Buumba narrated that in May 2020, Lungu went to her house for a casual visit and her husband explained the financial challenges their company was facing to him.
Ms Buumba said they explained to him how they had written to the labour office and declared their employees redundant.
She said Lungu agreed to invest in a money lending business into Mwambazi Financial Services and they also discussed signing a contract where it was agreed that Lungu drafts the contract, and while the contract was being drafted, transactions were commenced.
Ms Buumba said the contract Lungu was drafting involved dealing with mortgage loans and that the interest would be agreed upon, and that the loans were to be attached to landed properties and nothing else.
“Lungu was provided with bank details where to send the money and on June 2, 2020, the first transaction was made with a transfer of K3.2 million from Lungu and this loan went to five individuals among them Perpetual Musenje, who all got K640, 000 each and these people had the same surname,” she said.
Ms Buumba said instructions were also given on whom to pay but reasons for the payments were not given. And Lungu told her that paper work relating to collateral was already done.
She also said on June 23, 2020, a transfer of K3.5 million came through into Mwambazi Financial Services account and Lungu told her to keep the money which was to be paid to some client. The witness said the money came from Muya and Company.
Ms Buumba said on June 25, 2020, she received a phone message alert with the first indicating receipt of K2, 480, 400 and the second showing that she received K520, 000. She said the following day, K400, 000 was remitted into the account bringing the total to K6, 480,400.
“I was instructed by Lungu that this was a mortgage loan and dollar equivalent of U$350, 000 to be paid to Regis M Phiri of Makeni farm number 45D. I later instructed the bank to transfer the same amount to a Zanaco account I believed belonged to Regis Phiri,” Ms Buumba said.
The final transaction was made to Gilbert Banda on August 11, 2020, to the amount of K1 million which came from Lungu.
Ms Buumba said after the last part, Mwambazi Financial Services was waiting for payments from Lungu for the services rendered and possibly see the draft contract between the company and the accused.
She however said that this never happened and that is how the story ended.
Ms Buumba also narrated that there was no property recorded as collateral from the time the company was incorporated and she also denied knowing anything regarding plot number 7394 in Lusaka.
She also said she was unaware of the K520, 000 allegedly paid to her company at the instruction of Lungu. She denied being in the same bank with Mr Muya, a lawyer, to collect money.
Ms Buumba also denied having received K156, 000 from Lungu which was claimed to have been deposited into her company’s account.
The matter is coming up on January 10, 11 and 12, 2022 for continuation of trial and police bond has been extended.
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