Cashgate prisoner Lutepo sues Standard Bank of Malawi for ‘breach of contract’ over K663mil deal

Businessperson-cum-politician Osward Lutepo who is serving a prison sentence after being convicted as Cashgate convict has dragged Standard Bank of Malawi to High Court for breach of contract.

Lutepo, who was handed 11 years custodial sentence for money laundering and conspiracy to defraud government, is seeking damages from Standard Bank.

He sued  Standard Bank over a K633 million tender he won in 2013 AT Electricity Supply Corporation of Malawi (Escom)  through his Cashgate tainted  International Procurement Services (IPS) to supply line materials valued at K663 022 606 00.

Lutepo claims the bank approved his application in February 2013 to finance his contract through payments to be made by means of 30 percent cash and 70 percent through Letters of Credit arrangement.

However, in a statement of claim, Lutepo accuses the bank of failing to provide 70 percent Letter of Credit and that it did not finalise payment to his foreign suppliers forcing them to withhold the remaining part of the materials to deliver the remaining part of the goods to Escom.

Judge Micheal Mtambo has since adjourned the matter to June 22 and 23 2017 after lawyer Louis Ulaya asked the court that the bank’s attorney was not available as he was sitting for examinations.

Lutepo’s lawyer Nickson Masiku did not object to the adjournment.

The former People’s Party (PP) senior official was convicted on his own plea of guilty on charges of conspiracy to defraud government and money laundering of K4.7 billion between April and September 2013.

He had  a restitution of his Woget Industries valued at K370 million.