Chanza, BT city council sued for denying consenting transfer of ‘illegally sold prime plots’

Blantyre City Council (BCC) and its Chief Executive Director (CEO) Dr. Alfred Chanza have been dragged to court for declining to consent transfers of plots offensively sold to business tycoon Muhammed Ahmed, owner of Superior Halaal and Malawi Sun Limited.

The plots in question are part of the Council’s Engineering Yard that housed the Health Department’s Ginnery Corner Works Depot –Plot BE 176 and BE177 [Ginnery plots] and plots BC 1190 and BC 1189 in Mandala residential area in Blantyre.

BCC ex-CEO Emmanuel Ted Nandolo and Ahmed sued the current CEO in his personal capacity and the Council for withholding of the consent.

According to documents we have seen, the Ginnery Corner plots were improperly offered to Consumer Trading Limited whose main owners are Super Halaal and Malawi Sun Limited.

While Mandala plots—BC 1190 and BC 1189—were separately offered to Muhammed Ahmed, who was later known to be the owner of the Malawi Sun Limited. These plots were reserved for the construction of the Chief Executive Officer’s and Mayor’s houses.

Nyasa Times understands that plot BC 1190 was initially given to the Council’s former CEO Emmanuel Ted Nandolo, who later sold it to Ahmed at K65 million.

“The offer of plot to Mr Emmanuel Ted Nandolo was in line with the Council’s policies under the Home Ownership Scheme and Paragraph 18(b) of the Second Schedule of the Local Government Act. Mr Nandolo did not benefit from the Home Ownership Scheme of the Council and it was felt that the only way for him to benefit under the scheme was to offer him the plot that was reserved for the construction of the Chief Executive Officer’s house. However, management agreed to reserve the plot adjacent to Mr Nandolo’s plot for construction of the Mayor’s house.

“Management team members were surprised to hear that the plot reserved for the construction of the Mayor’s house too was offered to Mr Muhammed Ahmed of Malawi Sun without the involvement of the whole management team or the Legal Officer. The matter was further complicated when Mr Nandolo sold his plot to the same Muhammed Ahmed,” reads the document in part.

Chanza and his management became suspicious when Ahmed started pushing and pressing for the Council’s consent for transfer of BC 1190 from Nandolo to him (Ahmed). Ahmed wanted to use the K65 million plot to borrow K150 million from First Merchant Bank.

The Council then disapproved the disposal of Ginnery Corner plots on the premise that it was unreasonable to sell part of the Engineering Yard and leave the officers who were housed there without any proper place to do their work.

The Council also pointed out that it is against equity that one person should own the two big plots in a “prime area like Mandala when many are failing to own even one small plot in the City’s Traditional Housing Area”.

And its Special Finance Meeting held on April 19 2016 and attended by law makers Allan Ngumuya , Themba Mkandawire and the councilors, members made the following resolutions; that Consent for transfer of BC 1190 from Emmanuel Ted Nandolo to Muhammed Ahmed be not issued; Consent for Charge of Lease from Messrs Consumers Trading Limited to First Merchant Bank to secure a loan facility of K150 million be not issued and that the four plots in question i.ce BC1190, BC1189, BE776 and BE777 be withdrawn or re-entered.

But this apparently did not go down well with Muhammed Ahmed who is seeking legal redress.