Chihana loses katapila case, court orders sale of 2 vehicles

The High Court in Lilongwe has ruled that a katapila (usury) man whom Alliance for Democracy (Aford) president took K5 million in back-street loan arrangement must get the Aford leader’s two vehicles and sale them.

In a ruling read by the registrar of Commercial Court Anne Zungulira on Thursday in Lilongwe, the court ordered that the two vehicles; a Land Rover Discovery registration number RU 779 and a BMW RU 741 be surrendered to the katapila man for sale because Chihana failed to pay back the agreed amount of money at an interest of 100 per cent which means he had to pay back the katapila man K10 million.

According to High Court Lilongwe registry documents, Chihana took K5 million from E.Kabuli in March, 2020 and agreed to pay back K10, 125, 000 in katapila loan arrangement at the rate of 102.5 per cent interest to be paid within 20 days.

He pledged his two vehicles; a BMW registration number RU 740 and Land Rover Discovery registration number RU 7799.

Chihana serviced the katapila loan and paid as follows; paid K2 million on April 16, 2020, K1 million on April 30, 2020, K1.6 million on April 15, 2020 amounting to K4.6 million.

“That following this the claimant agreed to discharge one of the vehicles I had put as security namely BMW RU 740 as the other vehicle that was left with him Land Rover Discovery RU 7799 was more valuable than the balance of the money ie MK5,528,000.

“That I was out of the country I could not manage to settle the balance within the agreed time,” says Chihana in a sworn affidavit.

Chihana says he surrendered the Land Rover Discovery so that Kabuli could sell it, saying the value of the vehicle was K20 million.

He said Kabuli obtained a court to sell the Land Rover Discovery to which Chihana did not contest, knowing that the katapila man would get more than the K5.5 million balance.

“That I was thus shocked when the sheriffs of Malawi seized my vehicle BMW registration number RU 740 that I had duly redeemed when I paid the sum of MK4,600,000.

“That I was surprised because as far I know the claimant’s claim as pleaded in this action was duly satisfied with him getting the order to sell the Land Rover Discovery RU 7799 that he expressly and specifically prayed to this court and is this action,” he says.

He then asked the court to pend the seizure and the sale of the vehicle.

In an interview this week, Chihana said party parliamentary candidates in the May 21, 2019 poll took the katapila to pay for their nomination fees to MEC.

However, the dates do not correspond and the candidates have vehemently refuted this claim.