Joyce Banda, Mudzi Transformation Trust sued for K214M: South Africa company claims non-payment of supplies

Former president Joyce Banda has been dragged to court  for allegedly failing to pay about K214 million for materials  supplied by South Africa-based Engelec International Limited (EIL)  to the Mudzi Transformation Trust, an initiative of  Banda.

The company is demanding payment for materials, including iron sheets, in the Mudzi Transformation Trust project.

In civil case number 1428 of 2015 between EIL and registered trustees of Mudzi Transformation Trust fund as first defendant  and Banda as second defendant , the court directs that the company should be paid about K20 million as part payment to their claim.

Court records indicate this was agreed between lawyer of Banda, Lusungu Gondwe and the company that a K20 million part payment would be  made by January 31 2018 but it has not yet been processed to date.

Gondwe said the former president “should not be associated with the money”, saying it is the trustees that owes the company.

The South African company hired Powell Nkutabasa as their lawyer, who said Banda and the trustees owe EIL “over K600 million.”

Nkhutabasa said the K20 million is part payment but up to date has not been paid.

He said they have given Banda “a grace period” to pay K20 million , saying “procedures [will] have to be followed for non payment.”

The five-year project, which started in 2013, sought to build houses for vulnerable people with a target of 20 000 villages nationwide. However, just over 500 houses were built at the end of Banda’s term in May 2014.

Mudzi Transformation Trust was established through the Trustee Incorporation Act in 2013 but it has remained inactive since Banda went out of government in June 2014.

Banda launched the initiative in May 2013 at Nthoso Village, Traditional Authority Khongoni in Lilongwe.