Sheriffs in Lilongwe have confiscated Gam Filling Station at Kanengo in Lilongwe and have since sold the service station to Simama Group of Companies.
Chairman for Gam Investments and Fuels Limited, Gerson Mkweza, confirmed the development in an interview on Friday, saying this follows his company’s failure to settle K747 million legal fees in a misunderstanding they had with Masters Boreholes Drilling Company.
Documents from the High Court of Malawi indicate that Masters Boreholes Drilling Company was awarded the money after Mkweza snatched a drilling machine’s keys, which Masters Boreholes Drilling Company Managing Director Alfred Gangata said resulted in loss of business as the machine could not function.
In his own words, Mkweza said he snatched the keys because Masters Boreholes Drilling Company failed to pay K1, 550, 000.00 for fuel he took on credit.
He wondered why the sheriffs could sell his K2.5 billion worth of property at K610 million to Simama Group of Companies. He argued that his property was not on sale.
“The Director of Masters Drilling Company, which is a subsidiary of Masters Group of Companies Alfred Gangata, borrowed K1.5 million worth of fuel, which he failed to pay, despite being reminded from time to time. Later, I snatched the keys for a drilling machine so that they could pay, but realized later that the machine continued to be used.
“I was surprised that Masters Drilling took the matter to court because of claims that it lost business yet the machine was in use,” lamented Mkweza.
In his phased determination, High Court judge Ken Manda ruled that Gam Investments and Fuels Limited should pay K747 million to Masters Boreholes Drilling Company for loss of business.
In a separate interview, Gangata maintained that his company lost business due to the withholding of the keys by Mkweza.
“My company was not to blame because the court ruled on the basis that Mkweza admitted to holding on to the keys,” he said.
Officials from Simama Group of Companies did not pick our calls when we wanted to verify the story.
But Mkweza wondered why and how the sheriffs could quickly identify Simama Holdings, which has been offering to buy the property through other people, as the successful bidder of his property.
“The deal smacks of corruption. I mean: how long did the sheriffs advertise the property and how did Simama Group of Companies come to know that my property is on sale by the sheriffs? I can smell some underhand dealings in this whole issue,” he said.Follow and Subscribe Nyasa TV :