8 December 2012

Zambia: MMD in K90 Million Debt

THE opposition MMD is facing a more than K90 million law suit for failure to refurbish its former headquarters at the National Pension Scheme Authority (NAPSA) building in Lusaka.

The party has been given a seven-day ultimatum in which to settle the outstanding amount.

NAPSA has pegged K90,629,994.96 for repair works at Lusaka House.

This is contained in a letter signed by NAPSA Legal Secretary Mutinta Mulonda, dated December 6, 2012, obtained by the Times in Lusaka yesterday.

"Following the conversation this afternoon between your Ms Sue Clayton and the undersigned, we would like to re-confirm our instructions for issuance of litigation against the MMD for the recovery of the sum of K90,629,994.96 for repair works at Lusaka House as soon as possible," Ms Mulonda stated in the letter addressed to the company lawyers.

And in correspondence from the NAPSA lawyers to the MMD legal representatives, Messrs SBN Legal Practitioners, and copied to the NAPSA legal secretary, the law firm stated that "our client advises us that your client has failed to carry out any refurbishment of the Lusaka House property as agreed or to make any payment to enable our client to undertake the works.

"We have been instructed to demand payment of K90 million to our client within 7 days from the date hereof failure to which we shall institute legal proceedings to recover the same plus interest at the Bank of Zambia lending rate. It is our desire to see this matter settled ex curia," the letter reads.

The MMD occupied Lusaka House during the time it was in power but relocated to Rhodes Park afterwards.

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