State demands K8 billion from Mulli

Attorney-General Thabo Chakaka Nyirenda wants to recover an amount which he has pegged at about K8 billion from National Bus Services Limited, which is owned by businessperson Leston Mulli.. After yesterday’ s court session, the AG told journalists in Lilongwe that councils have come up with an assessment which details that about K8 billion was never…

Attorney-General (AG) Thabo Chakaka Nyirenda wants to recover an amount which he has pegged at about K8 billion from National Bus Services (NBS) Limited, which is owned by businessperson Leston Mulli.

According to the AG, the money is from rentals, depot fees and lodge payments realised during the period NBS was operating the assets which were until 2008 being managed by formerly State-owned Shire Bus Lines (SBL).

The High Court’s Financial and Economic Crimes Division is hearing the bus depots repossession case where Mulli is being accused of illegally acquiring SBL.

NBS argues there was nothing fraudulent in how it got rights to manage the assets.

But Nyirenda insists that in the civil matter which he is pursuing, the State wants to recover resources which were never accounted for during the period the business magnate was managing the assets.

After yesterday’s court session, the AG told journalists in Lilongwe that councils have come up with an assessment which details that about K8 billion was never accounted for during the time NBS was managing the assets.

“The bus depots and the workshops were in the hands of National Bus Services Limited since December 2008, and overtime, they were collecting rentals. They were also using those premises. Those rentals that they were collecting from bus depots including user fees and monthly fees from bus companies were never accounted for. So they have to be accounted for and recovered.

“The other thing we are looking for is that, since 2008 National Bus Services Limited has been occupying these premises and they have not been paying rentals at all, so we are looking for rentals from 2008,” Nyirenda said.

He added that government is also looking at interests accumulated since 2008.

“So this is the amount we are looking for, from the rentals collected, user fees that were collected and also rentals from Mzimba bus depots; there are shops there and people were paying rentals,” the AG said.

Nyirenda added that the bus depots were supposed to be improved, but that there were no such measures by NBS.

He further said there is also a lodge in Blantyre and that government is looking at recovering the money paid by customers at the lodge because the money was allegedly never accounted for too.

“The facilities involved are Makata Workshops, Malangalanga Bus Station, Mzuzu Workshops, Blantyre Wenela Bus Depot, there is a lodge there, and Mzimba Bus Depot,” Nyirenda said.

Meanwhile, a witness paraded by the State yesterday, a liquidator by the name Hastings Bafomo Nyirenda, told the court that he never transferred the assets to NBS and that he never gave a repossession rights to the company.

“Whatever happened there was unlawful and it happened because of political influence at the time. I can comfortably say that what happened constitutes theft,” Nyirenda alleged.

But in an interview later, lawyer representing NBS, John Kalampa, said the company was given repossession rights by one of the shareholders.

“We do not agree that the assets were repossessed illegally because National Bus Services Limited was actually permitted by the Privatisation Commission to operate and manage these depots,” Kalanga said.

Meanwhile, the matter has been adjourned to a later date in June or July, depending on the AG’s availability.

On July 28, 2022, High Court judge Mandala Mambulasa ruled that NBS be dispossessed of the five depots and ordered local councils to take ownership of the structures.