BLANTYRE-(MaraviPost)-President Lazarus Chakwera’s Malawi Congress Party (MCP)’s investment firm Kokoliko Holdings Limited was mortified after the court ruled in favour of Bina M.W.Kakusa who dragged Kokoliko to court over MK3.1m unpaid guest wing rentals.
The High court of Malawi judge, Charlotte Wezi Mesikano Malonda passed the judgment following a lawsuit dated June 14, 2021 against Kokoliko Holdings for unpaid rentals.
According to reports, the firm signed agreement with the owner of the property to use the property from December 1, 2020 to June 30, 2021 with subject to renewal.
It is reported that just few months after occupying the facility that was hosting MCP Members of Parliament (MPs) and officials when are in Lilongwe for leisure and recess, Kokoliko abandoned the house without notice to the Landlord.
However, after being dragged to court the firm was given up to 16th April 2021 to file and serve a defence which Kokoliko reportedly failed to do so in the specified time given by the court. The firm also did not show up at the court and did not submit any statements against the claims made by Kakusa family, the owner of the property.
According to the summon dated 5th May 2021, Kokoliko is supposed to pay rental arrears of MK3,150,000, accrued interest of MK315,142.00 ; interest at commercial bank lending rate of 24.4% per annum and collection charges of MK233,954.00 and cost of action.
In the ruling, the High court of Malawi stated that Kokoliko Holdings Limited denied the claims made by Kakusa family but their arguments were not based on facts which made their defence “empty and malnourished”
The court consequently ruled in favor of the claimant, Bina M.W.Kakusa with cost.
It also ordered the assessment to be done by the assistant registrar following the summery Judgement.
Kokoliko Holdings Limited lawyer Gift Nankhuni told The Maravi Post that his client will pay rentals.
The Maravi Post understands that Kokoliko guest wing whose Director is MCP information technology (IT) specialist Daud Suleman utilities have been disconnected due to unpaid bills.
But no single amount of rentals has been paid to the landlord including unpaid electricity, water bills and guards salaries.
The lawsuit for unpaid rentals comes after Kokoliko early this year secured funding worth US$50 million (MK39 billion) and expect another MK39 billion to be raised to be invested for its 28 projects in various sectors to spur economic development.
Human Rights Defenders Coalition (HRDC) is on record alleging that “some political heavy weights are part of bankrolling Kokoliliko Holdings Ltd to be the main vehicle for siphoning taxpayers money through dubious tenders as demonstrated in this case.”
This is shameful and heartless for MCP firm failing to pay such little amount of money for rentals and guards when Kokoliko enjoys lucrative contracts including farm inputs from Tonse government.