Maravi

Supreme Court dismisses plunderes' attempt to smear filth on Fundanga

Supreme Court dismisses plunderes' attempt to smear filth on Fundanga
By Noel Sichalwe
Friday February 01, 2008 [03:00]

THE Supreme Court yesterday dismissed Access Financial Services Limited (AFSL) directors Aaron Chungu and Faustin Kabwe' application to cite Bank of Zambia governor Dr Caleb Fundanga for contempt of court. Chungu and Kabwe, who are also Access Leasing Limited directors and shareholders, applied that Dr Fundanga be committed to prison for disregarding a court order that nullified the compulsory liquidation of the two companies. High Court judge Japhet Banda granted an application to commit Dr Fundanga to prison for contempt of court.

Judge Banda said Chungu and Kabwe were at liberty to apply for an order to commit Dr Fundanga to prison for disregarding the judgment made on September 1, 2004 and the order made on September 3, 2004 that nullified the compulsory liquidation of AFSL and Access Leasing Company.

However, the Bank of Zambia Bank through its lawyers Mutembo Nchito and Nchima Nchito raised a preliminary issue on whether the motion for committal was legally tenable in the absence of specific actions that Dr Fundanga was obliged to have undertaken.

But judge Banda dismissed the preliminary issue with costs saying it lacked merit. The Bank of Zambia then appealed to the Supreme Court against the dismissal of the preliminary application.

Delivering the judgment yesterday, Chief Justice Ernest Sakala sitting with judges Christopher Mushabati and Lombe Chibesakunda upheld the appeal saying judge Banda could not allow Chungu and Kabwe to commence contempt proceedings against Dr Fundanga.

After the High Court placed AFSL and Access Leasing Limited under compulsory liquidation, Chungu and Kabwe contested the Bank of Zambia decision to liquidate their companies. However, the duo sought review of the High Court decision. While the review matter was pending in court, the Bank of Zambia sought to take over the AFSL and Access Leasing Limited assets. At this point, the duo applied to cite Dr Fundanga for contempt of court for attempting to interfere with their assets while the matter was pending in court.

Labels: CALEB FUNDANGA

posted by MrK @ 4:56 AM