Bank seeks K1.9bn from lawyer
Liquidated Finance Bank Malawi Limited has asked the Commercial Division of the High Court of Malawi to intervene in its K1.9 billion ($3,233,460) claim from its former liquidator, Khuze Kapeta.
As further relief, the bank wants the prominent private practice lawyer declared bankrupt if he fails to pay the amount within seven days from the date of the notice.
In a notice of bankruptcy published by the bank’s former lawyers, Likongwe & Company on November 23 2015, Kapeta has been given seven days to pay K1 991 043 450.45 ($3,388,400) plus interest at two percent above the commercial lending rate from July 15 2014 until the date of payment.
Private practice lawyer Justin Dzonzi, representing Kapeta, said in an interview on Tuesday that there were pending applications to be made to ensure that the due process of the law is followed.
He said: “These are legal proceedings so they are pending applications to be made, which for good reasons, we are not supposed to discuss in the papers. But my client is taking every necessary action to ensure that the due process of the law has been followed.”
Finance Bank Malawi Limited was closed by Reserve Bank of Malawi (RBM) in 2005 over concerns of serious breaches in banking and foreign currency regulations. However, the bank is back in Malawi trading as New Finance Bank.
According to the published bankruptcy notice, the payment is the amount due on a final judgement or order obtained by the judgement creditor (bank) against Kapeta (judgement debtor) in the court dated July 15 2014.
The matter dates back to the time Kapeta stepped down as liquidator of the bank on health grounds.
In December 2011, Kapeta said he had given out over K1.5 billion ($2,552,740) to depositors and/or claimants since his appointment as the bank’s liquidator. n
