SUN PHARMACEUTICALS SAGA, continues, a detailed Article alleging serious misconduct by various individuals and accusing them of abuse of authority with the involvement of the Attorney General’s Chambers. The allegations stem from a lengthy legal battle that began with litigation initiated by the Development Bank of Zambia, later joined by the Government of Zambia, spanning from 1995 to 2007. SUN Pharmaceuticals ultimately prevailed in court, with a judgment in their favor. In September 2022, the Ministry of Justice confirmed the amount owed to the company under the High Court ruling as CHF 117,323,378.45.
The full Article follows below.
Sun Pharmaceuticals was engaged in litigation – initially brought by the Development Bank of Zambia and later joined by the Government of Zambia – from 1995 to 2007. In June 2007, after a public trial in the Ndola High Court, two appeals to the Supreme Court and a final determination by the Lusaka High Court (under the supervision of the Supreme Court), the matter was finally conclusively decided in Sun Pharmaceuticals’ favour.
On 27th September 2022, the Ministry of Justice wrote to Sun Pharmaceuticals Ltd, after an independent revalidation of the Judgment Debt outstanding balances, confirming the total sum due under the High Court Judgment as CHF 117,323,378.45 as of 31st August 2022.
Within 48 hours of receiving the letter, the company’s directors and their liaison have alleged in court documents that they were abducted in Lusaka and placed under duress in an attempt to make them sign documents relinquishing their interest in Sun Pharmaceutical Limited. The incident was reported to the police, who apprehended some of the abductors the following day but subsequently released them. In a letter dated February 27, 2023, addressed to the Inspector General of Police, the Sadhus’ legal representatives stated:
“Our clients instruct that it is evident from the interrogations they were subjected to while in captivity and the attempt to get them to sign a document under duress that the interrogators were acting on instructions from the Kalenga family who appear to have employed the State machinery for their own purposes vis to achieve what they failed to achieve in the civil actions against our clients before the High Court and Supreme Court.”
They also state, “We further understand from our clients that Rashid Munali threatened one of our clients – Vinod Sadhu in full view of the officer in charge at Chelstone Police station that he would “liquidate” him.”
In a separate letter to Chelstone Police Station, their lawyers stated:
“We further understand that the next morning as they were waiting at the reception area after being released from incarceration, Bernard Phiri who we understand was an off-duty police officer from Sesheke Police was brought back to the station to pressure our clients to settle the matter with the Kalenga family. We understand that Bernard Phiri was later joined by Munali Rashid, Malambo and another officer.”
“Our instructions are in the premises to inquire from you the status of the matter which resulted in Rashid and Malambo being detained in police custody. Note that our clients are complainants in the said matter arising from their abduction.”
Subsequently, after various follow-ups with the authorities, Sadhus and their liaison participated in extensive interviews and recorded their statements at Police Service Headquarters in Lusaka on 27th March and 4th April 2023. The trial in their civil claim for their abduction commences in October 2024.
Despite the decisions of the High Court, Court of Appeal, and Supreme Court upholding the Sadhus as the rightful owners of the Company, the Kalengas and their associates continue to run a campaign to defame Sun Pharmaceuticals and its owners, the Sadhus. This campaign serves as a tool to obscure the intense and unlawful pressure placed on the Company, such as through the abuse of illegal restriction notices and the improper use of the courts, to force it to give up the benefits of the judgment. These actions are being carried out by people with close connections to the state machinery, who have no rightful claim to the judgment.
After the abduction did not succeed, Sun Pharmaceuticals Ltd was the target of another instance of misuse of state machinery to unlawfully change the company’s shareholder records at PACRA, Zambia’s corporate registry, in an attempt to undermine the Judicial Rulings. PACRA, the custodian of company records, at the instigation of the Kalengas proxies, would demand that the company produce documents extending back 61 years before independence, which was deemed unlawful by the company lawyers. Officers allegedly involved in the abduction were equally involved in misusing their authority in this instance, though they failed to alter the share register as sought by the Kalengas.
Meanwhile, the Company had written to the Ministry of Justice on 25th January 2023, demanding payment of the Judgment Debt, to which the Permanent Secretary of the Ministry of Justice replied on 7th February 2023:
“Please note that we received guidance from the Anti-Corruption Commission to remit all scheduled payments in this matter to an Escrow Account pending the conclusion of their investigations. Accordingly, we await further guidance from the Anti-Corruption Commission.”
In response, Mr. Vinod Sadhu, writing for Sun Pharmaceuticals, addressed the Attorney General of Zambia on February 22, 2023, stating:
“We have consulted our legal counsel in this matter and have been advised that since the debt herein arises from a Judgment of the High Court, the Anti-Corruption Commission has no power to stop payment of the Judgment debt as only the High Court itself can stay execution of its Judgment.
The directive from the Anti-Corruption Commission to the Ministry of Justice to remit all scheduled payments in this matter to an Escrow Account is therefore illegal and as the Anti-Corruption Commission has no such powers under the Anti-Corruption Commission Act.
We therefore shall be grateful for your intervention in this matter as clearly the Anti-Corruption Commission is engaging in lawlessness which your office as Chief Legal Advisor of the Government should not condone if you are to uphold the Rule of Law in Zambia.
We shall be grateful for your urgent attention to this matter”
Thereafter, Simeza Sangwa and Associates continued to pursue the Attorney General’s Chambers and the Anti-Corruption Commission to ensure compliance with the court judgment. Following numerous follow-ups and correspondence, the Anti-Corruption ommission rescinded its illegal directive to the Ministry of Justice on 24th November 2023.
Lewis Mosho is not always successful, and the flame of justice still burns in some Zambian courts.
More recently, Kalenga’s recruited the infamous Lewis Mosho, who, in his usual fashion, employed the tact of obtaining ex-parte orders appointing Provisional Liquidators to take over the company. This he did, along with Bwalya Sampa Legal practitioners, by an action at Ndola in which Tresphord Kabanga was appointed Provisional Liquidator, followed by a consent order, with no knowledge to the Company directors or shareholders. The Company only came to learn about the ex parte orders through their own sources and after discovering a letter from Keith Mweemba Advocates, purporting to represent Sun Pharmaceuticals Ltd, addressed to Attorney General Chambers demanding that payment of the Judgment debt due to Sun Pharmaceuticals be paid to Keith Mweemba’s account held with First National Bank, Manda Hill Branch.
Quick action by Sun Pharmaceuticals’ Lawyers, Messrs Simeza, Sangwa & Associates, saved the company as the order was stayed.
Lewis Mosho and group, unrelenting, moved to the Livingstone High Court alongside Bernard Kang’omge Associates, where he again obtained an ex-parte order appointing the Administrator General as Interim Business Rescue Administrator. This order, too, would not be served on directors or shareholders of Sun Pharmaceuticals Limited but was served on the Administrator General, Attorney General, Solicitor General, Permanent Secretary Ministry of Justice, Inspector General of Police, Commissioner CID Police and Accountant General, Ministry of Finance, to facilitate the diversion of the compensation fund payments away from the actual beneficiaries.
The intention was to have the same Tresphord Kabanga whose appointment as provisional liquidator had been stayed, now appointed Business Rescue Administrator via a default Judgment, but again, upon learning of the litigation through its sources, quick action by Simeza, Sangwa & Associates acting for Sun Pharmaceuticals rescued the company from Lewis Mosho days before default Judgment was to be entered.
Sadly, the Attorney General’s chambers appear to have been recruited in this saga, as they were at the centre of the appointment of the Administrator General, through whom the monies due to Sun Pharmaceuticals from the Ministry of Finance were to be channelled and then diverted elsewhere.
Earlier, on 15th March 2024, following one of the ex-parte orders obtained by Lewis Mosho, Keith Mweemba Advocates wrote to the Ministry of Justice and the Inspector General of Police, asking them to pay the Judgment debt due to Sun Pharmaceuticals to Keith Mweemba’s bank accounts at First National Bank, Manda Hill, and not Sun Pharmaceuticals.
At the time Keith Mweemba wrote the letter to the Ministry of Justice, the Zambia Police Service had unlawfully blocked any payments of the said Judgment sum on the grounds that they were still investigating the matter.
Shortly after Keith Mweemba Advocates demanded, the Ministry of Justice received a letter on 18th March 2024 (purportedly dated 11th March) in which the Police Commissioner Yuyi Mwale suddenly lifted the restriction on paying out the funds belonging to Sun Pharmaceuticals.
These orchestrated actions, with tight coordination and timing between police officers and the Ministry of Justice, have linked a senior officer in the Attorney General’s chambers with the Lewis Mosho and Kalenga group to divert the compensation fund payments due to Sun Pharmaceuticals to Keith Mweemba’s account.
Justice M.M Wina, in her ruling 2024/HL/29 dated 23rd July 2024, discharging the Exparte Order granted in April 2024, ruled:
“For the avoidance of doubt, having ruled that this matter is indeed statute-barred, the Ex Parte Order granted by the Court on 16th April 2024 appointing the Administrator General of the Republic of Zambia the Official Receiver as Interim Business Rescue Administrator is hereby discharged and this matter is therefore dismissed for being statute barred.”
Following the dismissal of the case by the High Court at Livingstone, Sun Pharmaceuticals Ltd have demanded a full account of all actions taken, monies received or paid out in the name of Sun Pharmaceuticals Limited during the period when Lewis Mosho’s ex parte order appointing the Administrator General as Interim Administrator was in place. The company has demanded that the Administrator General render an account to include all receipts and payments made and where funds have been disbursed, at whose instance.
Simeza Sangwa Associates further wrote to the Permanent Sectary, Ministry of Justice, on 22nd August 2024, asking for a detailed statement showing funds paid out to an escrow account and other payments made under the Judgment.
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Disclaimer: The contents of this article are based on the statements and allegations provided by correspondent Pranab Rajan, Lusaka Times does not assume responsibility for the claims made and does not vouch for their accuracy. For any responses or rebuttals, please contact us at [email protected] or [email protected].