FDH Bank Chief Executive Officer Thom Mpinganjira and Head of Credit Tiwonge Khonje could be arrested for disobeying court orders involving the payment of compensation for loss and damage amounting to K392 million to Maranatha Girls Academy Limited.
The two are accused of contempt of court for disregarding orders the court made.
The bank was ordered by the court to make the payment of K392 million as compensation for loss and damage arising from a breach of three months statutory notice by FDH Bank to Maranatha Girls Academy Limited.
The money had actually been trimmed from MK784 830 Million.
Maranatha Girls Academy Limited sought declarations on a matter regarding a notice of intention to sell the applicant’s property Title Number South Lunzu 7/45 (Maranatha Girls Academy Limited) advertised in the newspapers on September 17 2013, which the court found to be wrongful and flouting Section 68 of the Registered Land Act.
Initially, FDH had in a statement Maranatha based their case on loss of business.
“It should be noted that Maranatha Girls academy owes FDH Bank MK281, 820, 906. 47. This amount has been outstanding for several years and FDH has been trying to recover this money by selling the collateral that was given as security for this loan.
“However, when FDH advertised the property for sale, Maranatha Girls Academy claimed that the advertisement resulted in the loss of business. This was the basis for the claim under which the whole of this matter is based,”read the statement in part.
In April 2016, judge Kenyatta Nyirenda disclosed that the amount of compensation has been “trimmed to K392 million.”
Nyirenda pointed out that 50 percent of the amount should be paid “outright as FDH prepares appeal or any other subsequent action.”
Meanwhile, the two have been summoned to court next month.