Savenda boss arrest leads to US$3m deal cancellation

A US$3 million project that would have seen the construction of an ultra-modern the Zambia Fresh Market has been halted following the restriction and freezing of Savenda Group of Companies accounts.

Savenda may therefore lose $3million dollars in investment commitment and pledges following the actions by the ACC to arrest Savenda Group of Companies director and chief executive officer Clever Mpoha.

The arrest and freezing of the accounts which was highly publicized and circulated to the local and international public by the Commission led to the cancellation of a US$3 million contract.

And Mr Mpoha, through his lawyers has demanded for the lifting of restriction notice on Savenda Systems Limited Bank Account to allow smooth running of the company and .

This resulted in Infra Africa, which is part of the private infrastructure development group “PIDG,” to cancel Agreement with Savenda for the construction of the Zambia Fresh Market.

In a letter addressed to the ACC Board Chairperson, dated October 10, 2022, lawyer to Mr Mpoha, Sakwiba Sikota stated that the actions by the Commission impinge the Constitutional rights and guarantees of his client especially Articles 18 and 20, whose consequences are grave.

“We are taken aback by the States unconstitutional actions, despite professing the Rule of Law. The Commission is instead unlawfully and excessively using the letter of the Law to violate our Client’s constitutional rights to appear before a duly constituted court and have his case duly tried and defend himself,” read part of the letter.

He said the restriction of Bank accounts of Savenda Systems Limited, a company in which his client has an interest, is in contravention of Mr Mpoha’s rights to be well informed of the charges to which the offence he is facing relates, so he can give a reasonable explanation as is required by the Law and eventually prepare his defence.

Mr Sikota advised that functionaries of the government cannot abuse and disregard the Law during investigations, because they are still constitutionally bound to observe and abide by the Constitution.

“This emanates from the fact that the Commission already has adequate powers to ensure that property which is subject of an investigation is not dissipated, without resorting to excessive action and unconstitutional means of obtaining information during an investigation,” he stated.

Mr Sikota further stated that the actions taken by the Commission to arrest Mr Mpoha, publishing the arrest and later not attending Court, and the resultant cancellation of the Agreement to construct the Lusaka Fresh Market, all impinge on the constitutional rights and guarantees.

He said ACC should be pragmatic and magnanimous in considering the matter, taking into account that the subject account is held and operated by Savenda Systems Limited and not an account maintained and operated solely by Mr Mpoha, the minority shareholder.

Mr Sikota urged the commission to lift the restriction notice, or alternatively, vary the restriction notice in a manner that allows corporate operations to continue.