Lake Oil denies entering into agreement with Lusambo

LAKE Oil Group of Companies Limited has denied entering into any verbal agreement with Bowman Lusambo who is demanding US$600, 000 being facilitation fees for its various investments.

The company described the claims by Mr Lusambo as malicious and has filed an application asking the Lusaka High Court to dismiss the matter for irregularities, abuse of court process, being scandalous and for failure to disclose a reasonable cause of action.

In this matter, the former Lusaka Province Minister in the Patriotic Front (PF) government sued the Oil Group in the High Court claiming damages for breach of the verbal contract.

He wants the High Court to order the oil company to pay damages for financial loss, pain and anguish he has suffered due to its failure to liquidate the amount in contention.

In a statement of claim filed into court, Mr Lusambo explained that sometime in 2017, he was approached by Lake Oil Group of Companies Limited’s agent Ramana Gompa, to facilitate the company’s investments in various businesses.

He said he agreed to do so through a verbal agreement with the company.

But in defence, Lake Oil Group contends that the claims were malicious and vexatious and only known by Mr Lusambo.

It states that it has never authorized the said Ramana Gompa to act as the companies’ agent whatsoever in relation to the alleged investment transactions or agreement.

“The defendant is not aware of the plaintiff’s verbal agreement and as such the claims there to are extremely strange,” it states.

The Group of Companies contend that during the said period of the verbal agreement Mr Lusambo was a provincial minister paid through tax payers’ money, as such could not take pecuniary interest or advantage of the companies.

It adds that the role of his office was to promote investments for the good of Zambia and not for his personal benefit.

In its application for dismissal of the action, Lake Oil Group of Companies Limited managing director Abdulaziz Ahmed Muhamed noted irregularities stating that statement of claim did not disclose the date and where the alleged verbal contract was entered.

Mr Muhamed also said the statement of claim or the list of witnesses did not disclose the other parties who witnessed the said verbal agreement as required.

Hearing of the application is set for April 18, 2023 before Judge Mutebi Bah-Matandala.