Mohammed Enterprises Tanzania Limited (METL) has applied for a court order to stop the PF government from repossessing the textile plant which was leased to them by then minister of defence President Edgar Lungu.
During his campaigns for the PF presidency after the demise of President Sata, Lungu fraudulently caused the signing of a ten year lease agreement with METL. Lungu further obtained huge sums of money to fund his campaigns from the Tanzanian businessman of Asian origin who has since turned the factory into a distribution point for imported fertiliser, detergents and other things.
Fearing the mounting pressure from Kabwe people who were cheated that the factory would be employed and asked them to submit applications, the government recently attempted to grab the factory back but METL has gone to the High court to block the government take over.
A METL insider has disclosed to the Watchdog that Lungu vowed to the company that there would be no cancellation of the lease and that he was aware that the company would not right away begin textile operations. He said that it was Lungu who even helped in some ‘soft’ terms in the lease which he now wants terminated. The insider further threatened to disclose the whole role that President Lungu played in the fraudulent lease.
And State house aide for projects monitoring and implementation Lucky Mulusa, who first exposed the fertiliser and detergents dealing scam confirmed that the textile plant was given to the Tanzanians almost for nothing. The matter is expected to be heard in the Lusaka high court before a Judge yet to be named.