Sheriffs seize Mkweza's Gam Filling Station in Kanengo, sell it to Simama

Malawi: Sheriffs in Lilongwe seized Gam Filling Station in Kanengo and later sold the service station to Simama Group of Companies, writes Watipaso Mzungu.

Gerson Mkweza, Chairman of Gam Investments and Fuels Limited, confirmed the development in an interview, saying it stems from his company's failure to settle K747 million in legal fees due to a misunderstanding with Masters Boreholes Drilling Company.

According to documents from Malawi's High Court, Masters Boreholes Drilling Company was awarded the money after Mkweza snatched the keys to a drilling machine, causing Masters Boreholes Drilling Company Managing Director Alfred Gangata to lose business because the machine could not function.

Mkweza stated that he took the keys because Masters Boreholes Drilling Company failed to pay K1, 550, 000.00 for fuel he took on credit.

He was perplexed as to how the sheriffs could sell his K2.5 billion property for K610 million to Simama Group of Companies. He claimed that his home was not for sale.

He said: “ “The Director of Masters Drilling Company, which is a subsidiary of Masters Group of Companies Alfred Gangata, borrowed K1.5 million worth of fuel, which he failed to pay, despite being reminded from time to time. Later, I snatched the keys for a drilling machine so that they could pay, but realized later that the machine continued to be used.

“I was surprised that Masters Drilling took the matter to court because of claims that it lost business yet the machine was in use.”

High Court judge Ken Manda ruled in his phased determination that Gam Investments and Fuels Limited must pay K747 million to Masters Boreholes Drilling Company for loss of business.

In a separate interview, Gangata stated that his company lost business as a result of Mkweza's refusal to release the keys.

“My company was not to blame because the court ruled on the basis that Mkweza admitted to holding on to the keys,” he said.

When we called to confirm the story, no one from the Simama Group of Companies answered.

Mkweza, on the other hand, was perplexed as to why and how the sheriffs were able to quickly identify Simama Holdings, which had been offering to buy the property through other people, as the successful bidder of his property.

“The deal smacks of corruption. I mean: how long did the sheriffs advertise the property and how did Simama Group of Companies come to know that my property is on sale by the sheriffs? I can smell some underhand dealings in this whole issue,” he said.