Zambia v Meer Care & Desai (a firm) & Ors

Zambia v Meer Care & Desai (a firm) & Ors

The court found that senior Zambian officials (including the former President, intelligence chief, and finance officials) orchestrated a conspiracy to defraud the Republic of Zambia by diverting government funds through the Zamtrop account and other vehicles, with the assistance of professional advisers in the UK. The professional Defendants (Meer Care & Desai, Cave Malik & Co, and their partners) were found liable for dishonest assistance and conspiracy in respect of funds traced through their client accounts, having failed to make proper enquiries and acted dishonestly or with wilful blindness. The claims were not time-barred due to fraud and concealment. The court rejected arguments of...

Parties
Claimant: Attorney General of Zambia for and on behalf of the Republic of Zambia; First Defendant: Meer Care & Desai (a firm); Second Defendant: Cave Malik & Co; Fifth Defendant: Atan Shansonga; Defendants: Other Defendants (Dr Frederick Chiluba, Xavier Chungu, Stella Chibanda, Aaron Chungu, Bimal Thaker, Faustin Kabwe, Irene Kabwe, Francis Kaunda, Boutique Basile, Nebraska Services Ltd, MISSL Associates Ltd, Hearnville Estates Ltd, Jarban SA, Raphael Soriano, Belsquare Residence NV, Roland Cracco, Robert Standaert)
Jurisdiction
England and Wales
Judgment Date
04 May 2007
Procedural Posture
Civil Fraud/asset Recovery / Final Judgment After Full Trial
Outcome
Judgment for the Claimant. Defendants found liable for conspiracy, breach of fiduciary duty, dishonest assistance, and knowing receipt (as applicable).
Legal Topics
Conspiracy to Defraud, Breach of Fiduciary Duty, Dishonest Assistance, Knowing Receipt, Limitation of Actions, Vicarious Liability of Partnerships, Money Laundering, Tracing of Assets
Civil Fraud Asset Recovery Trusts and Fiduciary Law Partnership Law Conflict of Laws Conspiracy to Defraud Breach of Fiduciary Duty Dishonest Assistance +5 more

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Parties

Attorney General of Zambia for and on behalf of the Republic of Zambia

Claimant

Meer Care & Desai (a firm)

First Defendant

Cave Malik & Co

Second Defendant

Atan Shansonga

Fifth Defendant

Other Defendants (Dr Frederick Chiluba, Xavier Chungu, Stella Chibanda, Aaron Chungu, Bimal Thaker, Faustin Kabwe, Irene Kabwe, Francis Kaunda, Boutique Basile, Nebraska Services Ltd, MISSL Associates Ltd, Hearnville Estates Ltd, Jarban SA, Raphael Soriano, Belsquare Residence NV, Roland Cracco, Robert Standaert)

Defendants

Procedural Posture

Civil Fraud/asset Recovery / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether the Defendants participated in a conspiracy to defraud the Republic of Zambia by misappropriating government funds.
  2. 2 Whether the Defendants breached fiduciary duties owed to the Republic of Zambia.
  3. 3 Whether the Defendants (including professional firms and partners) dishonestly assisted or knowingly received misappropriated funds.

Ratio Decidendi

The court found that senior Zambian officials (including the former President, intelligence chief, and finance officials) orchestrated a conspiracy to defraud the Republic of Zambia by diverting government funds through the Zamtrop account and other vehicles, with the assistance of professional advisers in the UK. The professional Defendants (Meer Care & Desai, Cave Malik & Co, and their partners) were found liable for dishonest assistance and conspiracy in respect of funds traced through their client accounts, having failed to make proper enquiries and acted dishonestly or with wilful blindness. The claims were not time-barred due to fraud and concealment. The court rejected arguments of...

Court Disposition

Judgment for the Claimant. Defendants found liable for conspiracy, breach of fiduciary duty, dishonest assistance, and knowing receipt (as applicable).

Orders

  • Defendants to pay damages in amounts traced to misappropriated government funds, subject to credits for recoveries and realisations.
  • Injunctive relief and asset recovery orders to be determined.