Zambia v Meer Care & Desai (a firm) & Ors [2007] EWHC 952_2 (Ch) (04 May 2007)

Zambia v Meer Care & Desai (a firm) & Ors [2007] EWHC 952_2 (Ch) (04 May 2007)

The Defendants, through conspiracies and breaches of fiduciary duty, misappropriated substantial Zambian government funds. Participating Defendants (except certain partners) dishonestly assisted or conspired in the misappropriation. Liability attaches to those who received, assisted, or facilitated the diversion of funds, with headline figures established for each Defendant. Procedural objections by Zambian-based Defendants were rejected as unfounded.

Citation
[2007] EWHC 952_2 (Ch)
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; Third Defendant: Dr Frederick Jacob Titus Chiluba; Fourth Defendant: Xavier Franklin Chungu; Fifth Defendant: Atan Shansonga; Sixth Defendant: Ms Stella Chibanda; Seventh Defendant: Aaron Chungu; Eighth Defendant: Bimal Thaker; Ninth Defendant: Faustin Kabwe; Tenth Defendant: Irene Kabwe; Eleventh Defendant: Francis Kaunda; Twelfth Defendant: Antonino Basile (Boutique Basile); Thirteenth Defendant: Nebraska Services Limited; Fourteenth Defendant: M.I.S.S.L. Associates Limited; Fifteenth Defendant: Hearnville Estates Limited; Sixteenth Defendant: Jarban SA; Seventeenth Defendant: Raphael Soriano (aka Katebe Katoto/Emmanuel Katto); Eighteenth Defendant: Belsquare Residence N.V.
Jurisdiction
England and Wales
Judgment Date
04 May 2007
Procedural Posture
Civil Fraud and Breach of Fiduciary Duty / Post Trial Judgment (executive Summary)
Outcome
Judgment for the Claimant in substantial part; headline liability figures established against most Defendants; some claims dismissed.
Legal Topics
Conspiracy to Defraud, Dishonest Assistance, Knowing Receipt, Breach of Fiduciary Duty, Tracing of Misappropriated Funds, Jurisdiction and Procedural Fairness
Civil Fraud Trusts and Fiduciary Law Company Law Conspiracy to Defraud Dishonest Assistance Knowing Receipt Breach of Fiduciary Duty Tracing of Misappropriated Funds +1 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

Dr Frederick Jacob Titus Chiluba

Third Defendant

Xavier Franklin Chungu

Fourth Defendant

Atan Shansonga

Fifth Defendant

Ms Stella Chibanda

Sixth Defendant

Aaron Chungu

Seventh Defendant

Bimal Thaker

Eighth Defendant

Faustin Kabwe

Ninth Defendant

Irene Kabwe

Tenth Defendant

Francis Kaunda

Eleventh Defendant

Antonino Basile (Boutique Basile)

Twelfth Defendant

Nebraska Services Limited

Thirteenth Defendant

M.I.S.S.L. Associates Limited

Fourteenth Defendant

Hearnville Estates Limited

Fifteenth Defendant

Jarban SA

Sixteenth Defendant

Raphael Soriano (aka Katebe Katoto/Emmanuel Katto)

Seventeenth Defendant

Belsquare Residence N.V.

Eighteenth Defendant

Procedural Posture

Civil Fraud and Breach of Fiduciary Duty / Post Trial Judgment (executive Summary)

Legal Issues

  1. 1 Whether the Defendants conspired to misappropriate Zambian government funds via the Zamtrop Account and other vehicles
  2. 2 Whether Defendants breached fiduciary duties or dishonestly assisted such breaches
  3. 3 Whether Defendants are liable for knowing receipt of misappropriated funds

Ratio Decidendi

The Defendants, through conspiracies and breaches of fiduciary duty, misappropriated substantial Zambian government funds. Participating Defendants (except certain partners) dishonestly assisted or conspired in the misappropriation. Liability attaches to those who received, assisted, or facilitated the diversion of funds, with headline figures established for each Defendant. Procedural objections by Zambian-based Defendants were rejected as unfounded.

Court Disposition

Judgment for the Claimant in substantial part; headline liability figures established against most Defendants; some claims dismissed.

Orders

  • Defendants adjudged liable for misappropriated sums as specified per Defendant, subject to adjustment and further argument.
  • Claims against certain Defendants (e.g., MOFED claim against Atan Shansonga, claim against Irene Kabwe) dismissed or subject to further submissions.