LUSAKA – Pambashe PF MP Ronald Chitotela has denied owing Azadi Investments Limited value added tax (VAT) on the construction of his retirement home in the State Lodge area of Chongwe.
This is a case in which Azadi Investments Limited sued the former Minister of Tourism in the Lusaka High Court for non-payment of K6.5 million which is an unpaid balance of the total construction costs of his luxurious villa in Chongwe.
The villa was recently confiscated by the Anti-Corruption Commission for being constructed using unlawfully acquired state funds.
Azadi is seeking an injunction compelling Chitotela to pay the balance of K6,500,000 including applicable VAT.
Alternatively, the construction company wants the court to order the sale of Chitotela’s house CHONG/LN_21188/51 in Chongwe district for non-payment so that it can recover its balance.
In its complaint dated August 8, 2018, Azadi Investments stated that it entered into a construction contract with Chitotela for the construction of the said apartment building for the amount of K9,650,000.00 plus applicable VAT.
Chitotela paid only K3,150,000.00, leaving a balance of K6.5 million and the corresponding VAT to be taken into account as well.
In his defence, Chitotela admitted owing K6.5 million to Azadi but not the corresponding VAT.
“Contents of the claim are true to the extent that only K3,150,000 has been paid by the defendant and no corresponding VAT is owed by the defendant,” said Chitotela.
“Save where the defendant expressly admits the claims, the defendant denies each and every allegation of fact contained in the statement of claim as if the same were set forth and traversed seriatim.”
