UTM K4bn debt: Chilima faces fresh legal action over K106m unpaid 2020 campaign expenses

A legal dispute has emerged between Dr. Saulos Chilima, Malawi’s Vice President, and Mr. Benson Kambulire, a businessman, over an alleged breach of contract related to over K106 million campaign expenses from the 2020 elections.

The case, filed in court earlier this month, highlights a financial disagreement surrounding a deal between Dr. Chilima and Kambulire, which was made during the lead-up to the 2020 presidential election.

According to the court documents filed on November 3, 2024, Mr. Kambulire claims that he was hired as an agent to promote the United Transformation Movement (UTM) in the district of Mangochi. As part of the agreement, Kambulire was responsible for several key tasks, including providing office premises for UTM, repairing Dr. Chilima’s campaign vehicles, and purchasing fuel for vehicles deployed in the region for the UTM campaign.

The agreement reportedly stipulated that Dr. Chilima would reimburse Kambulire for any expenses incurred, plus an additional amount as a token of appreciation for his efforts. The reimbursement was to be made after the 2020 election, regardless of the outcome.

Total Expenditures Amount to K106 Million

Kambulire claims he incurred a total of K106 million in expenses, covering vehicle repairs and fuel costs, as per the agreement. However, despite multiple reminders and requests for reimbursement following the election, Kambulire alleges that Dr. Chilima has failed to pay him a single cent. According to Kambulire’s lawyers at Taulo & Associates, this constitutes a clear breach of contract by both Dr. Chilima and the United Transformation Movement (UTM) party.

The Taulo & Associates legal team argues that Kambulire’s expenditure was incurred in good faith, with the expectation of repayment, as clearly outlined in the contract. They also highlight the financial hardship caused by the delay in reimbursement, noting the loss of use of Kambulire’s funds over the extended period. Additionally, the lawyers are seeking compensation for economic loss as a result of currency devaluation, as well as other associated costs stemming from the breach of the contract.

Legal Action Targets Chilima’s Estate and UTM

In a significant twist, the case also targets Dr. Chilima’s Estate, as the politician is facing legal action posthumously. Chilima, who passed away earlier this year, has left behind an estate, and Kambulire’s lawyers are seeking to recover the unpaid debt from the deceased’s estate, which includes any property and assets that Chilima left behind.

When a person dies with outstanding debts, creditors can pursue payment from the estate, which can include any assets or property that the deceased person owned at the time of death. In this case, the court will decide whether Kambulire has the right to recover the K106 million and any associated damages from Chilima’s estate, as well as from UTM, the political party he once led.

A Breach of Trust?

The failure to honor this agreement is raising serious concerns about trust and accountability in political dealings. Mr. Kambulire’s case has sparked debate about how political parties and leaders manage financial arrangements with supporters and contractors during electoral campaigns.

For many Malawians, this case is another example of the financial struggles and disappointments that often follow political campaigns. The question of whether or not leaders should honor commitments to their campaign partners and supporters has long been a contentious issue in the country.

A Long-Awaited Resolution?

As the case unfolds, it is likely to shine a spotlight on how Malawi’s legal system handles disputes involving political figures and campaign finances. With Kambulire’s lawyers demanding accountability for what they see as a breach of contract, the case may also have wider implications for how political campaigns are financed and managed in the future.

While there has been no official comment from Dr. Chilima’s family or UTM on the lawsuit, the outcome of this case could potentially affect the party’s reputation and its future in Malawi’s political landscape. For now, all eyes will be on the courtroom as the legal battle over campaign expenses and unpaid debts continues.

What’s Next?

As the court case progresses, the public will be closely monitoring the legal arguments surrounding the repayment dispute. Will Kambulire’s claims be upheld, and will the estate of Dr. Chilima be held accountable for the unpaid debt? The outcome will certainly have significant ramifications for the handling of campaign finances and political obligations in Malawi.

In the meantime, the issue underscores the broader challenges of trust and accountability in political dealings, and how personal financial obligations can become entangled with the political process. For many, this case may also serve as a cautionary tale for future political actors in Malawi about the importance of honoring financial commitments made during campaigns.

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