The Supreme Court has today declared the liquidation of Post Newspaper Limited as illegal but ordered that the process should be restarted in the High Court under a new judge so that the law can be followed.
Chief Justice Mumba Malila heading the panel of judges that heard the appeal, ordered that the Post newspaper liquidator Lewis Mosho be joined to the proceedings and made to account even though he may have finished selling the assets of the defunct newspaper, leading to the process of the liquidation of the newspaper starting afresh in the High Court as the earlier one did not follow the law.
“We refer the matter to the High Court before a different judge to re-open the liquidation proceedings with a view to ensuring compliance with relevant legal provisions,” the page Judgment read.
The liquidator Mosho shall appear before the High Court as a third party to the liquidation case which will be restarted so that he can be heard as he was not part of the case in the Supreme Court.
“We note that much time has passed since the purported liquidation. We do not believe, however, that such passage of the time has sanitized the wrongful manner in which the liquidation was conducted,” the Judges said.
The Chief Justice sat with Judge Albert Wood and Judge Chinyama and noted thus:
“For the avoidance of doubt, we hold that the actions of the liquidator prior to and the post the purported liquidation of the Post Newspaper, are of no legal effect whatsoever”.
The Supreme Court has also ordered Post Newspaper workers who petitioned for the liquidation to pay the legal costs to Fred Mmembe for the appeal.
In 2016, several employees of the newspaper applied for its liquidation at a high court claiming K785,000 in salary arrears. The court action was preceded in June by the closure of the newspaper by the ZRA, over a disputed K54 million tax bill and in weeks after the liquidation claims from various creditors have risen to over k180 million.
The demise of The Post prompted criticism from the opposition as well as Western countries. According to analysts, the then ruling Patriotic Front (PF) government appeared to have taken a disproportionately tough stance on the tax issue the PostNewspaper was facing. There was evidence that the Post Newspaper wanted to pay its debts in installments, but this was rejected by the courts. A perception that more than unsettled tax bills are behind the authorities’ tough stance has been fuelled by the fact that The Post has been one of the fiercest critics of the current and many past governments.