Lonrho sued for fraudulent misrepresentation
Lawsuit also accuses Lonrho of breaches of contract and diversion of insurance claims
Tuesday 05 August 2014
Lonrho, the UK investment company which used to dominate vast swathes of Africa under the buccaneering leadership of Tiny Rowland, is being sued for fraudulent misrepresentation by a former subsidiary over the lease of three aircraft used in Kenya and Zimbabwe.
The former subsidiary, now called Cambria Africa plc and an investment firm listed on the junior AIM stock market, alleges that Lonrho transferred $1 million to a different subsidiary through a loan facility agreement which Cambria Africa alleges was a “sham” , according to a High Court writ filed last month.
Lonrho is alleged to have misappropriated other funds from the proceeds of renting out aircraft owned by Cambria Africa and not paying them the lease payments which were contractually due, according to the High Court writ filed last week.
The $10 million claim also accuses of Lonrho of fraudulent misrepresentation when Cambria bought one of its aircraft, breaches of contract and diversion of insurance claims proceeds by Lonrho to another subsidiary which were due to Cambria.
The dispute relates to three aircraft rented out to Lonrho subsidiaries, one of which was acquired from Lonrho. These aircraft were allegedly returned in a damaged and dilapidated state, never flew again and were sold for scrap value, according to the writ, and the subsequent claimed loss in value of the planes is a central focus of their lawsuit.
Lonrho is also accused of fraudulent misrepresentation during negotiations to reach a settlement last year.
When asked about these allegations, Lonrho told 'The Independent': "Lonhro Ltd is a private company and will not be commenting on these reports" The shareholders of Lonrho - Swiss billionaires Thomas Schmidheiny and Rainer Marc Frey - also declined to comment.
- 5 How the language you speak changes your view of the world
Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
How the language you speak changes your view of the world
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...