Opposition Leader Declared Bankrupt by High Court

By Linda Soko Tembo

A Zambian opposition party leader has been declared bankrupt following repeated allegations of involvement in questionable land deals through a company he controlled — Brook Cherith Estate Agents — which has since been forced into liquidation.

Businessman and United Prosperous and Peaceful Zambia (UPPZ) leader Charles Chanda was officially declared bankrupt in a judgment delivered on 24 July 2025 by High Court Judge Malata Ononuju — a decision that could derail both his business interests and political ambitions.

The bankruptcy ruling follows a petition filed on February 16, 2023, by Nathan Sinkala and 119 others. The group asked the court to declare Chanda bankrupt under Zambia’s Bankruptcy Act, and their application included a sworn statement confirming the debt and a list of all the petitioners.

Their case was based on a judgment delivered on January 31, 2020 in High Court Cause No. 2019/HP/1476, in which Chanda was found liable to pay over K3.8 million (K3,837,637.00) for breach of contract and damages for fraud. Despite the ruling, Chanda failed to settle the debt, which remains outstanding to date.

A bankruptcy notice was served on Chanda on April 05, 2022, but he did not comply. Justice Ononuju noted that the petitioners had met all the legal requirements for a bankruptcy order, including evidence that the 2020 judgment remained unsatisfied, proof of substituted service on 6 and 7 March 2025, and Chanda’s failure to respond to the bankruptcy proceedings served on 17 August 2022.

“It is a well-established principle that a creditor holding an unsatisfied judgment is entitled to commence bankruptcy proceedings against a debtor by serving a bankruptcy notice,” the ruling reads. “Non-compliance with the notice renders the debtor liable to be deemed to have committed an act of bankruptcy.”

The court accordingly issued a Receiving Order under Section 5 of the Bankruptcy Act, instructing the Official Receiver to take custody of Chanda’s estate.

Section five allows the court to issue a receiving order if someone is found to have committed an act of bankruptcy. This order can be requested by either the debtor or a creditor and is meant to protect the debtor’s assets while the case is being handled.

A Lusaka-based lawyer, who spoke on condition of anonymity, told MakanDay that the bankruptcy declaration carries significant legal and political implications.

“Under Zambian law, a bankrupt individual cannot hold certain directorships in companies and faces restrictions in managing business affairs. The ruling also has political consequences, as bankruptcy can disqualify an individual from holding or contesting public office,” he said.

The lawyer added that, in legal terms, Chanda is now effectively considered “a minor” — unable to act on his own behalf in business and financial matters.

An earlier investigation by MakanDay revealed that Chanda was facing renewed allegations of fraudulent land dealings through his now-defunct company, Brook Cherith, which was liquidated in 2020 after failing to deliver land to over 120 buyers.

A MakanDay investigation found that many clients—some dating back to 2017—paid for plots in areas like Chaminuka and Nampundwe but never received titles or possession, while others were asked to pay additional fees unexpectedly.

Court records show Chanda’s company was ordered to pay over K3.8 million in compensation, yet he has continued selling land through other entities. Some plots were allegedly sold without proper ownership, and buyers later discovered the land belonged to other companies. Chanda denied wrongdoing, insisting he was helping people on humanitarian grounds.

The Receiving Order

The court’s Receiving Order effectively strips Chanda of control over his assets, including his businesses and financial accounts. Management of these assets has now been handed over to the Official Receiver, who will assume his roles in any companies where he is listed as a director or bank signatory.

“Legally, he is incapacitated,” the lawyer said. “The receiver steps into his shoes and takes over everything — from bank accounts to company directorships.”

Chanda, who has been positioning himself as a prominent opposition figure and aspiring presidential candidate, has yet to comment on the court’s decision.