19 October 2018

Malawi Govt Files Defence Against K270 Billion Mulli Claim - AG Asks Court to Dimiss the Application

The office of the Attorney General has filed a defence against a K270.4 billion compensation claim from a civil cause number 474 of 2012, where Chombe Foods Limited and Sunrise Pharmaceuticals Limited both belonging to business magnet Leston Mulli.

The firms are making the claim for the business loss following a 2012 order by the State to deny them government contracts.

On September 5 2012, the then Attorney General Ralph Kasambara wrote a memo to Principal Secretary in the Ministry of Agriculture, confirming that the government directed that any of its department or organisation should conduct business with Mulli Holdings and Elvis Freight of Noel Masangwi.

Mulli claims that the order stopping to trade with his companies also froze payments for previous contracts.

But the Attorney General Chambers in a statement of defence which has been filed at the High Court registry in Blantyre wants the claim to be thrown out on the basis that the application lacks basis.

In a statement of defence dated October 11 2018, the Attorney General's Chambers wants argues that the Ministry of Justice and Constitutional Affairs on August 22 2014 revoked the said order to stop sidelining the Mulli companies from business transactions.

The Malawi Law Society (MLS) has joined the case as friends of the court.

Youth and Society (YAS) executive director Charles Kajoloweka is on record to have called for transparency into how the case is being handled.

Mulli Holdings Limited claimed K3.1 billion after its food processing and pharmaceutical firms were damaged in the July 20 2011 public demonstrations.

The firms are seeking about K8 billion as interests in business lost in 2013.

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