The High Court in Lilongwe is set to hear a significant case involving allegations of financial misconduct against Leston Mulli of Mulli Brothers Limited (MBL), former Secretary to the Office of the President and Cabinet Lloyd Muhara, and former Secretary to the Treasury Cliff Chiunda.
The trial, scheduled from October 22 to October 24, 2024, comes after months of investigations into corruption and abuse of office tied to a government loan scheme.
The legal troubles for Mulli, Muhara, and Chiunda began on July 12, 2022, when Malawi Police arrested them in connection with reports of corruption involving the Malawi Savings Bank (MSB).
The investigation revealed that Muhara had directed lawyers for the MSB Debt Collection Company to halt bankruptcy proceedings against Mulli, who had previously taken out a substantial loan from the state-owned bank before its controversial sale in 2015.
Following the sale, the government established the debt collection company to manage toxic loans. Allegations surfaced that key officials, including Muhara and Chiunda, intervened to spare Mulli from repaying his significant debt without adequate justification.
This intervention was seen as part of a broader scheme that allegedly siphoned off K30 billion from public funds during the previous administration.
After the change in government, which ousted the Democratic Progressive Party (DPP) administration believed to have facilitated these corrupt activities, investigations intensified.
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Mulli and Muhara were arrested alongside Chiunda, who is also implicated in the scheme. The trio was released on bail two days later, on July 14, 2022, after each paid a cash bond of K500,000 and secured sureties worth K10 million. They are required to report to Area 30 police every two weeks as part of their bail conditions.
The upcoming trial is highly anticipated, with the State's Public Prosecutor announcing that all necessary legal procedures have been completed, paving the way for the hearings. The defendants face multiple charges related to financial misconduct and abuse of public office.
Legal experts believe the trial could have far-reaching implications for accountability and governance in Malawi, particularly as the new administration seeks to address corruption that has plagued the country.
As the trial date approaches, the public and media scrutiny intensifies, reflecting a broader demand for transparency and justice in the handling of public resources. The outcome of this case may set important precedents for future corruption investigations and prosecutions in Malawi.
