Malawi: Luthando Holdings Rejects Allegations Amid Procurement Fallout, Citing Ongoing Court Battles Over Yamaha Dealership Dispute

Luthando Holdings Managing Director Hendrix Laher has raised concern over what he describes as a coordinated attempt to undermine the company's credibility, after Karonga Diocese reportedly withdrew a purchase order for two Yamaha XTZ 125E motorcycles.

In a communication received this morning, the Diocese said its donor had instructed it not to proceed, citing multiple court cases involving Luthando Holdings in Malawi and referencing an Anti-Corruption Bureau (ACB) investigation into the former NEEF CEO, in which the company and Laher were mentioned as references.

Laher, however, strongly disputes the basis of the decision, insisting that Luthando Holdings is not facing any active cases in Malawian courts and is not indebted to MERDEF--previously known as NEEF--stating "zero tambala" is owed. He further claims that the company's accounts and after-sales teams are currently engaged in reconciliation discussions with MERDEF, arguing instead that it is MERDEF that owes Luthando Holdings for unpaid services and spare parts supplied.

He also detailed ongoing legal matters involving the company, including allegations that Luthando Holdings reported Paramount Holdings for allegedly using fake and fraudulent documents to present itself as Yamaha distributors and to secure government and corporate tenders.

According to Laher, the High Court granted an injunction stopping Yamaha from appointing Paramount Holdings as a distributor, while Yamaha allegedly confirmed through communication via Malawi's Embassy in Japan that Paramount's previous dealership status did not originate from them or any of their agents. Laher added that the matter, alongside related disputes, is now before the Supreme Court of Appeal after earlier attempts to discontinue criminal proceedings were challenged, and despite Parliamentary Legal Affairs Committee objections.

Laher further stated that several companies, including Luthando Holdings, Stansfield Motors, Stansfield Motor Services, and Actor Import and Export, have submitted witness statements to police regarding alleged fraudulent dealership documents linked to Paramount Holdings.

He said Luthando Holdings had even expressed willingness to operate under CFAO Malawi as importers and potential distributors due to its "professional global background," stressing that the company refused to associate with what he described as fraudulent structures. He concluded by warning that the matter has far-reaching implications for fair competition in Malawi's automotive sector, as the legal processes continue to unfold in the country's highest court.

Read the original article on Nyasa Times.