Frank Mbeta has scored a major legal victory for the government and Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRFM) after successfully blocking the payment of US$13.48 million -- approximately K23.4 billion -- to Nendongo Commercial Group in a high-stakes fertiliser supply dispute.
In a ruling widely seen as a significant triumph for public accountability and the protection of taxpayers' money, the High Court Commercial Division set aside an arbitration award that had ordered government and SFFRFM to compensate the company for alleged breach of contract.
The judgment, delivered by Justice Chifundo Kachale in Blantyre on May 8, 2026, followed a determined legal challenge mounted by Mbeta and SFFRFM questioning both the legality of the arbitration proceedings and the validity of the underlying contract itself.
Court records show that arbitrator Noel Chalamanda had earlier awarded Nendongo Commercial Group US$13.48 million in damages, together with compound interest and arbitration costs -- a financial burden that would have cost Malawian taxpayers billions of kwacha.
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The arbitration ruling had also dismissed government's counterclaim with costs.
But in a decisive legal turnaround, Mbeta argued before the court that the arbitrator lacked jurisdiction because his appointment violated the terms agreed upon in the fertiliser supply contract.
Government further maintained that the contract itself was unlawful and void because it allegedly failed to comply with the Public Procurement and Disposal of Public Assets Act.
Justice Kachale agreed with the State's arguments and ruled that the court had no authority to appoint the arbitrator since that mandate had specifically been reserved for the Malawi Law Society under the agreement between the parties.
"The Court hereby sets aside the arbitration award of Mr Noel Chalamanda dated November 3, 2025 for lack of jurisdiction," reads part of the judgment.
The court also noted that SFFRFM had consistently objected to the arbitration process, arguing that it had been denied an opportunity to conduct conflict-of-interest checks on the arbitrator before proceedings commenced.
In a strongly worded caution, Justice Kachale warned against procedural irregularities in arbitration matters, saying allowing such conduct would amount to "parading injustice in the robes of due process."
The ruling has been welcomed as a major victory for the Attorney General's office and a powerful reaffirmation of the importance of transparency, legality and accountability in public procurement.
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Speaking after the judgment, Mbeta said the outcome reinforces the need for strict adherence to lawful procurement and contractual procedures in all government transactions.
The case stemmed from a disputed fertiliser supply agreement between Nendongo Commercial Group and SFFRFM, with government consistently arguing throughout the proceedings that the contract breached procurement laws and therefore could not legally support arbitration proceedings.
The judgment now not only spares government from an enormous financial payout, but also sends a strong message on the importance of protecting public resources through lawful contracting and proper legal oversight.
