Judge Mwaungulu to rule on Mulli assets value: Malawi Savings Bank saga

Supreme Court of Malawi judge Dunstan Mwaungulu will on July 9 2015 make a determination as regards the value of Mulli Brothers Limited (MBL) Holdings’ properties up for sale by the State-owned Malawi Savings Bank (MSB) to recover an outstanding loan of about K3.3 billion (US$7.3 million).

CEO Ian Bonongwe - MSB needs new capital

CEO Ian Bonongwe – MSB needs new capital

Mulli: Tussles wtih Malawi Savings Bank

Mulli: Tussles wtih Malawi Savings Bank

Chancy Gondwe, lawyer for MBL confirmed “the injunction is still in force” restraining MSB from selling the properties.

MSB evaluators found that the value of the properties was K4 billion while MBL Holdings evaluators pegged the properties at K6 billion.

Judiciary spokesperson Mlenga Mvula said Justice Mwaungulu will now resolve the matter of valuation of properties.

Mvula also said besides the evaluation reports, the judge will consider other issues the two parties advanced before the court.

“He [judge Mwaungulu ] will also consider other arguments the appellants and respondents presented to him before exercising his discretion whether to continue the injunction that was granted previously or vacate it,” said Mvula.

MSB has been pursuing Mulli who owes the bank a reported 83 percent of the bad debts and the local the conglomerat has since obtained an injunction stopping the bank from selling its properties which were used as collateral.

Government, the sole shareholder in MSB, has put the bank up for sale with only one preferred bidder FDH Bank of Thomson Mpinganjira.

The move to sale the bank is said to recapitalise it to meet regulatory requirements in terms of capital in line with Basel II but critics have interpreted it as a bail-out package for politically linked businesses.

Under pressure from opposition, civil society and the media, President Peter Mutharika ordered a suspension of the sale of MSB to allow more public debate on the issue.

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POLITICAL FANATIC
Guest
Interesting is it now that Mulli is pointing fingers at late BINGU and yet soon after Bingu’s death he went on TVM telling all Malawians that late Bingu had no shares what so ever in MBL. Does it mean this guy heart? No wonder JB knew this fanatic and kick him out for she knew what he was up to. Or is it usual business at Nyasa Times to throw in Bingu so that your wish of not selling the bank and the crushing of MBL is justified? Secondly why this guy is in this whole trouble and yonder in… Read more »
Cameo
Guest

Sorry Mr Mulli you have gone into this because of one hilda mtila after the failed Conference in Lilongwe. When you invested heavily in tourism and the buying of state of art buses for the coming visitors in 2012.
To make sure to paralyse your business hilda ordered government to close doors for your businesses so you suffocate.

So accept your entities to be sold to repay the loans at msb and be free so you can restart afresh.

I will continue praying for you until you come out of this mess.

Chaona mzako chapita chasala kwa iwe take care Hilda Mtila.

Boyd Kilembey
Guest

This case is becoming childish. Now we have to argue whether the assets are worth K4bn or K6bn when the real issue is to repay the loan.
Malawi is a failed state.

Kenkkk
Guest
This is becoming childish and stupid. The valuation of the collateral property or assets has no relevance. What matters is how much those assets will fetch when sold to recover msb money. If the assets will sell for more than what Mulli borrowed including interest, then Mulli will be refunded the difference or overage. But if the assets sell at less than what mulli borrowed, then Mulli will have to pay msb the shortfall or deficit and clear the debt. That could force mulli to sell other assets to meet the shortfall or use own cash to pay the shortfall.… Read more »
Kizito
Guest

mr Kenkkk, the reason we have courts in this country is to give every Malawian a chance to seek legal redress on matters they feel agrieved. Otherwise shortcuts may be used to victimise people. even when thieves are caught stilling they stil go to courts and stand before a competent court. we dont just throw those people to jail no. such kind of thinking is barbaric and un civilised

kenkkk
Guest

Kizito, I think you are not following me. I don’t think anyone in his right frame of mind would think it is barbaric or uncivilised to question the relevance of asset valuations in this case. Do you really know the meaning of barbaric or uncivilised?

I also didn’t say people shouldn’t use courts when aggrieved but there is nothing wrong to question a court’s decision on the matter.

Layman's view
Guest

When he put the collateral with the bank when taking the loan,that meant that his properties will sold incase when he fails to honour the loan like the way the bank does with anyone who fails to pay back their loans.The Mulli issue should not be an exceptional one.Nothing personal with Mulli here.

half man half biscuit
Guest
half man half biscuit

Malawians we should not be fooled with blind hatred. A country cannot grow without the private sector. We provide subsidies to subsistence farmers who contribute little to gdp. Mulli employs lots of people and he also produces forex which we need. Reduce his monthly premiums (extend loan period) and give
him a little tax rebate….it will buy mulli time to restrategise. Stop the hatred. We need more indigenous millionnaires.

Patriot
Guest

Gulitsani

ujeni
Guest

Dunstain Mwaungulu is a top notch Judge, the best Malawi has, will see how he will judge on this one.

Angoni Apaphata Ife
Guest

Mbuzi yakodwa

ujeni
Guest

What is so special with this Mulli, how can he hold the whole nation to ranthom? Are we so stupid like this in Malawi really?

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