Malawi Savings Bank in contempt of court over Mulli assets sale

Mulli Brothers Limited (MBL) Holdings Limited claims Malawi Savings Bank is in contempt of court for advertising the properties of the company valued at over K3.3 billion for sale, saying there is a stay order granted by the Supreme Court of Appeal.

MSB last week put on sale MBL assets valued a K3.3billion in a bid to recover a K4.97billion that the business conglomerate owes the bank.

But Gilton HD Chakhaza Group Finance Director of MBL said the company has only on court order from Supreme Court by Justice Richard Chinangwa granted on February 4,2015 stopping the sale.

The company argues that a panel of three judge Supreme Court of Appeal comprising Maxon Mbendera, Dunstain Mwaungulu and Frank Kapanda that heard the case on May 18,2015 to determine whether it was proper for one judge to give such an injuction as applied for by the bank and not necessarily removing the stay order. .

Mulli has since instructed its lawyer Chancy Gondwe to commence contempt of court proceedings.

Gondwe confirmed  working on contempt case.

But MSB Chief Executive Officer Ian Bonongwe claims the Supreme Court presided authorised them to proceed with the sale.

Government, through Ministry of Finance, had initially cancelled the MK6 billion loans that Democratic Progressive Party financiers and sympathisers, including Mulli Brothers, owe the bank.

Government had described the loans as toxic assets implying it was impossible to recover. The Ministry of Finance had written Malawi’s central bank to bail out the public owned bank which donors have suggested being privatized.

The development sparked criticism from all stakeholders in the country with opposition Political Parties in Parliament threatening to boycott proceedings if the government does not come out clear on the matter.

• MSB has advertised for sale of Mulli property which includes;

  -An estate in Thyolo which has more than 70 structures on it. This is priced at K466,225,000
  -A tea estate in Mulanje with several developments on it extending on 43.2965 hectares. -This is pegged at a price of K1,754,158,600
  -An estate and tourist in Mulanje along the Mulanje-Phalombe Road. This is priced at K584,245,000
  -Commercial plot in Nantipwili in Thyolo values at K514,870,000

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