Attorney General Frank Mbeta has dismissed claims circulating on social media that the Supreme Court of Appeal (SCA) ordered the Reserve Bank of Malawi (RBM) to pay trillions of Kwacha to Finance Bank of Malawi Limited, saying these figures are false and do not exist in the court’s ruling.
Mbeta
Mbeta explained that while the SCA ruled in favour of Finance Bank on constitutional grounds, the court did not specify any amount of money to be paid.
“The Supreme Court of Appeal ordered that damages be assessed by the Registrar of the SCA. The sums being discussed on social media have no basis in the court’s judgement,” Mbeta said.
The clarification comes after a long-running legal battle between Finance Bank, which is now in voluntary liquidation, and RBM. The dispute dates back to 2005, when RBM revoked Finance Bank’s licence.
After the licence was revoked, RBM sued Finance Bank in the High Court to recover costs it had spent supervising the bank. Finance Bank filed a counter-claim for damages. In 2014, the High Court ruled in favour of RBM, saying the licence cancellation was lawful. Finance Bank appealed to the SCA.
In its recent ruling, the SCA found that Finance Bank’s constitutional right to be heard under Section 43 of the Constitution was violated before the licence was cancelled. The court therefore overturned the High Court ruling and allowed Finance Bank’s counter-claim.
However, the court did not decide how much money RBM must pay. Instead, it left the assessment of damages to the Registrar of the Supreme Court of Appeal, who will determine the amount later.
Mbeta said the assessment process has not yet started. Finance Bank will submit evidence to show how much it wants in damages, and the government will carefully review all figures using expert advice.
“There is currently no determined amount of damages. We are handling the matter cautiously to protect public resources,” Mbeta said.
He also noted that the case faced long delays, staying unresolved for almost 10 years due to repeated adjournments by previous administrations of the AG’s office.
The next step is the formal assessment process before the Registrar, who will determine the actual amount, if any, to be paid.
In short: no trillions have been ordered. The social media reports are misleading, and the government is handling the case carefully.
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One reply on “AG Frank Mbeta Clarifies: No Trillions of Kwacha Ordered for Finance Bank”
Thank you so much AG for the clarification and for your assurance that government is handling the matter with utmost care for the good and wellbeing of the Malawi citizenry and their state purse from their taxes.
Thank you so much AG for the clarification and for your assurance that government is handling the matter with utmost care for the good and wellbeing of the Malawi citizenry and their state purse from their taxes.