Attorney General Silungwe move to challenge K3bn payout to Mulli

Attorney General Dr  Chikosa Silungwe  on Wednesday appeared before  Malawi Supreme Court if Appeal judge Frank Kapanda  to  amend notice of appeal in a case where the previous regime awarded payment of K3 billion compensation to Leston Mulli-owned firms for the damages the companies claim to have suffered during the July 20 2011 demonstrations.

Silungwe’s advise may not be taken well by those who feel all blue-eyed boys in some posts within the civil service should be de-robed.

The payment  to Sunrise Pharmaceuticals and Chombe Food Limited—companies under Mulli Brothers Holdings Limited (MBHL)—was authorised on April 13 2018 by former Attorney General Charles Chidongondo Mhango on behalf of the Malawi Government.

But Silungwe is challenging the payment when government is failing to collect K4.9 billion in loans that Mulli-owned companies obtained from the defunct State-controlled Malawi Savings Bank (MSB).

Silungwe want to appeal against the decision of the registrar of the High Court and Supreme Court made in October 2014.

However,  lawyer Tamando Chokoto representing  Mulli argued that the application by Silungwe was  irregular because  “it was actually an application to appeal out of time.”

He said matters  are supposed to be appealed within six weeks after a court decision and that the Mulli ruling was made  six year ago.

However, private practice lawyer Bright Theu questioned the payment and the conduct of the former Attorney General on the matter.

He described the payment as “dubious” and “questionable.”

Said Theu: “I think the decision to pay the amount is dubious, in the sense of questionable. The Release Agreement under which the sums were paid clearly acknowledges that it is a mere compromise and not an acknowledgement of liability on government’s part. So, among others, what tantalised the [then] Honourable Attorney General to compromise? His office lodged an appeal, which the Supreme Court found to be arguable and to have reasonable prospects of success.

“That appeal was pending at the time of the compromise. It probably is still pending, though the same Attorney General may not be expected to pursue it having paid out under the dubious compromise.”

He also described as unreasonable government’s failure to offset Mulli’s MSB loans through payments government owe MBHL, arguing the State’s business relations with Mulli “smacks of zero probity and is on its face a scandalous betrayal of the public trust.”

MBHL is the largest beneficiary of the K6 billion toxic loans government took over from MSB, a then wholly State-owned commercial bank, sold in July 2015 to FDH Financial Holdings Limited.

Mulli obtained K4.9 billion from the bank while other firms owed over K660 million.

After government set up the special recovery vehicle to collect the K6 billion, no single tambala has been recovered.

According to a senior Justice Ministry official, the K3 billion compensation payment could have been stopped on the premise of Mulli’s K6 billion debt.

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Zio ine
Zio ine
2 years ago

Government should get a garnish prefer to recover the money from Muli

2 years ago

Tamando Chokotho and ethics not on the same WhatsApp group.. Koma zinazi ana anu mudzidzawauza chani as an example of the person you are?

2 years ago

The issue here is straight forward, dola akufunayo ithelane ndi ngongole yomwe alinayo, dpp ikubwelapo bwanji after all its dpp inamukongoza kumene

2 years ago

The AG seems he is on a mission to victimise DPP sympathizers. If anything he should have challenged the office of former AG. And mind you, of all the cases why this one. And not the electoral case pay out

Asyene Filimu
Asyene Filimu
2 years ago
Reply to  Phwisa

The shameful electoral ‘Sadaka’ is untouchable simply because the dude is a beneficiary. Ntchito zinazi ndi umphawi zili ngati paraffin ndi madzi, osasakaniza (ngawanganya).
Jealousy tendencies will lead you nowhere aSilungwe. Was it not just yesterday when the Vice President was vehemently discouraging nsanje? He basically meant nkhwidzi zache ngati zimenezo. Nzeru zonse zathera m’dread mwina, nanga tidzitinji? Munapumatu pakatipa…..

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