East Bridge Wins Court Battle Against ACB Over Restriction on Tobacco Stocks
East Bridge has secured a significant legal victory against the Anti-Corruption Bureau (ACB) after the High Court of Malawi set aside a restriction notice that prevented Limbe Leaf Tobacco Company from dealing with tobacco belonging to the company.
The ruling, delivered on Wednesday by High Court Judge Redson Kapindu in chambers in Lilongwe, effectively lifts the restrictions that had barred access to tobacco stocks held in Limbe Leaf Tobacco warehouses.
The dispute arose after the ACB issued a restriction notice to Limbe Leaf Tobacco, prohibiting the company from handling or releasing tobacco owned by East Bridge as part of investigations being conducted by the anti-graft body.
However, the court found fault with the manner in which the ACB exercised its powers.
According to East Bridge’s lawyer, Chimwemwe Kalua, the court ruled that the ACB acted unlawfully by issuing a fresh restriction notice after the initial restriction had expired without first obtaining the court’s approval.
“The court found that the ACB abused its powers by issuing a new restriction notice instead of applying to the court for an extension or renewal of the original order,” Kalua explained.
The ruling means that East Bridge is now free to access, manage and deal with its tobacco stocks that had been locked up under the restriction.
The judgment is expected to have significant commercial implications for the company, as the restricted tobacco had remained inaccessible while the legal dispute was ongoing.
The case also raises important questions regarding the extent of the ACB’s powers when issuing restriction notices and the requirement for judicial oversight when such measures are extended beyond their initial validity period.
Legal analysts say the decision reinforces the principle that investigative agencies must operate within the confines of the law and follow prescribed court procedures when exercising powers that affect private property and business operations.
For East Bridge, the ruling marks the end of a major legal hurdle and clears the way for the company to regain control of its tobacco stocks stored at Limbe Leaf Tobacco warehouses.
The ACB had not immediately commented on the ruling by the time of publication.
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