FDH Bank officials in court for contempt: Maranatha Academy demands damages

Four top officials of the fastest growing commercial bank, FDH Bank Limited have been dragged to court for contempt in an outstanding case between the bank and privately owned Maranatha Girls Academy Limited.

Ouattara: FDH Bank boss in court for contempt

FDH Managing Director, Eric Ouattara, deputy Managing Director, William Mpinganjira, Head of Credit and Rehabilitation, Arthur Yapuwa and Recoveries Manager, Joseph Khonje have been dragged to court for “blatantly and contemptuously” disobeying two High Court orders stopping the bank from seizing the academy’s property and let alone selling it.

Judiciary spokesman Mlenga Mvula confirmed  FDH Bank bosses have been summoned to court and that “once found guilty, they risk being  fined or given custodial sentences.”

Mvula said hearing of the matter  will take place in Judge’s chambers on May 18, 2017.

According to a Notice of Motion for Warrant of Committal dated April 25th, 2017 which Nyasa Times has seen, the four are expected to be in court on May 18th, 2017 under Civil Cause number 681 of 2013 between the bank and the school.

This follows an Order for Leave the academy obtained on the same day for the court to hold the said bank officials in contempt by defying an order given by the same court on September 27th, 2013 and January 6th, 2014 wherein an injunction was granted stopping the bank either by itself, its servants or agent from realizing Maranatha Girls Academy Limited’s property Title Number 7/45 in South Lunzu, Blantyre.

Maranatha at first asked FDH Bank Holdings Chief Executive Officer, Thom Mpinganjira, to answer contempt charges.

The school has since changed the legal mind, saying Mpinganjira belongs to the Holdings unlike the four who are for FDH Bank Limited, in this case involved in the legal battle with Maranatha Girls Academy and not the Holdings.

“The four are holding this court in contempt by blatantly and contemptuously disobeying an order given by this court on September 27, 2013 and January 6, 2014, wherein an injunction was granted restraining the Respondent [FDH Bank] either by itself, its servants or agents from realising security in title number South Lunzu 7/45 in the city of Blantyre until the determination of this matter or a further order of the court,” reads part of the court notice to the four.

The academy had used the property as surety to obtain a loan from FDH Bank, a subsidiary of FDH Financial Holdings Limited, amounting to K281, 820 906.47.

The loan has been outstanding for several years and the bank has been trying to recover the money by selling the provided collateral.

However, the academy obtained an injunction stopping the bank from realizing the property and sought court declaration on the matter. The school accused the bank of flouting Section 68 of the Registered Land Act.

And the High Court in Blantyre in April, 2016 ordered the bank to pay the school K392 million as compensation for loss and damage arising from a breach of three months statutory notice.

The court had reduced an earlier compensation in which it ordered the bank on April 4th, 2015 to pay the academy K784 830 909.16.

In his determination then, Judge Kenyatta Nyirenda pointed out that 50 percent of the amount should be paid “outright as FDH prepares appeal or any other subsequent action.”

It is not yet known if the bank paid the 50 percent of the amount, but the academy once engaged the Sheriff of Malawi to seize office equipment from the bank’s Umoyo House Branch in Blantyre to enforce payment of the compensation.

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24 thoughts on “FDH Bank officials in court for contempt: Maranatha Academy demands damages”

  1. Nachisale says:

    When bravery marries stubbornness, there is very high probability of one being unstoppable on way to committing suicide. As simple as the matter was right then could not have reached to the point of very important bank top most officials risking imprisonment. Its just all about putting things in order then you prevent such embarrassments.
    You choose not to listen to professional advice, yes, you are so free to do that but you are never free to choose consequences. You can’t choose risking imprisonment. Yet you will pretend you are professional. Prevent double shame or double embarrass your self. Highly professional FDH. You shall never buy good ideas

  2. jack says:

    FDH is multiplying its battles . Now its against court, against poor reputation , against competitors (bankers) who shall take advantage of their situation their are yet to mess up. The list continues including managing, containing the confidence of these charged top bank officials.
    It will be even more expensive than what they foresee. Someone help them please. Advise the leadership kindly and professionally like a stitch in time saves nine. Complying with court orders will help them so much.

  3. Jonah says:

    take care ,Tom is very corrupt,u think to steal the bank From Zimbabwe was ajoke he had to buy all judges .Even this corrupt bastard Justice Kapanda pocketed 10 million From the bank .Malawi justice is sold to the monkies. You are fighting abig snake they can do anything corrupt, kill and shed blood they dont care.

  4. Kimbet says:

    Sad l dont understand ,cant yuo discuss, destroying ur names and businesses like this understand u are all sdas l thought we learn about forgiveness.swallow ur pride

  5. Zyanya says:

    Shaaaa satheka watheka Inu mukuganiza kutibela MSB bank mizimu ikukondwa. Bank imeneyo 2019 chakwela akalowa tikulanda komaso amalawi kupusa Mumthu wakubelani mukupitanso kukasegula maccount konko kumulemelesa kwambiri .nde izo onse oyendesa bank akumangidwa ndalama zathu mayooo mayoo kumeneko tingochoka

  6. Kimbet says:

    Tom ndi ongaza u mean wazichosapo kuikapo mwana sambi kumaso izi ndi minyama mukumbukila ife anatichosa amaganiza kuti ife

  7. Kimbet says:

    You mean fdh bank is failing to pay,no guys why demeaning the bañk and why not listen to the court. Akumanganitu u cant tale chances . Muonongesa ndalama za anthu musaiwale mukusunga ndalama za anthu. People are not safe please clean you mess ,

  8. Loyd says:

    Why fdh gurús and maranatha Just discuss the issue ine ndine mmodzi wa Inu uyu asike, uyu asike please my brothers l mean Tom and Ernest discuss this matter and resolve amicably muonesa kukhwima not what u are doing apapa Thanks

  9. Rodgers says:

    Yes the snake has been exposed my worry is wina asowesedwa wina apa nkulu es bañk uja ndi mafia ndiokhwima l work there amadya wina wake anampasa phuli kuti isaziwike anangomsowesa sakuziwa kuti ali kuti bank ija anachita kuba kwa magai Zimbabwe achina kahia, blood sheding iyee sivuto komaso ndimamva kuti he is satánic .dikilani muone chimene ampange nzakeyu nkokula chifu bad. Nditindalamatu he Thinks he is next to God koma Mulungu simunthu

  10. Debra says:

    Vuto la thom samva wamangitsa mwana kuprison akumugona mwanayo nanji ndiokopngola William

  11. Nachisale says:

    Corruption in like nepotism in an institution never leaves it grow professionally. Running a banking an industry like running mandasi business results in such. You can never blame the Malawian courts for administering justice just because you are running a banking business. It requires only professionalism and proper ethics.
    Now you disrespect court orders, look at the deserved consequences that follow. You shall always blame someone else for your failed conduct as long as arrogance in you reigns. FDH will not lose more by complying to court orders than not

  12. dzimbiri says:

    You will like injunctions when they work to serving your interest. As of now when an injunction is serving to the interest of Malawian judicial system for justice for all Malawians, not only few of biased individuals, you can express your biased opinion like this. Understand that lack of respect to court orders leads you to situations like this one faced by FDH bank senior officials. Understand and respect Malawian judicial system and operate as a bank in Malawi, otherwise you shall never hide from justice when you are so exposed

  13. Banda says:

    Iih zayamba kundiopsa…am cancelling my plan to open bank account with FDH…Thanks nyasatimes for the update

  14. Zitche says:

    Whatever FDH is doing in this issue is fighting with the voice of a dying horse. What is clear is that the growing Bank is lacking professionalism in handling its clients. The Bank is failing to accept defeat and pay off Maranatha its dues as ruled by court on April 4, 2015. i think its time the court MUST enforce its ruling and have FDH pay off Maranatha all its dues

  15. Stecod says:

    if there is something I don’t understand is the injunctions.The process lacks transparency and it doesn’t hear or consider the greavances of the blocked party,sometimes it is obtained during odd hours hence,I feel prone to delay and derail justice and most importantly prone to corruption/bribes.

  16. gonthiwachiwiri says:

    it is very sad and unbecoming development that time and again we should be reading about fdh being in contempt of court…Cant the court just deal with the bank to rest this noise,let the bank pay maranatha their dues as per court determination coz none regardless of the financial stamina is above the law and whatever is determined by the court is binding and hence the behaviour of fdh by not honouring the earlier ruling is not only suspicious but perilous as well in the realm of judicial supremacy.Please sober up,fdh and clear ur image in the public sphere by honouri
    ng the court

  17. Ndudza says:

    Apatu FDH discipline yasowapo. sometimes swallowing pride helps. Taonanani mmene mukudziyalutsira. Mpaka a Malawi onse awone your dirty linen in public? No, khalani ndi discipline. This is banking business. Don’t show such colors to your clients. Kuterekutu simumva! siposachedwapa anthu anakulangiza pa Nyasatimes pompa? Tadzipangani zoti a Malawi tidzukunyadirani. Mukutchuka ndi nkhani zosakupatsani ulemutu. Taonani nanga.

  18. Jonah says:

    This bank is too unproffetional unlike National Bank and are bank why not listen to the courts,vuto akulemba adorica ndi Adventist men okha okha basically all professionals don’t survive in that bank.

  19. Bertha Chisale says:

    I am not a lawyer by profession but I thought an injunction is a temporary relief, so this injunction has been standing for 4 years? From September 2013 or three years from January 2014.This would be one hell of a case to follow.I can see collusion and some mafia tactics here

    1. Nyagondwe says:

      my sister, injunctions are conditional. It does not take a lawyer only to understand them. Now, you don’t understand injunctions but you want to comment here? Don’t you see you are exposing your blind loyalty towards and bias towards FDH that is finding itself a bouncer to disrespect court orders. Let the court serve for Malawian justice. Remember, we all need the court at a point or another so let courts do their job.

  20. jack says:

    Kuyalikatu, so donating the twenty million to LUANA was an act of corrupting government? No way! Not this our good government .This government would like to see all Malawians developing not only those who can twist justice to their favor. Now FDH again ,contempt of court? Osamadziyalutsa choncho. Check blind leadership

  21. John says:

    Koma Yaa agalu awa osangokambirana bwanji zatitopesa vuto akumana amatama okha okha stupid bastards

    1. jack says:

      Nanunso inu, munangozolowera kudambwe. chomwe mumatha ndi phuzo basi.
      You shall never make sense.
      Keep it up and enjoy the consequences if your language will help you.
      why can’t you discuss an issue? Instead you attack people. Sorry bro. Have interest in justice and let it be administered accordingly. Siziyendera mangawa izi. FDH is holding in contempt of court orders. Ndiye nkhani apa osati zotukwanazo. Insulting people like this mudzagwera nazo mmavuto.
      Ndakulangiza kwa ulele. Take it or leave it and see what follows you.

  22. Ine Gama says:

    Fastest growing bank? A bank run by friends, relatives, adventist men , adventist youth and dorcas without legal knowledge of matters in court. Zikuoneka mbuli za Mulanje ma cadets. RBM ili kuti, shareholders should run banks with sisters and brothers and sons?

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