Attorney General Kalekeni Kaphale has saved Malawi government from paying dK55.4 billion (about US$132 million) damages Malawi Mobile Limited (MML), the country’s third cellular phone service provider licenced in April 2002, demanded in court as compensation for loss of revenue for unlawful cancelling of contract.
High Court Commercial Division ruling by Judge Frank Kapanda on April 20 2012 awarded MML US$66, 85 million as damages for ‘unlawfully’ cancellation of mobile licence agreement between MML and MACRA.
Macra in 2005 cancelled a renewed mobile licence agreement with MML following unlawful and unconstitutional action of then Attorney General (AG) Ralph Kasambara decision to suspend the Macra board and invalidating the resolutions of the board retrospectively.
But Malawi Communications and Regulatory Authority (Macra) through lawyer, Kalekeni Kaphale and now Attorney General appealed against the damages arguing the company has no basis to demand such money.
Kaphale argued that the MML which is run by Malawians with majority shares owned by South Africans, doesn’t need to claim such amount because it failed to prove its financial capacity.
“Three years after given the contract, it didn’t set up any structure in Malawi worth to demand such claim,” argued Kaphale.
Supreme Court panel of three judges Andrew Nyirenda, Edward Twea and Richard Chinangwa overturned the lower court’s ruling.
MML was registered as a Private Company under registration number 6375 at the Office of the
Registrar of Companies in Blantyre and a Mobile Telephone Licence, valid for 15 years, was issued to
MML on April 19, 2002 by MACRA.
The initial investment Capital outlay is US$15 million likely to increase to US$ 40 million in 10 years.
The Company is owned by three investors namely Finanz Capital Management Private Limited of South Africa with 55 per cent Shares, Finanz Holdings Limited of Mauritius with 35 per cent Shares, and 3x Telecommunications with 10 percent Shares.Follow and Subscribe Nyasa TV :