Malawi govt files defence against  K270bn Mulli claim: AG asks court to dimiss the application

October 19, 2018 Green Muheya -Nyasa Times 24 Comments

The office of the Attorney General has filed  a defence against a  K270.4 billion compensation claim from a civil cause number 474 of 2012, where Chombe Foods Limited and Sunrise Pharmaceuticals Limited both belonging to business magnet Leston Mulli.

Mulli: I am not a stealer

The firms are making the claim for the  business loss following a  2012  order by the State to deny them government contracts.

On September 5 2012, the then Attorney General Ralph Kasambara wrote a memo to Principal Secretary in the Ministry of Agriculture, confirming that the government directed that any of its department or organisation  should conduct business with Mulli Holdings and Elvis Freight of Noel Masangwi.

Mulli claims that the order  stopping to trade with  his companies also froze payments for previous contracts.

But the Attorney General Chambers in a statement of defence which has been  filed at the High Court registry in Blantyre wants the claim to be thrown out on the basis that the application lacks basis.

In a statement of defence dated October 11 2018, the Attorney General’s Chambers wants argues that the Ministry of Justice  and Constitutional Affairs on August 22 2014 revoked the said order to stop sidelining the Mulli companies from business transactions.

The  Malawi Law Society (MLS) has joined the case as friends of the court.

Youth and Society (YAS) executive director Charles Kajoloweka is on record to have called for transparency into how the case is being handled.

Mulli Holdings Limited claimed K3.1 billion after its food processing and pharmaceutical firms were damaged in the July 20 2011 public demonstrations.

The firms are seeking about K8 billion as interests in business lost in 2013.

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24 replies on “Malawi govt files defence against  K270bn Mulli claim: AG asks court to dimiss the application”

  1. Iwe Mulli wat kind of business was Chombe supposed to do with government. Watoyesa Boma ndi tearoom kuti ikatogula masamba aChombe?. Pumbwa iwe watijaila kwambili

  4. Watch the space. Malawi govt will eventually settle with Mulli once DPP wins in May 2019. Mulli will be paid his K270b. That’s how far down the rabbit hole Malawi govt has gone. This is one of those complex and elaborate looting scheme devised by the ruling party. What’s new!!

  5. A Lohmwe anzanga this is to much. Let’s be very careful when conducting ourselves. How does brother Mulli come up with K270 billion. How can someone quantify contract which were not signed to the tune of K270 billion? Recall that his companies failed to service Malawi Saving Bank loans on grounds that they were making losses. Kunali MCP, UDF and PP zinapita. Don’t think DPP will live forever.

  7. Alomwe ndiye mwayitola Malawi bwanji, selfish people, koma mulungu akuona coz ndi amene angathetse mavutowa basi. Millions should suffer just because of a few people. Chouluka chimauluka koma tsiku lina chimadzatela.

  8. This is a very simple matter. We are told that former Attorney General wrote a memo to PS Agriculture on September 5, 2012 comfirming government’s apparent directive that it should not deal with Mulli Holdings or Elvis Freight. That also apparently included a freeze order on payments for previously supplied goods and/or services.

    According to this article, this order was only lifted on August 22, 2014 by the Attorney General’s office. This means that between September 2012 and August 2014, Mulli Holdings and Elvis Freight were unduly sidelined government business and if they had supplied good and/or services, there was an order during this period not to pay them.

    Whether one likes/hates Mulli or Masangwi or both , these are solid grounds for a compensation claim and loss of business including interest charges.

    When we hold these public offices, we must learn not be be overzealous and take our personal fights into the discharge of public duties. They will always cloud our judgement .

    Understandably, a lot of of folks are fed up with this DPP administration and I am one of them. They are equally fed up with the Mulakho influence on government. Am with them too.

    But in this case, a very senior public office made a big mistake by authoring that memo and we all now must pay. It is what it is. Even if all professional societies joined this case as friends of the courts, these claims will have to be paid one day if our courts are objective and independent

    2. Bwana M7, was this decision made during the reign of Abiti as President and Kasambava of the cashgate shooting as Minister of Justice and Attorney General? What was the basis of their declaration?

    3. SIMPLE MATTER.MULLI OWES GOVT [MSB ]MK5 BILLION SINCE 2014..
      GOVT SHOULD COUNTER SUE AND CLAIM BACK CASH PLUS INTEREST AND LOSS OF MONEY VALUE FOR OVER 5 YEARS AMOUNTING TO K500 000 000 000.00

    4. Mx Kaguta, were the contracts unduly awarded to Mulli Brothers in or prior to 2012 which might have led to the blacklisting of the company? How was “business lost” quantified and was it reasonable enough to stand the test of rigour? Why would interest be calculated on “business lost” amounts which were not earned in the first place. It sounds to me this is a case of “entitlement” on the part of Mulli and he’s just taking advantage of the fact that DPP-led govt would likely have a sympathetic ear. It should worry all of us that a company can claim compensation of K270b for business/contracts lost (it’s a lot of money considering the size of Malawi economy). That’s almost half the cost of Salima-Lilongwe Water Project. In any case, what were contractual terms that were breached and if so, what were the remedies and related penalties, if any for cancellations.

  9. Kodi Iwe MULLI kuba kapena chani! Zimene ukuchitazi MULUNGU amaona ,kufuna kuba ndalama za misonkho yathu basi. Chuma chobera osauka munjira yotere chimatha mosadziwika bwino, or ……..

  11. This is a ridiculous claim. Was it a must that Government should give contracts to his companies.

  12. Charles Mhango is a serious disaster as Government’s AG. He is too dull to put up a strong defense against Mulli in this matter. There is also a top high possibility that these crooks have already colluded whereby the so called AG is set to put up a weak defense in the matter.

    These thugs have to go.

  13. I think this country needs urgent change of leadership, death where are you to take this moya ASAP

    1. lives were taken on those particular events too and the families have not claimed anything from govt, why you Mulli? whats so special about you brav?

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