Malawi govt pays Mulli K1 billion compensation

Malawi tax payers will finance the payment of K1, 020,000,000 to Mulli Brothers Limited as out of court settlement with government as damages for breach of contract and compensation for loss of business in two separate deals during the previous administration.

Nyasa Times understands that Mulli stormed Accountant General’s office on Friday (19 September, 2014) where he wanted to collect the K1 billion cheques but he was turned back after being told that the cheque dispatcher had already knocked off.

Accountant General, Thomas Makiwa confirmed to Nyasa Times about the payment to Mulli, saying his office would scrutinise the documents regarding the pay.

Mulli smiling all the way to the bank

Mulli smiling all the way to the bank

“Let me say that we have not paid Mulli yet, what we can say as professionals is that we examine each and every vouchers coming for payment with the relevant authorities so the same applies to what you have asked (of Mulli Brothers),”said Makiwa.

Mulli Brothers dragged the Agriculture and Food Security Ministry to the Commercial Court in July 2013 for snubbing the company’s successful bids to supply Urea and NPK 23: 21:0+45 subsidy fertilisers in preference of exorbitant bidders which is contrary to principles of competitive biddings.

The company argued that it won a contract to supply the ministry the farm inputs which were supposed to be delivered at Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRM) depots in Chirimba, Kanengo and Mzuzu.

This did not happen as the ministry during the biding process preferred exorbitant bidders despite disqualification of other suppliers.

High Court Judge John Katsala ordered the ministry to pay Mulli Brothers Limited US$3, 305, 553 (K1, 365, 193, 389 – at the current lending rate) in damages for loss of profits.

According to Messrs Churchill, Norris and Legal Practitioners, the non- awarding of the bids was based on baseless and slanderous directive by the Ministry of Justice and Constitutional Affairs and Attorney General that were deemed irrelevant to the award of contracts therefore it is unlawful.

In another order, the commercial court in Blantyre directed the Ministry of Health to pay Mulli Brothers Limited the sum of K 14, 108, 353. 97 for a breach of contract for refusing to adjust transportation contract agreement.

According to a statement of claim, the two parties entered an agreement that Mulli Brother Limited do distribute Long Lasting Insecticide Treated Nets valued at K175, 950, 000 in 2011.

The Health Ministry, however, did not honour a contract price adjustment in accordance with the rising cost of fuel and other transport expenses despite nodding to client’s proposal.

“The defendant [Ministry of Health] has unfairly and in breach of the contract wrongfully neglected or refused to adjust in writing and pay the plentiful [Mulli Brothers Limited] the remaining money owing as a result of the adjustment of the cost of fuel and other transport expenses services amounting to K 36, 337, 500 without any just cause resulting in the losses and damages,” reads the claim.

In the order by the court’s registrar, the ministry has been ordered to pay over K14 million in damages and the cost of the application.

The previous regime challenged the claims by Mulli and the Supreme Court of Appeal granted a stay order stopping the payment of K2 billion compensation to Leston Mulli’s Sunrise Pharmaceuticals.

Justice of Appeal Edward Twea granted a stay order in favour of the government on the judgment by the late Justice Joseph Manyungwa on Sunrise Pharmaceuticals and Chombo Foods Limited vs the Attorney General.

The High Court through late judge Manyungwa ruled that government must pay Mulli’s as compensation for damages the company suffered during the anti-government demonstrations on 20 July, 2011.

But the current government has resorted for an out of court settlement and pay Mulli K1 billion.

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ahoy
Guest

He supplied nothing n he wants to b paid? Malawi

ahoy
Guest

He supplied nothng , y should he be paid? U think Malawians n donors r going to like this? Wait

Thyangathyanga
Guest

This is their cash gate now. Its a way of enriching themselves. Am not surprised. Compasation ya 1.3 Billion inachitikako kutiko? Munachotsa ntchito anthu 300 ku MBC, milandu yao mpaka lero mukungowapondereza osawapatsa nao ma compasation awo koma mukukatenga 1.3 billion kumpatsa munthu m’modzi mudzina la compasation. A Malawi siife zitsiru ai, tikuona zimenezi and we will speak at an appropriate time.

Wakumudzi
Guest

Inentu ndikuwamvetsa anzathu akumpoto. Chuma cha mtundu wa Malawi chitamagawidwa kuzigawo, kukolola kumene kukuchitika kukhoza kutha. Chifykw ndi chakuti, Chigawo chili chonse chizisata kayendesedwe ka chuma chake mowilikiza. Potelo, ndiye kuti chitukuko ku mudzi chingakweleko mwansanga. Ine ndingakondwe kuwona mpikisano wa zigawo pakayendesedwe ka chuma ndi chitukuko.

Ine ndikuwona kuti ambiri amene asakugwilizazan ndi federationyo ndi amene amasolola kapena kupakulu. Tichite manyazi ndithu ife a kwathu kumwela. Tizingokhalira kunyoza ngai kuti sitpemphela? Ayi, tikuwopa chiyani kuti chuma cha Malawi tizigawana ku zigawo, Tikuwopa chiyani?

ankhoma
Guest

mmmmm.1billion for compensation am ldreaming? my God this is unfair is apm aware of this? pliz lets stop paying tax.

chosatheka
Guest

BWANJI TISIYE KULIPIRA TAX, I MEAN THIS IS NOT FAIR. WE ARE STRUGGLING TO MAKE ENDS MEET AND SOME IDIOT JUST GOES AWAY WITH OUR TAX MONEY. AMALAWI ITS TIME WE STOOD FOR OUR RIGHTS AND FIGHT SO THAT NDALAMA ZATHU ASAMANGOSEWELETSA. AZIBAMBO TIYENI NAZONI – MUSANGOTI DUU NGATI SIMUKUZIONA ZIKUCHITIKAZI!!!!!!!!!!

BigMan
Guest

If the government owes him money, then why shouldn’t they pay him? Stop barking!

Zikundiopsya
Guest

Dzanja la lemba as cashgate continues! Koma 5 year term iyi ………. Tiyeni tione.

comrade
Guest
Zitsiru ndi majudges athu who dont seem to understand remedies for breach of contract in govt contracts!!! It is extremely difficult to show “loss of business profit” on a business transaction that “never happened!”. That is why you never hear such nonsense in transparent and incorruptible economies and countries! I dont know what our “useless judges” use to make it this easy! I can challenge our “useless judges” there is not a single compensation case where the “compensated” can truly show “loss of business profits” for their companies that do not even keep detailed, up-to-date records of business transactions!
Zex
Guest

Then all bids which were lower than the successful bid should be given K1 billion Kwacha by the Malawi Government. Period. It should not be only Mulli.

wpDiscuz

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