Malawi Ggovernment stands compelled to pay compensation claim from business mogul Leston Mulli and his enterprises to avoid ballooning the interests and pay more later, Attorney General Kalekeni Kaphale has said.
Kaphale has said that his predecessor Charles Chidongondo Mhango entered into a deal with Mulli to pay the compensation with the Supreme Court of Appeal consent order to to avoid more costs for the damages the companies claim to have suffered during the July 20 2011 demonstrations.
The agreement was for a previous High Court default judgement in favour of the two Mulli companies—but which the Attorney General appealed—as the premise for the payment.
Kaphale explained that in the way pending the hearing of the Supreme Court, the then Attorney General Mhango struck a deal with Mulli group and had a consent order to resolve the matter and the appeal was withdrawn.
“ If you’re looking at the Twea ruling, you’re looking at a thing that is no longer material in the current state of affairs,” said Kaphale in quotes reported by Malawi News on Saturday May 2 2020.
Mulli through his companies, Sunrise Pharmaceuticals and Chombe Foods Limited is asking for K11,603,935,990.03 from government as compensation.
Kaphale said the new claim that Mulli Group has put across is stemming from a Release Agreement signed by Mhango on behalf of the Malawi Government and lawyer Tamando Chokoto representing Sunrise Pharmaceuticals and Chombe Food Limited—companies under Mulli Brothers Holdings Limited (MBHL)—the payment was authorised on April 13 2018.
Former Attorney General Mhango said government made the decision to pay “to mitigate the loss government could have suffered”
The two companies suffered damages and loss of business during the July 20 2011 anti-government demonstrations against economic malaise under the administration of the late Bingu wa Mutharika.
During the demonstrations, rioters looted the two companies in Lilongwe.
After the High Court ruling that ordered government to pay the two companies, the Judiciary in June 2013 wrote the AG and secretary to the Treasury, ordering them to comply with the court order.Follow and Subscribe Nyasa TV :