Malawi govt stands compelled to respect court on Mulli payout – AG

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.

Mulli: Payment stems from release agrement with Attorney General

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Attorney General Mhango struck a deal with Mulli group and had a consent order to resolve the matter and the appeal was withdrawn.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.

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Ruben Kacheche
Ruben Kacheche
9 months ago

After all I lost my trust in Kaphale …so no deal

Chchimseu
9 months ago

If Muli gets that money I will ask citizens who love Malawi to go and loot all his companies till we recover our taxes . This will include his lawyers and AG (Anthu a Greed)

Mtete
Mtete
9 months ago

There is a budget vote with funds to pay to crooks defended by crooked lawyers Attorney Generals who no longer care about safeguarding government (the people) interests, maybe because there is something in the scam for them.
Ever wondered why a certain section of our learned men is filthy rich.

Chikoti
Chikoti
9 months ago

Amene ma comments anu mukutsutsa zingoonetsa kut nkhaniyi.yakudutsani..simunainve zomwe ikutanthauza basi khalani chete..

Chiswa B
Chiswa B
9 months ago

How did Tamando chokhotho win a case

#NotMyPresident
#NotMyPresident
9 months ago

July 2 will solve all this. All thieves are going to jail. July 2nd

ERUTU
ERUTU
9 months ago

Yes

Piper
Piper
9 months ago

Absolute nonsense ! Was it only Mulli who lost out due the demonstrations? Why can’t compensate everyone else whose livelihood was affected then? This is nothing but diverting government money and corruption beyond belief ! You are really pushing it ….

The trouble you asked me to finish-Hon M Gwalidi
The trouble you asked me to finish-Hon M Gwalidi
9 months ago

The same Tamando Chokotho who is representing MEC represented Mulli in this litigation,,,Oooh boynwe have vultures and mafias on the loose,,,

The trouble you asked me to finish-Hon M Gwalidi
The trouble you asked me to finish-Hon M Gwalidi
9 months ago

So it was a default judgment meaning there was a collusion within the DPP to defraud the poor of their hard earned tax money. Chombe tea leaves yemweyi mpaka a combined sum of MK15,000,000,000.00? As a country are we serious about the future of this country? Is Mulli not afraid that Chakwera will demand our tax back once he takes over government come the 2nd of July?
What Kalekeni Kaphale and the DPP government are doing is evil which should be resisted by all Malawians of goodwill.

Pachalo
Pachalo
9 months ago

MSB loan to Mulli was paid by the government and now Mulli is claiming billions from the government! One day Malawians will get their money back from this so called business tycoon.

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