One of the country’s commercial banks, Malawi Savings Bank (MSB) has taken business magnate Leston Mulli to court over unpaid debt amounting to over K3 billion.
The bank through its lawyer, Alinane Kauka of Raymond and Huges law firm has filed the case with the High Court (Commercial Divsion) in Blantyre demanding the money back with interest thereon at the commercial bank lending rate.
Mulli through his business empire, Mulli Brothers Limited got a loan from the bank and is failing to pay, forcing the bank to commence legal proceeding to recover the money.
Currently the commerical bank’s lending rate has been adjusted to 25 percent, meaning Mulli will have to dig deeper into his pockets to service the debt or risk losing some of his properties.
MBS lawyer, Kauka and the bank’s legal advisor, Fidelia Mluwila while confirming the case, refused to divulge more details.
Kauka said the bank was better placed to comment on the issue.
And when contacted, Mluwila just said: “The case is still in court, so I can’t comment on the matters that are already in court”.
The case is expected to start next week when the presiding judge, Micheal Mtambo who is currently outside the court is back in office.
Mulli maintains an overdraft with MSB in billions.
Analysts will question why such amounts were being approved. The questions will arise because MSB is a public company.