Mulli Brothers Holdings Limited (MBHL), a company owned by an official with high level connections to the State presidency and the Democratic Progressive Party (DPP) risks being declared bankrupt for failing to pay back a K190 million loan to Standard Bank of Malawi.
According to High Court documents seen by Nyasa Times from the Commercial Division, Mulli Brothers took a K250 million loan from Standard Bank.
In March 2019, the bank and Mulli Brothers stroke out of court deal to enable the company pay in instalments of K20 million each month until the whole loan was cleared.
“In March, 2019, you were ordered to pay K20 million per month instalments but you only paid for three months for March, April and May, 2019 and has since defaulted on complying with the agreement,” says court documents in part.
The court says Mulli Brothers has shown no interest to finish the repayment of the loan and asked both parties to return to the court for determination.
The company might be declared bankrupt and its assets seized to recover the money.
Mulli Brothers also owes the defunct state owned Malawi Savings Bank in billions of money in what is commonly known as toxic loans.
A company tasked with debt collection of K5 billion from Mulli has been struggling to do so even after a court issued a warrant for sheriffs to impound property.
Treasury issued promissory notes valued at K6 billion bailing out individuals and companies which owed MSB, among them Mulli Brothers Ltd, with the belief that the billions would be claimed back through the debt collection company.