Reserve Bank of Malawi sues Mulli, Likhunya and 3 others over K3.2bn unpaid loans

March 7, 2021 Wanga Gwede - Nyasa Times 27 Comments

The Reserve Bank of Malawi (RBM) has sued Mulli Brothers Limited, JF Investment Limited of Justin Fredson Likhunya and three other local companies for failure to repay about K3.2 billion in loans connected to subsidised fertiliser deals they signed with the government.

Chakaka Nyirenda: Files the summons on behalf of RBM
Mulli: I am denied contracts so where do I get the money

According to court document, the central bank lawyer Thabo Chakaka Nyirenda filed in the High Court Commercial Division on March 2 2021 the companies were accessing the loans as part of a trade finance agreement known as Dual Tranche  Strategic Structured Commodity and Trade Finance Facility which they signed a couple of years ago.

The agreement was that Reserve Bank was sourcing forex and paying foreign-based fertiliser manufacturers on behalf of the local firms in the hope that they will refund later.

Mulli allegedly owes RBM around K1.5 billion and had paid back only K709.6 million by December 20 2020,  JF Investment Limited of Likhunya is accused of dogging repayment of K152 million and  Rock ba Rock allegedly owes the central bank over K1 billion.

Others are Blantyre-based Webb Commercials and FF trading which face K308.2 million and K233.2 million claims respectively.

Chakaka Nyirenda in the court summons state that Mulli and other four companies had breached terms of the contract by failing to make full payment of the loans.

RBM says it “suffers and  continues to suffer loss, damage and expense” following the failure by the companies not to repay their loans after government had paid them for supplying fertiliser.

On FF Trading, RBM reveals: “In breach of the express and/or implied terms of the contract, the proceeds of sale of subsidised fertiliser which the defendant assigned to the claimant were never remitted to the claimant. However, on February 25 2020, the defendant paid the claimant the sum of K374 880 000.00, leaving a balance of K233 281 504.98.”

Leston Mulli, managing director of Mulli Brothers Limited,  confirmed owing the central bank but said his firm was struggling to service the loan because government has suffocated it by stopping awarding it contracts of supplying fertiliser.

Mulli said the decision  by Tonse Alliance government to struck off his company from the list of suppliers  of Affordable Input programme had “serious consequences.”

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27 replies on “Reserve Bank of Malawi sues Mulli, Likhunya and 3 others over K3.2bn unpaid loans”

  1. Muli mwaonekela I thought you were doing business if u borrowed the money the u pay after an agreement period and u keep ur profile and now u standing with debts what kind of businessman are politics in business is not good

  2. RBM is not serious. What were they thinking lending directly to Mulli? The guy already owes all the banks lots of money and they go lending to him with no security. Amateurs I’m telling you. Abale so embarassing. A whole central bank acting like a naiive village lender

    1. My dear, don’t forget rbm was under the hlomwes thru kabambe!! These people knew what they were doing & this issuance of contract irrespective of all you’ve observed was deliberately done & it was for their benefits!! Let’s thank heaven that it is exposed to the advantage of the nation!!

  4. With Mullis history of bad loans how could RBM give him another huge loan? (RBM is an accomplice) then they don’t put any guarantee of repayment or get any collateral ( political interference) Obviously his intent was not to repay back the loan. He sold the fertilizer but didn’t give back RBM their portion. If the DPP regime had not changed this money was gone. What other shady transactions of that kind are there? Mulli and current DPP leadership are a liability to this country(organized crime/looters)

  5. Koma akanganya awa anatasamo mboma kumaliza kutenga ma loan mma bank nkukalowera ku central bank konko….Loma amulli aja nzeru zimenezi amazitenga kuti???lol analipo ozitsata

  7. Mesa Bwanawa ankapanga nawo campaign kuti Dpp isachoke Boma. Nde a tonse alliance awapatsilanji ma contract? Komanso amatukwana kwambiri za u savage. Abweze basi.

    1. Osaiwala MSB idagulitsidwa chifukwa cha ameneyu. A Malawi tinatopa ndi kumulipirira ngongole zaketu

  8. Never heard about that facility. Some of us could have used this facility very well. The only problem/crime is that am not a Lomwe. Thats why we are still a poor country because of trash like this.

  11. What business had RBM lending monies to local companies? Why didn’t these companies go to commercial banks for loans, like everybody else?

    There is more fishy stuff: … “following the failure by the companies not to repay their loans after government had paid them for supplying fertiliser”. Why didn’t RBM collect the money straight from the source, i.e. the govt in this case? Anachita dala! Mxii! Remember the toxic loans owed to MSB by Muli? The govt settled those loans and sold the bank (with all its nation-wide assets in the form of buildings, etc. ) to another crooked Mulhakho entity, Thom Mpinganjira, for a song. Afterwards the former AG, Kaphale, authorized the govt to pay Muli billions of Kwacha resulting from a dubious court ruling, although he owed the same govt a lot. Clearly, in both these cases the DPP regime never intended Muli to pay back any money it owed the govt.

    And then … “Leston Mulli, managing director of Mulli Brothers Limited, confirmed owing the central bank but said his firm was struggling to service the loan because government has suffocated it by stopping awarding it contracts of supplying fertiliser.” When asked years ago why he was not settling the MSB loans, he sang the same tune: the PP regime did not give him contracts, he claimed. This dude has a stupid sense of entitlement. He thinks the govt must award him contracts, else he will continue stiffing out the taxpayer.

    All this money ended up in the hands of DPP and regime thugs like APM, Chaponda, etc., of course. Little wonder the DPP regime fought tooth and nail to hold on to power last year. If it was given five more years to rule, there would hardly be anything resembling a country left at the end of the day.

  12. “…in the hope that they will refund later.” If it was any man without political connections, would RBM have given them a loan? This is how MSB was destroyed.
    What is the problem with people, take a loan, do the business, pay the loan, keep the profits. This the problem with Malawians when it comes to loans. You ask everyone in street, they will tell you Mulli is a billionaire, but he is not. I am sure he can not get a loan from any commercial bank.

  13. KABAMBE anali konkotu.
    acina Mcakulu yao ija nanga? tangolongosolani ziko lizipita pasogolo. ngongole za mulii zinalibe malile? mumatompembeza mulli ndi matama a zithumwa zakeyu. abwezetu ndikaesa ndi ndalama za boma mumamusazo.
    mxiii

  14. Lame excuse. Mulli was supposed to pay back the money from the previous sale of fertilizer and not the current contracts…..What if the programme was frozen by the Chakwera administration, where would he have gotten the money to pay..misguided crook

  15. The gangsters have stepped on a dynamite all the tricks in the DPP system are not easy to cling to. Climbing a straight high pole well greased won’t be as stylish as gondolosi platform speech the DPP financier isn’t sailing above the Tonse waves the conditions are overwhelming. Need to change the dance steps. You never saw the floor as you were aloft it’s bruising to find the once buoyant ship torpedoed by the political submarines of your own make. Treacherous street fighters battling out with calculative gladiators we are watching the game the match

    1. Even ma company enawo nd I ayemweyo it was a conduit to syphon from Government coffer’s this stupid fool

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