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

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.”

Follow and Subscribe Nyasa TV :
2 3 votes
Article Rating

Sharing is caring!

Follow us in Twitter
27 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
Justice for all
Justice for all
1 month ago

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

BornForTheSmoke
BornForTheSmoke
1 month ago

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

Central
Central
1 month ago

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!!

Lumbani
Lumbani
1 month ago

Nanga poti enawo ndi a husband a current minister zitha bwa

Moya
Moya
1 month ago

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)

Gibson maluza
Gibson maluza
1 month ago

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

Neno
Neno
1 month ago

Captain ngongole zama billion zosatha eish..

Che Pichesi
Che Pichesi
1 month ago

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

Basam
Basam
1 month ago
Reply to  Che Pichesi

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

Lee
Lee
1 month ago
Reply to  Che Pichesi

Werenganinso nkhaniyi. Have they said Tonse yawapatsa ma contract?

LIPHAVA NAMANDWA NGOLINGOLIWA
LIPHAVA NAMANDWA NGOLINGOLIWA
1 month ago

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.

Benjones87
Benjones87
1 month ago

This is like saria bank where the rich only can are eligible to take a loan.

Trump
Trump
1 month ago

komaso naye mesa subsidy business is per season? amayenera kubweza season yomweyo

Eye opener
Eye opener
1 month ago

How about the NBS loan.

Lee
Lee
1 month ago
Reply to  Eye opener

MSB boss not NBS

Waganyu
Waganyu
1 month ago

Yatsala apereke 3billion ya MSB

shares
Read previous post:
Prophet Kambale stops worshippers from taking Made-in-India Covid-19 vaccines: Argues AstraZeneca not effective for Malawi

As the Ministry of Health is raring to roll out the administration of the Covid-19 vaccine, Nyasa Times has established...

Close