Sherrifs seize FDH Bank properties over Maranatha Academy case

The  Sheriffs from the High Court of Malawi on Tuesday stormed  FDH Bank Headquarters  in Umoyo Building in the commercial city of Blantyre to execute a warrant if seizure of some properties to enforce judgement of  liability in which Maranatha Girls Academy were awarded K785 million.

FDH bank confirmed that the sheriffs seized 5 computers and 1 printer.

Business at the bank was on standstill when sheriffs visited but judiciary spokesman Mlenga Mvula said FDH later prepared a payment through the court.

However, FDH bank in a statement made available to Nyasa Times  issued by Sobhuza Ngwenya the Head of Marketing explained that  Maranatha Girls Academy was a customer of FDH Bank who owes the Bank money and  that while FDH Bank was in the process of recovering the owed money, Maranatha went to court to frustrate the bank’s efforts.

“FDH Bank Limited is surprised with the way that the Sheriffs executed this judgment because FDH Bank lawyers received the judgment on the afternoon of 4th April 2016. They gave the judgment to FDH Bank in the morning of 5th April 2016 at around 09h.00

“FDH Bank lawyers immediately tried to get a stay order on the judgment on the same afternoon 4th April 2016 so that an appeal can be filed with the Court. The court instead ordered to hear the stay order arguments at 13h30 on Tuesday 5th April 2016. While FDH was waiting for this process, within one hour of receiving the copy of the judgment, the sheriffs had come at around 10h30 to seize properties,” the statement said.

It added that FDH Bank immediately prepared the required payment.

“When FDH wanted to deliver the payment, the people who seized the properties for FDH were nowhere to be seen.

“FDH Bank is surprised by the conduct of the whole matter, especially noting that the Bank was not allowed time to look at the judgment and make appropriate decision before the sheriffs could seize its property, all in a period of less than 24 hours.”

The statement pointed out that that Maranatha Girls academy owes FDH Bank MK281, 820,906.47.

“This amount has been outstanding for several years and FDH has been trying to recover this money by selling the collateral that was given as security for this loan. However, when FDH advertised the property for sale, Maranatha Girls academy is claiming that the advertisement resulted in the loss of business. This was the basis for the claim under which the whole of this matter is based,” the statement said.

Meanwhile FDH Bank said it cannot recover the debt “because the Court stopped this process through an injunction that has yet to be lifted.”

The court returned all seized items to the bank on Tuesday afternoon.