The Timber Millers Cooperatives Union, an umbrella union of eight registered timber millers, has withdrawn an injunction which the High Court in Mzuzu granted it, stopping Sterling Timber International Limited, which the Union is the majority shareholder, from operating.
According to a copy of the consent order filed at the Court, the Millers agreed to withdrew the action in its entirety.
“Upon the consent of both parties and following the meeting which took place at Katoto Secondary School on 1st June… it is here ordered that the action herein be withdrawn” reads the order.
The Timber Millers Cooperatives Union which consists of the following registered Saw Millers Cooperatives: Chamatete, Lusangazi, Chibwaka, Zikomo, Viphya, Luwawa and Kalungulu, sought the court’s intervention after the company started conducting its business in a covert way, according to the Union.
The Union was not happy with reports that the Company got a MK1.9 billion loan from the Reserve Bank of Malawi under the Extended Credit Facility but none of its general knew.
Last week the High Court ordered the disgruntled and warring members of the Union to meet by Friday, 1st June 2012 and resolve their differences.
The Court also ordered all relevant stakeholders in particular the Export Development Fund Limited and the Registrar of Cooperatives to be present at the meeting and supply relevant information.
The order also gives parties room to continue their discussions.
“It is also ordered that any aggrieved party should be at liberty to institute fresh proceedings,” it said.
Sterling Timber International Limited, which was registered on 9 February, 2012, has the following directors, the Minister of Agriculture, Professor Peter Mwanza, Hennox Mazengera, Alexander Makwata, Paul Makolosi, Tawonga Mtegha, Willfred Tsaka and Paul Feston Tsoka Banda according to a copy of the registration certificate, Nyasa Times obtained.