Mulli wins contracts ban case, awaits assessment

Business mogul Leston Mulli and five of his companies have won a loss of business claim following a 2012 Malawi Government directive stopping ministries, departments and agencies from any business dealings with the entities.

In a judgement delivered in Blantyre yesterday, High Court of Malawi Judge Allan Hans Muhome said former Attorney General (AG) and minister of Justice and Constitutional Affairs the late Ralph Kasambara acted without legal authority when he issued the directive and did not give the affected parties an opportunity to be heard.

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He ruled in favour of Mulli and the companies, saying their “claim succeeds with costs”.

Said the judge: “It is clear on the facts that [Mr Kasambara] acted in reckless indifference to the adverse results the directive would occasion to the claimants. The result was foreseeable: the directive would create financial loss to the claimants.”

Muhome further ordered that damages for the loss suffered be assessed by the chief registrar of the Judiciary if not agreed by the parties within 14 days.

Kasambara issued the restriction on September 5 2012 during former president Joyce Banda’s tenure, citing allegations of money laundering, corruption and tax evasion against the companies.

But in another letter dated August 6 2014, minister of Justice and Constitutional Affairs Samuel Tembenu during Peter Mutharika’s first term between 2014 and 2019 lifted the restriction.

Muhome further noted that the claimants have not been prosecuted in relation to the allegations that led to the said directive.

Reacting to the ruling, one of the lawyers for the claimants Lusungu Gondwe said the judgement vindicates his clients.

He said: “The decision sends a stern warning to those holding political power that they cannot, by a stroke of the pen, maliciously, capriciously and irresponsibly kill private enterprises built through blood, sweat and tears.”

AG Frank Mbeta did not pick up his phone when called for comment yesterday.

The claimants in the case are Mulli trading as Zao Marketing Agencies as first defendant, Mulli Brothers Limited, Sunrise Pharmaceuticals Limited, Celcom Limited, National Bus Company of Malawi and Chombe Foods Limited.

They jointly claimed K270 billion in losses suffered after government ministries, departments and agencies stopped doing business with them following the September 5 2012 directive.

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