The Malawi Supreme Court of Appeal Tuesday dismissed an appeal by TotalEnergies, paving the way for a full trial over a joint claim of $480 million (about K824 billion) filed by the Malawi Government and local firm Prima Fuels.
The matter arises from disagreements over remittances the French company was supposed to make from a 2001 fuel supply contract up to 2006.
However, the Malawi Government claims that TotalEnergies abruptly stopped making payments in 2006.
The decision to sue the company followed former Attorney General (AG) Thabo Chakaka Nyirenda’s demand letter, which sought the payments but yielded no results.
A nine-member panel of the court, sitting in Lilongwe Tuesday, ruled that the case should proceed to the High Court (Commercial Division) within 45 days for a substantive hearing.
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The government, represented by newly appointed AG Frank Mbeta, will continue to pursue the claim against Total Malawi for rebate payments amounting to $480 million.
“We are pleased with the court’s decision, which aligns with the arguments we presented. We are fully prepared for the full trial so that we can recover millions of dollars for Malawians,” Mbeta said.
Total Malawi is represented by veteran lawyer Modecai Msisha and Noel Chalamanda, while Prima Fuels is led by Wapona Kita.
When The Daily Times reached Chalamanda for a comment, he said he was not authorised to comment.
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“I don’t have any response for now,” Chalamanda said.
According to available information, on December 1, 2001, Total Malawi Limited and Prima Fuels entered into a binding agreement to supply fuel and related products to the government.
Under its terms, the government was entitled to rebates of up to 50 percent, equivalent to half the retail margin on every litre of fuel drawn from Total facilities, payable by Total Malawi through Prima Fuels. Failure to remit these payments constituted a breach of contract.
Of the $480 million claim, $180 million is allocated to the Malawi government, while $300 million is claimed by Prima Fuels.
