Mulli, MSB in stalemate
Legal practitioners representing the state owned, Malawi Savings Bank (MSB), and MBL Holdings Limited have presented different figures for properties MBL Holdings Limited used as collateral on a K3.3 billion loan obtained almost four years ago.
Meanwhile, MBL Holdings has obtained an injunction stopping MSB from selling the properties, as Supreme Court Judge Dunstain Mwaungulu adjourned the matter to July 9, 2015.
Judiciary Spokesperson Mlenga Mvula said MSB evaluators found that the value of the properties was K4 billion while MBL Holdings evaluators pegged the properties at K6 billion. Following the variation in figures from both sides, Mvula said the issue will now be resolved by the judge himself through use of judicial intelligence.
Mvula said the two sides were given time to settle the matter out of court, now that there are still differences between them, the court will continue to preside over the case.
“In this state of affairs the Judge will be writing his ruling for this case in the next 21 days” he said.
In a dramatic turn of events, lawyers for both sides avoided reporters who had camped at the court from 8:30am to 12:47pm waiting for the outcome of the court proceedings that was held in the chamber.
Chancy Gondwe for MBL Holdings who failed to swiftly drive away told reporters that MSB is legally prohibited to sell the properties.
“We insisted that the injunction should be there because there’s an appeal which is in the Supreme Court, so if there will be no injunction, MSB will sell the properties,” said Gondwe.
MSB has been pursuing MBL who owes the bank a reported 83 percent of the bad debts amounting to K4.97 billion.
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