Mulli tussles with Malawi Savings Bank


Mulli Brothers Limited (MBL) has vowed to wrestle with Malawi Savings Bank which it accuses of being in contempt of court by selling the company’s property valued at over K3.3 billion.

MBL says the state-owned bank is in contempt of court because of a stay order the Supreme Court of Appeal granted on February 4, 2015 stopping the sale.

One of MBL lawyers Chancy Gondwe confirmed on Friday that the company had the feeling that there was contempt of court and that the lawyers were preparing papers on the same on Friday.


“We are working on that,” said Gondwe on Friday.

MBL managing director Leston Mulli also confirmed in an interview that he was challenging the sale of his assets by the bank because there was a stay order granted by Justice Richard Chinangwa.

Mulli argued that a three-judge Supreme Court of Appeal comprising appeal judges Maxon Mbendera, Dunstain Mwaungulu and Frank Kapanda that heard the case on May 18, 2015 to determine whether it was proper for one judge to give such an injunction as applied for by the bank and not necessarily removing the injunction. The panel is yet to make to make a ruling.


“That stay order still stands. Why are they rushing to sell my assets? Is that not contempt of court?” argued Mulli on Friday.

One of MSB lawyers Alinane Kauka said the lawyers received instructions not to comment on the matter.

Told that MBL says the bank is in contempt, MSB Chief Executive Officer Ian Bonongwe said the Supreme Court presided over the matter last week Monday and authorised them to proceed with the sale. He said the court indicated that judgment would be coming within seven days.

“Since October 2012 we were looking for guidance from court. We could not just wake up and sell the property without authority,” said Bonongwe.

Judiciary spokesperson Mlenga Mvula said the case is handled by “very” professional judges and cannot err by granting authority to the bank to proceed with the sale when there is a stay order which is not vacated.

MBL’s reaction comes after MSB has put on sale Mulli Brothers assets worth about K3.3 billion.

MSB has advertised for sale of MBL property which includes:

.An estate in Thyolo which has more than 70 structures on it. This is priced at K466,225, 000.

.A tea estate in Mulanje with several developments on it extending on 43.3965 hectares. This is pegged at a price of K1,754,158,600.

.An estate and a tourist in Mulanje along the Mulanje- Phalombe Road. This is priced at K584, 245, 000.

.Commercial plot in Nantipwili in Thyolo values at K514,870,000.

MSB Legal advisor, Fidelia Mluwila, confirmed the sale last week saying: “The court has cleared us to go ahead with the sale, hence the advertisements you have seen.”

The bank has been pursuing Mulli Brothers Limited (MBL) over the loans since December 2012 when it filed the case with the High Court (Commercial Division) in Blantyre.

The court ruled that MBL had to repay the loan that had risen to K3.2 billion at that time.

Facebook Notice for EU! You need to login to view and post FB Comments!
Show More

Related Articles

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker