Who gets hurt when Mulli is squeezed?

Honourable Folks, PP deputy publicity secretary Ken Msonda never stops bragging about his party going one step ahead of DPP and UDF by separating party from government affairs. But if you asked businessman Leston Mulli, he’d most likely dismiss the assertion as false.

Until April 2012, his business empire—Mulli Brothers Limited—was government’s point of call for anything from road haulage of grains and petroleum products, importation of drugs and fertiliser for the Farm Input Subsidy Programme, and was even entrusted with the management of resources on Mulanje Mountain and bus terminals and depots across the country under the Public Private Partnership (PPP).

So strong was the relationship that Mulli Brothers could get as much as K3 billion funding from wholly government-owned Malawi Savings Bank on terms that can only be described as loose. There were eyebrow raising stories of Mulli Brothers getting business deals on terms that didn’t exactly fit with set procurement criteria.

Mulli Brothers grew extremely big, creating so many job opportunities and controlling a significant chunk of the economy. At times, some of us could not help wondering whether government was helping the creation of another conglomerate after Press Corporation Limited.

So favoured was Mulli that when he lost a legal tussle over a piece of land in Mulanje to a British national who claimed was using it for charity, government came in and tried to snatch the land from her, a scenario which could make both Mulli and the rightful owner losers, so to speak, by the end of the day.

But Mulli’s luck came to an abrupt end with the sudden death of Mutharika on April 5 2012. Despite having the capacity and experience to deliver which even World Bank vouched for, Mulli Brothers Ltd hasn’t got any major business deal with government since then, at least to the best of my knowledge.

What has changed? The MPSR (Malawi Public Service Regulations) remains the same. The Office of the Director of Public Procurement criteria for sieving bids remains the same. The Constitution and the laws remain the same. In short, government and its laws and rules on procurement haven’t changed at all.

Rather, what has changed is the political leadership. It’s no longer Mutharika but Joyce Banda at the helm. Likewise, it’s no longer DPP but PP in government. The political environment which brought in so many opportunities to Mulli Brothers Ltd has now turned into a major threat to the company’s survival.

The businessman who, in the name of Public Private Partnership, was entrusted with the management of natural resources on Mulanje Mountain is now told to beat it. Government under Mutharika also entrusted Mulli with the management of bus depots and terminals across the country and now, same government under the JB administration is ordering him out of its depots and terminals.

Government-owned Malawi Savings Bank gave Mulli Brothers Ltd K3 billion loan during the Mutharika administration on terms that can only be described as loose. Now under the JB administration, the same bank wants its money back. Ministry of Agriculture is accusing Mulli Brothers of supplying it substandard pesticides and wants its money back.

Under such enormous pressure, it has only taken a year for the business giant to begin showing signs of suffocation. Only a week or so ago Mulli was on record as having said he has no choice but to lay off some 5 000 workers.

I don’t know what percentage of his workforce is 5 000 nor do I know how many of these are skilled or unskilled, permanent or temporary. What I know as an employee myself is that these employees, their spouses, children and other dependants are the real losers in the fight between government and Mulli Brothers.

Throughout the history of independent Malawi, those in government have used their clout to give opportunities to friends and cronies while using the same clout to choke their real or perceived enemies. Muluzi used to brag to his enemies mutha ngati makatani (you are doomed to failure).

As they say government is government and indeed, many local companies have folded. I’ve no doubt if the JB administration is determined to strangulate Mulli Brothers Ltd, for whatever reasons, it will finally happen.

But if Mulli Brothers folds, the economy will also suffer, poverty will worsen and government will lose a major source of tax revenue. If Mulli or his business empire violated the Iaw, let that be redressed through the courts but government should nurture instead of destroy local businesses.