The High Court of Malawi Commercial Division has ordered TotalEnergies Marketing Malawi Limited to pay compensation to Prima Fuels and Malawi Government in fuel rebates for the period July 10 2013 to July 11 2019.
Delivering his judgement in Lilongwe yesterday, Judge Trouble Kalua said the rebates should be calculated as provided for in the supply agreement between the parties which the court found was never terminated.
Said the judge: “Only the outstanding rebates going back beyond six years from the date of the claim would be statute barred in court proceedings, were the claimants to institute proceedings and the 1st defendant minded to plead such a defence.
“Costs are at the discretion of the court. The claimants have substantially succeeded in their claim herein. We see no reason why they should not be awarded the costs of these proceedings.”
| Nation
Kalua said he found that by its letter dated March 29 2012, TotalEnergies communicated an intention not to be bound by the supply agreement.
He observed that such intention constituted an anticipatory breach of the contract, but since the breach was not accepted by Prima Fuels, the anticipated violation was not enough to terminate the agreement.
TotalEnergies, represented by Modecai Msisha, Senior Counsel (SC), Patrice Nkhono, SC and Alfred Majamanda, sought disposal of the case on preliminary points of mixed facts and law while Prima Fuels, the first claimant represented by Wapona Kita, filed a cross application to have the matter determined on a point of law, claiming for an order striking out the defence and entering judgement.
The second claimant, Ministry of Finance, Economic Planning and Decentralisation was represented by Attorney General Frank Mbeta.
In January 2026, TotalEnergies made an interim withdrawal of its quest for fresh arbitration in South Africa.
The Malawi Government is claiming K824 billion (about $480 million) for breach of contract. Of the amount, $180 million relates to unpaid fuel rebates allegedly owed to the government while $300 million is claimed by Prima Fuels.
