Central Medical Stores Trust (CMST) says it is proceeding to dispose properties belonging to Sadm Pharmaceuticals in enforcement of a Malawi Supreme Court of Appeal order for the supplier to refund K4.5 billion.
In an e-mailed response this week, CMST lawyer Pempho Likongwe said the auction is a legal enforcement of a valid court judgement.
“The debt we are enforcing was already determined by the Malawi Supreme Court of Appeal on 25th May 2023. Over two years have gone and Sadm has failed to pay the money ordered by the Malawi Supreme Court of Appeal,” he said.
Likongwe also clarified that the court has planned a scheduling conference for the parties this month with hearing set for early 2026.
In a separate interview, lawyer representing Sadm, Kalekeni Kaphale, said on Monday that the matter is proceeding in the courts and is set for a hearing next month.
“I can only confirm that the matter is coming to court in October. I cannot say much because my client hasn’t given me permission to do so,” he said.
The planned auction of the assets was advertised online for September 26 and 27 2025 and followed a 2023 Supreme Court order for Sadm to repay the money.
In the 2018/19 financial year, Sadm was among local suppliers CMST owed. Sadm took CMST to court in 2019 for delayed payment after supplying medicines.
Based on an earlier High Court judgement, CMST paid both the debt and interest, but appealed against the judgement, which was set aside by the Supreme Court.
In its judgement, a nine-judge Supreme Court panel ordered Sadm Pharmaceuticals to refund CMST the $4.3 million (about K4.5 billion) penalty within 14 days.
On claims that CMST management acted without board approval, Likongwe said: “The board of trustees approved this specific auction… members of the board of trustees of CMST have urged me to have the sale conducted as soon as possible.”
Reacting to the auction notice in a separate interview, Sadm chairperson David Bisnowaty questioned the timing and method of the auction and warned potential buyers that the property is under litigation.
“I was shocked to learn that this came up on a social media platform and not in the major newspapers, especially when it was done on a weekend during a transition period,” he said.
Attorney General Thabo Chakaka Nyirenda said he was yet to be briefed on the status of the case as it was being handled by Likongwe.
