The High Court of Malawi Commercial Division has lifted a preservation order Financial Intelligence Authority (FIA) obtained against businessperson Nessimu Nyama of Nema Farm Seeds relating to a deal with Malawi Enterprise Development Fund (Medf).
The court’s decision paves the way for the release of the company’s K383.65 million held in a National Bank of Malawi plc account.
Medf, through FIA on June 27 2026, facilitated the processing of the preservation order after alleging that funds Nyama used to supply seeds were suspected to be proceeds of crime.
But Judge Violet Chipao has discharged the order on the basis that there are no grounds to suspect that the K383 650 410.35 balance constitutes proceeds or instrumentalities of crime.
She said: “That the funds being the sum of K383 650 410.35 held in account domiciled at National Bank be released to the interested party immediately upon service of this order;.“That the claimant should file with the court a supplementary sworn statement attaching the report from Malawi Development Enterprise Fund Limited.”
Court documents show that on April 25 2025, Nyama entered into a contract with the National Economic Empowerment Fund Limited (Neef), now MEDF, for the provision of seeds to farmers under the Neef Micro Irrigation Loan Product.
The documents further show that Neef informed Nyama that it would not be able to estimate the exact quantities and prices of seeds required by farmers because the initiative was an ad hoc winter programme designed to respond to the looming effects of climate change, which had affected rain-fed agriculture during the 2024/25 farming season.
In an affidavit filed on Nyama’s behalf, lawyer Jefferson Luwa said that at the time Medf obtained the preservation order, it already had in its possession almost all the goods received notes issued by Neef corresponding with the invoices.
The lawyer stated that Nyama delivered all the seeds corresponding with the amount of K4 663 875 000 to Neef by September 11 2025 and is still owed K264.375 million by Medf.
