The High Court of Malawi Commercial Division has cleared bank accounts of Salima Sugar Company Limited, allowing the company to access its funds and assets amounting to $2.3 million (about K4 billion).
In a ruling on Friday, presiding Judge Jabbar Alide said the claimant, Mukteshwar Sugar Mills Limited, had suppressed material information when making the application that led to the freezing of the accounts in September 2024.
He said: “I hereby order that the freezing injunction granted by this court on 18 September 2024 be and is hereby vacated forthwith.”
Alide also ordered Salima Sugar to file and serve Mukteshwar Sugar Mills Limited with its defence within 14 days as the hearing of the case continues.
In September, Judge Kenan Manda granted an order prohibiting Salima Sugar from dealing with the funds held at seven banks in the country over money owed to Mukteshwar Sugar.
But Manda’s order sparked criticism from private practice lawyer Alexious Kamangila who made several Facebook posts, accusing the judge and other judicial officers of misconduct.
In response, Manda demanded K250 million in damages and an apology but after Kamangila failed to comply, the judge sued the lawyer.
Manda last October recused himself from the sugar case, saying there was need for another judge to determine whether the matter should go for arbitration or full trial.
Salima Sugar Company was established in 2015 as a public private partnership between the Malawi Government with a 40 percent stake and AUM Sugar and Allied Limited of India with 60 percent stake.
However, in 2023, Malawi Government terminated the shareholding due to alleged breach of contract after a forensic audit revealed that $35 million (about K61 billion) invested in the company could not be accounted for.
