Malawi Government and Romanian firm East Bridge Estate SRL are embroiled in a legal battle over seizure of assets and the company’s $32.6 million (about K57 billion) claim to be paid by March 10 2026.
In a notice dated February 24 2026, East Bridge through Kalekeni Kaphale Lawyers gave the Malawi Government until March 10, 2026 to settle the claim.
East Bridge has also notified the Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) that it is commencing arbitration proceedings at the International Chamber of Commerce in Nairobi, Kenya.
In the notice, the company warns that it will enforce two sovereign guarantees issued in May 2023 and pursue Malawi Government assets in the UK, USA and South Africa if payment is not made.
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East Bridge’s legal manoeuvres come weeks after former Cabinet ministers Sam Kawale and Sosten Gwengwe alongside former Secretary to the President and Cabinet Colleen Zamba were arrested over their alleged roles in the East Bridge transactions. They were charged with conspiracy to commit a crime and abuse of office.
East Bridge is challenging the government’s seizure of tobacco stocks, describing the move as “unlawful” and “a flagrant abuse of State power”.
Through a restriction notice dated January 26 2026, the Anti- Corruption Bureau (ACB) stopped Mediterranean Shipping Company from exporting tobacco belonging to three East Bridge-linked companies.
The ACB said it is investigating suspected offences under the Corrupt Practices Act in connection with contracts involving fertiliser, soya beans and tobacco.
East Bridge lawyers allege that the seizure is a pretext to frustrate the contract.
But ACB acting director general Gabriel Chembezi in an interview yesterday said the tobacco is central to their investigation into whether the Ministry of Agriculture, Irrigation and Water Development entered into a contract with East Bridge without following procurement procedures.
He said preliminary findings indicate that the restricted tobacco was purchased using about K45.5 billion public funds.
Chembezi said AHL Tobacco Sales Limited paid growers on behalf of East Bridge to prevent unrest from farmers demanding payment.
“It is not true that the ACB would like to frustrate a commercial contract because the ACB is simply fulfilling its mandate of investigating and prosecuting corrupt practices,” he said.
In a telephone interview, East Bridge representative Haim Tzutziashvili alleged political interference, claiming the company has been “attacked by political camps”.
He said 17 containers of tobacco belonging to East Bridge valued at
about $7 million are loaded and ready for shipment, but remain blocked.
East Bridge is demanding $23 197 700 for 28 075 metric tonnes (MT) of fertiliser delivered in May 2024 which it says has remained unpaid for over 21 months.
However, in a written response, SFFRFM acting chief executive officer Master Gadama disputed the claim, saying: “There are no sums due from SFFRFM to East Bridge.”
He also dismissed claims of sovereign guarantees, saying there is none in place.
During former president Lazarus Chakwera’s administration in 2023, minister of Finance, Gwengwe, indicated that the guarantees were withdrawn.
Mini ster of Finance, Economic Planning and Decentralisation Joseph Mwanamveka said in an interview that his ministry is not aware of the guarantees or the legal action threat.
“As the Ministry of Finance, we are not aware of the guarantee, and we are not aware that they intend to go to court,” he said.
Tzutziashvili outlined three conditions for suspending arbitration, notably immediate release of all seized tobacco, release of tobacco purchased by SFFRFM with a commitment to supply fertiliser of equivalent value within 30 days and a firm timeline for delivery of the remaining 500 000MT of fertiliser.
In 2023, East Bridge and Malawi Government entered into a deal for the company to supply about 600 000MT of fertiliser in exchange for agricultural produce. However, the deal sparked controversy with governance activists questioning the apparent breach of procurement procedures
