Kabambe, Mulli in court today over RBM loans
Former Reserve Bank of Malawi (RBM) governor Dalitso Kabambe and several others are today expected to be committed to the High Court of Malawi in a case about loans advanced to private companies.
The case, being heard in the Chief Resident Magistrate’s Court, is in connection to loans RBM extended to companies owned by businessperson Leston Mulli in alleged breach of the RBM Act.
The RBM Act does not allow lending to private entities or individuals and the loans worth about $5 million have not been repaid, according to the State.
In a notice filed by the Director of Public Prosecutions (DPP) at the Chief Resident Magistrate’s Court in Lilongwe, the other accused are Henry Mathanga, Leonard Kandoje, Leston Ted Mulli, Joseph Khupe, Felton Mulli and Justin Fredson Likhunya. They were arrested in 2021, but were later released on bail.
The beneficiary companies are Web Commercials Limited, FF Trading, Rock ba Rock, Mulli Brothers Ltd and JF Trading.
Reads the notice: “Take note that this matter has been adjourned to the 1st day of July in the Chief Resident Magistrate’s Court sitting at Lilongwe for committal proceedings.”
In an interview, DPP Masauko Chamkakala yesterday confirmed moving the courts.
“Yes, I can confirm the matter will be in court,” he said in a brief response.
Court documents show that Mulli Brothers Limited (MBL) allegedly owes the central bank around K1.5 billion, Rock ba Rock K1 billion while Webb Commercials and FF Trading face K308.2 million and K233.2 million claims, respectively.
The other company is JF Investments Limited which allegedly owes the central bank K152 million.
The court records show that the five companies were accessing the loans as part of a trade finance agreement known as Dual Tranche Strategic Structured Commodity and Trade Finance Facility, which they signed a couple of years ago.
The agreement saw RBM sourcing forex and paying foreign-based fertiliser manufacturers on behalf of the local firms in the hope that they would refund later.
