Khato challenges water project injunction
Khato Civils has filed an application seeking dismissal of a Forum for National Development’s (FND) injunction stopping local commercial banks from financing the multi-billion kwacha Salima-Lilongwe water project.
The stay order granted by High Court Justice Ken Manda restrains NBS Bank plc and National Bank of Malawi plc from lending government K105 billion for the project.
Further in stops Khato Civils Private Limited from working on the project on the basis of the NBS Bank plc and National Bank of Malawi plc [Lake Malawi Water Supply Project] Loan Authorisation Bill which was approved in Parliament recently.
However, through Gondwe and Attorney legal firm, Khato Civils has filed an application for the injunction dismissal on grounds that it is irregular.
The application reads in part: “The claimant commenced this action challenging the operation of a Loan Authorisation passed by Parliament through an ordinary summons.
“On the strength of that, the claimant obtained an interlocutory injunction stopping the operationalisation of the Act. This is clear that the challenge of the operationalisation of the Act has been commenced irregularly.
“An Act of Parliament can only be challenged by way of a Judicial Review and not through an Ordinary Summons.”
Khato is the third defendant in the injunction while National Bank and NBS Bank are the first and second defendants.
Filed on Friday, the application further dismisses FND as not having sufficient interest to pursue the matter.
“There is no known cause of action in the pleadings of the claimant. The action is frivolous, vexatious and an abuse of the court process. The main action is bound to fail,” Khato Civils points out.
In a response to our questionnaire Khato lawyer Chancy Gondwe signalled that the injunction was not immediately dismissed.
“We expect the court to schedule a hearing as soon as possible considering the urgency of the issues,” he responded.
In an interview with our sister paper Weekend Nation on Friday, FND coordinator Fryson Chodzi said they obtained the order to compel government to attend to unresolved issues surrounding the project.
“Government needs to fully explain what happened to an agreement with Quay Energy Corp we were told would arrange an external loan and was already given a sovereign guarantee.
“If the contract stipulated that the contractor would find a financier and now there is a new arrangement then let the whole process start all over again by retendering instead of reviewing the contract for the benefit of Khato Civils,” he said.
The K293 billion project, billed as Africa’s largest to be constructed, is expected to pump and deliver daily about 50 million litres of potable water from Lake Malawi to Lilongwe City and surrounding areas
