Third party cheque move illegal—MLS

The Malawi Law Society (MLS) has said the decision by the Bankers Association of Malawi (BAM) to suspend third party cheque encashment is illegal.

MLS president John-Gift Mwakhwawa on Sunday said the society is examining the matter and will soon advise the public and take appropriate action.

Said Mwakhwawa: “Our preliminary opinion is that the action by BAM is outside the law and an infringement of rights. We will be coming to the public soon on what we intend to do, but I cannot divulge information.”

But in an e-mail communication to MLS members, secretary Bright Tembo, said the society has instructed John Suzi Banda to act for it in a suit on the same.

Wrote Theu: “I would like to invite anyone willing to employ their expertise on these instructions to come forward and work with or provide counsel to Banda on pro bono basis.”

BAM announced the suspension of all third party cheques with effect from April 10 2012 because of massive fraud that cost banks K100 million every year.

Association president John Biziwick is on record to have said the suspension is meant to discourage fraud and encourage people to cash cheques through their bank accounts and not through the counter.

He said Malawians should, therefore, be advised to hold an account with banks where the cheques could be deposited.