The Supreme Court of Appeal on Tuesday rebuffed contempt Charges leveled against Malawi Savings Bank (MSB) Chief Executive Officer Ian Bonongwe by Mulli Brothers Limited (MBL) Managing Director, Leston Mulli over the sale of his seized property.
Mulli’s Lawyer Chancy Gondwe last week filed an application at Supreme Court against MSB boss, saying the sale of his seized property was an act of contempt of Court as there was a stay order on the matter.
During court hearing on Tuesday, Judge Dunstain Mwaungulu flew away the contempt charges alleged by Mulli on Bonongwe, MSB company secretary Videlia Mluwira, head of credit George Sibale and head of corporate banking Ted Chanza.
Mwaungulu also granted an interim injunction “without notice” to MBL Holdings restraining MSB from advertising or selling the collateral securities MBL Holdings provided.
According to Mwaungulu order is valid up to June 4 when the court will hear both parties in the matter.
MSB last week put on sale MBL assets valued a K3.3billion in a bid to recover a K4.97billion that the business conglomerate owes the bank following pressure from Civil Society Organizations (CSOs), accusing government of playing double standard on the matter.
Government, through Ministry of Finance, had initially cancelled the MK6 billion loans that Democratic Progressive Party financiers and sympathisers, including Mulli Brothers, owe the bank.
Government had described the loans as toxic assets implying it was impossible to recover. The Ministry of Finance had written Malawi’s central bank to bail out the public owned bank which donors have suggested being privatized.