Court Rules 2012 Government Ban on Mulli Companies Was Illegal

The High Court of Malawi has ruled that a 2012 government directive barring businessman Leston Mulli and five of his companies from securing public contracts was unlawful.

In a judgment delivered on Monday, Justice Allan Hans Muhome found that then Attorney General and Minister of Justice and Constitutional Affairs Ralph Kasambara acted without legal authority when he issued the directive on September 5, 2012.

The court also ruled that Mulli and his companies were denied their right to be heard before the decision was made, rendering the directive procedurally unfair.

As part of the ruling, the court ordered that damages arising from losses directly attributable to the ban be assessed by the Chief Registrar if the parties fail to agree on the amount within 14 days.

Mulli and the five companies had sued the State, claiming K270 billion in losses allegedly suffered after government ministries, departments and agencies ceased doing business with them following the directive.