Supreme Court nods banks to proceed with Salima-Lilongwe water project

The Malawi Supreme Court of Appeal has granted Attorney General Thabo Chakaka Nyirenda a stay order on an injunction obtained by Forum for National Development (FND) that stopped the signing of a bank loan for the 100 km plus Salima-Lilongwe water project.

Award winner Supreme Court Judge Dingiswayo Madise on Monday took no time to grant the stay order on the injunction that barring government from securing a K105 billion loan meant for a major national infrastructure project that will solve water poverty in one of Africa’s fastest growing populous city.

“Upon reading the application for an order of stay of the decision of the court below stopping the applicants from lending money K105 Billion to the government of Malawi on behalf of Khato Civils Ltd which has been filed without notice.

“It is my considered view that the balance of justice tilts towards the granting of the order of stay exparte…” reads the order in part.

This means that National Bank of Malawi and NBS Bank can proceed with lending Khato Civils Limited the money for the project on behalf of government.

The rulling further requests the applicants to should file a fresh application within seven days and that hearing of the summons will be done within 21 days.

Eminent lawyers who are members of the Malawi Society in their chat forums accused Commercial Court judge Ken Manda of misjudging rules on jurisdiction when granting an exparte injunction to FND led by Fyson Chodzi represented by lawyer Edgar Kachere, a longterm and good friend of the judge.

Both Kachere and Chodzi have strong links to the former ruling Democratic Progressive Party led by Peter Mutharika.