The Supreme Court in Blantyre has this morning ruled that the case in which Forum for National Development (FND) stopped two commercial banks from extending loans to the Malawi Government for the Salima-Lilongwe Water Project be referred to the High Court Civil Division.
Justice of Appeal Dingiswayo Madise has also directed that the matter be filed by way of judicial review where respondents to the case will be the President, Minister of Finance, and the National Assembly.
The ruling effectively means that the Supreme Court has excluded contractors of the project, Khato Civils, National Bank of Malawi plc and NBS Bank plc as parties to the case.
FND earlier dragged to court the Attorney General (AG) Thabo Chakaka-Nyirenda, Khato Civils and the two banks where it obtained an injunction in the High Court Commercial Division in Blantyre.When the matter was about to be heard on June 15 2023—before the preliminary issue was addressed about Commercial Court’s jurisdiction over the matter, the court denied the AG order of stay of the injunction made orally before the court.
The lower court, presided over by Judge Ken Manda, asked the AG to make his application inter-partes, where both parties needed to be heard.
The AG, instead, rushed to the Supreme Court where the stay order on the injunction of the FND was granted.
The court heard submissions by the AG, lawyer representing Khato Civils Chancy Gondwe, two lawyers representing the two banks Lester Mwantisi and Tusume Mwabungulu, as well as responses from lawyers representing FND, Holmes Mazambani and Zwelithini Chipembere.
The ruling means Justice Madise agreed with the AG and others that the matter is purely civil, and not commercial as was argued by the FND.
The loan for Salima-Lilongwe Water Project was duly authorised by an Act of Parliament. The project was initiated in 2015 and was supposed to be completed in 2018/19 financial year, but it has faced a number of challenges, including funding.
Source:NPL
