The High Court in Blantyre (commercial division) has barred Salima Sugar Company from using 2.3 million USD (approximately K5.3 billion) in its account pending conclusion of an outstanding case between the firm and Mukteshwar Sugar Mills Limited.
Judge Ken Manda upon hearing the claimants argument ordered Salima Sugar Company to not use the funds or risk contempt of court which may lead to imprisonment.
Lawyer for Salima Sugar Company, Chrispin Ndalama, has described the order as unfortunate saying it will affect their operations as they cannot use any funds from their account.
Ndalama has also expressed shock with the order as the forensic audit report at the company exposed plunder of resources by the same previous owners.
Late last year the Malawi government terminated its shareholding deal with AUM Sugar and Allied Limited due to alleged breach of contract.
Source:ZBS
