BLANTYRE-(MaraviPost)-Justice of Appeal Dingiswayo Madise on Monday, May 22, 2023 granted Attorney General (AG) Thabo Chakaka Nyirenda an application for an order of stay on an injunction which was obtained by the Forum for National Development (FND) barring government from securing a MK105 billion loan meant for the Salima-Lilongwe water project.
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.
According to a ruling which we have seen, Justice Madise has given the ruling on conditions that the applicant should file a fresh application within seven days and that hearing of the summons will be done within 21 days.
However, the banks are yet to proceed releasing the funds considering the complexity of the matter.
The country’s civil rights Forum for National Development (FND) has justified as to why it obtained an injunction stopping President Lazarus Chakwera’s Tonse Alliance government to borrow MK105 billion from commercial banks on behalf of Khato Civils Limited to finance the Lilongwe-Salima water project.
The grouping hinted that there is no way government could borrow money on behalf of private company that failed to meet contractual agreement on the project.
FND suspects public funds theft ploy in the project hence sought legal address while also engaging Anti-Corruption Bureau (ACB).
World Bank pulled out of the project due to overpricing.
Simbi Phiri owns Khato Civils Limited.
Phiri has been in the media for financing major political parties including politicians vying for presidency, Members of Parliament (MPs) in 2019 general elections and 2020 presidential polls.