Tag Archives: Mulli Brothers

Business, Malawi

Tonse Govt cancels Opposition DPP financier Mulli’s 167 years MK10bn loan payment deal

Lloyd M’bwana
from left; Leston Mulli and Mutharika

LILONGWE-(MaraviPost)-President Lazarus Chakwera’s Tonse government has canceled the deal in which opposition Democratic Progressive Party (DPP) financier Mulli Brothers had with previous government to pay the loan worthy MK10 billion in 167 years.

Minister of Finance Felix Mlusu on Friday, March 12, 2021 to Malawi Parliament that Mulli Brothers has managed to repaid MK75 million.

Mlusu disclosed that Tonse government has cancelled the agreement saying will find alternative means of recovering the remaining amount.

There are 12 other people who also owed government money but only one has so far repaid.Mulli is owned by Leston Mulli who campaigned for Former President Peter Mutharika during the 2020 presidential elections.

Mulli Brothers secured an agreement with DPP administration for the company to repay a K10.5 billion loan over a period of 167 years.

The company got a loan from the government owned Malawi Savings Bank before the bank was sold in 2015.

Government set up a debt collection company to collect toxic loans following the sale of the bank.

However, before the 2020 presidential elections, the DPP government bypassed the debt collection company and entered into an agreement with Mulli Brothers allowing the company to repay MK5 million every month. It would have taken Mulli Brother 167 years to repay the loan.

The revelation about the agreement has however shocked Malawians who have wondered how any sane person representing Government agree to such a deal.

“When we talk of a wasted education we should always refer to those “educated” people who sat around a table, drafted documents and agreed that Mulli Brothers should pay the K10 billion debt they owe to the people of Malawi in 167 years. Yes, 167!

“The tragedy of our time is that we have too many people with academic degrees but are, in essence, shameless mercenaries who could sell their own mothers for money to drive a Mercedes Benz,” said social commentator Idris Ali Nassah.

Currently, the opposition DPP is in leadership crisis after booted out of power since June 2020.

Environment

‘DPP linked’ Khato Civil engineers gives word of hope to jobless youths, to create 4000 jobs

Maravi Post correspondent

BLANTYRE-(MaraviPost)–Khato Civil Engineers has given a word of hope to the jobless youths in the country, saying 4000 jobs will be created once the $500 million Lake Malawi water project commences.

The project which involves pumping water from Lake Malawi in Salima is being managed by Lilongwe Water Board but contracted to Khato whose chairperson is Simbi Phiri.

Phiri, who is based in South Africa, has been making headlines in the media for having plans to buy a private jet for Peter Mutharika as one way of enticing the government to give him more business just as it was the case with Mulli Brothers with the Democratic Progressive Party (DPP) during the reign of late Bingu Wa Mutharika.

Lilongwe Water Board: managing Lake Malawi water project

Once complete, the project is expected to pump over 50 million litres of water a day from the lake to Lilongwe.

Currently, Lilongwe is the only city experiencing frequent water shortages.

Speaking with the Daily Times on Monday, Simbi Phiri said y that most of employment opportunities will be in auxiliary services to complement the core personnel of Khato Civil and South Zambezi.

“There will be a lot of quarrying, and the project will need heavy machine operators, drivers, engineers, welders and those who will be involved in rebar and mortar construction. We are relying on local labour to do this,” he said as quoted by the Daily Times.

Phiri also said there is great benefit to be derived from encouraging the continent’s construction and engineering companies to strengthen collaboration and sharing of skills, knowledge and resources if Africa is to achieve its goals for infrastructure development and dealing with skills shortages.

“No country has ever developed by using exclusively its own engineers. Skills should be drawn from the whole world. In some instances, engineers are engaged on a needs basis,” Phiri said as quoted.

 

Malawi

Malawi Govt cheated by Chikangawa plantation’s debtors: Mulli Brothers refuses to pay

Maravi Post correspondent

Chikangawa forest unsustainably harvested

LILONGWE-(MaraviPost)-Ministry of Natural Resources through the Department of Forestry is reportedly having troubles taking legal action against individuals and companies owing government MK640 million for harvesting trees in Viphya Plantations popularly known as Chikangawa Forest since 2012, Maravi Post has learnt.

This comes barely two months after the department issued a 30-day deadline in October this year that all debtors settle their debts or face legal action.

Amongst the debtors is Mulli Brothers Limited who owes the department MK53 million in unpaid bills for harvesting the trees in the plantation but has been refusing to settle the Chikangawa bills.

Mulli is also linked to the infamous tractorgate and now-sold Malawi Savings Bank (MSB)’s bad debts where his company owned the bank over MK3 billion.

But two month after issuing the warning statement, the department has not taken any legal action on debt defaulters. This is so despite Parliamentary Committee for Natural Resource pressing government hard to recover the money from companies and individuals. The committee has since slated January 24, 2017 to meet the department to get feedback on the matter and all issues surrounding the plantation deals with the aim of appraising the public.

Sangwani Phiri, Environmental and Climate Change Management Spokesperson told the Maravi Post that his office was consolidating reports for easy follow up of all defaulters.

Phiri disclosed that the debt files are in the hands of Attorney General Chambers who will track down all those dogging to pay the bills.

“The department cannot give you a concise figure, the accounts section has been asked to come up with a list of those who finished paying their debts, those who are still paying and another list of those who are up to now refusing to have incurred any debt with us”, said Phiri.

The department has as of late deployed the Malawi Defense Force (MDF) soldiers to bring order to the closed Viphya Plantation for off-season till April 2017.

The Viphya Plantation is currently managed by three groups including Companies through concessions; Raiply which has 25,000 hectors, Total Land Care (TLC) of about 12,000 ha. And the Government through the Department of Forestry with less than 1000 ha of standing harvestable trees around their offices at Chikangawa, Lusangazi. Maravi Post has noted that Timber Millers Cooperative Limited which was given 10,000 ha has no standing trees which can be harvested.

There are also pockets of the plantation which are jointly managed by forestry department, FRIM, Raiply and TL Timbers. It is also worth mentioning that Total Land Care (TLC), Limbe Leaf and two other tobacco buying companies have for the past four years been engaged in replanting exercise to compensate for wood used for tobacco curing elsewhere.

Soldiers in the Viphya are paid by Raiply Malawi Limited because, as a private company, they made a huge investment (MK10 billion) of fiberboard processing factory which solely relies on sustainable management of the Viphya.

Members of Timber Millers Union and some politicians are on a campaign to frustrate Raiply so that they take over operations (i.e. to nationalize the Julius Malema style).

In Tanzania a similar plantation is harvested for three months only and the rest of the year is dedicated towards silviculture.