High Court Judge Violet Palikena-Chipao criticized her colleagues for their handling of the case involving Zahra Ali, who sought to transfer MKI00,000,000 from Bilderberg Limited to her Ecobank Malawi Limited account, which had characteristics of forum shopping.
Bilderberg Limited belongs to a South African fugitive, Willie Steenkamp, who entered the country in 2022 under the guise of an investor using the alias Dr. William Bilderberg.
The Financial Intelligence Authority (FIA) froze Ali’s account as part of the investigations into the Bilderberg Case on 20 September 2023 as the funds were suspected to be proceeds of crime.
Further, on January 29, 2024, FIA obtained a preservation order from the Financial Crimes Division of the High Court sitting in Lilongwe against Alli.
On February 15 2024, High Court (Commercial Division) judge Ken Manda sitting in Blantyre ordered the release of the money in the accounts of Dr. Bilderberg, Bilderberg Limited and the 8 other defendants on the basis that the preservation order granted by the Financial Crimes Division had lapsed by effluxion of time and that the money laundering charges in respect of the funds had been dropped by the Director of Public Prosecutions
The Commercial Division order meant that Steenkamp was to access US$20 million (approx. K24 billion) frozen on suspicion of money laundering.
Further, On February 20 2024, Ali applied to the Financial Crimes Division (which granted the preservation order) to rescind the preservation order, which Chipao dismissed in her ruling of March 1 2024.
Despite the ruling, on March 27 2024, Ali obtained an interlocutory injunction from the Commercial Division through judge Ken Manda compelling Ecobank Malawi Limited to release the money even though the Financial Crimes Division order against the account was still subsisting.
FIA went again to the Financial Crimes Division March 29, 2024 and applied for an injunction against the Commercial Division order, which was granted.
Chipao ruled that despite the unfreezing of the Commercial Division order, the account would remain preserved until otherwise ordered by the court (Financial Crimes Division) which made the preservation order.
In a further ruling of April 15 2024, Chipao wondered why matters to do with the freezing directives were being handled by the Commercial Division, other than the Financial Crimes Division which is the right jurisdiction.
“If matters to do with the freezing notice were to go to another Division of the High Court, yet the FIA or any competent authority can only obtain a preservation order in the Financial Crimes Division of the High Court, then confusion would ensue and this is exactly what happened in the cases of Bilderberg Limited and Dr. William Bilderberg v. Ecobank
“The orders of injunction being obtained in the Commercial Division whatever their bases may have been, their effect is not only varying but actually rescinding the preservation orders granted by the Financial Crimes Division. The Financial Crimes Act provides an aggrieved party with the liberty to challenge a preservation order,” rewads part of the ruling
She further noted that the confusion started with the Registrar at the time the matter is being commenced because the Registrar failed his duty to transfer proceedings to an appropriate Division where the proceedings have been commenced in the wrong Division.
“Other than the transfer of proceedings, the Registrar may also reject documents for where the document appears to the Court on its face to be an abuse of the process of the Court, or to be frivolous or vexatious.
“A matter commenced in the wrong Division of the High Court ought to be transferred to the appropriate Division of the High Court. Although section 6A(2) of the Courts Act is to the effect that the power to transfer proceedings lies with the Registrar, even the Judge seized of the matter commenced in the wrong Division has the jurisdiction to transfer the proceedings to the appropriate Division
“The Apex Court held that the question of jurisdiction can be dealt with by the Court at any stage of the proceedings and that, in any event, time never runs out for a Court, seized of a matter, to pronounce itself on the issue of jurisdiction.
“Ali in her conduct in going to the Commercial Division gives the impression that she engaged in forum shopping,” reads part of the order
