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Mulli fails to refund K3bn compensation, AG threatens to file bankruptcy

Our Reporter by Our Reporter
July 3, 2025
in National
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Mulli ordered to pay back K3bn to government, with interests

Mulli

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Sunrise Pharmaceuticals and Chombe Food Products, owned by businessman Leston Mulli, have yet to refund the K3 billion compensation they received from the government, which the Supreme Court of Appeal ordered.

The court ordered that Mulli should pay back the money within 30 days, which has lapsed.

The ruling followed an application by the Attorney General (AG) Thabo Chakaka-Nyirenda against the compensation, which was paid by the Democratic Progressive Party (DPP) regime.

It reversed the High Court ruling under the DPP administration that awarded the companies this sum as compensation for losses claimed during the July 20, 2011, demonstrations.

Following the expiry of 30 days, Chakaka-Nyirenda has threatened to take further legal action, including filing for bankruptcy and a garnishment order.

“Following the court order, nothing has been paid and the 30 days have elapsed. So we have several options that we have to reclaim the money. The first one will be to garnish [Mulli’s] bank accounts.

“The second option will be to instruct the sheriffs to seize assets or apply for bankruptcy. So these processes will start as soon as possible,” he told the Nation Newspaper.

However, Mulli’s lawyer Chancy Gondwe said they are waiting for the same court’s ruling on an application for an order staying its earlier decision to refund the money.

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“We have applied for an order of stay pending the retrial of the matter in the High Court. The application is before the full bench. We are waiting for their determination as of now,” he said.

In its verdict in Blantyre on May 29, 2025, a seven-judge panel comprising Deputy Chief Justice Lovemore Chikopa and justices of appeal Frank Kapanda, Healey Potani, John Katsala, Charles Mkandawire, Sylvester Kalembera, and Dorothy NyaKaunda Kamanga ordered Mulli to return within 30 days the money he was paid as compensation and that the case should start afresh in the High Court.

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The Atlas is one of Malawi’s most established, reliable and impartial publications, that does not subscribe to the principles of any political party or pressure group. It takes a no-holds-barred approach in its reporting and strives to always keep authorities and others involved in public initiatives on their toes.

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