National

Freezing of Salima Sugar Company accounts sparks concerns

By Chisomo Phiri

Civil society organizations in the country,operating under the banner of the Malawi Civil Society Led Black Economic Empowerment Movement (MaBLEM), have called for an investigation into the circumstances surrounding Judge Ken Manda’s decision to grant an ex-parte injunction against Salima Sugar Company Limited (SSCL).

The injunction restricts SSCL from accessing funds in their accounts until the resolution of an ongoing legal dispute with Mukteshwar Sugar Mills Limited.



On September 18, 2024, the Commercial Division of the High Court in Blantyre issued the freezing order, permitting SSCL to spend a reasonable sum weekly on ordinary and proper business expenses.

Meanwhile, speaking at a press briefing on Saturday in Lilongwe, MaBLEM chairperson Robert Mkwezalamba, urged Chief Justice Rizine Mzikamanda to review the case file to ensure the fairness and justification of the order.

He expressed concerns that ex-parte orders are typically reserved for emergency situations, yet no credible emergency seems to justify this measure.

Mkwezalamba also pointed out the applicants’ decision to file their case in Blantyre, despite both SSCL’s and the applicants’ offices being based in Lilongwe, where there is a Commercial Division Court.

He emphasized that with both Illovo and SSCL scheduled to wind up production this October, the freezing of SSCL’s operations could have disastrous effects on sugar availability nationwide.

He also urged Attorney General Thabo Chakaka Nyirenda to act swiftly to reverse the ruling.

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