The specialized Financial Crimes Court is, today, poised to delve into a high-stakes financial crimes case that once captured national attention, involving three prominent figures: Leston Mulli of Mulli Brothers Limited (MBL), former Secretary to the Office of the President and Cabinet (SPC) Lloyd Muhara, and former Secretary to the Treasury Cliff Chiunda.
The trior, were arrested by the Malawi Police on July 12, 2022, following allegations of corruption and abuse of office. The case revolves around accusations that Muhara improperly instructed lawyers representing Malawi Savings Bank (MSB) Debt Collection Company to halt enforcement of bankruptcy proceedings against MBL, which Mulli defaulted on. Mulli had, under questionable circumstances and arrangements, secured a loan from the government-owned MSB before its controversial sale in 2015, a transaction riddled with claims of corruption.
After the bank’s sale, the government established the debt collection agency to address the toxic loans left behind. However, it is alleged that certain government officials intervened on behalf of Mulli, preventing what should have been standard debt collection processes. This intervention sparked serious questions of accountability, particularly following the ousting of the previous Democratic Progressive Party (DPP) administration, which had allegedly orchestrated this systemic looting of public funds.
The new administration launched an investigation that unearthed the intricate web of corruption, leading to the arrests of Mulli, Muhara, and Chiunda, along with several others implicated in the scheme, which reportedly involved the embezzlement of K30 billion in public resources.
Following their detention, the trio was released on bail just two days later, on July 14, 2022. They were required to pay K500,000 in cash each and secure surety bonds amounting to K10 million, with the stipulation that they report to Area 30 police bi-weekly to ensure their availability for trial.
As the trial opens today, October 22, 2024, the defendants will formally enter their pleas, and proceedings are set to unfold over three days, concluding on Thursday, October 24. The State’s Public Prosecutor has confirmed that all legal protocols have been adhered to and that there are no outstanding issues impeding the trial’s progress.
The charges against Mulli, Muhara, and Chiunda encompass a range of offenses related to financial misconduct and abuse of public office. As the court prepares to examine the evidence in this landmark case, the trial itself promises to shed light on the complexities behind the alleged financial shenanigans that the DPP administrated rolled out against the country.
