By Suleman Chitera
The Supreme Court of Appeal has overturned a High Court ruling and reinstated the full forfeiture of $269,970 that was seized from Muhammad Jawad at Bakili Muluzi (then Chileka) International Airport in 2015.
Jawad was arrested after attempting to leave Malawi with a large amount of undeclared foreign currency. He later pleaded guilty to offences under the Exchange Control Regulations, prompting the Magistrate’s Court to order that the entire amount be forfeited to the State.
However, the High Court later reversed the decision, arguing that forfeiting the full amount was excessive and declaring Regulation 36 of the Exchange Control Regulations unconstitutional.
In a landmark judgment, the Supreme Court has now ruled that the High Court acted without jurisdiction. The appellate court clarified that constitutional matters can only be determined by a panel of at least three High Court judges, meaning the earlier declaration of unconstitutionality was null and void.
The Supreme Court further faulted the High Court for misapplying sentencing principles when it set aside the Magistrate’s forfeiture order. It observed that there were no mitigating factors in Jawad’s case and the High Court failed to consider the purpose of the regulation, which aims to curb illegal externalisation of foreign currency.
As a result, the Supreme Court has restored the original forfeiture order, confirming that the full $269,970 remains forfeited to the State.
The ruling strengthens the enforcement of exchange control laws and reinforces judicial procedure in handling constitutional matters
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