The High Court of Malawi has ruled in favour of prominent businessman Leston Mulli, trading under Zao Marketing Agencies, in a long-running legal battle over a government directive that barred all public institutions from conducting business with him and his companies.
In a judgment delivered on Monday, High Court Judge Allan Muhome found that the government’s 2012 directive was issued with targeted malice and was unlawful, paving the way for an assessment of damages suffered by Mulli and his businesses.Mulli Recognized To Address Afreximbank Summit
The disputed directive was issued by the then Minister of Justice and Constitutional Affairs and the Attorney General, instructing all government ministries, departments, agencies and state-owned institutions to cease any business dealings with Mulli and companies linked to him.
According to court records, the government did not provide reasons for the decision at the time, effectively shutting Mulli and his enterprises out of government procurement and commercial opportunities.
Mulli challenged the directive in court, arguing that the government’s actions were unfair and detrimental to his business interests. Although the government later reversed the directive in 2014, the legal proceedings continued as Mulli sought redress for losses allegedly incurred during the period the ban was in force.
In his ruling, Judge Muhome concluded that the directive was motivated by malice and unjustly targeted Mulli and his companies. The court has now ordered that the damages suffered by Mulli be assessed by the Chief Registrar, who will determine the extent of compensation owed.Business magnate Mulli Calls Local Companies To Capitalise International Markets
The case is considered one of the most significant business-related legal disputes involving the Malawi Government and a private entrepreneur in recent years.
Among the major consequences of the directive was the collapse of plans to launch Celcom Limited, an Information and Communications Technology (ICT) and telecommunications company that Mulli intended to establish in Malawi.
Court documents indicate that Mulli had secured a loan worth approximately 30 million US dollars from the African Export-Import Bank (Afreximbank) to support the project. However, the government ban reportedly undermined the rollout of the venture, contributing to its failure to materialise.
The ruling is expected to reignite debate on the exercise of government authority, business rights, and the need for transparency and accountability in public decision-making.
