Malawi Freedom Network 
By MFN Reporter
The Supreme Court has ordered the Reserve Bank of Malawi (RBM) to pay Finance Bank of Malawi (FBM) K300 billion in compensation over the disruption of its banking operations in 2005.
The ruling follows a compensation claim in which FBM had demanded K1.1 trillion from the central bank.
According to the court’s Registrar, Ibrahim Hussein, K157.471 billion has been awarded for disrupting FBM’s operations, while K138.124 billion has been awarded over the alleged abuse of office by some RBM officials involved in the matter.
FBM accused the Reserve Bank of interfering with its business operations in 2005 by revoking its banking licence, a decision that the bank argued caused significant financial losses.
The latest ruling marks a major development in the long-running dispute between the two financial institutions.
The compensation order places the Reserve Bank of Malawi under pressure to meet the court’s financial award, although the full details of the judgment and any possible legal steps remain to be established.
The case also raises important questions about regulatory accountability and the exercise of authority by financial regulators in Malawi.
