The commercial division of the High Court of Malawi ordered businessperson Zameer Karim to pay the Malawi Government about K2.3 billion in connection with the infamous Malawi
Police Service food rations contract.
Judge Annabel Mtalimanja ruled “In my considered view, the bank [CDH Investment Bank], having activated clause 5 [of the contract], the defendant [Karim] can no longer invoke performance of clause 2[b] since the claimant is now paying the whole balance of the judgement debt outstanding to the bank.
“There is, therefore, no basis to enter summary judgement in favour of the defendant. Thus, the application would also fail on this basis.”
Court records indicate that Malawi Police entered into a contract with Karim’s Pioneer Investments to supply 500 000 food ration packs at about K2.1 billion. However, Karim, according to court documents, did not have su¨cient funds to execute the contract; hence, he approached CDH Investment Bank Limited to provide K700 million. One of the conditions was an agreement of assignment of proceeds under the contract to CDH Investment Bank. Some officers at the investment bank improperly and without authority, accepted the notice of assignment of proceeds to CDH Investment Bank Limited.
In her judgement dated November 13 2020, Judge Annabel Mtalimanja also awarded the claimant, the Malawi Government through the O¨ce of the Attorney General, costs of the application, meaning that Karim will pay legal costs incurred in the case.