Former secretary to the President and Cabinet Lloyd Muhara and businessperson Leston Mulli walked to freedom yesterday after spending a night in police custody and formally charged.

Mulli, who is managing director of Mulli Brothers Limited (MBL) Holdings, was charged with conspiracy to defraud government through an arrangement to repay over 50 years a K5 billion loan from the disposed-of Malawi Savings Bank (MSB).

On his part, Muhara, a judge of the High Court of Malawi, is answering two charges of conspiracy to defraud and abuse of office.

Mulli (C) waves to relations and supporters on arrival at court

But presiding Lilongwe chief resident magistrate Madalitso Chimwaza told the suspects that they will take their plea at a later date.

The duo applied for bail soon after being informed of their charges and the State did not object, but asked the court to set conditions to ensure they do not evade trial.

Chimwaza granted bail to the two, stating: “Bail is granted on condition that the accused pay bail bond of K500 000 cash each and should produce one surety bonded at K10 million non-cash.

“The accused should also be reporting to Area 30 Police once every fortnight and surrender travel documents, if not surrendered already in other cases.”

The case has been adjourned to September 15 2022.

In her ruling, Chimwaza also ordered the State to serve the defence with formal charge sheet and disclosures 14 days before September 15.

The two are suspected to have committed the offences in 2019.

The first count reads that Mulli and Muhara in 2019, in the city of Lilongwe, by fraudulent means signed a purported consent order and conspired to defraud MSB Debt Collection Company.

The second count reads that Muhara, being employed in the public service, in abuse of the authority of his office, arbitrarily signed a consent order dated March 8 2019 in the case between Mulli Brothers Limited and MSB Debt Collection Company purporting himself to be a shareholder in the said Company when he was not and purporting to allow Mulli Brothers Limited to be paying K5 million per month to service a K5 billion loan.

The arrests followed Attorney General Thabo Chakaka Nyirenda’s letter dated May 11 2022 asking Director of Public Prosecutions Steve Kayuni and former Inspector General of Police George Kainja to take action against Muhara as well as former Secretary to the Treasury Cliff Chiunda for allegedly abusing their offices in the transaction.

Ironically, the 2019 consent order between the Office of the President and Cabinet and MBL Holdings was signed at a time when the MSB Debt Collection Company, formed to recover toxic loans that some businesses and politically-connected individuals owed MSB, a commercial bank then wholly-owned by Malawi Government and sold to FDH Financial Holdings Limited, struggled to make recoveries.

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