Disgruntled Democratic Progressive Party (DPP) cadet Fryson Chodzi has put spanners to the Lake Malawi Water Supply Project after securing a court injunction that stops the government from borrowing money for the project.
The development will further delay the commencement of the project, which was initiated to address water problems in Lilongwe City.
Nthanda Times has confirmed that High Court judge Justice Ken Manda has granted Forum for National Development (FND) an interlocutory injunction stopping the commercial banks from lending the Malawi Government money for the implementation of the project.
Commercial banks – NBS Bank and National Bank of Malawi Plc – and Khato Civis (Private) Limited are the defendants in the case.
Members of Parliament (MPs) recently passed a bill authorizing the government to borrow MK105 billion to enable it commence the long-awaited water project.
The project is billed to address water shortage problems in Lilongwe City and communities along the Lilongwe-Salima Road.
But it would appear the development has not pleased the human rights organization – FND – which has now obtained an interlocutory injunction stopping the government from securing the loan.
“This is interlocutory injunction made against the defendant on the 4th day of May 2023 by the Honourable Justice K.T. Manda on the application of the claimant. The judge read the sworn statement of Fryson Chodzi…This order was made at a hearing without notice to the defendants,” reads the order in part.
“Until a further order of the court, the first and second defendants [NBS Bank and National Bank of Malawi plc] by themselves, their agents or whosoever be restrained from lending the Malawi Government the sum of MWK105, 000. 000, 000.00 or any amount at all on the basis of NBS Bank plc and National Bank of Malawi plc (Lake Malawi Water Supply Project) Loan Authorization Bill/Act, 2023, until a further order of the court,” it adds.
However, the order states that the defendants have a right to apply to the court to vary or discharge the order.