The High Court in Blantyre has reserved it’s ruling to January 28, 2022 on an application by the Cotton Ginners Africa Limited (CGAL) to dismiss a case which the company is accused of defrauding banks money amounting to K20.9 billion through dubious loans.

Cotton Ginners Limited is being accused of failing to pay back money it borrowed from Standard Bank, Ecobank Malawi, National Bank of Malawi (NBM), CDH Investment Bank (CDHIB) and Export Development Fund, a government financing arm for exports.

In his ruling on Thursday, Justice Sylvester Kalembera has ordered both the claimant and defendant to submit their final written arguments to the court within 14 days.

Director of Public Prosecutions, Dr. Steven Kayuni, said the state is confident that the case will proceed while CGAL lawyer, Fostino Mayere, declined to grant interviews.

The case was held in camera as journalists were ordered to leave the court room while the case was already in progress.

The major victims of the fraud were Standard Bank which is owed K8.5 billion followed by CDHIB (K4.5 billion), ECDF (4.1 billion), Ecobank Malawi (3.5 billion) and NBM (K250 million).