State adds Chiunda to K5bn MSB fraud case

The State has added former Secretary to the Treasury Cliff Chiunda in a K5 billion case involving former Secretary to President and Cabinet Lloyd Muhara alongside prominent businessperson Leston Mulli.

Mulli and Muhara, who are currently on bail, were arrested in July this year on suspicion of two counts of conspiracy to defraud and abuse of office.

According to a notice of adjournment signed by the Chief Resident Magistrate which Yoneco FM has seen, the court has set the matter for plea and directions on October 11, 2022.

Confirming the adjournment, lawyer representing Chiunda – Gladwell Majekete said his client was arrested and cautioned by the Fiscal Police a couple of weeks ago and eventually released on police bail.

He said: “Basically what has happened is that in the original charge sheet there were two accused persons.

“And this time around it was supposed to come today with a fresh charge sheet adding my client and then it was supposed to proceed with three accused persons and then in that regard, the State has adjourned.”

The first count of the offense reads that Mulli and Muhara in 2019 in the city of Lilongwe by fraudulent means by signing a purported consent order, conspired to defraud Malawi Savings Bank (MSB) a debt collection company limited (a company set by government of Malawi to collect debt due from various debtors to the defunct Malawi Savings Bank) of money amounting to K5 billion.

The second count read that Muhara in year 2019 in the city of Lilongwe being employed in the public service as chief secretary to government, in abuse of the authority of his office arbitrary signed a consent order dated March 8, 2019, in the case between Mulli Brothers Limited to be paying K5 million per month to MSB Debt Collection Company towards payment of a loan of K5 billion which the said Mulli Brothers Limited owed MSB Debt Collection Company.

The matter is being jointly prosecuted by police and Director of Public Prosecutions

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