Malawi Supreme Court of Appeal in Lilongwe has dismissed an appeal by Total Malawi, which sought to block a $480 million (about K824 billion) joint claim filed by the Malawi Government and Prima Fuels Limited.
A nine-member panel of justices ruled unanimously to uphold earlier decisions, ordering that the matter be sent back to the High Court (Commercial Division) for a full trial within 45 days. The Court also awarded costs against Total Malawi.
Delivering the ruling, Justice of Appeal Rowland Mbvundula said the appeal lacked merit and that the case must proceed to determine the substantive issues surrounding the rebate arrears.
The government, represented by newly appointed Attorney General Frank Mbeta, is pursuing the claim on behalf of the state for alleged unpaid rebate payments totaling $480 million.
The dispute dates back to a 2001 agreement between Total Malawi and Prima Fuels, which allowed Total Malawi to enjoy tax and duty waivers, storage access, and the Top Card system in exchange for rebate payments equivalent to 50 percent of the retail margin on every litre of fuel supplied through Prima Fuels.
According to court documents, $180 million of the claim is being pursued by the Malawi Government, while Prima Fuels is demanding $300 million.
The case follows revelations that Total Malawi allegedly stopped remitting the agreed rebate payments, breaching contractual terms. An arbitration process approved by the High Court in 2019 to be held in South Africa was later abandoned, prompting the current court proceedings.
Total Malawi is represented by Senior Counsel Modecai Msisha and Noel Chalamanda, while Prima Fuels is represented by Wapona Kita. The Attorney General is leading the government’s legal team from his chambers.
By Smart Chalika
