National Bank, NBS wants out of Khatos case

..Khato case political- BanksĀ 

.. Chodzi has no interest- Khato

The High Court in Blantyre will on Wednesday hear from lawyers for National Bank of Malawi and NBS Bank who want the banks removed from case saying its political not a commercial case.

A dozen plus legal representatives are expected in court to challenge Forum for National Development (FND)s Fryson Chodzi injunction stopping the two banks from borrowing Gorvenment money as it is not in public interest.

According to an affidavit filed by Lester Mwantisi of TJM and Associates said the matter is not a commercial matter but that of political in nature.

The two banks said they were not party to government decision as such their interest is only commercial in nature that the banks should be removed from the matter.

Khatos laywers Chancy Gondwe is expected to tell the court that Chodzi is a wrong person to commence the action and that Parliament is a custodian of public interest such that the matter should be struck off.

Chodzi asked the High Court to stop the loans from being dispersed and since then there has been panic from Government as they bulldozed the Bill in Parliament.

A finance expert from Capital Hill says if the money is disbursed the country should forget IMF programme and that it will increase debt by over 2 percent.

A water expert has doubted whether government will be able to raise the remaining K214 billion should the banks provide the K105 billion saying the project has failed to commence due to Khatos faliure to identify a financier.

A procuremt specialist has said the whole new role of government in funding the project means the whole process should be restarted.

The Attorney General Thabo Chakaka Nyirenda is also expected at the court to defend the borrowing.

Justice Ken Manda is expected to hear the matter from 9.30am.

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