Mulli Brothers Limited (MBL) seeks K 2.1 billion compensation from Deloitte & Touche Services Limited, claiming the audit firm defamed the company in a forensic audit report for the Reserve Bank of Malawi (RBM).
In the report released this year, Mulli Brothers was mentioned as one of the companies that benefited from Questionable Payments at (RBM) between January 1, 2019 and June 30, 2020.
Deloitte reportedly claimed that Mulli Brothers and Jean Mathanga, wife of the former RBM vice-governor, had large central bank loans for their businesses.
“The defendant went on to say that: ‘… Brothers Mulli and Jean Mathanga (wife of RBM’s executive director) were receiving large loans from RBM for their businesses. The Mulli and Mathanga received money four times for the Farm Input Subsidy Program (FISP) and payments were made before contracts were awarded to other suppliers, ”part of the invitation read. filed by Mulli’s attorneys, Ritz Attorney at Law, and dated September 2. .
The lawyers argued that the forensic audit report, in the allegations against Mulli Brothers, violated international auditing standards and was not credible.
“Our client’s claim is that no interview was conducted at any time and strongly believes the report is below applicable standards. Our client is further of the opinion that there was a lack of appreciation of the salient issues on the operation of letters of credit under the facility, ”Ritz Attorneys’ attorney, John Kalampa, told media. local.
MBL, through the attorneys, is claiming K 1.5 billion for the loss of business and business value caused by the audit report as well as K 200 million for libel.
The company also wants to be awarded K100 million for false reporting and K100 million for negligent inaccuracies, statements and faults.
Another K100 million is requested for professional negligence and an additional K100 million is requested for malice and / or bad faith.
Meanwhile, Deloitte was ordered to challenge the summons or pay the money within 28 days.
The company can also notify the court within 14 days if it does not wish to contest the case. However, the court will be forced to render a judgment if Deloitte does not provide an answer.