FDH to pay MK392 Million to Maranatha Academy

The High Court in Blantyre has trimmed the compensation for loss and damage arising from a breach of three months statutory notice by FDH Bank to Maranatha Girls Academy Limited from MK784 830 Million to K392 million.

Initially, Maranatha Girls Academy Limited sought declarations on a matter regarding a notice of intention to sell the applicant’s property Title Number South Lunzu 7/45 (Maranatha Girls Academy Limited) advertised in the newspapers on September 17 2013, which the court found to be wrongful and flouting Section 68 of the Registered Land Act.

But in his ruling, judge Kenyatta Nyirenda disclosed that the amount of compensation has been “trimmed to K392 million.”

Nyirenda pointed out that 50 percent of the amount should be paid “outright as FDH prepares appeal or any other subsequent action.”

Last week Sheriff of Malawi stormed FDH Bank Limited to seize office equipment from its Umoyo House Branch in Blantyre to enforce payment of the compensation to Maranatha.

Head of marketing Sobhuza Ngwenya, FDH Bank, a subsidiary of FDH Financial Holdings Limited, said Maranatha Girls Academy Limited owes FDH Bank K281 820 906.47 (about $424 000) which has been outstanding for several years and FDH has been trying to recover the money by selling the provided collateral for the loan.

Ngwenya said FDH Bank cannot recover the debt because the court stopped the process through an injunction still in force

This comes a few days after 250 FDH employees got  retrenched.