Mulli Brothers secured an agreement with the Democratic Progressive Party (DPP) administration for the company to repay a K10.5 billion loan over a period of 167 years.
The company got a loan from the government owned Malawi Savings Bank before the bank was sold in 2015.
Government set up a debt collection company to collect toxic loans following the sale of the bank.
However, before the 2020 presidential elections, the DPP government bypassed the debt collection company and entered into an agreement with Mulli Brothers allowing the company to repay K5 million every month. It would have taken Mulli Brother 167 years to repay the loan.
Minister of Finance Felix Mlusu who made the revelation about the agreement in Parliament today said that Mulli Brothers has so far repaid K75 million. He added that the Tonse Alliance Government has cancelled the agreement and will find alternative means of recovering the remaining amount.
There are 12 other people who also owed government money but only one has so far repaid.
Mulli is owned by Leston Mulli who campaigned for Mutharika during the 2020 presidential elections.
Meanwhile, the revelation about the agreement have shocked Malawians who have wondered how any sane person representing Government agree to such a deal.
“When we talk of a wasted education we should always refer to those “educated” people who sat around a table, drafted documents and agreed that Mulli Brothers should pay the K10 billion debt they owe to the people of Malawi in 167 years. Yes, 167!
“The tragedy of our time is that we have too many people with academic degrees but are, in essence, shameless mercenaries who could sell their own mothers for money to drive a Mercedes Benz,” said social commentator Idris Ali Nassah.