Malawi Police have arrested former Secretary to the Office of the President and Cabinet (SPC) Lloyd Muhara and businessperson Leston Mulli.
Muhara who served as SPC during the Peter Mutharika administration and Mulli who heads Mulli Brothers Limited (MBL) have been arrested today.
Deputy National Police spokesperson, Harry Namwaza, refused to state reasons for the arrest of the two but said they are in custody at Area 3 police in Lilongwe.
The arrest comes weeks after Attorney General Thabo Chakaka Nyirenda, in a letter dated May 11, 2022, reported Muhara and others to Inspector General of Police and Director of Public Prosecutions (DPP) for allegedly abusing their offices.
According to the letter, Muhara and others allegedly instructed lawyers representing Malawi Savings Bank (MSB) Debt Collection Company to withdraw enforcement of bankruptcy proceedings it obtained against MBL.
MBL got a loan from the government owned Malawi Savings Bank before the bank was sold in 2015. Government set up the debt collection company to collect toxic loans following the sale of the bank.
Published reports indicated that Malawi Government during the Democratic Progressive Party administration had an agreement with Mulli which provided that MBL Holdings would repay a K5 billion debt over a 50-year period by paying K5 million a month.
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