The High Court has ordered Youth Net and Counselling (Yoneco) to pay compensation to Female Sex Workers Association of Malawi over breach of contract in a K3.5 billion project.
The High Court in Blantyre has made the ruling following a complaint from the sex workers.
The two organizations submitted a joint proposal to the Centre for Communicable Diseases for a grant of USD3 million (about K3.5 billion) to implement a project under HIV interventions among key populations.
The sex workers association was reportedly set to be allocated K450 million for its component of the project.
However, Yoneco later said it would implement the project on its own without the involvement of the sex workers association.
In November last year, Female Sex Workers Association of Malawi obtained an injunction against implementation of the project.
The High Court has ruled that Yoneco should compensate the association within 30 days since there was violation of the agreement.
Lawyers for the two organization are expected to discuss in order to come up with the compensation amount.