Three companies which obtained an injunction stopping Yamaha Motor Corporation from awarding sole dealership of Yamaha to Paramount Holdings included Stansfield Motors Limited as one of the respondents even though Stansfield was closed in 2019 after it went bankrupt .
This was revealed when different lawyers with default judgements against disbanded Stansfield Motors flocked to the High Court to learn about the physical address of Stansfield Motors as presented to the High Court.
It has been learnt that Luthando Holdings filed for the injunction using nonexistent address for Stansfield Motors Limited, a company which ceased to exist in 2019.
Stansfield Motors which used to be an authorized Yamaha dealer, was declared bankrupt for failing to pay bank loans of MK5 billion. Consequently, the company closed and its exclusive dealership agreement with Yamaha Motor ended.
Later, some people established Stansfield Motors Services Limited and adopted the exclusive dealership agreement with Yamaha Motors. The new company issued letters threatening to take legal actions against any firm found supplying Yamaha products in the country.
In August, 2022, the Competition and Fair Trading Commission found that the conduct amounted to anti-competitive behavior and ordered the new company to pay MK500,000 fine.
Malawi Embassy in Japan has also been faulted for its involvement in the dealership battle and its preference for a coalition of Luthando Holdings, Actor Import and Export Investments Limited and Creck Hardware.
A letter signed by Joseph Chikwemba of Malawi Embassy in Japan recommends possible award of Yamaha dealership to the coalition.
However, a business commentator said the Malawi Embassy has been used to solve personal business matters instead of diplomatic mission for international affairs.
“Embassy offices are designed to handle diplomatic mission affairs, not individuals matter the way Chikwemba and his team are being used on Yamaha dealership,” the commentator said in interview.
Meanwhile, Yamaha Motors company has certified PHL as a sole importer and seller of Yamaha products for Malawi.
A letter of authorization between Yamaha and PHL signed by Ryuji Kuwano, Yamaha’s Group Manager for Africa Market Development Division and Overseas Market Development Operation Business Unit, says the agreement is effective from November 2022.
According to the agreement, the listed products for the Malawi market include Yamaha motorcycles, outboard motors, water pump generators, spare parts, and others.
“Whereas YAMAHA MOTOR CO, LTD, who are official manufacturers of Yamaha products, having factories at 2500, Shingai, Iwata, Shizuoka, 438-8501, Japan, do hereby confirm that Paramount Holdings Limited, a private corporation having its principal place of business at P.O. BOX2736, Lilongwe, Malawi, is our officially appointed importer for the Yamaha Motorcycles, Outboard motors, Water pumps Generators, and spare parts for the territory of Malawi, under the terms and conditions of the agreement made between us and them on November 1, 2022”, reads part of agreement letter signed by Kuwano and which PHL has published in a local newspaper.
Yamaha Motors appointed Paramount Holdings as a dealer after expressing concerns over capacities of the coalition of the three enterprises.
Still, the competitors went to court in Malawi. The High Court in Blantyre on 11th January 2024 granted Luthando Holdings together with Actor and Stansfield Motors Services an injunction restraining Yamaha from effecting the appointment of Paramount Holdings as the sole distributor of Yamaha products in Malawi.
