The Centre for Democracy and Economic Development Initiatives (CDEDI) has opposed a Supreme Court of Appeal ruling ordering a payout to the defunct Finance Bank of Malawi (FBM), warning that the decision will cripple public finances and deepen economic hardship for ordinary Malawians.
Speaking at a press briefing in Lilongwe on Thursday, CDEDI Executive Director Sylvester Namiwa said the Supreme Court of Appeal ruling on the defunct Finance Bank of Malawi, which has come at a time when Malawi’s fiscal space is already severely constrained, will cripple the public purse and, eventually, collapse the country.
According to Namiwa, implementing the payout disregards the spirit and wording of Section 12 of the Republican Constitution, which provides that legal and political authority derives from the people of Malawi and must be exercised solely to serve and protect public interest.
“In view of the above, we are challenging the Registrar of the High Court to rally behind Malawians, who are literally struggling to survive, and not pay for this immoral ruling,” Namiwa said.
CDEDI also dismissed suggestions that judicial independence shields judges from accountability.
“Judicial independence cannot, and should not, be construed to mean that judicial officers should not be held accountable for their actions,” said Namiwa. “Just like the Executive and the Legislature, those in the Judiciary are financed by our taxes.”
The organization criticized the manner in which the case was concluded, noting that a trial that reportedly took about two hours resulted in a far-reaching ruling delivered by seven Supreme Court judges, including Chief Justice Rizine Mzikakamanda.
“It is the considered view of well-meaning Malawians that this unpatriotic ruling should have explored other remedies to punish the Reserve Bank of Malawi, not condemning every citizen to unbearable taxes to enrich individuals whose bank the RBM found wanting,” Namiwa said.
CDEDI further questioned the 21-year delay in resolving the FBM matter and said committing Malawians to pay without demanding justification from the Judiciary to account for the 21-year delay is as good as rewarding inefficiency, and added that the Supreme Court should not be allowed to benefit from its deep slumber on this case.
The watchdog also warned the Reserve Bank of Malawi against committing to the payout.
“By facilitating this payment, the central bank will not only facilitate the collapse of the country but also set a precedent that will make it extremely difficult to enforce the law on errant players it is mandated to police,” Namiwa said.
Beyond the ruling, CDEDI said the decision has reignited debate over the retirement age of judicial officers, currently set at 70 compared to 60 for the rest of the civil service. He suggested that in the spirit of fairness, authorities should revisit this matter to level the playing field.
CDEDI also urged Malawians not to fear questioning court rulings they believe undermine public interest. “Malawians should never be afraid to question dubious court rulings and, where possible, demand corrective measures where decisions fall short of serving public interest.”
The organization has further called for a candid national discussion on corruption and inefficiency within the judicial system, including allegations that some judges are sitting on hundreds of pending rulings.
CDEDI has challenged Parliament and the Judicial Service Commission to name and shame judicial officers who delay delivering judgments.
