By Jones Gadama
A high-stakes court case involving business person Shiraz Ferreira of SF International and the Malawi government came to an unexpected halt today at the Commercial Division of the High Court in Lilongwe. Ferreira’s lawyer, Shabir Khan, suddenly fell ill during proceedings, forcing the court to adjourn the hearing until tomorrow.
Ferreira is claiming $7.1 million from the government for allegedly supplying military hardware to the Malawi Defence Force (MDF) between 2012 and 2017.
According to court documents, Ferreira supplied the military equipment worth $30 million in two chunks, but is now seeking compensation for delayed payment and legal collection fees.
The case has been ongoing for some time, with Ferreira claiming that the government owes him $6,942,359.49 in compound interest for delayed payments, as well as $208,270.78 in legal collection costs.
The business person commenced the proceedings against the Attorney General on November 4, 2021.
However, the Attorney General’s office has raised questions about the legitimacy of Ferreira’s claims.
According to the AG, Ferreira received an advanced payment for the contract in 2013 and was paid approximately $10.8 million, despite only supplying equipment worth $8 million after three years.
The dispute between Ferreira and the government centers on a contract for the supply of military hardware to the MDF.
Ferreira claims that he fulfilled his obligations under the contract, but the government has delayed payment, resulting in significant interest and legal costs.
The government’s defense suggests that Ferreira did not fulfill his obligations under the contract and that the payments made to him were excessive.
The AG’s office is expected to present evidence to support its claims.
The adjournment of the hearing due to Khan’s illness has delayed the resolution of the case. The court’s decision to resume the hearing tomorrow will likely determine the outcome of the case.
The case has significant implications for the Malawi government, which is already facing financial constraints.
If Ferreira’s claims are successful, the government may be required to pay out a substantial amount of money, which could have far-reaching consequences for the country’s economy.
As the case continues, it remains to be seen whether Ferreira’s claims will be successful, and what impact the outcome will have on the Malawi government.
The court’s decision will likely have significant implications for the country’s finances and the business community.
