Court lifts order on K16.5bn Mapeto tax evasion case
The High Court in Blantyre has lifted an injunction that Mapeto David Whitehead and Sons (DWS) executives obtained last September stopping the Chief Resident Magistrate’s Court from hearing of the K16.5 billion tax evasion case pending review.
High Court Judge Vikochi Chima noted that the defence in September last year wanted a 30-day break to allow new lawyers leading the team have time to study the State’s disclosures and that the 30 days have elapsed.
She made the direction on Tuesday when the court convened to review chief resident magistrate Jean Kayira’s proceedings on the matter.
Said Judge Chima: “In view of the application that the defence wanted a 30-day adjournment to allow them go through the State’s disclosures, the [Chief Resident Magistrate] Court can now proceed with the trial because 30 days which were needed have passed.”
Earlier in the day, one of the lawyers representing Mapeto DWS executives, Pearson Wame, asked the court to give direction on whether the defence is entitled to recover the time lost before the trial.
He said: “We are not crying for the 30 days [adjournment], but the direction to be made by the court. The subordinate court set a timetable, but the State did not comply.”
In its submission, one of the State lawyers, Modecai Msisha, argued that the High Court has no jurisdiction to review the decision of the subordinate courts before the hearing of the matter is not completed.
He argued that the defence’s application in September last year to review the K16.5 billon tax evasion case had no merit.
Msisha asked the court to declare unconstitutional, provisions that give the High Court powers to review cases that are not completed at the lower courts.
On September 20 2021, Mapeto DWS executives, through their lawyers led by John-Gift Mwakhwawa, drew the attention of Kayira to an injunction granted by Judge Chima.
Full trial had just started with the State parading its first witness when the defence produced the High Court order.
The defence wanted a 30- day break to allow the new lawyers leading the team time to study the State’s disclosures as Mwakhwawa had two weeks earlier replaced Jai Banda as lead counsel.
On May 23 2021, Malawi Revenue Authority pounced on Mapeto DWS Limited and arrested five senior executives for multiple cases of alleged tax evasion which then was estimated at K10.8 billion before it was revised to about K16.4 billion.
