Govt, timber millers settle K200m dispute

Government has given in to pressure to allow some members of Viphya Plantation Timber Millers Union to collect logs from the plantation, a development that has seen the millers withdrawing a K200 million compensation claim case from court.

The two parties have been battling in court for over a year after government chased the millers from the plantation despite a High Court order allowing the millers to process timber from the logs they had already bought.

Lawyer for the millers, George Kadzipatike, yesterday said the matter has been resolved through a Malawi Supreme Court of Appeal consent order to allow the millers collect the logs.

Government took the matter to the Supreme Court to challenge the High Court ruling on the matter.

Kadzipatike said following the Supreme Court agreement, the millers have also withdrawn the K200 million compensation claim against government and Raiply.

The millers were demanding over K200 million for loss of business and also wanted government to return their equipment.

“We decided to resolve the matter out of court. When settling the matter out of court, it is a give and take situation. So, we stopped pushing for the compensation. What my clients wanted were the logs,” said Kadzipatike.

Ministry of Natural Resources, Energy and Mining spokesperson Sangwani Phiri said the millers had started accessing the logs.

He said government decided to give the logs to the millers but on the arrangement that they will be supplied outside the forest to avoid accessing the plantation.