{"id":5396,"date":"2021-09-05T22:02:36","date_gmt":"2021-09-05T22:02:36","guid":{"rendered":"https:\/\/www.africa-press.net\/malawi\/all-news\/mulli-bros-sues-deloitte-for-k2-1bn-for-defamation-over-firms-reserve-bank-forensic-audit-report-2"},"modified":"2021-09-05T22:11:27","modified_gmt":"2021-09-05T22:11:27","slug":"mulli-bros-sues-deloitte-for-k2-1bn-for-defamation-over-firms-reserve-bank-forensic-audit-report-2","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/malawi\/all-news\/mulli-bros-sues-deloitte-for-k2-1bn-for-defamation-over-firms-reserve-bank-forensic-audit-report-2","title":{"rendered":"Mulli Bros sues Deloitte for K2.1bn for defamation over firm\u2019s Reserve Bank Forensic Audit Report"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong><a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a> &#8211; <a href=\"https:\/\/www.africa-press.net\/malawi\">Malawi<\/a>. <\/strong><\/span>Mulli Brothers Limited (MBL) has taken to the cleaners an internationally renowned consulting firm, Deloitte Touche Tohmatsu Limited (Deloitte) for defamation in a forensic audit report for the Reserve Bank of Malawi and are seeking for a staggering K2.1 billion payout as compensation.<\/p>\n<p>According to court records, earlier this year, Deloitte released a damning audit report for the country\u2019s Central Bank covering the period between January 1, 2019 and June 30, 2020 in which Mulli Brothers was implicated.<\/p>\n<p>In the report Deloitte outlines and details how Reserve Bank of Malawi officials allegedly twisted and bent own rules to facilitate payments, including some which the commissioned auditors, Deloitte, described fabricated and fraudulent.<\/p>\n<p>The auditors, Deloitte said in the report that Mulli Brothers Limited (MBL) was among those named to have benefitted from the financial improprieties at the Central Bank, Reserve Bank of Malawi. The report, among others, claimed Mulli Brothers was insanely overpaid through the Fertiliser Inputs Subsidy Programme (Fisp).<\/p>\n<p>However, this has not gone down well with Mulli Brothers as they think that with the report, which they believe to be damaging, the auditors, Deloitte has injured the organisation\u2019s reputation hence they have filed for a civil suit of defamation so they can get a legal redress.<\/p>\n<p>In their summons, Mulli Brothers, through their lawyers, Ritz Attorney at Law, queries Deloitte for stating that the firm and Jean Mathanga, wife to former RBM deputy governor, were benefitting from hefty loans from the Central Bank for their businesses.<\/p>\n<p>According to court documents, in the audit report, Deloitte said it was investigating an \u201callegation that RBM was financing dubious payments for DPP business owners that are being used as conduits for siphoning money from government.\u201d<\/p>\n<p>\u201cThe Defendant proceeded to state that: \u2018\u2026The Mulli Brothers and Jean Mathanga (the wife to RBM Executive Director) were benefiting from hefty loans from RBM for their businesses. The Mulli\u2019s and Mathanga\u2019s were paid money four times for the Farm Input Subsidy Program (FISP) and payments were made before the contracts were awarded to other suppliers\u2026\u201dreads in part the court document.<\/p>\n<p>Deloitte is being represented by Messrs Sacranie, Gow &amp; Company, according to a notice of appointment of legal practitioners from Sacranie, Gow &amp; Company dated September 2, 2021.<\/p>\n<p>In its amended summons filed on August 30, 2021 at the High Court, Mulli Brothers Limited is therefore demanding a total of K2.1 billion in Civil Case Number 328 of 2021.<\/p>\n<p>\u201cThe claimant seeks from the court an order and\/or a declaration that the Forensic Audit Report by the Defendant in as far as it relates to allegations concerning the claimant breached International Standards of Auditing and is not credible,\u201d reads the summons.<\/p>\n<p>In the case Mulli Brothers is demanding K100 million as compensation for damages for false reporting and\/or false representation and malicious falsehood.<\/p>\n<p>Mulli Brothers is further demanding another K100 million for general and aggravated damages for what they are calling them as negligence, negligent misstatements, representations and misfeasance.<\/p>\n<p>The company also further claim for K100 million for damages for professional negligence and also K200 million for defamation libel due to loss of business reputation and standing.<\/p>\n<p>In addition, the company has demanded another K100 million for malice and\/or bad faith and another K1.5 billion for loss of business and business value occasioned by the report. The court has asked Deloitte to pay the costs or challenge the summons within 28 days.<\/p>\n<p>\u201cWe command you within 28 days after the service of this summons on you, inclusive of the day of service, you must either satisfy the claim or file with this court a defence and list of documents.<\/p>\n<p>\u201cIf you do not intend to contest the proceedings, you must within 14 days after service of this summons on you inclusive of the day of service return the accompanying response stating therein that you do not intend to contest the proceedings but desire a stay of enforcement of judgment, if any,\u201d reads the summons dated September 2, 2021.<\/p>\n<p>The summons says if Deloitte fails to pay or file a defence or return the response within the stated time, the court may proceed to give judgment against it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Malawi. Mulli Brothers Limited (MBL) has taken to the cleaners an internationally renowned consulting firm, Deloitte Touche Tohmatsu Limited (Deloitte) for defamation in a forensic audit report for the Reserve Bank of Malawi and are seeking for a staggering K2.1 billion payout as compensation. According to court records, earlier this year, Deloitte released [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":5395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,371,677,234,2181],"class_list":["post-5396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-malawi","tag-central-bank","tag-malawi","tag-reserve-bank-of-malawi-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Mulli Bros sues Deloitte for K2.1bn for defamation over firm\u2019s Reserve Bank Forensic Audit Report - Malawi<\/title>\n<meta name=\"description\" content=\"Mulli Brothers Limited (MBL) has taken to the cleaners an internationally 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