The claim follows a February 3 ruling by the Malawi Supreme Court of Appeal that the Reserve Bank of Malawi (above) acted unlawfully when it revoked the Finance Bank of Malawi's licence in May 2005.
A bank that ceased operations more than 20 years ago is seeking compensation from Malawi that could approach a 10th of the country’s annual budget, following a court ruling that regulators illegally revoked its licence.
Former Finance Bank of Malawi, which was closed in 2005, has submitted compensation calculations exceeding K1.02 trillion (about R9 billion), including claims for alleged lost international banking opportunities.
If awarded in full, the payout would rank among the largest court-ordered liabilities in Malawi’s history and would ultimately fall to taxpayers.
The claim follows a February 3 ruling by the Malawi Supreme Court of Appeal that the Reserve Bank of Malawi acted unlawfully when it revoked the bank’s licence in May 2005.
