Malawi: No Evidence of Crime – High Court Releases Frozen K383m to Nema Farm Seeds
A Malawian businessperson has scored a major legal victory after the High Court of Malawi’s Commercial Division lifted a preservation order that had frozen more than K383 million of his money, ruling there were no grounds to suspect the funds were linked to criminal activity.
The order, originally obtained by the Financial Intelligence Authority (FIA) against Nessimu Nyama of Nema Farm Seeds, related to a deal between his company and the Malawi Enterprise Development Fund (Medf) – formerly known as the National Economic Empowerment Fund (Neef).
The FIA had suspected that funds Nyama used to supply seeds through the deal were proceeds of crime.
But in her ruling, Judge Violet Chipao discharged the order, finding there were no grounds to suspect that the K383,650,410.35 balance held in the account constituted proceeds or instrumentalities of crime.
‘That the funds being the sum of K383,650,410.35 held in account domiciled at National Bank be released to the interested party immediately upon service of this order,’ the judge said.
The court’s decision paves the way for the release of the company’s K383.65 million held in a National Bank of Malawi account.
Court documents show that on 25 April 2025, Nyama entered into a contract with Neef – now Medf – for the provision of seeds to farmers under the Neef Micro Irrigation Loan Product.
The documents further reveal that Neef had informed Nyama it would not be able to estimate the exact quantities and prices of seeds required by farmers, as the initiative was an ad hoc arrangement rather than a fixed-scope contract.
In an affidavit filed on Nyama’s behalf, his lawyer Jefferson Luwa said that at the time Medf obtained the preservation order, it already had in its possession almost all the goods received notes issued by Neef corresponding with the invoices in question.
The lawyer stated that Nyama had delivered all the seeds corresponding with the amount of K4,663,875,000 to Neef by 11 September 2025, and is still owed a further K264.375 million by Medf.
By Nyasa Times.
