Malawi Escapes $135m Claim Over Mobile Licence

The African Court on Human and Peoples’ Rights has dismissed a $135.3 million claim by Patroklos Tsaperas, a South African businessman, against the Malawi government over a mobile phone licence that was revoked in 2005. Tsaperas, a shareholder in Malawi Mobile Limited (MML), had sought compensation for lost revenue, a refund of licence fees, and legal costs. The court ruled that Tsaperas filed his case too late, making it inadmissible.

The dispute dates back to 2002 when MML was licensed by the Malawi Communications Regulatory Authority (Macra) to provide mobile services for 15 years. Under the agreement, MML was to pay $100,000 a year in licence fees and roll out services within 12 months. However, Macra revoked the licence on February 9, 2005, demanding outstanding fees and penalties. Tsaperas alleged that a later agreement extended the deadline to October 31, 2005, but government interference led to revocation anyway.

MML sued in the High Court in May 2005 and was awarded $66.85 million in April 2012. However, the Supreme Court of Appeal overturned that award on March 10, 2015. MML then went to the Comesa Court of Justice, which ruled in April 2017 that it had no jurisdiction. A review application was dismissed in September 2021, leading Tsaperas to approach the African Court in 2022.

Delivering the judgment, Judge Imani Daud Aboud said the court had jurisdiction but the application was inadmissible because it was not filed within a reasonable time. Each party will bear its own costs. The government, defended by former Attorney General Thabo Chakaka Nyirenda and Senior State Advocate Nerverson Chisiza, argued that there was no valid contract, Macra did not breach it, and MML failed to prove any loss.

The Malawi government has welcomed the ruling, with Attorney General Frank Mbeta describing it as a huge relief to Macra and the government. Mbeta attended the session and expressed satisfaction with the outcome. The government had argued that Tsaperas' claim was unfounded and that MML had failed to meet its obligations under the licence agreement.

Tsaperas' lawyer, David Kanyenda, acknowledged that the court's decision was not unanimous, with some members of the panel seemingly sympathetic to his client's position. Kanyenda noted that copies of the majority and dissenting opinions were not yet available, leaving room for further analysis of the judgment.

The dismissal of Tsaperas' claim brings an end to a long-standing dispute that had threatened to cost the Malawi government $135.3 million. The case highlights the complexities of international business disputes and the importance of adhering to procedural timelines. Key points include: - The African Court on Human and Peoples’ Rights dismissed a $135.3 million claim by Patroklos Tsaperas against the Malawi government. - The court ruled that Tsaperas filed his case too late, making it inadmissible. - The Malawi government has welcomed the ruling, describing it as a huge relief to Macra and the government.