US judge gives Malawi hope in K536tn claim

Malawi has secured a major court victory in a United States (US) court after a judge ruled in its favour in a case where it is claiming $309 billion (about K536 trillion) from an American mining firm. The case centres around a Malawi Government claim from Columbia Gem House (CGH), a Washington-based gemstone company, in connection with alleged tax evasion by Nyala Mines Limited. A US District Court for the Western District of Washington at Tacoma halted Malawi Government efforts in October last year to obtain evidence from CGH as part of criminal litigation process against the firm.

Through an outsourced New York-based legal firm Seiden Law, Attorney General Frank Mbeta filed a motion for reconsideration after submitting fresh documentation. In his fresh order upon reconsideration, District Judge David Estudillo acknowledged that Malawi had put forth solid reasons to investigate Nyala Mines and to pursue discovery from CGH. “Accordingly, the court finds that although the information requested may be intrusive and burdensome, such information does not appear to be unduly intrusive or burdensome,” hinted Estudillo.

The judge granted Malawi motion for reconsideration and reinstated his earlier order, vacated in October 2025, authorising Malawi to engage in discovery. However, he narrowed the scope of discovery to only between October 2007 and November 2021 instead of a broader 20-year span Malawi had requested. “Having reweighed the Intel factors, the court believes it appropriate to exercise its discretion and authorise discovery, subject to the reduction in time period, pursuant to 28 U.S.C,” reads the order dated March 18, 2026.

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Nyala Mines Limited has been extracting rubies from Chimwadzulu Hill Mine in Ntcheu and exporting to the United States for over 20 years. But the judge trimmed the time period for discovery requests because Nyala Mines’ 10-year exclusive rights to mine at Chimwadzulu began in October 2007 and ended in November 2021. “Based on the former Attorney General’s [Thabo Chakaka Nyirenda] declaration, the focus of the investigation is on Nyala Mines control of Chimwadzulu.

Thus, the court concludes the relevant period for the discovery should be limited to between October 2007 and November 2021,” ordered the judge. The case dates back to July 2022 when Chakaka Nyirenda filed a demand letter to CGH claiming that Nyala Mines was its subsidiary, hence; the $309 billion claim for tax loss. But in August 2022, CGH brand manager Natasha Braunwart, speaking to a New York based online publication Law360, denied owning Nyala Mines Limited or any other entity in Malawi.

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