Malawi government caught in contract fraud

BLANTYRE-(MaraviPost)—Corruption and abuse of office are increasingly proving to be a disease without antidote in the Peter Mutharika administration with latest being the revelation that government dubiously awarded a contract to two firms.

 According to Daily Times Friday edition, government has tangled itself in a K16 billion international bus terminus contract mess where it has re-awarded a contract it initially awarded to another firm.

The paper has identified the victim contractor as Moni International Coach Terminus and Trade Centre.

The local consortium has demanded an explanation from the Ministry of Local Government and Rural Development for signing a Memorandum of Understanding (MOU) with Khato Civils Pvt Ltd for the same project.

The project aims to construct a bus terminal and truck dry port that provides inter-country linkages with neighbouring countries.

It also has a component of a service centre that provides for the socio-economic needs of local and international transporters and travelers.

Moni International Coach Terminus and Trade Centre director David Bonongwe took serious exception to the government’s move arguing that the project is a patented invention with registration number MW/P/2008/000001. As such, awarding it to another firm would be a violation of that patent provision, reveals the local paper.

At the recent Malawi Investment Forum, Khato Civils Pvt Ltd director Simbi Phiri signed an MOU with the government to carry out three major projects, namely, Lake Malawi Water Project, the international bus terminal and the toll gates project.

Daily Times indicate that spokesperson for Khato Civils Pvt Ltd, Taonga Botolo, at that time confirmed signing the MOU with the government through Lilongwe City Council to have the international coach terminus in the country.

But Bonongwe told the local paper in an interview on Tuesday that there was no agreement between his firm and the city council for the latter to give the concept to other investors.

“We are seeking an explanation from Ministry of Local Government to tell us the relationship between the investors that signed the MOU and the government.

“This is our concept and we have been working on it for the past 10 years and spent over K50 million. What is remaining is for the Ministry of Lands to give us land for the project. We did all the paper work,” said Bonongwe as quoted by the paper.

According to the designs, the project will stand on 8.5 hectares of land and will have facilities that will include bus shelter terminus, circulation area, service bay, banking hall, fast foods stalls and restaurants, hotel and office park, shops/plaza, camp site, security area and waste management.

However, Ministry of Local Government and Rural Development spokesperson Muhlabase Mughogho said her ministry is not aware of any MOU it signed with Moni International Coach Terminus and Trade Centre.

“All agreements of that nature are made at council level. Currently, such agreements were made during the investment forum as you have rightly put it,” said Mughogho as quoted in the Daily Times.

But according to Bonongwe, the government is aware of the project and promised to see it to its conclusion.

On March 9 2015, Ministry of Lands, Housing and Urban Development wrote Bonongwe a letter with reference PP/HQ/23/8B promising to give land for the project.

“I would like to kindly inform you that the Ministry is considering your application. Currently, we are in the process of identifying suitable land to allocate the proposed development,” wrote a F.C.J Tukula, according to the paper.

Meanwhile, President Mutharika has been challenged by one of the country’s donors, Germany, to punish and drive out corruption.

New Germany Ambassador Jurgen Borsch to told the country’s media that his home country is ready to join Malawi government’s fight against corruption which is haunting the government big time.

“Germany, stands ready to support the Malawian authorities to expose, punish and drive out corruption wherever it occurs,” he said.

Different quarters in the country have been accusing Mutharika of shielding corrupt government officials from facing the wrath of the law.