LILONGWE-(MaraviPost)-Desperate President Lazarus Chakwera’s Tonse Alliance government has used Malawi Revenue Authority (MRA) to intimidate and suffocate Forum for National Development (FND) leader Fryson Chodzi’ efforts in demanding explanation of well-crafted MK105 billion payment to Khato Civils Limited on Lilongwe-Salima Water Project.

MRA has given a warning notice to Chodzi for outstanding tax arrears amounting to over MK679,000.

A notice signed by MRA team leader for collection & filing enforcement, Thomas Kapira available to The Maravi Post Wednesday, May 17, 2023 indicated that their records show that Chodzi has not remitted the due tax to MRA.

“This amount has been outstanding and is contrary to section 105 of the Taxation Act which stipulates that tax chargeable under the Act is payable the due date,” he said.

Kapira ordered Chodzi to settle the outstanding arrears by May 24, 2023 at its office in Lilongwe — adding that failure to pay the arrears in full, MRA will be “left with no option but it enforce the law as it is”.

However, Chodzi said in an interview that he will engage MRA on the issue to clarify how they came up with the figure.

“Which year did I default and what income are they referring to?” he queried, while indicating that he will honour the arrears if satisfied with the explanation — if not he will challenge the letter.

This comes as Chodzi has not relented on Fryson Chodzi’s court injunction stopping National Bank of Malawi and NBS Bank from dispersing the MK105 billion cut short the champagne popping at Khato and OPC who have cut corners.

Khato Civils at the start of 2016 initially won the contract on the pretext that it will finance the project to the tune of US$500 million.

The project was from a paper by experts in the Department of Water that had been proposed years before.

Without any Feasibility or Environment Impact studies, politicians pushed for the project without any consideration for public finances but their pockets, until the World Bank and IMF raised concerns about its impact on Malawi’s debt.

The project has since undergone changes that now its priced at MK500 billion, almost six percent of current debt levels, which the IMF is not sustainable.

Simbi Phiri owns Khato Civil Limited who has been boasting in the media to have sponsored major political parties during 2019 general elections and 2020 Presidential Elections.