Site icon The Maravi Post

Malawian entrepreneurs of FISD Ltd arrested over fraud and forgery

Malawian entrepreneurs of FISD Ltd arrested over fraud and forgery

BLANTYRE-(MaraviPost)— Malawi Police’s financial crimes bursting department dubbed Fiscal Police, has today arrested four directors of FISD Limited Company over alleged fraud in its dealings with government.

National Police spokesperson James Kadadzera has confirmed the arrest saying the department was investigating the company over alleged embezzlement of government funds but did not mention the figures involved.

The development comes on the back of a protracted legal wrangle in the commercial court between the company and government and the Africa Development Bank on the management of a water supply project FISD was granted to conduct in Ntcheu.

Kadadzera confirmed the identities of the arrested officials as Moses Chirambo, aged 40 , village M’doni, T/A Chikulamayembe, Rumphi; Frank Mwenechanya, aged 40yrs, village Mwakaboko, T/A Kilipura, Karonga; Kondwani Namchukwa, aged 40 yrs, village Njilika, T/A Kapeni, Blantyre and Aurther Mpama, aged 35 village Sosola T/A Msamala, Balaka.

According to Kadadzera, one of the suspects appeared in court today in Lilongwe and the others will appear before court soon.

In 2017, Fisd was awarded two contracts worth K2.8 billion each under the project “Sustainable Rural Water & Sanitation Infrastructure for Improved Health and Livelihood” funded by the African Development Bank (AfDB).

The projects were for Ntcheu and Phalombe districts.

According to the contracts, Fisd was supposed to complete the projects by December 2018.

However, as of November 2020, none of the projects have been completed despite the company fully paid for the projects.

Due to failure by Fisd to complete the projects, government of Malawi on advice of donor of the funds advised the client to cancel the contract especially for the Ntcheu one.

Apart from the cancellation of contract by government, Fisd was ordered by NCIC led arbitration to pay the client K281 million.

After the termination, Fisd Managing Director Frank Mwenechanya sought the help of former powerful man in DPP government Dr. Bright Molande who is believed to be a sleeping partner in the company.

Molande used his powers to put a stop to the K236 million penalty.

Instead Molande connived with former chief secretary Lloyd Muhara to have Dr. Henry Njoloma moved from Green-belt Authority to Ministry of Water as Principal Secretary.

It is while at at Water ministry where Njoloma initiated a payment of whopping K638 million to Fisd for a work that cannot be traced.

It is against this background and crooked manoeuvring which has attracted the attention of Fiscal Police.

The police are also expected to summon Molande, Muhara and Njoloma on the same issue.

The little works which Fisd did in Ntcheu and Phalombe are already crumbling and the two districts cannot benefit from the multibillion projects due to incompetence of the contractor.

President Dr. Lazarus Chakwera has already promised to clear the rubble of dirt, filth and corruption caused to former ruling DPP.

The Maravi Post has over one billion views since its inception in December of 2009. Viewed in over 100 countries Follow US: Twitter @maravipost Facebook Page : maravipost Instagram: maravipost    
Exit mobile version