LIONGWE-(MaraviPost)-The country’s civil rights Forum for National Development (FND) has justified as to why it obtained an injunction stopping President Lazarus Chakwera’s Tonse Alliance government to borrow MK105 billion from commercial banks on behalf of Khato Civils Limited to finance the Lilongwe-Salima water project.
The grouping hinted that there is no way government could borrow money on behalf of private company that failed to meet contractual agreement on the project.
FND suspects public funds theft ploy in the project hence sought legal address while also engaging Anti-Corruption Bureau (ACB)
The clarification comes barely days after FND on Friday, May 5, 2023 obtained an injunction stopping National Bank and NBS bank from releasing the mK105 billion to Khato, a loan which Parliament approved in the just ended meeting.
Though Khato has moved to challenge the injunction, FND insists the funds should not be released, fearing that public resources will be abused.
National Coordinator for FND Fryson Chodzi told the news conference on Wednesday, May 10, 2023 in the capital Lilongwe that Khato as a contractor was suppose to get a financier on its own and not government borrowing on its behalf.
Chodzi disclosed that the grouping has already penned Anti-Corruption Bureau (ACB) to investigate what happened with the project’s former financier Quay Energy and how the MK25 billion was spent on the project when there is nothing on the ground.
“We are in support of the project. However, we want to know if the project is still worth for public resources expenditure after seven years in deadlock while MK25 billion was already paid out but no single drop of water has been accessed.
“Immediately Khato failed to meet contractual agreement on financing, government was supposed to come to the public with new tenders by the law demands not twisting into further shabby deals by trying to borrow money on behalf of a private company. What’s the interest of government is this type of arrangement? queried Chodzi.
He dared Tonse administration to be prudent with public funds usages.
World Bank pulled out of the project due to overpricing.
Simbi Phiri owns Khato Civils Limited.
Phiri has been in the media for financing major political parties including politicians vying for presidency, Members of Parliament (MPs) in 2019 general elections and 2020 presidential polls.