The opposition Malawi Congress Party (MCP) received K700 million in campaign funds from South Africa-based Malawian billionaire Simbi Phiri.
According to published reports, the party is using some of the money to cover court costs as it is challenging the result of the May 21 election.
Simbi Phiri owns Khato Civils Ltd which was awarded the contract to pump water from Lake Malawi in Salima to Lilongwe.
The K400 million project has delayed and the Malawi Congress Party in its manifesto for the May 21 elections promised to complete construction of the pipeline.
In 2017, Phiri admitted giving money to the MCP and the ruling Democratic Progressive Party.
He said: “I helped the Malawi Congress Party and the DPP when they came to ask. I don’t take money on my shoulders, I always help out when I am asked to.”
Simbi’s media team is yet to issue a statement on the recent allegations which Malawi24 could not independently verify.