Malawi cancels contract with Mota Engil for Military Hospital construction


Malawi Government is looking for a contractor, preferably from China, for the National Military Referral Hospital following termination of contract with Mota Engil.

Deputy Minister of Defence Jean Sendeza on September 15, 2021 announced the termination when presenting a report to President Lazarus Chakwera.

According to the Deputy Minister, the termination follows legal advice from the office of the Attorney General.

“The legal advice/opinion from the Attorney General has been implemented in full and the provisional contract with Mota Engil was terminated,” reads the report.

Sendeza added that a process is underway to identify a new contractor with preference being given to contractors from China.

“The technical team will also be meeting other interested partners in order to assess/determine their proposal’s suitability,” Sendeza says.

In an interview with the local media, Attorney General Thabo Chakaka Nyirenda refused to reveal legal opinion that has led to the termination of the contract.

Mota Engil’s spokesperson Thomas Chafunya   also refused to comment on the matter.

The military hospital is one of the reforms for the Malawi Defence Force and when constructed, it is expected proposed outcome is a hospital that would provide modern health services to Malawians.

In September, the Anti-Corruption Bureau also stopped Ministry of Transport and Public Works from awarding a contract for the railway section between Marka and Bangula in Nsanje.

The bureau said it had received a complaint alleging irregularities and suspected corruption surrounding the procurement process.

A rights group also asked the Anti-Corruption Bureau to investigate the company and Roads Authority (RA) over the cost of the Area 18 Interchange.

The Interchange was constructed as part of the Area 49 to Parliament Roundabout road project. Initially, K6.7 billion was set aside for the project but the cost rose to K14.4 billion after the interchange project was added.