Malawi Police have arrested four former directors of Nchalo Greenbelt Limited (NGBL) for failing to account for K2.4 billion which ADMARC gave NGBL for production of cotton.
The four are accused of misappropriating public funds which were meant for commercial production of cotton.
National police deputy spokesperson, Harry Namwaza, has identified the four as Richard Nkhwazi, Imran Malidadi, Toza Khonje and Alec Lungu.
According to Namwaza, between 2018 and 2021, state owned ADMARC (Agricultural Development and Marketing Corporation) pre-financed the NGBL with over K2, 536, 584, 699 to produce the cotton. They agreed that ADMARC would buy and process the cotton at their ginneries and export it.
However, only K92, 247, 650 worth of cotton was delivered to ADMARC and an audit revealed fraudulent transactions of the remaining K2.4 billion.
“Following police investigations, it shows that NGBL allegedly diverted the funds for a different purpose such as procurement of vehicles and machinery,” said Namwaza.
The four former directors allegedly failed to account for the remaining K2.4 billion.
The suspects have been arrested by the fiscal police department of Malawi Police and they will answer charges of abuse of office, fraud other than false presences, fraudulent false accounting and money laundering.
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