Despite President Lazarus Chakwera’s claiming that he is committed to fighting corruption, his administration is still doing business with companies linked to corruption suspect, Zuneth Sattar, the latest being payment of 8.4 billion kwacha in a deal for 32 Armoured Personal Carriers.
This is according to an investigation report by the Platform for Investigative Journalism (PIJ) which indicates that the Malawi government has through the Malawi Defence Force (MDF) made a substantial payment to Malachite FZE, a firm associated with Sattar who is facing corruption charges.
The PIJ story indicates that MDF through the Directorate of Logistics, approved a payment a $4.98 million (approximately K8.4 billion) which is part of a larger deal amounting to $19.93 million (K33.6 billion) for the procurement of 32 Armoured Personal Carriers (APCs).
It is reported that Colonel Lovemore Govenor Gowa who is the acting Chief Logistics Officer for the MDF, signed off on this payment in a communication which bears the reference DOL/A/125/2 and is titled “Part Payment for the Supply and Delivery of Thirty-Two (32) APCs.”
Furthermore, PIJ reports that surprisingly through a communication, signed by MDF Chief of Legal Services Gilbert Mittawa on November 20, 2023, the payment process for the 32 APCs was shifted from Malachite FZE to International Armored Group.
It has been exposed that later a Bank Statement Transfer Instruction (Forex), addressed to the Malawi Defence Force, bearing the subject “Transfer of Funds: USD 4, 983, 400”, was issued on November 20, 2023 with Instruction No: FRX1001040 and Voucher No 101PV5068192, and it specified a payment to International Armoured Group FZE, which holds an account with Emirates NBD, Account Number 1021471810302.
The statement which was signed by Budget Director Loyce Chilimsungwi and Accountant General Henry Mphasa, had accompanying description that clarified the nature of the transaction as: “This is an advanced payment for the purchase of 32 APC as per attached letter DOL/A/125 dated 17/11/2023, contract dated 24/05/2023, and invoice number SQU0705 dated 16/11/2023.”
All this is happening when the Malawi Government through president Chakwera made a public commitment to disengage from Sattar’s business network following his arrest by the UK’s National Crime Agency in January 2022 on corruption allegations.
Apart from that, in November, 2021, a the Anti-Corruption Bureau (ACB) restricted the MDF and the Malawi Police Service from proceeding with some contracts with several companies including Xaviar, Malachitte FZE, and Crimson Trading LLC.
Meanwhile, ACB Director Martha Chizuma, has told PIJ that the bureau’s restrictions it made on companies associated with the corruption suspect Sattar who is still under investigations by the UK’s National Prosecutions Agency (NCA), still stands to date.
“As ACB, we restricted all Sattar contracts around December 2021. Later, AG cancelled all the contracts. 32 APCs were part of the contracts. The AG and MDF would be in a better position to comment on this,” Chizuma told PIJ.
