Governance and anti-corruption groups are raising serious concerns about a K14.5 billion payment authorized by Attorney General Thabo Chakaka Nyirenda to Victoria Pharmaceuticals Industry Limited.
The Human Rights Defenders Coalition (HRDC) and the Centre for Social Accountability and Transparency (Csat) are demanding that the Anti-Corruption Bureau (ACB) investigate what they describe as a potentially suspicious transaction.
The payment relates to debt from 2016 when the Central Medical Stores Trust (CMST) purchased pharmaceutical products from Victoria Pharmaceuticals.
Initially valued at $5.3 million (about K9.3 billion), the debt has nearly doubled due to interest and additional charges, reaching the current K14.5 billion sum.
A settlement agreement dated August 23, 2024, shows that the amount was calculated based on a 12% interest rate on the US dollar component and Malawi’s policy rate for the kwacha portion, using an exchange rate of K1,750 per dollar.
HRDC Chairperson Gift Trapence raised red flags, questioning the transparency of the deal.
“This transaction raises many questions, and we demand a clear explanation from the government. We also urge the ACB to investigate thoroughly,” he said.
Csat Executive Director Willy Kambwandira echoed these concerns, particularly over the speed of the payment and the absence of court documents to support it. “Government transactions are rarely this fast. Without proper documentation, the public might suspect this is a ploy to misuse taxpayer money,” Kambwandira noted.
He added that Csat plans to formally request the court file and urged Parliament and the ACB to give the matter immediate attention.
The calls for action underscore rising concerns about accountability and financial transparency within the government.
