Chapter Four: The Frauds and Scams

DISCOURSE ON MALAWI STATE CAPTURE Situation Report

 This is going to be a long process. Chapter by redacted Chapter as promised

MERA and Escom

In 2013 the Malawi Energy Regulatory Authority purchased an interactive display system (IDS) and overhead projector amounting to K7 968 600 (US$15 594) without seeking consent from the Office of the Director of Public Procurement. Documents showed that four managers were actively involved in the procurement transaction that the Office of the Director of Public Procurement described as irregular. A report to the Board had also indicated that procurement rules were deliberately flouted and that the issue was under investigation. Quotations were sourced from three companies—IT Centre, Business Machines and Parad while Technoworld and Xerographics did not respond to the request for quotations. But this was before MERA’s internal procurement committee (IPC) convened to review and authorise the purchase of the gadgets. The IDS had no budget line in the authority’s 2013/2014 financial year.[1]

Into 2017 the funds that MERA had advanced to Admarc which was the cause of the suspension of Raphael Kamoto in 2016 remained controversial. MERA board had rendered itself susceptible to lawsuits for firing two of its managers who implemented its resolution to release K2.9 billion to Admarc for the purchase of maize in 2016. “The board made a decision which they tasked management to implement,” argues Mauya Msuku, a labour law lecturer at Chancellor College in Zomba. “At that point, they saw nothing wrong with the transaction until it backfired. Then the board decided to pin the blame on the senior managers, sacking them in the process to save the face of the organisation. In my view, the two have sufficient grounds to sue their former employer. There remains the question of substantive justice as to who should take the blame in this matter between the decision-maker and the implementer. But in all fairness, the two were used as scapegoats for the board’s corporate mistake,” he said. Another labour relations expert said both the board and management were wrong in the way they handled the matter; “They share responsibility over this matter even if the funds were to be recovered. Board has to be questioned by the appointing authority which is the presidency and the ministry responsible.”[2]

Malawi Energy Regulatory Authority Board Chairperson Bishop Dr Joseph Bvumbwe announced in a press statement that MERA had asked the Agricultural Development and Marketing Corporation (Admarc) to pay back K2.9 billion the former spent to buy maize for Admarc to sell in its markets. But after Admarc bought the maize, it took the media once more to reveal that Admarc only paid back K250 million from the proceeds of the sales, a development which raised more eyebrows about what Admarc and Mera were up to. As if to douse the raging flames of anger among the people for this illegal transaction, MERA Board pinned the blame on two of its senior officials—summarily dismissing its chief executive officer Raphael Kamoto and terminating the contract for finance director Elias Hausi. This was despite the fact that it was the MERA Board which, in the first place, made the decision to divert the money to buy maize and only tasked management to implement it. It is one thing for MERA to ask Admarc to pay back the money and quite another for Admarc to pay the money. This is against the background that Admarc cannot be trusted anymore following the suspicious manner in which its senior management struck deals to import maize from Zambia which had put it under investigation by the Anti-Corruption Bureau. In fact, an audit report by the National Audit Office indicated that Admarc was unwilling to make good of the money. The report quotes some Admarc officials as saying some of the maize Admarc bought was rotten and that some of the money was for logistics.[3]

There were too many unexplained issues about the Mera/Admarc K2.9 billion maize issue. The Malawi Energy Regulatory Authority through its chairman Bishop Joseph Bvumbwe had said it would recover the whole amount of K2.9billion from the Agricultural Development and Marketing Corporation. But weeks later, Admarc said it would only repay K1.9 billion because some of the maize was rotten while some was stolen in transit.[4] Thus, although MERA loaned Admarc K2.9 billion to purchase 10 000 metric tonnes of maize, the latter only wants to pay back K900 million, arguing that it sold the maize at a loss of K1.8 billion and that MERA should also pay it K200 million as handling fees. It is not known how Admarc incurred the loss of K1.8 billion when in that year the corporation was selling maize at an average price of K250 per kilogramme, which should have earned them K2.5 billion from the sale of 10 000 MT of maize it bought with the Petroleum Stabilisation Fund resources. In 2015, Admarc also secured loans of K1.9 billion from FDH Bank and K100 million from Auction Holdings Commodity Exchange (AHCX). In total Admarc bought 22 500 MT of maize from AHCX in March 2016.[5]

Kam’mwamba

Malawi Government signed a memorandum of understanding with Gezhbouba Group of China Energy Engineering Corporation in 2013 for the construction of the power plant of up to 1000MW. The plant was expected to use about 400,000 tons of coal annually from Moatize in Mozambique. The initial plan for the 1000MW Kam’mwamba thermal plant involved the construction of a 300MW plant comprising six units of 50MW capacity each in the first phase of the project with funds borrowed from China’s Export and Import Bank while the second phase was to build a 700MW plant. The project, which was expected to start in 2016, delayed due to lack of a feasibility study, Power Purchase Agreement and the creation of a company to operate the project. In the second half of 2018, after nearly five years, Malawi scaled down the 300 megawatts (MW) Kam’mwamba Coal-Fired electricity generation project in Neno following the financiers’ decision to reduce the loan amount. Beijing, the financier of the project, asked Lilongwe to reduce the loan amount for the implementation of the coal fired plant project from about $700 million (about K513 100) to around $500 million (about K366 500). Minister of Finance, Economic Planning and Development Goodall Gondwe said in an interview that the first phase of the project was expected to start in November 2018, but was shifted to the first quarter of 2019 due to the changes. He said the changes came about because the Chinese felt the project was too big and had to be phased. “We have been asked by the Chinese to phase out the 300MW to 200MW and 100MW. We have now reduced the amount to be borrowed from $700 million which was huge to inside $500 million and that has been agreed upon,” said Gondwe. The minister said both Capital Hill and Beijing were working on the technicalities of the project.[6]

Malawi Energy Regulatory Authority advised Electricity Generation Company Malawi Limited to speed up building the Kamwamba Coal Plant, saying the delay could affect electricity tariffs in the medium-term. This was said by the MERA Chief Executive Officer Collins Magalsi at the construction site of Tedzani IV Power Plant after Minister of Natural Resources, Energy and Mining Bintony Kutsaira toured Phombeya Power Sub-station in Balaka, Kamwamba in Neno and Nkula A Hydropower Plant. “As you may recall, Mera gave Escom a base tariff for the period 2018 to 2022 and we had assumed that apart from existing power sources, we would have independent power producers and that included Kam’mwamba. Kam’mwamba, a project which would be one of the biggest investments in the energy sector, was hatched in 2013 but has not taken off due to financing challenges.” The Minister said, “We are committed to seeing Kamwamba take off in due course. We have changed the mode of operation of the project to Egenco as experts in that field.” Electricity Generation Company Malawi Limited chief executive officer William Liabunya said the entity has synchronised the project with the consultant they engaged mid-2018 and is moving in the right direction. “Having seen the project, the consultant will now be reviewing the feasibility study that was done before and updating it to ensure that it is economically viable before we take off”. Malawi Government has since formed Kam’mwamba Power Generation Company Limited while China Gezhouba Group Corporation will construct the coal-fired power plant at Zalewa in Neno.”[7]

Government abandoned its partner Chinese financier China Gezhouba on the Kam’mwamba Coal-fired Power Generation and relocated the project to Energy Generation Company to implement it with government as the sole financier. Ministry of Energy spokesperson Sangwani Phiri said that government had taken a bold step towards sourcing financial resources to fund and support the establishment of the new plant at Kam’mwamba. “Government will finance this energy project—to be facilitated by Egenco, which is the major stakeholder in this endeavour—with a financial injection of K31.9 billion from government. Phiri said Energy Generation Company will start the project all over again as the previous implementer, Kam’mwamba Power Generation Company Limited, did not do anything on the ground and has nothing to hand over to the new implementer. “As such, Egenco will not take over any contractual arrangement from the former company as Kam’mwamba Power Generation Company Limited never acquired services from anywhere that could attract liabilities.[8]

The Public Procurement and Disposal of Assets website showed that a company named Black and Veach was awarded a lucrative consultancy contract for K7.8 billion. Black & Veach was hired by Kam’mwamba Coal-fired Power Generation Company, which sought approval from the Public Procurement and Disposal of Assets Authority to engage the firm. The Public Procurement and Disposal of Assets Authority website showed that Kam’mwamba Coal-fired Power Generation Company awarded the contract to Black & Veach on 22 June 2018 under the services category and as procurement of consultancy services. Kam’mwamba Coal-fired Power Generation Company, which government has dissolved after failing to build a coal-fired power plant at Kam’mwamba in Neno, hired Black & Veach to provide technical support, supervision and management of the power project. The Public Procurement and Disposal of Assets Authority which approved the contract in June 2018, said that the information from the procuring entity, Kam’mwamba Coal-fired Power Generation Company, showed that the firm was based in the United States of America. The Public Procurement and Disposal of Assets Authority director general Elias Hausi, in an e-mail response, confirmed that the Kam’mwamba Coal-fired Power Generation Company procurement came through his office and, based on their review, satisfied all requirements demanded by the legal framework in selecting the successful bidder. “Our records show that this company is registered in the USA,” said Hausi. However, Black & Veach does not appear on the Public Procurement and Disposal of Assets Authority’s website nor is it registered with it.[9]

Escom

On 21 September 2016 the Anti-Corruption Bureau received a complaint from an informant that there was political interference surrounding awarding of contracts as well as payment to suppliers to the tune of over K4 billion at Electricity Supply Corporation of Malawi (Escom). The complaint added that goods were supplied without proper documentation and that procedures were not followed, a development that led to the resignation of Escom director of finance Betty Mahuka. The Bureau authorised an investigation and sent investigators to Escom. Escom management blocked the Anti-Corruption Bureau from probing the K4.9 billion payment standoff between the power utility and its suppliers. Escom Board Chairperson Jean Mathanga said she was aware that the Anti-Corruption Bureau had initiated an investigation at the power provider and she was also aware that an Anti-Corruption Bureau officer was sent back. She said the Anti-Corruption Bureau officer did not seem to know what he was looking for. She said, “I am told that the ACB officer did not have the mandate of the ACB director and that he was not clear what he was looking for”. Deputy Director Reyneck Matemba confirmed authorising the Escom file based on instructions he received from his boss, Director Lucas Kondowe as well as Section 8 (1) of the CPA that makes provision for a situation like this; “When the Director General [DG] was leaving for the USA last month, he called me while he was at Chileka Airport. He told me that there were a number of files in his offices in Blantyre and Lilongwe that needed to be acted upon and he advised me to act on all those files and other matters. The file on Escom was one of those files. It was sent to me from his office in Blantyre and I acted on it by authorising the investigation. That was on the 28th day of September 2016.”[10]

Electricity Supply Corporation of Malawi, the distributor of electricity, messed up the procurement of generators that were expected to add 78 megawatts (MW) to the national grid to minimise the intensity of prevailing blackouts. The Office of the Director of Public Procurement had to tell government in August 2017 to cancel the process after its investigations found that some decisions and actions in the procurement process were “wrongly made”. In November 2016, President Mutharika, as part of short-term intervention measures into the power supply crisis, told the nation that Escom would acquire diesel-operated generators on lease basis for an initial estimated period of 18 months. In the initial procurement process, nine companies, including JocobsenElekro AS, Aggreko, AKSA Enerji Rental Power, APR Energy, Almagamated Power Solution (APS), Altaaq Global CAT, So Energy International, Greenheart Energy Limited and Sino Hydro were shortlisted for supply of three generators that were to be stationed in three lots each at Mapanga in Blantyre, Kanengo in Lilongwe and Chinyama[11]

In December 2016 Escom evaluation committee recommended that lots one and two in Mapanga and Kanengo, respectively, be awarded to APR Energy with evaluated respective prices of $34.6 million and $24.9 million while lot three at Chinyama in Kasungu was recommended for award to Aggreko International Projects for $18.9 million. The Internal Procurement Committee at its 9th extraordinary meeting of 23rd January 2017 resolved that due to the complexity of the tender, bidders should be invited to make presentations of their bids, including pricing. But in the application to the Office of the Director of Public Procurement Escom said that after the bid presentations, the evaluation committee awarded all the three lots to Aggreko International Projects. This prompted two companies—Altaaq Global CAT and AKSA—to complain to Escom that the awarded companies presented the wrong bid during the presentation of bids and that Escom changed the scope of the bid from three lots to two lots. Based on the complaint the Office of the Director of Public Procurement opened an investigation to assess the procurement process to determine if the evaluation was conducted in line with the provisions of the Public Procurement Act, assess the merit of the complaints presented by AKSA Energy and Altaaq Global CAT and to determine whether the proposed change in scope was allowable.[12]

Faced with pressure to improve power generation, the Electricity Generation Company planned to airlift generators from India to speed up the process of generating power from diesel-powered generators. Electricity Generation Company was to pay hiring charges and production fees. But this was going to affect the tariff, it had to be increased. Former Minister of Energy Grain Malunga said that generators were an expensive alternative and that they were likely to push the tariffs up if the whole project was to be sustainable. Escom botched up the generator deal few months previously when it went against its recommendation and awarded the supply contract to a company called Aggreko. The deal was cancelled and Electricity Generation Company had to start all over again.[13]

Electricity Supply Corporation of Malawi said the commissioning of 55 megawatts (MW) diesel generators in Blantyre was going to reduce the load shedding hours by six hours, meaning consumers were to have four hours of no electricity. Escom Board Chairperson Perks Ligoya said power challenges were expected to completely come to an end in May 2018. President Peter Mutharika said, “Within five years, we will be able to generate over 1 400 MW of coal-fired power, about 700 MW of hydro-power and 70 MW of solar energy. We will be able to do that in the next two to three years; that’s long-term solutions. Over and above these measures, we will connect Malawi to the Sadc [Southern African Development Commission] region power pool. In that case, we can purchase power from any other country when need arises and we can sell the power when we have a surplus. By the beginning of next year, we will add 300 MW more than the 351 we have had for the past 53 years. In fact, in the past 53 years we have only added 131 MW that is why I say we have never invested in the energy sector.” President Mutharika also justified the involvement of Aggreko plc that were supplying the gensets in the power venture saying it is part of attracting foreign investors.[14]

About a month later, the Anti-Corruption Bureau opened an investigation into the procurement of the multi-billion kwacha generators contract. In August 2017, the Office of the Director of Public Procurement had stopped Escom from awarding a contract to supply 78 megawatts (MW) diesel-powered generators to Aggreko Power Solutions because of procurement irregularities. However, in January 2018, President Peter Mutharika commissioned 55MW diesel-powered generators in Blantyre that Escom—using a single sourcing procurement method—hired from Aggreko Power Solutions, the same company the Office of the Director of Public Procurement had ordered the cancellation of its contract.[15] The Anti-Corruption Bureau indicated that it had identified flaws in the procurement of the two-year $73.9 million generators leasing agreement between Aggreko Power Solutions and the Electricity Supply Corporation of Malawi. The Anti-Corruption Bureau director general Reyneck Matemba said: “All I can tell you for now is that there were procurement flaws. We received a report and an allegation relating to the generators.”[16]

Malawians had been given a ‘raw deal’ on the generators. Before acquiring the gensets, Malawians were paying K58.74 per kilowatt (kWh) of electricity, but after procurement of gensets they were paying K72.54 per kWh. This meant a consumer who used to buy 103 electricity units worth K5 000, was now only getting 92.7 units. Escom leased 84 gensets from Aggreko, which could only produce 78 megawatts (MW) for six hours each day, contributing a meagre 9.10 percent of power to the national grid. Escom’s tariff impact analysis, dated November 17 2017, showed that at the end of two years, the power utility would have spent over K105.5 billion paying Aggreko Power Solutions Limited, yet Malawians would have used 90 percent of power generated from hydro. Documents further showed that Escom entered into the deal well aware that its total turnover, in two years, would be K145.7 billion. Out of this amount, K91.5 billion was expected to come from hydro generation and K62 billion from the diesel generators. However, the power utility provider would spend K69.6 billion to buy the hydro-generated power from Electricity Generation Company which constituted over 90 percent of the electricity the country uses then pay a whopping K105.5 billion to Aggreko for the generators’ power, which only constituted 9.10 percent of the energy consumed in the country. Escom was expected to spend K42 billion ($57.7 million) on fuel for the generators for two years. During the same period, Escom would pay Aggreko Power Solutions K63.6 billion (about $87. 2 million) to buy the power. For the two years, the 78 megawatts generators would produce 341.6 million kilowatts of energy at a generation cost of K189.8 ($0.26) per kilowatt (kWh). The generators would use 143 548.36 litres of fuel per day.[17]

In the second half of 2018 Parliament’s Budget and Finance Committee vowed to block State power utility Electricity Supply Corporation of Malawi from borrowing K30 billion from commercial banks to finance its K55 billion deficit after Treasury earlier rejected its bailout request. The committee learnt that Escom—already mired in financial liabilities in excess of K80 billion with local and foreign institutions—planned to raise the remaining K25 billion from a proposed tariff hike which the Malawi Energy Regulatory Authority was yet to approve. But committee chairperson Chiphiko said his committee admonished Escom for what he termed “wanton misprocurement and corruption” which was draining the company’s resources. He said the committee believed that if Escom collected all its debts, in excess of K20 billion of which K16 billion was owed by the private sector and K4 billion by government ministries, departments and agencies, the borrowing would not be necessary. Escom chief executive officer Allexon Chiwaya told the Budget and Finance Committee of Parliament that Escom expected to repay the K30 billion it sought to borrow from commercial banks over a period of five years at the rate of K800 million per month. He said the repayment schedule was affordable. Basic calculations show that at the rate of K800 million per month, over a period of five years or 60 months, Escom would have paid the banks an equivalent of K48 billion. In the financial year ending June 30 2018, Escom made an K8 billion loss after making a K6 billion profit in the 2016/17 fiscal year.[18]

In the last quarter of 2019 the Minister of Natural Resources, Energy and Mines Bintony Kutsaira said government would renew the Aggreko Power Solutions Limited diesel-powered generators contract at its expiry in January 2020 because the 78-megawatts (MW) capacity gensets had stabilised power supply. But energy and consumer rights experts cautioned government to thoroughly scrutinise the decision to renew the contract, saying the arrangement should have been a temporary measure because power generation by diesel is not sustainable. Kutsaira said the generators could be offloaded in a year’s time if Malawi finalises the Zambia-Malawi interconnection whose funding China had committed, “We have secured $30 million funding from China to connect Chipata [in Zambia] and Nkhoma [in Lilongwe]. This deal will bring 80 megawatts with which we will replace the 78 megawatts diesel powered generators.”[19]

This renewal of contract with Aggreko may have been the cause of the split in Government on the way forward. Government was divided on the recommendation by the Parliamentary Committee on Natural Resources and Climate Change that Aggreko Power Solutions should be relieved from the contract of supplying energy in favour of Electricity Generation Company which could provide at a lower cost if it were to use the same equipment. The Malawi Energy Regulatory Authority insisted that the proposal was technically and practically not doable. The Cabinet Committee on Energy welcomed the idea, but stated that Electricity Generating Company did not have the capacity to carry out the said task. On his part, Electricity Generation Company Chief Executive officer William Liabunya said it would require a lot more to execute the plan, adding that Malawi had to survive on the solution already in place. But in his remarks, MERA chief executive officer Collins Magalasi said what the parliamentary committee had proposed was not doable, both technically and practically. The only remedy, he said, was for Aggreko to sell electricity to Electricity Generation Company which would then resell it to Electricity Supply Corporation of Malawi.[20]

But the survival of Escom was grim. Early in 2020 broke and broken after being stripped of its main revenue generating assets, debt-ridden Escom was headed for a crash that could have plunged Malawi into darkness. Worsening the Electricity Supply Corporation of Malawi’s woes was government’s decision to take away its single buyer function to form Power Market Limited, thus choking off another major revenue stream for the parastatal that already lost its generation arm to a similar dismantling fashion. By the end of March 2020, Escom owed Energy Generation Company K41 billion, National Oil Company of Malawi and Aggreko K2 billion each. The power supplier had been getting diesel from National Oil Company of Malawi on credit to power Aggreko gensets. Escom also owed billions to several firms that supplied equipment in deals most of which—according to a report by the National Audit Office released in 2018—were either mis-procured or had prices inflated. Most of the goods bought, said the parastatal’s board chairperson Thom Mpinganjira, would not be needed for years and would likely be obsolete by then. Those bad procurement decisions, said Mpinganjira at the time, saw the company stockpile supplies worth K18 billion by February 2018. Treasury, which had just forked out a K45 billion rescue package to Admarc, another procurement scandal-ridden behemoth, refused to throw good money after bad in Escom’s bottomless pit. Escom’s working capital had also dipped sharply, plunging to K21.4 billion at the end of 2017 from K34.8 billion 12 months earlier, and was estimated to fall further to K16.4 billion by June 2018. Energy Generation Company spokesperson Moses Gwaza, who could only give Escom’s arrears up to February 2020 as K38 billion, but could neither confirm nor deny that the figure had risen to K41 billion by end of March, said the non-payment had affected Energy Generation Company’s operations.[21]

Thus, after plucking the generation limb from Escom to form Energy Generation Company, government broke the parastatal further, taking away the single buyer function and formed a separate entity called Power Market Limited. MERA Chief Executive officer Collins Magalasi said Escom was the victim of its own inefficiency and government could not continue to allow it to poison other players in the sector. Magalasi said Power Market Limited was established because Escom’s financial position was blocking other Independent Power Producers from participating in generation. “Two responsibilities have been hived-off Escom because it was too big to be efficient. It was involved in maintenances, distribution, and revenue collection and paying the suppliers. IPPs could not trust Escom looking at the financial situation,” he said. The MERA Chief Executive Officer said Escom had not been remitting revenue to power suppliers because it was using such money to service its huge liabilities, largely accumulated through mis-procurements.[22]

Deputy Speakers

Deputy Speakers of Parliament Clement Chiwaya and Esther Mcheka-Chilenje, despite staying in their own houses where they were entitled to K250 000 per month, were getting an additional K300 000 every month on the pretext that they were staying in rented houses. Imagine! When this story was published, the two, as it is always the case with politicians caught pants down, came out dismissive, denying committing any crime. In a letter from Parliamentary Service Commission dated October 9 2015 the Acting Clerk of Parliament Renard Mapemba stated that the Parliamentary Service Commission had resolved that Parliament should immediately ‘cease paying house rentals pegged at K550 000 since there is evidence’ that the two live in their own houses. Chancellor College associate professor of law Edge Kanyongolo said that the Parliamentary Service Commission should ‘endeavour to recover the money the two unjustly got from taxpayers’.[23]

In December 2015 the Attorney General Kalekeni Kaphale refused to be drawn into allegations of shielding deputy speakers of Parliament Clement Chiwaya and Esther Mcheka-Chilenje from investigations into accusations of dubious claims of house allowances. However, Kaphale said he did not advise the deputy speakers not to appear before the Parliamentary Service Commission and he would not disclose what discussions had taken place between him and the Speaker. Responding to calls that the deputy speakers should not have been allowed to continue working as the Anti-Corruption Bureau investigated them, Kaphale said he would not give a view on the matter because the Anti-Corruption Bureau is independent. Anti-Corruption Bureau backed the decision to allow Chiwaya and Mcheka-Chilenje to continue performing their duties, arguing that they had not interfered in the investigations since they were instituted in August 2015. Government was accused of shielding Chiwaya and Mcheka-Chilenje after the Attorney General stopped Parliamentary Service Commission from proceeding with a hearing.[24]

In May 2016 the Anti-Corruption Bureau’s report to Parliament faulted Speaker Richard Msowoya and Parliament secretariat for authorising two deputy speakers, Esther Mcheka-Chilenje and Clement Chiwaya, to collect house allowances when they were living in their own houses. The report further highlighted that the Speaker’s house allowance, amounting to K750 000 (about $1 500), as well as the deputy speakers’ allowances, had not been approved by Parliament. The report recommended that administration clerk Leonard Mapemba should be disciplined as he was the one that made the speakers take advantage of the system to claim the taxpayers’ money. On his public Facebook account, Second Deputy Speaker Chiwaya wrote that Anti-Corruption Bureau had cleared him. His posting read: “Dear Friends, I write to advise that the Anti-Corruption Bureau has released a report on its investigations on our alleged fraud on housing allowances. This investigation has taken over nine months. I am happy to report that the Anti-Corruption Bureau has finally cleared us because it could not find evidence of corruption. I want to thank my wife and family here in Lilongwe, Mangochi, Zomba, US and all over for standing behind me. To you my friends, for believing in me. It is time for me to move forward with my life, but mostly thank God for making me strong at a time when nobody wanted to believe my story. May the [good Lord] Continue to bless you all.”[25]

Parliamentary Service Commission trashed the Anti-Corruption Bureau report findings into allegations that two deputy speakers, Esther Mcheka-Chilenje and Clement Chiwaya, were fraudulently collecting housing allowances despite living in their own houses. The commission’s spokesperson Vitus Dzoole-Mwale said the report was rejected and sent back to the Anti-Corruption Bureau because it had numerous gaps which needed to be clarified before action could be taken.[26]

A social commentator, ‘Backbencher’, advised that the housing scam in which the office of the Speaker of Parliament was embroidered did not have to drag on like former President Bakili Muluzi’s K1.7 billion ($2.4 million) corruption case which had chalked a decade of flip-flopping with no end in sight. The most unfortunate thing was that the delay of the case in which First Deputy Speaker Esther Mcheka-Chilenje and Second Deputy Speaker Clement Chiwaya were accused of fleecing government additional K300 000 ($420) on top of their entitled housing allowances of K250 000 ($350) had nothing to do with legal procedures. Rather, it was because the two Deputy Speakers had become pawns in the power-play between Democratic Progressive Party which ruled the Executive and Malawi Congress Party which reigned supreme in the Legislature. When the Parliamentary Service Commission probed their case it established that indeed the two lied about living in rented houses so they could chalk a whopping K550 000 ($769) a month, more than double their official entitlement. For starters Parliamentary Service Commission then directed that the two should get K250 000 housing allowance per month, which was the right thing to do. Interestingly, the challenge did not come from the culprits. Rather, it was Attorney General accusing Parliament of acting on issues outside its jurisdiction and without first consulting his office. Power![27]

Sharp differences between the National Assembly and the Anti-Corruption Bureau over the deputy speakers’ housing allowance controversy froze justice for the taxpayer and raised fears of selective application of the law. While the National Assembly suspected that deputy speakers Esther Mcheka-Chilenje and Clement Chiwaya may have behaved corruptly and fraudulently in making Parliament pay them higher housing allowances than their entitlements, the Anti-Corruption Bureau said the scandal was merely an administrative misstep, not corruption. The bureau, which investigated the matter on Parliament’s request, has since recommended closure of the cases’ dockets while advising Parliament to settle the matter administratively.[28]

More than a year later, in September 2016 the Director of Public Prosecutions Mary Kachale was undecided on the issue involving Deputy Speakers who were pocketing house allowances beyond their entitlements. The Director of Public Prosecutions, who was asked for her opinion a year before by the Malawi Law Society, said she had not made up her mind on the matter because the matter was unprecedented. Said Kachale: “There are some matters that are not possible to process expeditiously due to the novelty of the issues raised and the human resource challenges we have. This referral from the Malawi Law Society is one such. We hope to conclude the consideration of this issue as soon as practically possible.”[29]

Ministry of Health

Millions of Kwacha seeped out of Malawi’s public health system through fraud, payroll manipulation and unauthorised payments, a leaked report from the office of Malawi’s Auditor-General indicated. An amaBhungane report on the Daily Maverick site said that the losses form part of audit queries to the tune of R80m highlighted by the report. The report said according to auditor-general Stephenson Kamphasa, the audit – signed in May 2017 – only covered about 68% of government accounts, as many ministries and departments failed to submit their financial reports for audit. Kamphasa also noted that bank reconciliations for June to December 2015 and reconciliations for draw-downs from the government’s Payment Management System against cash received at the Reserve Bank holding account were not prepared for the period under review.[30]

Ministry of Health failed to account for close to K1 billion after paying allowances, a June 2016 audit revealed, highlighting never- ending fraudulent activities that paralysed the country’s health sector. The audit report said K882,256,021 spent did not have backing documents such as invoices and receipts. It further said payments were made in form of allowances, part of the money was paid to people that could not be traced while other payments were made using rates that were not approved. About K265 million was paid out in allowances to officers who are not bona-fide civil servants and K399 million was paid out to people that cannot be traced whereas K61 million was paid to non-deserving staff.[31]

Government is yet to prosecute 38 Ministry of Health staff implicated in the abuse of over K870 million donor funds for HIV and Aids fight in 2015, Sources at the ministry say government has merely interdicted, transferred or retired some staff, and deducted part of the money from their gratuity. A 2015 National Audit Office audit pegged the missing funds for HIV and Aids activities at K2.5 billion and the number of implicated officials, among them, directors of finance, human resources and drivers, was at 63. However, a second audit by a private firm Graham Carr reduced the missing funds to K875.7 million and the number of staff implicated in the abuse of the money to 38. The funds were from the Centre for Disease Control, an agency of the Government of the United States of America. The embassy’s spokesperson Nick Novak said “We continue to encourage the ministry and all other parts of the Government of Malawi to promptly pursue cases of proven malfeasance. Failure to follow the requirements of the law sets a very bad precedent. Where appropriate, individuals proven to have misused public funds should be terminated and turned over to law enforcement authorities for prosecution.” Novak said for 18 months the embassy had engaged the Ministry of Health to press for decisive disciplinary action and that merely transferring an employee guilty of malfeasance does not seem to be disciplinary action significant enough to deter potential wrongdoing.[32]

Admarc

Treasury gave financially stressed State produce trader Agricultural Development and Marketing Corporation a K23 billion bailout after repaying debts the parastatal owed three of the country’s commercial banks. Minister of Finance Goodall Gondwe made known the decision in response to a question from Nkhotakota South East MP Everson Makowa-Mwale in Parliament to find out why the Admarc loans were cleared through Ministry of Agriculture, Irrigation and Water Development. The legislator told the House that on 27 October 2017, Treasury transferred the said funds to the Ministry of Agriculture, Irrigation and Water Development and issued a memo instructing the ministry to repay the loans on behalf of Admarc. The three banks, whose names were withheld, received K16 billion, K4.7 billion and K2.4 billion through a payment made on November 7, according to Makowa-Mwale. Gondwe told the House government repaid the loans, whose total amount he said he did not have on hand, to the commercial banks after Admarc failed to recover the money from the sale of maize in the 2016/17 financial year which ended on June 30. Said Gondwe: “In purchasing the maize, Admarc borrowed resources from commercial banks and government guaranteed [the loans]. The maize was bought from within the country, something like 98 000 metric tonnes [MT].” On why the loans were repaid through Ministry of Agriculture, Irrigation and Water Development, Gondwe said Treasury does not deal directly with Admarc, but its parent ministry which was sure to repay the loans directly to the commercial banks.[33]

Opposition Malawi Congress Party described the K45.2 billion bailouts of Agriculture Development and Marketing Corporation as an illegal spending because the government did not seek authority from Parliament. Malawi Congress Party spokesperson on finance Alexander Kusamba Dzonzi said while Section 63 (1) of the Public Finance Management Act empowers the minister to guarantee loans of statutory bodies, the law was specific that this should be in the interest of the public and necessary.[34]

Road Authority

In 2017 the Anti-Corruption Bureau arrested embattled Malawi Roads Authority Chief Executive Trevor Hiwa, and Sam Kadangwe. The two were arrested for corruptly awarding Hiwa’s company a MK217 million contract. Hiwa and Kadango were accused of allegedly recommending Infracon Limited (Hiwa’s company) to the Word Bank to be awarded the contract worth US$303,823 (MK223 million) for the design and supervision of various roads construction works in Central and Southern Regions. This was done without the approval of the Internal Procurement Committee, and without declaring Hiwa’s personal interest. Anti-Corruption Bureau Director General Lucas Kondowe said the two engaged themselves in the corrupt dealings.[35]

In 2019 the Roads Authority was awarding contracts to two entities that lacked requisite certifications. Not only did the move breach procurement and construction laws, Roads Authority’s decision also ignored its own rules outlined in its invitation for bids. The National Construction Industry Council Act of 1997 prohibits awarding of engineering and construction works contracts to unregistered contractors. National Construction Industry Council and a legal expert said the two firms Rommex and the Engineers Battalion of the Malawi Defence Force should never have been given road construction contracts because they did not have requisite certification. Furthermore, Roads Authority’s internal procurement regulations prohibit the evaluation of expressions of interest and tender offers from respondents or bidders who are not registered in an appropriate contractor grading designation with the National Construction Industry Council and registered as a business at the Office of the Registrar General.[36]

National Aids Commission

Global HIV, TB Malaria Fund

Having received a controversial payment from the Malawi Police Service, Pioneer Investments deposited K145 million[37] into the Democratic Progressive Party bank account with President Mutharika as the only signatory. President Peter Mutharika claimed that he had not “personally” benefitted. On the Civil Society Organisations protesting his nomination as a Global Fund Champion he retorted “It is very sad for Malawians that we have reached this level of hatefulness on all levels. I don’t care about the Global Fund, they can remove me from it, I am not benefitting anything, it’s purely a voluntary organisation”[38], yet as of 2018 the funds from Global Fund were benefitting[39] 805,000 Malawians on HIV Anti-retroviral (ARVs); 16,000 Malawians on Tuberculosis treatment; and 11,600,000 Malawians with bed nets in the prevention of malaria. The Global Fund did not nominate him in his personal capacity but as the President of Malawi. The Civil Society Organisations were not protesting his nomination as an individual but as President of Malawi. In their letter of protest, the Civil Society Organisations expressly stated that it was because “Mutharika presides over an administration embroiled in corruption scandals”. Examples abound showing that despite his years as President of Malawi, President Peter Mutharika has failed to appreciate and embrace the responsibilities of his office of providing leadership in his job description under section 88 of the Constitution. In the years in office the President has failed to appreciate and embrace collective responsibility; that he is responsible for the actions of public officers under him and therefore their failures are his own failures of leadership. This applies both to his position as State President as well as President of the Democratic Progressive Party.

“The Global Fund is a partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. As an international organization, the Global Fund mobilizes and invests more than US$4 billion a year to support programs run by local experts in more than 100 countries. In partnership with governments, civil society, technical agencies, the private sector and people affected by the diseases”.[40] Ninety-three (93)% of the funding comes from donor governments. A country to benefit must set up a coordinating agency comprising persons affected by the disease, medical experts, government and civil society which must develop and submit to the Fund a qualifying plan to fight the disease.[41] In his response to the Civil Society Organisations the President failed to recognize that Government and civil society are equal partners in this fight. He was insensitive to the beneficiaries, the persons affected with disease who suffer double injury when any single unit of funding is diverted from its purpose: their treatment. 12 million Malawians affected by the three diseases must have despaired at hearing the President say “I don’t care about Global Fund”. In providing leadership, the President is also responsible for ensuring the integrity and accountability aspiration of all stakeholders, including persons affected by the disease, in the funding and implementation of the plan.

 Between July 1 and September 10 2010 the Global Fund Office of the Inspector General carried out an audit of the funding in Malawi. An amount of $3 994 764 (about K1.8 billion) could not be accounted for, principally because the expenditures were not adequately supported with documentation. The Malawi Government was asked to refund the amount to Global Fund and the Government started paying the refund in 2012. At the time of the audit, the explanation was that documents had been lost in the course of changing offices and that there was no time for physical verification of vehicles which the Office of the Inspector General found were bought outside the agreed work plan.[42]

 In 2013 the Global Fund announced that it would end funding to the HIV, Tuberculosis and Malaria programs in 2014, this would translate to a loss of 55 percent of its HIV and Aids funding in the next two years, a development that threatened the lives of one million people with the virus, threatening the sustainability and upscaling of various HIV and Aids interventions. Malawi Network of People Living with HIV and Aids (Manet+) executive director said the expected decrease in HIV and Aids funding was a major blow to almost all efforts the country had made in fighting the pandemic. He said: “Government should demonstrate prudence in the use of the available resources to win development partners’ confidence, immediately engage various development partners seriously on post-2014 support, and intensify its own generation of locally available resources for the HIV national response.”[43] Malawi Health Equity Network executive director Martha Kwataine also urged financial prudence as a starting point. “If we sealed loopholes of wastage and corruption, we can save good sums of money that can go towards HIV and Aids fight. Government should not do business as usual. It is time to re-prioritise our expenditure.” In the event that Government did not find alternative resources, the Global Fund was, after June 2014, going to fund supporting treatment for only those patients who would be on treatment for two years after the end of the grant.[44]

 In 2014 the Global Fund wrote the Minister of Finance Goodall Gondwe asking him to pay back $937 905 (about K394 million) following abuse of funds revealed by the audit of 2010. The payment of the outstanding instalment which was due on March 31 2014 was one of the three requirements for Malawi to access $574.3 million from the Global Fund under a New Funding Model.[45] Towards the end of the year the Global Fund asked the National Aids Commission to explain why organisations that were not directly involved in the Aids fight got funding from the commission. This query followed revelations that the First Lady Gertrude Mutharika’s Beautify Malawi Trust and a tribal heritage grouping Mulhako wa Alhomwe got some money from National Aids Commission to fund activities that had nothing to do with the fight against HIV and Aids.[46] At a meeting of National Aids Commission, the board chairperson Mara Kumbweza Banda told the committee that an audit report which led to the suspension of the commission’s executive director, Dr Thomas Bisika, had been released and was in the hands of Chief Secretary to Government George Mkondiwa and the Attorney General Kalekeni Kaphale for possible action.[47]

 In 2015 the Budget and Finance Committee of Parliament asked Minister of Finance, Economic Planning and Development Goodall Gondwe to explain how government had dealt with the issue of refunds to The Global Fund. This was during the Mid-term Budget Review. The Committee was aware that some of the proposed revisions to the budget involved cuts to votes that had failed to fully account for The Global Fund money received through the National Aids Commission. It was imperative that the Minister should furnish the House with the breakdown of the funds used but unaccounted for by responsible ministries and efforts that were being made to recover the money. The Budget and Finance Committee of Parliament chair said government should utilise Section 87 of the Public Finance Management Act to institute punitive measures on officers responsible for the poor stewardship of public resources.[48] Later in the year, the World Bank demanded that the National Aids Commission should explain and refund K1.8 billion spent without complying with set procedures. The Bank said there was another K46 million (about $110 000) possible ineligible spending. The Bank recommended a careful review and implementation of National Aids Commission’s financial management arrangements “to ensure integrity of transactions and financial reports”. The Bank was cognisant of the efforts being made by National Aids Commission to ask recipient organisations to refund ineligible and unliquidated funds amounting to K1.8 billion; for example, State House and Joyce Banda Foundation International obtained the commission’s resources under dubious circumstances; and there was an outcry over grants National Aids Commission made available to First Lady Gertrude Mutharika’s Beautify Malawi Trust and Mulhako wa Alhomwe—organisations whose core activities are not related to HIV and Aids.[49]

 In 2016 the Parliamentary Committee on HIV and Aids and Nutrition demanded an explanation from Global Fund recipients, especially Ministry of Health on the absorption and management of the funds received after the Global Fund stopped channelling funds through National Aids Commission and on the allegation that K2.5 billion donor money meant for HIV Aids fight had been stolen. The Ministry was asked for a report on its findings of the alleged theft.[50]

 In 2018 Civil society organisations requested the Global Fund to rescind the nomination of President Peter Mutharika as Champion of its Sixth Replenishment Campaign. the CSOs argued that the Malawi leader lacked the requisite moral standing to assume that role, especially the fact that the position would require him to lead efforts in soliciting funding pledges.[51]

 In 2019 the Parliamentary Cluster Committee on Health, HIV and Aids and Nutrition recommended that government should engage the Global Fund to let National Aids Commission revert to being the principal recipient of Global Fund resources in the country. It noted that National Aids Commission was reformed and was restructuring the institution in accordance to the new HIV and Aids Act, which had brought structures that allow National Aids Commission to be audited and be summoned by the Public Accounts Committee to account for donor money. Ministry of Health and Population spokesperson Joshua Malango said, “We feel good that the parliamentary committee has noted the importance of NAC. It has structures that Global Fund wants. On top of that, NAC can be audited by Parliament, which is the thing Global Fund wants; we already presented our case to Global Fund and we are just waiting from them.”[52] This recommendation was made in September, 2019.

 However, in 2019 Global Fund said an estimated 23 percent of medicines it purchased to fight HIV and Aids, tuberculosis (TB) and malaria in Malawi vanished at district health office and health facility levels. A Global Fund Office of the Inspector General audit report released on December 9 2019 in Geneva, Switzerland, further identified financial fraud, corruption, and theft and provision of inaccurate data as some of the gaps in the performance indicators while multiple errors in the reported results limited the ability to measure the programme’s achievements.[53]

Fraud, Corruption in the Media

In general terms fraud and corruption have been rising with each year despite the discovery, investigation and prosecution of Cashgate in 2013. The annual audits done by the National Audit Office from 2012 show an average of K30 billion lost to fraud, corruption and mismanagement every year 2013 through 2019.

In 2013 the Malawi Economics Justice Network and Action Aid International Malawi, co-authors of the report on Malawi’s taxation system and its implications on the poor, said that there was no tangible evidence that tax incentives attract foreign investors. Malawi Government has come under fire over tax incentives currently offered to international mining firms, with a study report revealing that Malawi lost K100 billion (US$240 963 855) between 2008 and 2012 due to tax exemptions.[54]

In 2014 Transparency International said in its annual report released on 3 December 2014 that Malawi stood at 110th place among 175 countries in terms of the Corruption Perceptions. Malawi had fallen down on the ladder by 5 places on the index to record a score of 33 in the 2014 Corruption Perceptions index, from a score of 37 in 2013.[55]

In 2015 the Chancellor College’s Centre for Social Research presented its 2014 governance and corruption survey report which showed that as high as 96 percent of ordinary Malawians held the view that corruption is a serious problem. In 2010, according to this report, 83 percent of Malawians held this perception. Most Malawians believe that corruption in the country has significantly worsened since the last survey in 2010. In the 2014 report the Department of Road Traffic and Safety Services, Malawi Police Service, and the Accountant General’s office topped the list of most corrupt institutions.[56]

In the same 2015 more evidence came forth that the President Peter Mutharika administration was going to be a continuation of his late President Bingu Mutharika’s administration. Leston Mulli of Mulli Holdings had a loan from Malawi Savings Bank which he had taken when Joseph Mwanamveka was Chief Executive Officer of the Bank. The Supreme Court ruled that Mulli should repay his loans at Malawi Savings Bank forcing government to auction his estates, lodges, companies and houses worth over K3 billion as part of his loan repayment which stood at K4.6 billion. Fuming with anger and desperation to meet President Peter Mutharika Mulli sent a traffic of letters and recorded voices to the State House through the President’s aide Peter Mukhito the former Police Inspector General. He reminded Peter Mutharika that it was him, President Peter Mutharika and his brother Bingu Mutharika who had used the money. He said time was running out fast. He said if Mutharika continued auctioning Mulli’s K3 billion empire, Mulli Holdings, Mulli would tell the nation how Bingu and Democratic Progressive Party benefitted from the loot. Mulli said, “Please our excellency stop this nonsense OR ELSE I will tell everyone how your brother and the party used this money. I was just being sent to meet Mwanamvekha to close the deals remember?”[57]

In 2016 a government special directory recorded over 16 special assistants to President Mutharika. Analysts said whatever advice the President wanted from his State House crowd could easily come from experts in relevant ministries, departments and agencies and save the taxpayer hundreds of millions of kwacha in avoidable perks. Each advisor was getting an average monthly package of roughly K1.6 million ($2 312), which translates to K25.6 million ($36, 994.21) a month for the 16, totalling K307 million ($443 641) annually. The figure far outstripped the annual allocation to the Legal Aid Department, which in the 2015/2016 Financial Year got K384 million ($554 913) against the K1.6 billion that it had requested to hire more lawyers, acquire operational tools such as vehicles as well as stationery, among others, and help more poor Malawians to access justice.[58]

In 2017 a Transparency International Corruption Perception Index (CPI) indicated that corruption had worsened in Malawi since 2012. Business captains expressed worry that the trend would further impoverish Malawi. The newly released index showed that the country had moved eight places from position 112 in 2015 to 120 in 2016. The global corruption institution stated that Malawi was on position 88 in 2012, but had gone down to 120. The situation was largely attributed to the massive plunder of public resources known as Cashgate which happened between 2012 and 2013 and reports of corruption in government since then. In his remarks, Catholic Commission for Justice and Peace national coordinator Christopher Chiphwanya said “While ACB should be fighting corruption in these areas, it is weak, biased and prosecution is selective. Coupled with uncoordinated fight against corruption between the ACB and Director of Public Prosecutions and weak political will, it is no wonder that corruption is on the increase.”[59]

Ministry of Agriculture, Irrigation and Water Development officials failed to account for K7 billion expenditure in the 2013/14 financial year, raising fears that the money could have gone down the drain. They were responding to the Auditor General’s report of that financial year. Parliament’s Public Accounts Committee members said they were not convinced with the explanation from the officials and noted that the expenditure was not reflected in the Integrated Financial Management and Information System (Ifmis), government’s electronic payment platform. The Auditor General’s report showed that no reconciliation was made during the financial year under review and that some expenditures were not captured in Ifmis; hence, by extension, not reflected in the financial statements.[60]

In 2018 Transparency International released its 2017 Corruption Perception Index (CPI) that showed that the country had moved down two places from 120 in 2016 to 122 in 2017. Transparency International Country Manager Jeffrey Kabondo said, “The situation smacks of laxity among stakeholders in fighting corruption. It has a direct correlation between corruption levels and the freedom with which civil organisations are able to operate and influence public policy. Most countries that score low for civil liberties also tend to score high for corruption.” The outgoing Malawi Law Society president Khumbo Soko warned against such complacency. In an interview he argued that unless Malawi takes some radical steps in curbing corruption, the vice will soon “completely overwhelm us.”[61]

In 2019 Minister of Finance, Economic Planning and Development Goodall Gondwe said the K400 billion Lilongwe-Salima Water Supply Project contractor was negotiating with a new financier. The minister told Parliament in Lilongwe that negotiations on the scope of the project and financing were under way. Gondwe said Cabinet already approved that the loan Lilongwe Water Board, the client in the project, would obtain through Khato Civils would be guaranteed. Thus, he said there would be no need for a Loan Authorisation Bill in Parliament. Gondwe added that government would agree with Lilongwe Water Board on the amount to be borrowed with Treasury guarantee. Lilongwe Water Board and the contractor Khato Civil had signed the financing agreement with Trissag Espanola of South Africa, but Gondwe was on record having said some of the terms in the contract were not concessionary.[62] 

Best practices in public finance management continued to elude Capital Hill as a 2017/18 Malawi Government Accounts Audit revealed that ministries, departments and agencies (MDAs) failed to account for a whopping K3.2 billion. In the audit report, one saw the same old trends of weaknesses in accounting for public funds among MDAs as well as failure by controlling officers to provide supporting documents for their expenditures. The National Audit Office observed that 73 percent of the valued irregularities included stocks not traced to the stores ledger, fraudulent payments to personal accounts, supporting documents not provided for audit inspection, payment vouchers not provided for audit inspection, fuel expenditure not recorded in the fuel register and operating account used for unrelated activities. The Economics Association of Malawi executive director Maleka Thula described the findings as worrisome, saying cases of misappropriation of public funds remained a big challenge in the country. He said: “The culture of quick gains and prosperity needs to be dealt with by imparting discipline in families, schools, churches and above all at workplaces. At workplaces, accountability and transparency of how one amasses wealth needs to be emphasised if this unfortunate behaviour is to be addressed.”[63]

In 2020 data analysis by Malawi News on the Auditor General’s reports showed that taxpayers’ money over K100 billion had been lost due to corruption and fraudulent payments made from public funds in government ministries, departments and agencies from the last five annual audit reports. These audits, from 2013 to 2019, were the ones that the Office of the Auditor General had been presenting to Ministry of Finance and the National Assembly. The K100 billion lost in these financial years means that, on average, the country was losing about K20 billion every year due to corruption and cartels fuelled by leaky government processes. Chancellor College-based economist Ben Kalua said “Malawians have lost morality; years back, one could have been arrested for stealing one tambala but now life is usual for people who are stealing public money, this is serious, look at how land is being corruptly sold and the Anti-Corruption Bureau cannot even come in to do investigation, this country is in a serious problem, when it comes to corruption and fraud.” He said Anti-Corruption Bureau has failed to investigate such malpractices but this could have been their job to ensure people are accountable for stealing taxpayers’ money.[64]

The analysis further showed that K100 billion would have been enough to pay for salaries and wages for civil servants for a year. If invested in the energy sector, K100 billion would have resulted in 28 percent increase to the total electricity production in the country. The same amount would have been enough to construct about 6,000-kilometre road network in rural areas that could improve access to markets and other social services. In March 2018, Anti-Corruption Bureau received 67 files based on a forensic audit covering the period 2009 to 2014 which found that K236 billion could not be accounted for in government books.[65]

[1] Lucky Mkandawire, “Mera bosses in dubious deal”, Malawi Nation Newspaper, December 5, 2014 https://www.mwnation.com/mera-bosses-dubious-deal/

[2] Archibald kasakura, Mera exposed to lawsuits—experts, Malawi Nation Newspaper, March 18, 2017 https://www.mwnation.com/mera-exposed-to-lawsuits-experts/

[3] Steven Nhlane, Mera must prove Admarc has refunded the money, Malawi Nation Newspaper, March 18, 2017 https://www.mwnation.com/mera-must-prove-admarc-has-refunded-the-money/

[4] Steven Nhlane, Questions over the Mera/Admarc K2.9bn maize, Malawi Nation Newspaper, March 31, 2017 https://www.mwnation.com/questions-over-the-meraadmarc-k2-9bn-maize/

[5] Rex Chikoko, Mera, Admarc tussle over K2.9bn maize loan, Malawi Nation Newspaper, April 6, 2019 https://www.mwnation.com/mera-admarc-tussle-over-k2-9bn-maize-loan/

[6] Martha Chirambo, Govt scales down coal power project, Malawi Nation Newspaper, December 26, 2018 https://www.mwnation.com/govt-scales-down-coal-power-project/

[7] Orama Chiphwanya, Coal power plant critical for electricity tariffs—Mera, Malawi Nation Newspaper, September 6, 2019 https://www.mwnation.com/coal-power-plant-critical-for-electricity-tariffs-mera/

[8] Rex Chikoko, Govt to go solo on Kam’mwamba, Malawi Nation Newspaper, October 26, 2019 https://www.mwnation.com/govt-to-go-solo-on-kammwamba/

[9] Rex Chikoko, Ghost firm gets K7.8bn contract, Malawi Nation Newspaper, October 26, 2019 https://www.mwnation.com/ghost-firm-gets-k7-8bn-contract/

[10] Watipaso Mzungu, “Escom blocks K4.9BN ACB probe”, October 31, 2016

https://www.mwnation.com/escom-blocks-k4-9bn-acb-probe/

[11] Rex Chikoko, Escom messes up gensets deal, Malawi Nation Newspaper, October 5, 2017, https://www.mwnation.com/escom-messes-gensets-deal/

[12] Ibid

[13] Rex Chikoko, Panic - Egenco to airlift generators, Malawi Nation Newspaper, November 9, 2017 https://www.mwnation.com/panic-egenco-airlift-generators/

[14] Llyod chitsulo, Gensets to reduce load shedding to 4 hours, Malawi Nation Newspaper, February 1, 2018 https://www.mwnation.com/gensets-reduce-load-shedding-4-hours/

[15] Rex Chikoko, Escom gensets deal attracts ACB probe, Malawi Nation Newspaper, March 30, 2018 https://www.mwnation.com/escom-gensets-deal-attracts-acb-probe/

[16] Enelless Nyale, ACB probe identifies flaws in gensets deal, Malawi Nation Newspaper, April 26, 2018 https://www.mwnation.com/acb-probe-identifies-flaws-gensets-deal/

[17] Rex Chikoko, Raw deal on Escom gensets, Malawi Nation Newspaper, May 26, 2018 https://www.mwnation.com/raw-deal-on-escom-gensets/

[18] Archibald kasakura, Committee protests Escom borrowing, Malawi Nation Newspaper, September 13, 2018 https://www.mwnation.com/committee-protests-escom-borrowing/

[19] Rex Chikoko, Government to renew gensets deal, Malawi Nation Newspaper, October 31, 2019 https://www.mwnation.com/government-to-renew-gensets-deal/

[20] Joseph Mwale, Govt split on Aggreko, Egenco gensets proposal, Malawi Nation Newspaper, November 21, 2019 https://www.mwnation.com/govt-split-on-aggreko-egenco-gensets-proposal/

[21] Bobby Kabango, Dark days For Escom, Malawi Nation Newspaper, April 25, 2020, https://www.mwnation.com/dark-days-for-escom/

[22] Ibid

[23] Ephraim Nyondo, “Fire and prosecute Chiwaya, Chilenje now!”, Malawi Nation Newspaper, October 18, 2015 https://www.mwnation.com/fire-and-prosecute-chiwaya-chilenje-now/

[24] Suzgo Khunga, “AG chooses silence on deputy speakers”, Malawi Nation Newspaper, December 11, 2015 https://www.mwnation.com/ag-chooses-silence-on-deputy-speakers/

[25] Paida Mpaso, “ACB faults Speaker, Parliament”, Malawi Nation Newspaper, May 20, 2016 https://www.mwnation.com/acb-faults-speaker-parliament/

[26] Lucky Mkandawire, “Parliament rejects ACB report”, Malawi Nation Newspaper, May 24, 2016 https://www.mwnation.com/parliament-rejects-acb-report/

[27] Backbencher, “Will ACB bark for once, please?”, Malawi Nation Newspaper, May 28, 2016

https://www.mwnation.com/will-acb-bark-for-once-please/

[28] Ephraim Nyondo, “Parliament, ACB clash”, Malawi Nation Newspaper, June 14, 2016

https://www.mwnation.com/parliament-acb-clash/

[29] Ntchindi Meki, “DPP undecided on speakers’ scam”, Malawi Nation Newspaper, September 30, 2017 https://www.mwnation.com/dpp-undecided-speakers-scam/

[30] “Fraud and corruption crippling Malawi’s public health system”, SEPTEMBER 13TH, 2017 https://www.medicalbrief.co.za/archives/fraud-corruption-crippling-malawis-public-health-system/

[31] Tom Sangala, “K1 billion lost in Ministry of Health allowance scam”, November 9, 2017 https://times.mw/k1-billion-lost-in-ministry-of-health-allowance-scam/

[32] Ntchindi Meki, “K800m looters off the hook”, Malawi Nation Newspaper, January 6, 2018 https://www.mwnation.com/k800m-looters-off-hook/

[33] Suzgo Khunga, “Admarc gets K23 billion bailout”, Malawi Nation Newspaper, December 8, 2017 https://www.mwnation.com/admarc-gets-k23bn-bailout/

[34] Suzgo Khunga, “Admarc bailout illegal”, Malawi Nation Newspaper, February 20, 2018 https://www.mwnation.com/admarc-bailout-illegal/

[35] Trevor Hiwa arrested in multi-thousand dollar fraud”, Maravipost, 21 Jun 2017  https://www.maravipost.com/malawi-roads-authority-ceo-trevor-hiwa-arrested-multi-thousand-dollar-fraud-awarded-company-contract/

[36] Mallick Mnela, “Roads body’s deals exposed”, Malawi Nation Newspaper, October 19, 2019 https://www.mwnation.com/roads-bodys-deals-exposed/

[37] Zameer Karim v Financial Intelligence Authority and First Merchant Bank, Judicial Review Case No. 1 of 2018, HC (Comm), Lilongwe District Registry (unreported)

[38] Joseph Mwale, CSOs protest APM’s Global Fund role, Malawi Nation Newspaper, July 30, 2018 https://www.mwnation.com/csos-protest-apms-global-fund-role/    

[39] https://www.theglobalfund.org/media/6928/publication_africancaribbeanpacificgroupstates_report_en.pdf?u=637094030040000000

[40] https://www.theglobalfund.org/en/overview/

[41] Ibid

[42] Suzgo Khunga, Global fund demands back k394m from Malawi govt, Malawi Nation Newspaper, August 11, 2014 https://www.mwnation.com/global-fund-demands-back-k394m-from-malawi-govt/

[43] Johnny Kasalika, Malawi to lose 55% Aids funding, Malawi Nation Newspaper, June 10, 2013 https://www.mwnation.com/malawi-to-lose-55-aids-funding/

[44] Ibid

[45] Suzgo Khunga, Global fund demands back k394m from Malawi govt, Malawi Nation Newspaper, August 11, 2014 https://www.mwnation.com/global-fund-demands-back-k394m-from-malawi-govt/

[46] Rebecca Chimjeka, Global Fund Pens NAC over BEAM funding, Malawi Nation Newspaper, December 13, 2014 https://www.mwnation.com/global-fund-pens-nac-beam-funding/

[47] Ibid

[48] Rebecca Chimjeka, Explain refunds to Global Fund—Chiphiko, Malawi Nation Newspaper, February 20, 2015 https://www.mwnation.com/explain-refunds-to-global-fund-chiphiko/

[49] Paida Mpaso, NAC in fresh funds trouble, Malawi Nation Newspaper, April 15, 2015 https://www.mwnation.com/nac-in-fresh-funds-trouble/

[50] Millie Kasunda, Parliament to scrutinise HIV and Aids funds, Malawi Nation Newspaper, September 21, 2016 https://www.mwnation.com/parliament-to-scrutinise-hiv-and-aids-funds/

[51] Joseph Mwale, CSOs protest APM’s Global Fund role, Malawi Nation Newspaper, July 30, 2018 https://www.mwnation.com/csos-protest-apms-global-fund-role/

[52] Enelless Nyale, Government says NAC needs another opportunity, Malawi Nation Newspaper, September 26, 2019  https://www.mwnation.com/government-says-nac-needs-another-opportunity/

[53] Rex Chikoko, 23% of Global Fund drugs vanish, Malawi Nation Newspaper, December 12, 2019 https://www.mwnation.com/23-of-global-fund-drugs-vanish/

[54] Dumbani Mzale, “Malawi loses k100bn through tax breaks”, Malawi Nation Newspaper, December 24, 2013 https://www.mwnation.com/malawi-loses-k100bn-through-tax-breaks/

[55] Johnny Kasalika, “Corruption worsens in Malawi”, Malawi Nation Newspaper, December 3, 2014 https://www.mwnation.com/malawi-ranks-110-corruption-perceptions-assessment/

[56] Frank Namangale, “Corruption worsens—-survey”, Malawi Nation Newspaper, August 2, 2015 https://www.mwnation.com/corruption-worsens-survey/

[57] Themalawistandardnewspaperonline, Mulli speaks out on MSB, “It wasnt my loan, Bingu sent me”, May 24, 2015 https://malawistandardnewspaper.wordpress.com/2015/05/

[58] Archibald kasakura, “APM’s aides in K307m package”, Malawi Nation Newspaper, January 23, 2016 https://www.mwnation.com/apms-aides-in-k307m-package/

[59] Suzgo Khunga, “Corruption worsens”, Malawi Nation Newspaper, January 27, 2017 https://www.mwnation.com/corruption-worsens/

[60] Enelless Nyale, “7 billion kwacha ‘vanishes’”, Malawi Nation Newspaper, September 22, 2017 https://www.mwnation.com/7-billion-kwacha-vanishes/

[61] Nation Online, “Corruption worsens in Malawi”, Malawi Nation Newspaper, February 23, 2018 https://www.mwnation.com/corruption-worsens-malawi/

[62] Suzgo Khunga, “K400bn water project seeks new financier”, Malawi Nation Newspaper, March 18, 2019 https://www.mwnation.com/k400bn-water-project-seeks-new-financier/

[63] Enelless Nyale, “More rot as K3.2bn vanishes”, Malawi Nation Newspaper, March 26, 2019 https://www.mwnation.com/more-rot-as-k3-2bn-vanishes/

[64] Rebecca Chimjeka, “K100 billion lost in 5 years”, Malawi Nation Newspaper, March 21, 2020 https://times.mw/k100-billion-lost-in-5-years/

[65] Ibid