ACB quizzes Kaphale on K150 million payout
The K150 million government paid to a client of a law firm previously owned by Attorney General Kalekeni Kaphale attracted the interest of the Anti-Corruption Bureau (ACB), Nation on Sunday can reveal.
The bureau reportedly sought to find out if any abuse of office happened as the Attorney General’s office alongside Treasury and the Accountant General’s offices are part of the government system responsible for payments of lawsuits and compensation.
Kaphale confirmed that ACB sought explanation on the matter.
According to information sourced by Nation on Sunday, Kalekeni Kaphale Lawyers’ legal firm settled out of court a dispute government had with its client M and I Building Enterprise who were accusing Malawi Defence Force of defaulting payment on a construction contract in 2010.
Government agreed to pay owners of M and I Enterprise and Three Rivers Trading contractors the money as part of the settlement and the sum included payment for the work conducted plus accumulated interest and legal fees for the lawyers.
Ministry of Finance spokesperson Nations Msowoya confirmed the payments, but referred the matter back to Ministry of Justice for details.
“I can confirm that government made the payments, but for any background on the matter, the Ministry of Justice is best placed to discuss that,” said Msowoya.
In May this year, following a change in government, Treasury started making the payments in installments. 0n June 20 2015, government made a payment of K10 million and another K30 million was made on June 6.
However, last month, Kaphale’s former company pocketed K150 million and the figure attracted the ACB, which sought an explanation from the chief government legal adviser on the matter.
Kaphale confirmed in an interview on Friday that the ACB had contacted him on the matter following rumours that he was involved in the payment, but said he explained to the bureau on how the process was conducted and insisted no wrongdoing was committed.
“My conscience is clear. I have not exerted any influence in the payments and these payments started before I was appointed Attorney General. I do not personally handle such matters.
“I am no longer managing the company since I was appointed as Attorney General and such matters are being handled by Mr. Ted Loka. Again at the ministry in the matters that I have interests such as this one, the chief legal advocate and the senior deputy chief advocate or even the solicitor general as a general player handle such issues,” said Kaphale.
He said the AG’s office has no interest in how payments should be made, saying there are no records indicating he had a hand in any of the payments.
Quizzed on whether he could explain the figure increase in the installments government now pays the company, Kaphale said only Treasury can explain the reasons.
“If I did that I would be in jail the following day. I would lose my job and this interview will be happening inside a police cell, you know how serious this government is about abuse of office. I did nothing wrong,” added Kaphale.
He explained that government is now paying several people it owes huge amounts of money and suggested that the ACB interest could have resulted from a Finance Intelligence Unit’s (FIU) rapid response of issuing an alert for any payments rising above the K1 million threshold.
Kaphale, however, said the inquiry does not mean anything wrong was done.
Nation on Sunday has been investigating the issue for a month and initially when contacted a month ago, ACB deputy director Reyneck Matemba said the bureau had not received any complaint on the matter. n
