Malawi Police Service has beefed up security at some government agencies, including National Economic Empowerment Fund (Neef), Malawi Revenue Authority (MRA) and Capital Hill as part of its mandate during the power transition period.
In an interview yesterday, National Police spokesperson Peter Kalaya said there is no particular interest with Neef and added that security was also tightened at MRA and Capital Hill.
He said the police have also neither instituted any investigation at Neef nor made any arrests.
“Being a security institution, the police are mandated to provide security. It is from that mandate that we are doing this,” said Kalaya.
The developments come against a background of President-elect Peter Mutharika’s spokesperson Shadric Namalomba warning against issuing dubious contracts and payments as well as effecting promotions and transfers during the transition period.
He said: “The President-elect sends a clear message to all public servants involved in these illicit activities to cease immediately. Furthermore, he assures the citizens of Malawi that any illegal or irregular decisions made during this transition period will be nullified.”
Yesterday, Secretary to the President and Cabinet Colleen Zamba said she had not seen the statement from Mutharika’s spokesperson, asking our reporter to send a questionnaire.
“It will be difficult to comment on something I have not seen. If you want to get information from us, you send a questionnaire which we respond to,” she said.
Ministry of Finance and Economic affairs spokesperson Williams Banda said in an interview yesterday that he could not competently comment on where the directive to close Neef came from while asking for more time to gather details.
Reacting to the development, anti-money laundering and anti-corruption law expert Jai Banda said the police derive their authority to seal a public office from various legislative sources.
He cited sections 152 and 153 of the Constitution, Section 4 and 105 (4) of the Police Act, the Preservation of Public Security Act of 1960 and Chapter 7:01 and Section 18 of the Penal Code.
Said Banda: “The police can seal a public office under specific circumstances, primarily related to investigations or enforcement of court orders.
“For instance, during a criminal investigation, the police may seal a public office to preserve evidence, prevent tampering, or maintain public safety. And if a court issues an order to seal a public office, the police may be responsible for enforcing this order.”
On how the move affects Neef beneficiaries, Banda said clients with existing loans will be expected to continue servicing them according to the agreed-upon terms. However, he also indicated that there might be options for loan restructuring.
Neef, previously known as Malawi Enterprise Development Fund (Medf), was incorporated as a limited company by guarantee in 2014 and rebranded to Neef in September 2020.
From 2005 to 2020, about K20 billion was allocated to Neef, then called Medf, a successor of the Malawi Rural Development Fund.
Neef loans, with an interest rate of two percent per month, range from K250 000 to K250 million, an improvement from the past when they ranged from K50 000 to K75 million with an interest of four percent per month.
