Army pays supplier over K3bn in a day: ACB probes

Malawi Defence Force (MDF) paid S.F International over K3 billion (about $7.5m) using different cheques on July 17, 2013 for undisclosed supplies, a transaction which has attracted the attention of the Anti Corruption Bureau (ACB), Weekend Nation has established.

The anti graft body has confirmed it is investigating the procurement in the Army as part of the probe of the Capital Hill looting of public financial resources that led to the withdraw of aid by the country’s major donors.

According to information sourced, six government cheques drawn from Malawi Defence Force Recurrent Expenditure vote, were issued on July 17, 2013 to S. F International and were deposited at FDH Bank Ltd, Umoyo Branch.

Five cheques worth K499 million (about $1.3m) each and one worth K456 million (about $1.1m) were confirmed by Lieutenant General Clement Kafuwa and Nyondo from MDF on July 18, 2013.

The company, whose local director is Shiraz Fereira, also received a payout on August 28, 2013 worth K100 million (about $250 000) drawn from Southern Region Treasury Cashier-ORT and was confirmed by Nseula and Salanaye on August 30, 2013.

Assistant public information officer Lieutenant Emmanuel Mlelemba, confirmed that the issue of payment of over K3 billion to S. F International was under investigations but declined to comment.

“Reference is made to your questionnaire on the payment to S.F International. The issue is currently under investigations and if you want to get more details, contact either the Treasury or Anti-Corruption Bureau,” said Mlelemba on Monday.

Ministry of Finance public relations officer Nations Msowoya on Tuesday declined to comment, referring the matter back to MDF.

In a questionnaire response on Tuesday, ACB senior public relations officer Egrita Ndala, confirmed that the investigation at MDF was in relation to the cashgate cases.

Said Ndala: “The bureau is investigating issues of procurement. Investigations are ongoing. We are looking forward to the release of the Forensics Audit report whose information will richly aid investigations.”

But no official has come out to disclose what MDF was paying for as both Mlelemba and Msowoya never responded to the question when asked what S F International supplied.

In October last year, Ndala said the bureau was investigating MDF over undisclosed amount of unaccounted for money in its move to unearth the dirt at Capital Hill.

Ndala said the graft busting body was in the process of analysing documents in relation to the probe but could not divulge more information for fear of prejudicing the investigation process.

The investigations into the Capital Hill plunder of public resources has led to arrest of over 60 people both from the civil service and private sector. Most of them are accused of obtaining money from government without rendering any services.

However, Malawians would have to wait longer before the forensic audit report, which is key to the investigations into the cashgate as indicated by ACB, is released for public consumption after the National Audit Office on Tuesday announced further delay.

The British auditors behind the report said on Thursday they have new evidence and information connected to the Cashgate which has necessitated further delay for its release.