Contractors get injunction against NCIC
About 25 contractors who were suspended by the National Construction Industry Council (NCIC) for being involved in Cashgate have been granted an injunction by the High Court in Lilongwe staying the decision made by the NCIC.
According to documents seen by Business News the injunction was granted on May 2 after Angella Katengeza and the other 20 contractors sought remedy from the court.
Reads the injunction in part: “An order of stay be and is hereby granted staying the decision of the Council arrived at its 46th meeting held on April 4, 2014 imposing penalties on the applicants of suspension while the applicants are facing ongoing criminal proceedings before the respondent, including delivering its ruling or judgment in the matter involving the applicant till the determination of the judicial review matter.”
But NCIC public relations officer Vera Kamtukule said the contractors served the injunction to a wrong party and hence the suspension still stands.
Kamtukule said the NCI Act gives it powers to exercise disciplinary control over the conduct of any person engaged in the construction industry and practicing in Malawi.
“We indeed received the injunction from the contractors but according to our regulations they served it to a wrong party because they were supposed to serve it to the Ministry of Transport. This means that the suspension still stands but our legal counsel has also applied to the court to vacate the injunction,”said Kamtukule.
The suspended companies include Oswald Lutepo’s O and G Construction, Laura Savala’s Hury Civil and Building Contractors.
Stanford Mpoola’s Stadal Building Contractors and W.G Construction owned by Godfrey Dzanjalimodzi were completely de-registered.
Oswald Lutepo remains one of the suspects in the massive theft of billions of government resources, he is said to have received over K1 billion (US$2 427 184.5) from Office of the President and Cabinet without offering any services.
Hury Civil and Building contractors whose owner is Laura Savala allegedly pocketed K160 million (US$388 349 514).
Mpoola alledgedly siphoned K1 billion (about $2.5million ) while W.G construction owned by G Godfrey Dzanjalimodzi drained K380 million from State coffers without rendering any work.
The suspension of the companies comes after the 46th meeting of the ethics and disciplinary committee held on April 4.
NCIC chief executive officer Linda Phiri is on record to have said that the decision is in line with disciplinary rules and code of ethics for all contractors in the country.
She appealed to stakeholders to first verify with NCIC before awarding any work to construction companies.
As it stands, suspended contractors cannot carry any business in the construction industry in the country.
The NCIC was established under the Laws of Malawi and one of its functions is to exercise disciplinary control over the conduct of any person engaged in construction industry and practicing in the country.
