DPP regrets K145 million rotten donation

Former governing Democratic Progressive Party (DPP) can breathe a sigh of relief as it will soon start drawing funds from its account which the Malawi Supreme Court of Appeal froze in 2018 over the K145 million donation from a Malawi Police Service (MPS) supplier.

This follows a settlement through a consent order, which the appellant, Youth and Society (YAS), has agreed with DPP, to withdraw the matter whose appeal to the Supreme Court has not seen the light of day in five years.

The case was a result of leaked Anti-Corruption Bureau (ACB) dossier showing that Pioneer Investments (PI) made an abortive interest claim of K466 million in the Police Food rations deal, and deposited K145 million into the DPP bank account No. 0140031992200 at Standard Bank, whose sole signatory is DPP leader Peter Mutharika who at the time was also State President.

In the case, former DPP secretary general Greselder Jeffrey and legal affairs director Charles Mhango are first defendants on their own behalf and that of DPP members, Zameer Karim of Pioneer Investments is second defendant while the late Innocent Bottoman of Malawi Police Service was the third defendant.

In July 2018, the High Court issued an order freezing the DPP account, but the order was later vacated, and the court also denied YAS to have that decision stayed pending appeal.

Dissatisfied, YAS, through lawyer Bright Theu moved the court, where the matter entered twice, and the decision of the High Court was stayed, further restoring the freezing of the account.

Yesterday, Theu said the DPP approached them to have the matter resolved after several years of non-action.

He said: “The DPP approached us if we could resolve the matter by mutual agreement and we looked at various factors for consideration on their request and after negotiations, it was agreed that the case be withdrawn and DPP offered that it will offer a public apology for their involvement.”

But Theu said the DPP can only start accessing their account after the court has signed the consent order by the two parties.

YAS executive director Charles Kajoloweka said the demise of Bottoman has rendered the court proceedings largely futile pursuit.

The DPP, through spokesperson Shadric Namalomba yesterday issued an apology, saying it regrets accepting the donation from Pioneer Foods and the subsequent error of judgement in swiftly refunding the money to Pioneer Foods.

“The DPP is also committed to exercise more due diligence in receiving donations in the future,” he said.

DPP legal director Charles Mhango said the decision was a relief as it has been hard to run the party with a frozen account. 

The ACB report dated November 2017 indicated that the contract price to Pioneer Investments Limited of Karim was inflated within days of signing, by K466 million from K2.327 billion to K2.793 billion.