I refused to approve irregular payment—ex-Escom director
Former Escom director of finance Betty Mahuka on Thursday told the High Court of Malawi Financial Crimes Division that she refused to process an irregular payment and subsequently resigned in 2016.
Giving her testimony in Blantyre, she said then Electricity Supply Corporation of Malawi (Escom) board chairperson Jean Mathanga and others pressured her to process payment for goods without documentation.
Mahuka, who the Anti-Corruption Bureau (ACB) paraded as the State’s sixth witness in the K4 billion procurement case involving Mathanga and three others, said around June 2016 Escom received goods worth about $995 000 (about K1.74 billion at current exchange rate) from Multistar International, a company with no contract with the power utility.
She said upon noticing that she was reluctant to make the payment for the goods, Mathanga summoned a meeting in Lilongwe which was attended by six people including her, former Escom chief executive officer John Kandulu, then director of procurement Fanuel Nkhono and senior procurement manager Emmilius Kandapo.
During the afternoon, Mahuka said: “At the meeting, the chair [Mathanga] said no-one should be in trouble here. Let us regularise the payment and procurement.”
But dissatisfied with the quorum and noting that it had no specific agenda, she said she maintained her position not make the payment unless people who are above Escom management authorised.
Said Mahuka: “I was not in agreement that we should make the payment without the contract. To me it was a problem because goods were delivered and procured without contract and the CEO was not happy that I was not making the payment.
“I insisted that I will not make the payment and the chairperson then said the chief executive officer can authorise the payment. After receiving pressure, it’s when I resigned.”
ACB acting director of legal and prosecutions Victor Chiwala asked the court for an adjournment, saying the State would continue with the examination in-chief today. Presiding Judge Violet Chipawo granted the bureau its wish.
Earlier on Thursday, the judge, who has taken over the matter from Justice of Appeal Sylvester Kalembera who heard it as a High Court Judge, ruled on the defence’s submission on whether the court should restart the case or proceed from where it stopped in 2021.
The defence argued that it was not clear if Chipawo had all the records.
In her ruling, Chipawo directed that the matter should continue from where it stopped, saying the court records are intact and transcription of the previous court proceedings was underway.
Mathanga is answering charges of giving false information contrary to Section 14 (10)(a) of the Corrupt Practices Act (CPA) and neglect of official duty contrary to Section 121 of the Penal Code.
She is accused of giving false information to ACB on April 18 2017 during investigations into misprocurement of goods worth about K4 billion.
Nkhono and Kandapo are answering charges of abuse of office contrary to Section 25B(1) of the CPA while Kandulu, among others, is alleged to have abused his influence as CEO to make Mahuka perform her duties and discharge her functions corruptly.
