Governance and accountability watchdogs say they smell a rat in a K14.5 billion payment the Attorney General has authorised Treasury to pay Victoria Pharmaceuticals Industry Limited.
Human Rights Defenders Coalition (HRDC) and Centre for Social Accountability and Transparency (Csat) have asked the Anti-Corruption Bureau (ACB) to investigate the matter.
In a communication dated August 23 2024, Attorney General Thabo Chakaka Nyirenda said Central Medical Stores Trust (CMST) owed the company about $5.3 million (about K9.3 billion) for supply pharmaceutical products in 2016.
However, the amount jumped to about K14.5 billion due to interest and other charges and that the parties agreed to settle the payment.
The communication also states that in the Agreed Order of August 12 2024, the parties agreed that the rate of interest on the United States dollar claim be 12 percent while the Reserve Bank of Malawi policy rate, be applicable on the Malawi kwacha claim.
Reads the communication in part: “In accordance with the terms of the Agreed Order, this amount must be converted to the Malawi kwacha at the time of effecting the payment. At the current rate of K1 750 to a US dollar this comes to K14 49 075 147.50.”
But HRDC chairperson Gift Trapence said the transactions were suspicious and called upon Nyirenda to explain what it was about.
“The transaction is suspicious and we are calling the government to come out clearly on this issue. We are also calling upon ACB to investigate the matter,” he said.
In a separate interview, Csat executive director Willy Kambwandila also said he suspected shoddy deals and asked ACB to investigate the matter.
He said the absence of a court file to support the payment can lead Malawians to conclude that it is a scheme to siphon tax payers’ money.
Said Kambwandira: “We all know that government does not pay so quickly, and one questions the speed at which the government has paid this particular supplier such a huge amount of money.
“We are going to file a request for the court file under the access to information law. We are also calling upon ACB and Parliament to investigate this matter with urgency.”
The AG was not available for comment as we went to press by 6pm on Monday.
