MHC awaits guidance on K100m house sale loss

Malawi Housing Corporation (MHC) is waiting for  the board’s guidance on what should happen to the over K100 million (about $400 000) recorded loss in the controversial sale of its houses to some politicians and employees.

Malawi Housing Corporation (MHC) new general manager Wezzie Mkandawire this week said the corporation would also put in place a transparent mechanism to deal with reported corruption in allocating houses and plots to build people’s confidence.

In an exclusive e-mail interview, Mkandawire said the company, being the leader in housing delivery in Malawi, has to live to the expectations of Malawians by maintaining its properties to the satisfaction of its clients.

MHC was locked in controversy last year after an audit revealed that the corporation’s houses were allegedly sold cheaply to some Cabinet members in the late Bingu wa Mutharika’s government and senior MHC and government officials.

The officials, including MHC’s former general manager Golden Matiya, allegedly benefited from the transaction in which the corporation was accused of selling the houses at below market value, thereby incurring an over K100 million loss.

Matiya, who was arrested by the Anti-Corruption Bureau (ACB) on two corruption charges, was discharged by the Blantyre Magistrate’s Court after the bureau, for over nine months, failed to secure prosecution consent from the Director of Public Prosecutions.

But Mkandawire said since the matter is being handled by the ACB, her hands are tied, preventing the corporation from pursuing other arrangements outside the court system.

Asked if it is proper to repossess the houses until the case is over, Mkandawire said:  “While that may sound like a good solution and pleasing to the majority, we need to wait until the courts determine the matter.

“The loss on these transactions was K100 250 610 and it has not been written off yet. We are waiting for further guidance from the board of directors who were written by our external auditors.”

The Malawi Housing Corporation (MHC) says it is waiting for the board of directors guidance on what would happen with the over K100 million lost in sale the houses.

On alleged corruption at MHC in the award of houses, Mkandawire said: “These allegations are there indeed, but we are going to put in place a transparent mechanism which will build people’s confidence. We are going to examine the present delivery system and remove the gaps.”

She also said her vision is to see mass construction of houses and development of plots in order to reduce the high need for housing in the country.

“In the next 14 months, we want to construct not less than 1 000 houses and that will be the beginning of big projects. On what we already have, I want to see MHC maintain its properties to the satisfaction of its clients,” she said.