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Mystery over K50m State Houses grant

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Mystery surrounds the whereabouts of a K50 million (US$111 359) grant to State Residences that the National Aids Commission (NAC) approved together with 53 other grants at the beginning of last year.

The 54 grants, totalling K4.9 billion (US$10 913 140), were approved during a meeting of the NAC Board on January 17 2014 for implementation of HIV and Aids programmes.

At the centre NAC grand controversy: First Lady Mutharika
At the centre NAC grand controversy: First Lady Mutharika

Reacting to revelations that State Residences received a grant of K49 790 605. 76 (US$110 892), director general for State Residences Peter Mukhito said he has never seen the money.

“What I can tell you is that the system shows that the money should have been here. But my team never found it. We never saw it. Simply put, the money never came here,” said Mukhito.

He said his office was in the process of asking NAC where the money went.

“If the money came as approved in January 2014, we should have found it when we came in around June 2014,” he argued.

Asked if it is in order for State Residences to receive grants from NAC, Mukhito said ordinarily the institution runs HIV and Aids prevention and management programmes, which need funding.

“As you know, HIV and Aids has not spared any sector. Where there are people, there is need to have HIV and Aids interventions. That is why funding from financiers like NAC would have to be sought,” he said.

He explained that it is because there is no money in the State Residences system to support such HIV and Aids programmes that his office is in the process of seeking financial assistance.

NAC board chairperson Mara Kum’bweza Banda confirmed in a separate interview that all the 54 grants, which included one to State Residences, were approved.

“Yes, the approval was made for all the 54 grants,” said Kum’bweza Banda.

She could not remember if the disbursement to State Residences was made.

“As you know, we are on holiday for the season, therefore, I cannot remember all the details off head,” she said.

She, however, recalled that disbursements to some eight applicants were withheld over financial probity queries. She could not specify the said applicants.

“Disbursements are withheld when any organisation has outstanding or unresolved audit issues,” she explained.

“In addition, NAC only withholds subsequent disbursements if the concerned organisation has not provided programmatic and financial reports or when such reports are not acceptable.”

Monies from NAC are a centre of controversy after the organisation spent K5 million during the launch of First Lady Gertrude Mutharika’s Beautify Malawi (Beam) Trust.

Some civil society organisations (CSOs) are demanding a refund of the money.

Beam has refused to pay back, hitting out at CSOs as hypocrites because they also got NAC support.

Kum’bweza Banda said NAC does not expect a refund because its expenditure was legitimate, covered under the advocacy and prevention programme.

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One Comment

  1. This is why we have been urging all concerned citizens in this country to notify all funding organizations to Seize immediately until this government and those before it are held accountable for the money that was designated for HIV patients. It is not right for a government to use NAC funds for state functions irrespective of whether they have HIV infested people working at the state house. We must continue to write all institutions that have anything to do with supporting any programs in this country to do so directly and not through any government controlled organization like NAC. NAC is APM’s cash cow and they must be stopped immediately. Our letter writing campaign must focus on exposing corrupt practices by those in charge of these funds.

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