CEO fired over K54m ‘cashgate’: Lilongwe Handling Company

The Chief Executive Officer (CEO) for state-owned Lilongwe Handling Company (LIHACO) has been fired after illegally giving himself a K54 million token of appreciation ahead of expiry of his month to month contract.cash

CEO Francis Mkoloma retired from the company in 2008 and was paid his pension in full but was re-engaged on contract, according to company and government sources.

Several close sources confirmed the dismissals.

The decision to pay himself K54 million was done without approval of the board and the decision to fire the embattled CEO came after the company’s board launched investigations following whistleblowers alerted government and the board.

According to leaked memos, Mkoloma was accused by fellow executive management colleagues of flouting rules and financial irregularity.

A leaked memo from the company’s Operations Director Patrick Chingati-Phiri addressed to the board reads: “I write to report a financial irregularity and unfair practice involving two fellow
Executive Management members: the Finance and Administrative Direct ornithologist Mr Adajai Ndlovu and Chief Executive Officer, Mr Francis Mkoloma.

“I have discovered and established that the two instructed National Bank of Malawi by the way of a standing order to pay F.K. Mkoloma a total sum of K54, 624, 797.20 as a retirement ex-gratia payout to him.

“The money shall be paid to him for a period of 12 months starting January 2015 at the rate of K4, 552, 233, 10 per month,” reads part of the memo dated 23 February 2015. It adds: “This has been done secretly. The company Accountant is not aware and has no record. Neither the two has shared this with me either as a signatory to Lilongwe Handling Company accounts or as a member of the company’s Executive Management Team. I am not sure whether the board is aware, but I never heard it discussed at any board meetings.”

The board after investigating the matter promptly fired Mkoloma but it was unclear if criminal investigations have been launched.

“I have been a signatory to his gratuities. It would make sense if the payment maybe covered his contract period only. According to Mr Ndlovu, the current ex-gratia is covering 38 years, the entire period the recipient had served Air Malawi then LIHACO.

“I have never missed a Board Meeting. When the Board was approving ex-gratia payment to Finance and Administrative Director and Operations Director, I never heard anything about the Chief Executive, FK Mkoloma,”

In another memo from the Operations director addressed to Mkoloma and Ndlovu, Chingati-Phiri appears to confront both the CEO and Finance and Administrative Director on the matter.

“I have discovered and established that the two of you, namely Adjai Ndlovu and Francis Mkoloma had instructed National Bank of Malawi by the way of a standing order to pay F.K. Mkoloma a total sum of K54, 624, 797.20 as a retirement package.”

In another memo from the Operations director addressed to Mkoloma and Ndlovu, Chingati-Phiri appears to confront both the CEO and Finance and Administrative Director on the matter
.
” I have discovered and established that the two of you, namely Adjai Ndlovu and Francis Mkoloma had instructed National Bank of Malawi by the way of a standing order to pay F.K. Mkoloma a total sum of K54, 624, 797.20 as a retirement ex-gratia payout to him,” reads part of the memo dated 2015.

Lilongwe Handling Company used to be a subsidiary of Air Malawi. It was created in the year 2000 under a concession from Airports Development Limited (ADL) to oversee ground handling operations at Kamuzu International Airport and another concession from Department of Civil Aviation (DCA) to oversee ground handling activities at Chileka International Airport. Operational since 1st April 2000, the Company was officially launched on 7th August 2000.

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Musamusiyeazolowera
Guest

Cursed be the man who deliberately infects a woman with deadly disease (HIV) to be precise, the man who deceitfully tries to steals from the employer. May his curse prevail until atapepesa. God please ignore any prayer coming out of his foul mouth

Chouluka
Guest

And under whose authority are you cursing? How on earth can God hear anything from an already cursed person like. You even tried to go to Scoan but look now what you have become. Pathetic and poor. Let Psalm 109 be your portion. Hehrhe wagwa nayo umayenda mbali

concerned
Guest

Iwe Chouluka siine mkoloma ayi l am just concerned with your comments ndipo l wish nditakudziwa kuti l should put sense in you..your cocomments has shown that you have personal issues with mr mkoloma.if pali agents of devil your one of them….ndipo ndizoona suzatukuka that am assuring you and the curse still stands…don’t mess wit Godly people ….for you mr mkoloma let psalms 35 be your prayer weapon Almighty God will fight for you….all your enemies shall be put to shame

Chouluka
Guest

Choka apa iwe Mkoloma, agent of the devil. You think God has time for evil men like you. I curse I curse wachani apa. Whose authority are you talking coz God has already cursed you as we can see from the outcome. Hehehe kutuwa kungonkera nkera

Romeo Hastings Bandawe
Guest

LET THE JUDICIARY COME IN PLEASE, ZIMENEZI NDIZOMWE ZIKUWONJEZERA UMPHAWI MUDZIKO MUNO

concerned
Guest
With due respect to the comments here…l just want to assure whoever posted this story here that God is watching you and that anyone waika comment yonyoza mulungu akuoneni ndipo ndikuuza aliyese walemba zonyoza u will never prosper in life that l assure u…mr chingati phiri good luck wit the position of CEO of ur dreams which u will never take..koz we all know that u hav had issues wit mr mkoloma ever since but know that ur giving him blessings yet mukuzikumbila dzenje…..mwaipitsa anzanu zanu zayera but watch ur bak…..comment 39 chouluka…choulukacho chitera….inu nde munabadwa owala?ndipo ndikuuza kuti mulungu… Read more »
Chouluka
Guest

Exit medi clinic enter Lighthouse. Nde kutuwa kobadwanakoko zitha bwanji pano Che Nkoloma?

timve Mbwatalika
Guest
Constructive criticism is never unfair. Whenever unfair, selfish, self-enrichment acts have come to light, they have to be exposed. From the “leaked Memos” it is quite explicit that the Operations Director was never involved, or consulted for the reasons known to the other two accomplice. Your comment lacks patriotism. Whether you were personally unfairly treated by the said Operations Director; it is the case between the two of you. As far as this leaked information is concerned; the OP (Operations Director) performed his duty diligently as anticipated by the virtue of his position. Malawians, woke up. This is why we… Read more »
fight
Guest

Aaa!!!!! kaninso Mbava imeneyi ndi ya kumpoto.Dzina likusaunda ngati MNGULU.kUMPOTO SIKUNGACHOKE SATANA NGATI AMENEYO,KOMA KUMMWERA OLO PAKATI BASI

p mtete
Guest

Tiziona

wpDiscuz

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