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

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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45 thoughts on “CEO fired over K54m ‘cashgate’: Lilongwe Handling Company”

  1. Musamusiyeazolowera says:

    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

  2. Chouluka says:

    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

  3. concerned says:

    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

  4. Chouluka says:

    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


  6. concerned says:

    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 yemwe ndimamudziwa ine siwamasewera kubadwa kowala munabadwako l curse u……suzapeza mwai moyo wako onse….bwanji simumavesesa chilungamo cha mkhani mukuona ngati chingati yo nde wabwino…akanakhala kuti anaba bwezi asanamangidwe?enanu mukungolemba chifukwa cha umbuli…comment 33 and 37 mulungu odziwa kudalitsa akudalitseni pamodzi ndi inu chingati phiri mr CEO in dreams

  7. Chouluka says:

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

  8. 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 remain poor and poor year after year, due to the selfish acts of the few. Remember Bingu was one of the poorest politicians after retiring from COMESA, hence within a few years; he became one of the African Billionnaires. How do you justify this? What was his salary? Now we have the brother who has deliberately distorted his bank figures (Accounts Disclosures) such that he can actually cover (conceal) for any money he siphons from any projects meant for the poor. Is that democracy? Yet we have “boot lickers” the likes of Nankhumwa, Ben Phiri trying their best to justify any shortcomings.

    This current government is actually worse that JB’s. I just wish Kamuzu could rise from the grave and once more bring sanity in the country, Or let Muluzi bounce back into active politics. I am certain to vote for the man rather than this stupid professor who cannot even speak for himself. Just like the brother, thank God; he is dead!!!!. “Birds of the same feathers ” syndrome.

    Malawians we still seem to prefer “Regionalism Politics”, when Lomwe is in power, all senior positions in government will be given to the Lomwes, when a Chewa is in its a similar trend.

    Woke up. Tossers!!!!!!!!!!!!!!!!!!!!!

  9. fight says:

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

  10. p mtete says:


  11. Issa Kabudula says:

    The problem was on the idea of rehiring the man who is old and retired, yet the so called Poly students are wondering in our streets lacking that job. Kuba yes ndi kuba, but we sometimes give chances to people to steal, in this case the man knew before hand as a contractor he wasn’t stable and any chance can be used to steal.

  12. Wampwesa says:

    No. 9 Check at MRA , Police, Army ndi angati akugwira bambo ndi mwana. What is the problem with Allan’s employment if he qualified.

  13. chinkombaleza gumanyundo gowa says:

    Why should you recruit him when other people could be employed. That’s why new blood cant be employed. Kodi iwowo m’mene amayamba ntchito anayamba ndi experience akuchoka ku sukulu? Ndichifukwa chake Boma zinthu siziyenda bwino Mumasunga anthu zakazaka mpakana kumera mizu. Ma airlines athu chonchi sangatukuke. Mfufuzeni ameneyu.

  14. Nkhuku says:

    Chingati playing horristic games in order to get the CEO position. You are a shameful man and a Hule. Mbava yeniyeni, nawenso choipa chikubwera

  15. nyamalikiti says:

    Chingati Phiri??? I know this guy well. he is the devil himself. munthu oyipa, musiyeni zimunyelela. no wonder Mrs Chikakula and chinkwende amupangila retire, akhale ndi iyeyo.

  16. Mchilikizi says:

    Ife Kumangodabwa kuti antchito a LIHACO kutuwa chonchi pa airport bwanj! chonde khonzani zinthu ku LIHACO, uniform zotuwa, anthu otuwa, equipment yakutha… shame!!

  17. bertha says:

    This guys knew that severance allowance on retirement inatha and to steal money they crafted their conditions cleverly so that they should be getting gratuity at the current salary times number of years worked in addition to pension abale this day light robbery of govt money because in fact they are indirectly getting severance allowance and pension

  18. bertha says:

    Jist wondering kodi ornithologist akubweramo bwanji in this article my search shows he is someone dealing with birds ndiye kuti financial director wa LIHACO was dealing with birds? Abale inu

  19. BigMan says:

    This is not true. Chingati Phiri has always had issues with Nkoloma and has been after his seat for years, this is a setup. There is no way that a CEO would plan to be getting K4 million monthly for 10 month irregularly because obviously these monthly payments would be seen and queried by the board as well as the Exco. Shame on you Chingati Phiri!

  20. makwinjaishmael says:

    Tidangosowa mwayiwo, nkadaupeza nane nkanacashgatika. Asiyeni musawazunze, saotcha moneyzo, azigwilitsa ntchito mommuno.

  21. concerned says:

    Mukaonenso ku Montfort Special Needs. Ndalama za ana olumala zikulowa mmatumba mwa anthu. Aonenji akupha mvvuu mmono uku. Ife timangoyan’gana ndi kudabwa. Kugula magalimoto, kumanga sukulu anzawo akulephera kugula njinga

  22. jcholomandenga says:

    This is Malawi, the racket goes on, i am sure this LIHACO does not even make that much money as profit at the end of a year, still the looting continues.

  23. Gule Wamkulu says:

    Koma ndiye ku LIHACO zokwera Akazi aeni zachuluka. This other married woman ndiye wachitidwa kanthu ndi mabwana…Kaya amunake sadziwa kaya kuti Mayi akudyetsa zedi!!!

  24. bertha says:

    This was just misinterpretation of their conditions of service which provides for gratuity upon exiting the company. Koma ngati amatenga kachiwiri ndiye ali ndi mlandu and rightfully dismissed

  25. Osman Rashid says:

    Those cashgate involved people have to be tormented

  26. DPP Propaganda says:

    What about the CEO of Airports Development a Limited who was also implicated in the procurement scams when is he going to be relieved of his duties so that General Odillo should take over? These recycled Air Malawi ex employees are killing our parastatals. They killed Air Malawi and now they will kill our Airports.

  27. What? says:

    Mukuona ngati waomba zambiri mkuluyi? Tapitani ma local and international NGOs and CSOs ndi mma private institutions muone mmene amalawi akuchitira connive ndi azungu pamaombedwe. Malawi is for the dogs indeed!

  28. Kidmkoloma says:

    Jose Morigno aka Francis Mkoloma umayenda m’bali siunati. We will get you arrested in a short time. Umboni ulipo. Hehehe uluuuuuuu. Ufela ku prison chaka chino. Wachotsetsa anthu angati paja? Akazako ndi ana anathawa kale paja. What a miserable person you are

  29. vuuuu says:

    ku air cargo kuno ku airport general manager Limbe akutenganso kampane ngati yakunyumba kwake.analemba mbale wake mbuzi ngati iyo John undi.anagesa galimoto yakampane beyond ripeya nkumulipiliso ndalama yopitilira 500,000.00 kwacha.kunamizilla kuti wavulala.kukatenga makalata achinyengo kuchipatala.chikhalilreni munthu wina akagwesa galimoto amamuchosa ntchito nkumulipilisa kumene. Mufufuzeni ameneyu.

  30. mbowembowe says:

    Mbowe in comment 9, go to various organisations and tell which one kulibe mbale wa bwana. If he qualifies, why not employ him? Zangokuvuta machendenso nawe

  31. babylon says:

    Comment number 10, Dr Moo, machende ako andi madala ako omwe ok!

    Kamoto is trying to drag the culprits out nde iwe ukunyansidwa nazo. Yes, udziwe kumakhetsa thukuta ndalama simangobwera no wonder u are suffering in ur own house. Fotseki.

    Kusangalala anthu akamapanga katangale zoona? Silly

  32. ife ambwewe says:

    Gods time is always the best. You thought you can not be caught? Hehe.

    Mkoloma is a thief indeed and he must be punished. His background is that of aircraft engineer and was working with Air Malawi LTD. Then after several consultations with other stake holders, Air Malawi formed LIHACO as a ground handling company to provide ground handling services to the national airline as well as foreign airlines.

    He then found himself as a manager at LIHACO. His acts were indeed very stinky. He never respected his employees. The company makes huge money but Mkoloma was eating the money like manna from heaven.

    He likes women too much especially those with weak minds within the company. He has been making foreign trips with some female members of staff and while outside the country he would use his powers to lure these senseless women to bed. I know their names but I don’t want to mention them here. They know themselves.

    Chingati did good to report these people. Adjai is even worse than the devil himself. He has been screwing another married female member of staff within finance section for years? She knows herself. He has been proposing to many new recruits especially those tinny girls working at check in counters.

    All they want is to infect these innocent girls. Mulibe manyazi.

    You will rot in jail..Malawi Gov wake up and conduct an,investigation. A lot has happened in this company. LIHACO doesn’t even pay concession fees to ADL and DCA. Pin them down. Mkoloma when he left Air Malawi he was given all his money and now he wanted more money from LIHACO? Kuba kopanda chisoni.

    Chingati we love you and please make sure that all those that were close to these people are also investigated or achoke nawo. You take charge and we will,pray for,you..

  33. max nsani says:

    Jose Morigno(sic), the issue isn’t the renewal of the contract. If he is good then definitely he deserves a renewal. But if this story is true then he is a dishonest man and therefore not good. Procedures are there to prevent abuse’s like these, approving his own gratuity payments. Its people like these, in public institutions, who deliberately bypass processes which would check against abuse who are making corruption the norm in Malawi. If he did this, investigate, fire and prosecute. Stupid things!

  34. Kho Nankhumwa says:

    Atumbuka kuba basi!

  35. pamsundu says:

    Thumb up Chingati for telling the truth Chingati woyeee!

  36. Dr Moo Tha Leeker says:

    Kwatsala Ralph Kamoto kuno ku MRA. When is the axe grinding him?

  37. Mbowe says:

    Adjai Ndlovu also employed alot of Handling Staff at LIHACO without proper procedures. of them is his Son Allan..

    Lets also investigate this ” Recruitment Gate”

  38. Kamkhwezule Kakang'ono says:

    The CEO and the finance and admin manager clearly connived to defraud LIHACO

  39. Mapiri says:

    This is a police case. The CEO shud arrested a case of theft by public servant has to be opened. Malawi has now become a nation of thieves. Stealing is everywhere.

  40. Mapiri says:

    If the story is true, then this is stealing. The CEO is a thief. The payment has to be reversed. There’s no way a CEO can approve his own grauity.

  41. kamunkhwala says:

    if ur serious to fight corruption wy not have an operation on government employees from there back ground up to how they got in that position.

  42. pswakale says:

    I will only comment when Mkoloma and his collegue defend themselves on this column, pliz don’t use pseudo names but ur really names. It is now common to see CEOs working without contracts and only being engaged on month to month, the CEO of ADL is in the same predicament.

  43. Tithatonse says:

    Read what is written here and not what you think.

  44. Malawian says:

    Next Central Medical Stores Executive Management angogawa ma contract without following procedures kwa Malawi Pharmacies and Victoria pharmaceuticals worthy billions of kwacha koma poti bomali ndilawo

  45. Jose Morigno says:

    I know Chingati-Phiri very well. Please do not trust him. Amakhala ku area 47 and we hear he wants mpando wa CEO for LIHACO. Ndapota nanu a Board. Re-instate the CEO. Zochosa ma CEO zanyanya ku MAlawi kuno. Why is it that suddenly CEOs have become the endangered species in Malawi? Ngati munthu anamaliza ntchito yake inu a Board ndikumupasabe contract it shows he was doing a good job. Nsanje ndi kaduka pa Malawi.

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