Attorney General queried on K2.7bn Malawi police ration scandal

Mzuzu-based Youth and Society (YAS) has  again written another letter through Ritz Attorneys-at-Law to  Attorney General Charles Mhango  querying him why his office committed  government to pay CDH Investment Bank , on behalf of a private  contractor  – Pioneer Investments (PI) Limited  in the  k2.7 billion Malawi Police Service (MPS) food rations deal.

Attorney General Charles Mhango: Faulted on police fraud

Kajoloweka: Questions Attorney Generals’ conduct in the police fraud

A leaked dossier from the Anti-Corruption Bureau (ACB) into the K2.7 billion MPS food rations scam indicates that PI Ltd made an abortive interest claim of K466 million and deposited K145 million into a Democratic Progressive Party (DPP)  bank account at Standard Bank whose sole signatory is President Peter Mutharika.

While the civil society organisations (CSOs) have written President Mutharika, his DPP and PI Limited of Zameer Karim demanding a refund to government money they allegedly fraudulently acquired from the Malawi Police food rations deal,  a letter seen by Nyasa Times, dated July 20 2018,  YAS director, Charles Kajoloweka is also querying the government chief legal advisor on his role in the matter.

The Attorney General is being questioned why he committed to pay CDH Investment Bank which had given the  contractor PI Ltd, a loan to facilitate performance of the contract.

And also  Mhango’s consent order, effectively committing government to paying twice to the same contract.

In the letter, Attorney General is also quizzed why he voluntarily joined the  as a third defendant when CDH investment Bank had initially only taken to court  Karim of PI Ltd as first defendant and Oil and Protein Company Limited  as second defendant in High Court Commercial Division Commercial Case No.276 of 2017.

According to the  letter to Attorney General – Oil and Proteins Company Limited was sued as second defendants because it provided a full guarantee for the loan and CDH Investment Bank also took some collateral for the loan.

Malawi government paid K2.7 billion directly to PI Ltd  against an undertaking by an officer at Malawi Police to pay the contract price to CDH investment Bank Limited.

YAS has questioned Attorney General’s office  to have volunteered to be the third defendant in the case and yet an application to add the AG on behalf of police cannot be traced on the court file.

“Inexplicably, there is a consent order in which you (Attorney General) volunteered to be third defendant and went on to further execute a consent order committing government  to pay part of the sums owing from Pioneer Investment to CDH IB Ltd despite the facts that;  [i] Government has already paid Pioneer Investment the  full contract price  and Mr’ Zameer Karim admitted this much to you by letter;

“[ii]. Pioneer Investment’s loan was already fully guaranteed by the Oil and Protein Company Ltd,  which was cited as second defendant and CDH IB Ltd also took some collateral as  part security from the loan.”

Attorney General Mhango has been questioned on his conduct in joining the case and committing  government to discharge a third party’s secured liability, with YAS wondering whether it is prudent, of due professional care, legal and in the best interest of Malawians.

“Whether you cared to ascertain and justify the legality of the underlying transaction by the Malawi Police Service and Zameer Karim t/a Pioneer Investment in terms of the procurement and public finance management  legislation, and indeed other laws.

“Whether, knowing well as you already do and more so now with the contents of this letter and the leaked report, you have any intention to take steps to remedy the apparent irregularities partly highlighted above and specifically to recover any sums, including the sum of K145 million paid to a political party account , which have been paid out of consolidated revenue as a result of fraudulent breaches of trust,” reads the letter signed by lawyer Bright Theu.

The Attorney General has been given three working days to explain the queries and  YAS has warned that it may  hold Mhango personally liable to compensate government for any sums that may be lost through the “questionable  commitment” he made and disregard of relevant facts “pointing to seemingly fraudulent scheme.

Mhango is yet to respond.

The CSOs have also demanded that Mutharika must repay the money, failing which they  will drag him and DPP to court.

YAS argues that the governing party is aware that the said money represents proceeds of fraudulent sham procurement by police officers and Karim of PI Ltd.

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Gwamula
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Gwamula

I will say it again and will say this anytime when reminded, Charles Chigondongo Mhango is one useless and spent lawyer. He is dull and does not meet the fit and proper test to be Attorney General. This is a man who thinks of himself as if he were a great person but alas! He is not. He has several times attempted at vying as MP and has always miserably failed. To the extent he sold his house in BT where he ran his law practice, sold his farm, sold his private school. He went crippling and down on his… Read more »

Central
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Central

Mwana uyu amakonda dziko lake kwambiri ngati ine……….!! Kudos Kajoloweka, I am behind you!! Please go deeper, and face these thieves head on!! Don’t spare those with MSB toxic funds and the “Chikangawa” funds by Goodall and team!! Dziwanthu ndi dzimbava idziiiiiiiiiiiiiiiiiiiiiiiiiiiii

Mzanga Dausi
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Mzanga Dausi

Wamuhango mwachitikaso bwanjiso, namweso ndimweso wa crook?

Gerald mapanga phiri
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Gerald mapanga phiri

It looks like Malawi is going to have real youth now those thinks using the head not by stomach. But for me is too early to give them credit because they start like that but end up being bribed and sell the generation

Angoni
Guest
Angoni

For some reason, the current AG looks incompetent; corrupt; broke….

Chilungamo
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Chilungamo

It appears all elite Tumbuka’s in DPP are there to SANITISE DPP’s exposed ROT
It’s bearly less than 3 months when gogo Goodall forged a letterhead (ordinarily provided by RBM) to redeem a conman to circumvent justice. He remains the ONLY minister on RECORD ever in the history of the nation to have committed such
Now this Mhango is trying to be clever even for very obvious fraudulent scam. How on earth can someone without SHAME call stolen money given to a party ‘DONATION’?
SHAME on MBAVA!!!

Gulukunyinda
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Gulukunyinda

Absolutely. A thief by all standards. Very shameful idiot

#DzukaniAmalawi
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#DzukaniAmalawi

I would encourage you YAS to press ahead and not be distracted or be silenced by any type of bribe. This is a solid case which I believe Malawians are all interested parties. The truth should come out even if it means the allegations turn out not to be true (which I doubt very much). In fact I would urge YAS to take other cases too and hopefully Ritz Attorney-At’Law would be kind enough to this pro bono for the benefit of the youth. As Mutharika eloquently quoted an African proverb at the just ended COMESA Conference……….we have not inherited… Read more »

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