Auditor General withdraws K567m interest claim endorsement on Pioneer Investment: Malawi Police contract ‘null and void’

Auditor General Stephenson Kamphasa has told  Parliament’s Public Accounts Committee (PAC) that he has withdrawn his  earlier  endorsement over   a K567 million interest payout controversy involving  Pioneer Investment and with Malawi Police Service (MPS) over food rations.

Karim of Pioneer Investment appear before Parliament Committee

Kamphasa : Reverses decision

Kamphasa, who was appearing to the committee on the matter for the second time, said on Wednesday that he has withdrawn his endorsement because  the contract signed between Malawi Police and Pioneer Investment was null and void as Secretary to Treasury Ben Botolo has requested an audit verification of the arrears.

According to Kamphasa, the documents  included bid documents, bid data sheets and a restriction order which clearly stated that the contract would not be subject to revision or  a latter insertion of interest clause.

The Auditor General said Police should not have accepted invoices with interest because there was no such agreement.

“If documents had not been there, they [Pioneer Investments] had a right to claim [interests] but can now withdraw the certificate because  this information was not before  me when I made declaration that the government should pay the interest amount,” Kamphasa to the House committee.

“The whole document, including general conditions of the contract such as bid details, letters of offer and acceptance letter were not used. The interest claim is null and void and should not have been entertained,” he added.

He also said Pioneer Investment should not have been given the contract because they asked for  price adjustment which bloated the contract price from k2.3billion to K2.8 billion.

Kamphasa said Malawi Police  should have gone back to Office of the Director of Public Procurement “to communicate the request for change in contract price.”

The food supplier  agreed to five percent adjustment during bidding on August 4 2015, but six days later requested a price adjustment of 20 percent.

The committee accused Pioneer Investment of being cheaters in bidding.

Pioneer Investment  is a company linked to Zahir Karim, whose  family is accused of corrupting state contracts.

According to documents in possession of Nyasa Times, the company is claiming K567 million in interest for what it says was late payment from January 1, 2016 to June 30, 2017 for goods which were supplied  to government after receiving advance payment.

Like the notorious Guptas of South Africa, the Karim family  is controlling some  state affairs as the the Democratic Progressive Party (DPP) government continues to be facing allegations of corruption amid a worsening  unemployment.

Inspector General of Police Lexten Kachama told the House Committee that there is no merit to pay the interest as it did not form part of the contract.

Karim appeared before the committe accompanied by private practice lawyer Frank Mbeta, who said where the contract does not include interest payment, the law allows for it if there was an agreement on payment period.

Mbeta said interest should be paid because  there was delay in payment.

PAC chairperson Alekeni Menyani and his deputy Kamlepo Kalua said Pioneer Investments needs to be investigated further.

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This Karim guy dint even put on a suit. These indians are too much. Hon Kamlepo and Hon Menyani and the entire comittee should make sure these do not steal from us


Bwana Inspector General apa Pioneer Investiment amafuna kubera boma. Tiwone ngati mutamunge ngati muja mwachitira Mwiza Chavura mnyamata woyimba nyimbo yolawula ndi fisi wa ku Nsanje wosunga chikhalidwe nanga pamenepa mudikila President kuti anene kuti Mwenye amafuna kuba mumangeni???. Kapena a Police ena mumafuna kuba naye limodzi. Ha ha ha ah


Kamlepo will sort them out akamufunse Chaponda

Yahya Yahya Jammeh

Investigation or no investigation, Kamphasa must immediately be relieved of his duties. He is a total failure if he has not deliberately to be a failure in order to get a percentage of what what claimed as interest. If he wants to sue government for dismissing him let him do so but we shouldn’t keep him on on his position anymore.




Malawi going in the right direction. It’s time now business is given to the local malawians. The Banks should then support with order financing. My last word to all malawians is ” the only good Indian is a dead one”

I agree with wise words from 7777999 that “THE ONLY GOOD INDIAN IS ONE WHO IS DEAD”.I wonder why Malawians and especially our government ministries and departments keep awarding contracts to Indians and other substandard Lebanese and foreigners. On a different note, the credibility of Kamphasa is at stake here. Shouldn’t he resign for confusing government? Is he fit to to be in the office of Auditor General? How many things has he let go todate?If I were Stevenson Kamphasa, ndikanayambapo KUUMANGA WAKWATHU IF I HAD ANY INTEGRITY AT ALL.Where is ICAM in all this when their own member is… Read more »
777 and Panganani… .. You both are racist to me. To say that the only good Indian is the one who is dead Shaaaaa… That is racism at its best… And when you get sick your go to the same dead Indian for treatment. People wake up… This has cash Gate written all over. Someone did there job and our government got caught. This is now damage control. If it were me or you at your respective jobs who made this mess, we would be heading out of the door and straight to jail right now. This is why it… Read more »

I had very high respect for Hon. Kamulepo.I now no longer regard him in high esteem because I have discovered that he is double faced.


How is he double faced? dont comment based on rumors. kamlepo is a corruption fighter


Kamlepo is a fighter my friend we still love him.


Kamphasa too need to be investigated. WHY the change of tune,


But he has clearly explained why.

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