Malawi Energy Regulatory Authority (MERA) chief executive officer Collins Magalasi and co-accused persons have been denied bail.
This is after the state had pleaded that the three suspects, who were arrested on July 29, know the witnesses to the case and may interfere with investigations.
They asked that they should continue being held in custody pending completion of investigations.
Magalasi, a one-time chief economic advisor to former president Peter Mutharika, alongside businesswoman Dorothy Shonga aka ‘Cash Madam’ and MERA Communications Specialist Patrick Maulidi are accused of fraud of K107 million.
Mera procurement officer Bright Mbewe was added as a fourth accused person (officially charged as second accused) to the charge sheet, but did not take plea as chief resident magistrate Violet Chipao, who is supposed to hear the matter, was absent.
The criminal charges relate to procurement contract awarded to Shonga’s Vink Enterprises.
The first count was fraud related to the procurement, the second count was money laundering involving alleged attempts to conceal the proceeds of crime generated from the fraud and the third count was entering procurement contract with an employee contrary to the Public FinanceManagement Act.
The senior resident magistrate Florence Msekandiana rejected the bail application after reading a number of reasons in which the law allows the State to keep suspects in custody, arguing there is a likelihood the suspects knew witnesses in the case.Follow and Subscribe Nyasa TV :