Chaudhrey Faces Fresh Scrutiny as ACB Probes MAREP Phase 9 Contracts
Controversial Blantyre businessman Mahmood Azhar Chaudhrey could face further legal trouble after Attorney General (AG) Frank Mbeta referred the disputed Malawi Rural Electrification Programme (MAREP) Phase 9 contracts to the Anti-Corruption Bureau (ACB) for criminal investigations.
The referral comes as government intensifies efforts to recover more than K1.4 billion allegedly paid in advance to contractors who failed to deliver materials under the electrification programme.
Speaking to the Weekend Nation, Mbeta confirmed that the disputed contracts had been handed over to the ACB while government continues pursuing civil proceedings to recover public funds.
“MAREP matters have been referred to the ACB for further investigations. In some of the matters we sued, we have since obtained judgments for the refund of the money with interest,” Mbeta said.
He added:
“So we will recover all the money. Where necessary, we will also prosecute the perpetrators for abusing public funds.”
Court records show that the Ministry of Energy sued three companies—Africa Green Economy Limited, Loui Holdings Group (PTV) Limited and Kumakoka Trading Company—after alleging they received advance payments during the 2022/23 financial year but failed to fulfil their contractual obligations under MAREP Phase 9.
Last month, the Weekend Nation reported, based on court documents and interviews, that Africa Green Economy Limited allegedly received K698,050,991, Kumakoka Trading Company K523,538,243.57 and Loui Holdings Group (PTV) Limited K144,674,756.91 for cables that were allegedly never supplied.
Through the Attorney General’s Chambers, the Ministry of Energy commenced legal proceedings in August 2025 seeking to recover the funds, together with interest, damages and other costs arising from the alleged contractual breaches.
Court documents further show that Chaudhrey had a business interest in Kumakoka Trading Company, one of the firms at the centre of the dispute.
In documents filed before the High Court, Chaudhrey disclosed that he had entered into a pre-financing arrangement with Kumakoka Trading in relation to the MAREP contract.
Separately, a source familiar with the ACB investigations told Nyasa Times that investigators are examining the circumstances under which the contracts were awarded and the advance payments made.
According to the source, investigators are also looking into individuals suspected of financing or fronting companies involved in the contracts.
The source, who is not authorised to speak publicly on the matter, claimed Chaudhrey is among the individuals whose role is being examined. The ACB has not publicly confirmed the identities of any suspects.
In another ongoing matter, Chaudhrey is a party in Commercial Case No. 159 of 2026 before the High Court Commercial Division in Blantyre.
In the case, he alleges that several individuals are attempting to seize his residential property over an alleged K800 million loan. Chaudhrey maintains that although there was an oral financing arrangement, the money was never advanced to him and has asked the court to stop the seizure of his property pending determination of the dispute.
The Attorney General’s referral comes amid growing public scrutiny over procurement and contract management under MAREP Phase 9.
In April this year, Minister of Energy Jean Mathanga told Parliament that an audit into the programme had uncovered accountability gaps involving contractors who failed to account for materials procured for rural electrification projects.
Follow and Subscribe Nyasa TV :