Ex-MP Chilapondwa arrested in K884m tax probe

Businessman and former ruling party MP Ulemu Chilapondwa has been arrested in a tax scandal involving nearly K900 million, with revenue authorities accusing him of collecting VAT he was allegedly never authorised to

The Malawi Revenue Authority (MRA) has swooped on Chilapondwa, the former Member of Parliament for Ntchisi South, over allegations that he unlawfully collected and failed to remit K884.6 million in Value Added Tax (VAT) linked to government-funded electrification contracts.

According to MRA, Chilapondwa, trading as Chamachete General Dealers and J.U.C Investments, allegedly collected the tax from the Ministry of Energy for supplies made under the Malawi Rural Electrification Programme (MAREP) in November 2024.

The explosive allegation is that the businessman was not registered for VAT purposes at the time, raising questions over how hundreds of millions of kwacha in tax payments were allegedly collected.

MRA Head of Corporate Affairs Wilma Chalulu said the case centres on an alleged breach of Section 109 of the Tax Administration Act, 2021, one of the key provisions governing tax compliance.

The arrest marks one of the biggest VAT-related cases in recent months and is likely to attract intense public scrutiny given Chilapondwa’s profile as both a businessman and former lawmaker.

Revenue authorities insist the move is part of a broader drive to protect public funds and crack down on tax violations.

While the allegations are serious, MRA stressed that the matter remains before the courts and that due process will be followed, with Chilapondwa entitled to the presumption of innocence until proven guilty.