Auditor General Stepheson Kamphasa has been summoned to appear again before the Parliament’s Public Accounts Committee (PAC) to explain his endorsement over a K567 million interest payout controversy involving Pioneer Investment and with Malawi Police Service (MPS).
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.
Auditor General at first refused to pay but was reportedly “bulldozed” to uthorise Treasury to effect payment to the company.
PAC chairperson Alekeni Menyani and his deputy Kamlepo Kalua confirmed they have recalled Auditor General following “conflicting information” on the matter.
Kaphasa reportedly told the committee that he had unearthed more documentation which he wanted to submit.
Secretary to Treasury Ben Botolo appearing before PAC last Saturday said indicated that he will not make payment until further advice from either the Auditor General or the Attorney General.
“I know Pioneer is hating me…I have stood my ground not to make this payment until we verify issues raised. I am also surprised why the police has continued to deal with Pioneer which has always given them tough time,” he explained.
Attorney General Chalres Mhango and Karim of Pioneer Investment are expected to appear before the committee.
Menyani said Pioneer Investments needs to be investigated further.Follow and Subscribe Nyasa TV :