Malawi Police in Lilongwe have arrested top management Foundation for Irrigation and Sustainable Development (Fisd) Limited over alleged fraud in its dealing with government.
National Police spokesperson James Kadadzera said the four directors of the company were arrested as part of investigations in the company over alleged embezzlement of government funds.
However, it is not known how much money is involved.
The development comes on the back of a protracted legal wrangle in the commercial court between the company and government and the Africa Development Bank on the management of a water supply project FISD was granted to conduct in Ntcheu.
Kadadzera said the suspects are Moses Chirambo, aged 40 , village M’doni, T/A Chikulamayembe, Rumphi; Frank Mwenechanya, aged 40yrs, village Mwakaboko, T/A Kilipura, Karonga; Kondwani Namchukwa, aged 40 yrs, village Njilika, T/A Kapeni, Blantyre and Aurther Mpama, aged 35 village Sosola T/A Msamala, Balaka.
He said the quadruplet has been charged with conspiracy to defraud, forgery, uttering false document, theft by public servant, obtaining money by false pretence and money laundering.
“The suspects will appear in court soon,” he said.
The arrest of Chirambo, Mwenechanya, Namchukwa and Mpama come amidst the termination of a November 2017 contract Ministry of Agriculture, Irrigation and Water Development granted Fisd Limited to rehabilitate and expand gravity-fed water supply systems in Ntcheu District. The contract value was K2.4 billion.
Fisd Limited company secretary Gift Nankhuni could not immediately comment on the arrest of top management.
Court documents show that Fisd Limited is demanding about K912 million for work they did before termination of contract in 2019. But the amount may go up to K1.2 billion as the company is also demanding interest of about K300 million which the court is yet to rule on. Further, the company’s lawyers are seeking about K200 million in legal fees.