Malawi Police arrest Fisd directors over suspected fraud

Malawi Police in Lilongwe have arrested top management  Foundation for Irrigation and Sustainable Development (Fisd) Limited  over alleged fraud in its dealing with government.

Fisd Managing Director Frank Mwenechanya: Arrested

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.

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nafundo zalo
nafundo zalo
8 months ago

tikudikila milandu ikuluikulu. tolelani evidence mmangummangu. tikumva kunin ‘gina ife . nkholokolo zikaloweso.patiently waiting.
awa laci 40 lao linakwana makapu a k140 imodzi aja akuwadikila. magulu odya phiko la nkhuku la k38.000 ana ameewa. kunjoya k
pa malawi

Che Bauleni
Che Bauleni
8 months ago

Koma ma guys a Tonse federation mukamalimbana ndi ma local companies muzichita manyadzi ….Awa ndi ana athu apamalawi pompano kulimbikira ……. instead kuti tiwagwilise ntchito moyenera lero tikuwawona ngati adani chifukwa ma contract anawapedza nthawi ya Dpp .So aliyense amene anapeza contract nthawi ya DPP ndi mdani kuganiza kofoyira uku

Ndafera Nkhande
Ndafera Nkhande
8 months ago

Apepe anyamata apa POLY.

Amjiba
8 months ago

They are from Bunda

Gulukunyinda
Gulukunyinda
8 months ago

FISD case is a sad development for purely Malawian owned Companies. The case of Mulli Brothers and FDH Holdings Limited. These are the companies I used to admire until and until they shared the bed together with politicians. Leston Mulli and Thom Mpinganjira are had workers and deserved the accolades of their companies untill a POLITICIAN showed them the carrot. The sad thing is the politicians will be scot free while these guys where were noble until the politicians will be in jail. Guys learn from your mistakes and also from other peoples mistakes. POLITICIANS ARE DEVILS. They will destroy… Read more »

John D
John D
8 months ago

then how come southern region water board is giving them a 10 billion contract

Bangwe
Bangwe
8 months ago
Reply to  John D

Watch this space. Do you believe any contract in Malawi is given on merit? That’s the end of them.

Kazinga
Kazinga
8 months ago

La 40 limakwana

Nankwakwala
Nankwakwala
8 months ago

Ana okuba awa!!!

Tcgh
Tcgh
8 months ago

Frank Mwenechanya is a nice and kind man. I will never forget what he did to me in 2007 as a total stranger. He might have no clue, but I still remember. I wish him well on this.

Bangwe
Bangwe
8 months ago

If people can win these contracts and complete and get their money then we would not be bothered. These people didn’t complete the project, were not paying employees and when the contract was terminated, they wanted to milk the govt more.
Dyera lachuluka pa Malawi. I.2 Billion, interest of 300 Million are living in a different world. Suing the govt. forgetting you have a lot to hide.

Mine
Mine
8 months ago

Umangowona waziyamba

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