Mutharika orders probe into K7.8bn contract for ghost company: State House exonerate First Lady

State House says President Peter Mutharika has ordered a thorough probe into reports that a company named Black and Veach was awarded a lucrative consultancy contract for K7.8 billion but there is no trace for the firm.

The contract was offered by the ministry Natural Resources, Energy and Mining and the Public Procurement and Disposal of Assets Authority (PPDA).

Mgeme Kalilani, the presidential press secretary and spokesperson also refuted claims in social media platforms that the ghost company belongs to the First Lady Gertrude Mutharika.

“Regardless of the fact that the said contract did not and does not belong to the First Lady in anyway, His Excellency the President Professor Arthur Peter Mutharika wishes that investigating authorities should get to the bottom of the matter regarding the alleged ghost contract,” says Kalilani.

Black & Veach was hired by Kam’mwamba Coal-fired Power Generation Company (KPGC), which sought a ‘No Objection’ from the Public Procurement and Disposal of Assets (PPDA) to engage the firm.

PPDA—which gave a ‘No Objection’ for the contract in June last year—said the information from the procuring entity, KPGC, showed that the firm was based in the United States of America (USA).

US Embassy in Malawi said it was not aware of or involved in any US company bearing the name Black & Veach in Malawi.

Kalilani says the President therefore appeals to all Malawians to use the social media responsibly and avoid using the otherwise good platform to victimize or character assassinate innocent individuals.

The story first appeared in Weekend Nation newspaper which Kalilani said did it after a thorough research and in keeping with its reputation for fair journalism.

“In its researched story, The Weekend Nation did not mention any person from State House whatsoever as the owner of the alleged company,” says Kalilani.

He says some ill-minded individuals twisted the story so as to implicate the First Lady to satisfy their malicious intentions.