Law enforcers are pursuing leads to fraudulent activities of a company owned by Asians, Pioneer Investment following revelations of a forged bank documents for supplies to Malawi Police.
Nyasa Times understands that Pioneer Investment forged a bank documents with signatures of Malawi Police Service Director of Finance, Innocent Botomani.
However, Botomani denies that the signature in the documents presented by the company was his.
The company is claiming interest for goods which were supplied to government after receiving advance payment.Initially, the Auditor General Stepheson Kamphasa rejected the claim on interest, according to a memo seen by Nyasa Times dated 12 September 2017 reference number Aud/conf/03.
“I refer to my certification on the above supplier dated 22nd August 2017. Recommending for your payment of interest amounting to K567 866 013 00. I wish to advise that the said interest should not be paid because of the new evidence that has come to my attention which I require to carry our further audit,” Kamphasa told Pioneer Investments in the letter.
The Auditor General then suspended certification of payment of arrears of all procurements to company.
The letter was copied to Accountant General and Chief Secretary of Government Lloyd Muhara.
The company has been shielded because of its connection to Minister of Finance, Economic Planning and Development Goodall Gondwe .
Apparently, the Auditor General is reported to have made a U-turn and issued verbal instructions for the money to be paid. This has not been implemented.
Meanwhile, one of the witnesses to the shoddy deals of Piooner Investment, Elijah Kachikuwo, who was at the National Police Headquarters Treasury Office, has been convicted on charges related to the theft of government money amounting to K45 million in 2011.
He was accused together with Vincent Nyondo and Wilson Chatema of preparing payment of K45 million from the police and the police paid the money to Classic Motors but the goods or services were not provided to the police.
Owner of Classic Motors Francis Mkwamba has also been convicted.