Four FISD directors Netted over K638 million payment
Malawi Police’s financial crimes bursting department dubbed Fiscal Police, has launched investigations into allegations that a local construction has arrested four Fisd Co. Ltd owners over fraud allegation.
FISD got paid over K600 million in August this year without doing any work.
Police Spsources have confirmed the development.
In 2017, Fisd got awarded two contracts worth K2.8 billion each under the project “Sustainable Rural Water & Sanitation Infrastructure for Improved Health and Livelihood” funded by the African Development Bank (AfDB).
The projects were for Ntcheu and Phalombe districts.
According to the contracts, Fisd was supposed to complete the projects by December 2018.
However, as of today November 6, 2020, none of the projects have been completed despite the company fully paid for projects.
Due to failure by Fisd to complete the projects, government of Malawi on advice of donor of the funds advised the client to cancel the contract especially for the Ntcheu one.
Apart from the cancellation of contract by government, Fisd was ordered by NCIC led abiltration to pay the client (Ministry of Water) K281 million.
After the termination, Fisd Managing Director Frank Mwenechanya sought the help of former powerful man in DPP government Dr. Bright Molande who is believed to be a sleeping partner in the company.
Molande used his powers to put a stop to the K236 million penalty.
Instead Molande connived with former chief secretary Lloyd Muhara to have a puppet chola boy Dr. Henry Njoloma moved from Green-belt Authority to Ministry of Water as PS.
It is while at at Water where Njoloma initiated a payment of whopping K638 millio to Fisd for a work that cannot be traced.
It is against this background and crooked manoeuvring which has attracted the attention of Fiscal Police who have already interviewed two officials of Fisd.
The police are also expected to summon Molande, Muhara and Njoloma on the same issue.
What is more painful is the fact that the little works which Fisd did in Ntcheu and Phalombe are already crumbling and the two districts cannot benefit from the multi billion projects due to incompetence of the contractor.
President Dr. Lazarus Chakwera has promised to clear the rubble of dirt, filth and corruption caused to former ruling DPP.