Tax – Payer may lose Billions in compensation over botched Police land deal

Tax – Payer may lose Billions in compensation over botched Police land deal

By Linda Kwanjana

The tax-payer stands to lose billions both in investment and compensation if Malawi government decides to renegade on an agreement it made with one investor to construct 140 houses for Malawi Police Service in exchange for a 20 hectrage of land which the investor wants to turn into state of art shopping complex and one stop centre.

The investor, World Wide Construction Company, signed a contract with Malawi government in 2019 to construct police houses, a 32 room-double storey offices, an armoury, a shooting range, a garage and inspection pit, parade and soccer grounds, netball court and other magnificent facilities.

The deal once it materialises is expected to change the face of Capital City Lilongwe. The land is currently housing the ‘C Company’ of the Police.

But in an event of government backtracking on the deal, there is higher probability of the investor World Wide Construction Company suing Malawi government for loss of business and breach of contract.

Since the new administration came into power, it has been probing into the issue to find out what really happened for the previous DPP regime to transact land at Police C Company compound opposite Lilongwe Community Centre Ground.

All law enforcing institutions vetted the deal and gave it an approval.

The damages in form of compensation expected to be claimed are in colossal billions as the contractor signed a valid contract with the Malawi government.

After signing the memorandum of understanding, the matter went to Ministry of Justice for vetting.

When vetting was done the parties signed both the MOU and agreement in 2019.

The process then went to PPDA where it was also approved.

For the avoidance of doubt the Anti-Corruption Bureau also vetted all the processes involved in awarding the contract to the investor and everything had a clean bill.

Now the big question is: Should Malawi’s tax payer lose billions on a deal that would benefit the country more than the contractor? The public is the best judge!

Malawi Exclusive

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