The Financial Intelligence Authority (FIA) has obtained a preservation order against Caesar Mugore Trading and Sura Trading Malawi, which supplied military equipment to the Malawi Defence Force worth K1.7 billion
High Court judge Anneline Kathambi issued the preservation order on September 22 last month.
FIA, through its lawyer, Chikondi Lipato Sikwese, obtained the order.
According to the preservation order, the company’s funds amounting to over K1.7 billion from two account numbers at Standard Bank and one at First Capital Bank have since been frozen.
“The said property shall be brought under the control of the Director General of the Financial Intelligence Authority, who is the administrator of the Confiscation Fund on behalf of the Minister in terms of Section 130(2) of the Financial Crimes Act, until the expiration of the period prescribed under Section 67 of the Financial Crimes Act or until the conclusion of the forfeiture proceedings instituted herein,” reads part of the order.
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The court ordered FIA to publish the Preservation Order in the Government Gazette or two newspapers of the widest circulation within 21 days of the order.
The judge ordered respondents or any interested third party who wished to oppose the order to file their notice in terms of Section 66 of the Financial Crimes Act.
Malawi News contacted the Public Procurement and Disposal of Assets Authority (PPDA) to ask if they had approved the contracts for the companies to supply to the Malawi Defence Force.
PPDA spokesperson Kettie Kujaliwa said the authority grants and processes a lot of requests from the MDF under “military equipment.”
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“It will be very difficult for the authority to randomly search for processes approved between 2020 and 2023.
“The Authority will appreciate it if you furnish it with the title or contract numbers of the alleged contracts for ease of reference,” Kujaliwa said.
FIA spokeswoman Grace Thipa confirmed the freezing order but could not divulge more information to Malawi News.
We also contacted Malawi Defence Force spokesperson Emanuel Mlelemba to ask if they had any business contracts with the company in question.
He said he was not sure about MDF doing business with the company in question.
“I am not sure. I need to check with our Directorate of Logistics,” Mlelemba said.
