By Mercy Matonga:
The Anti-Corruption Bureau (ACB) has launched an investigation into the procurement of parachutes worth K1.7 billion at the Malawi Defence Force (MDF).
Payment for the parachutes from Botswana registered supplier Sura Company was flagged out by the Financial Intelligence Authority (FIA) as suspicious last year.
In separate interviews, both the ACB and FIA confirmed that the matter had been escalated to a criminal investigation by the bureau.
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ACB spokesperson Egrita Ndala confirmed that an investigation is underway but could not provide a detailed account.
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“The bureau has been conducting an investigation at the MDF regarding the procurement of parachutes. The FIA established that the company had contracts with the MDF amounting to close to K2 billion,” she said.
On his part, FIA spokesperson Masautso Ebere said the authority was on top of things on the issue.
“The Financial Intelligence Authority came across suspicious transactions involving a company registered in Malawi that received payments from the MDF for the procurement of various items. The transaction amount was around K2 billion. The company is called Sura Trading Malawi. Through analysis, the FIA established that the company had contracts with the MDF,” Ebere said.
He added that in order to make necessary inquiries concerning the transactions, the FIA froze the funds and later obtained a preservation order on the funds from the court in September 2023 under Civil Cause Number 20 of 2023.
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Upon completion of the analysis, the FIA referred the matter to the ACB for further investigation.
As previously reported by our sister publication Malawi News, High Court Judge Anneline Kathambi issued the preservation order to FIA on September 22 2023.
FIA, through its lawyer Chikondi Lipato Sikwese, obtained the order and, according to the preservation order, the company’s funds— amounting to over K1.7 billion from two accounts at Standard Bank and one at First Capital Bank—have since been frozen.
The court ordered the 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.
