By Pemphero Malimba:
The Human Rights Defenders Coalition (HRDC) has added its voice to calls for the Malawi Revenue Authority (MRA) to suspend plans to award contracts to three security companies for services at its offices nationwide.
MRA is expected to spend K5.46 billion on security over the next two years following its announcement to award contracts to the three firms.
A public notice in local newspapers indicates that the contracts cover MRA offices across all regions.
Masters Security has secured two contracts worth over K3.4 billion to provide services at the Blantyre Cluster for K1.23 billion and the Central Cluster for K2.18 billion
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Kamu Guard Services has been awarded a K897.5 million contract for the Southern and Eastern clusters while Iringa Security Services will serve the Northern Cluster at a cost of K1.14 billion
There are indications that the companies belong to politically connected individuals including Cabinet ministers, sparking ethical, legal and conflict of interest concerns
HRDC chairperson Michael Kaiyatsa described the development as a serious affront to constitutionalism, public ethics and the rule of law
“It is a matter of public record that MRA previously arrested and prosecuted the owner of Masters Security Services for allegedly forging tax clearance certificates, an offence that undermines tax administration and public finance integrity
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“For the institution charged with enforcing tax compliance to now reward the same company with a lucrative contract is morally indefensible and institutionally reckless, regardless of the court case status,” he said
Kaiyatsa insisted that public disclosure of procurement evaluation reports, beneficial ownership details and conflict of interest declarations should be made
He said there should be clear enforcement of constitutional conflict of interest provisions, including barring companies owned or controlled by serving Cabinet ministers from benefiting from state contracts
He also urged independent oversight by Parliament and relevant accountability institutions into MRA’s conduct
“Malawi cannot fight corruption with words alone while rewarding politically connected individuals with public contracts
“No one should profit from proximity to power and no institution, especially one charged with enforcing tax compliance, should operate beyond ethical scrutiny,” Kaiyatsa said
Governance, public policy and human rights advocate Undule Mwakasungula has also demanded that MRA provide proof that company owners alleged to be government officials did not influence the procurement process
“To maintain public trust in institutions, there should be clear disclosure of ownership, evidence that officials did not influence the process and strong oversight by relevant bodies
“The law requires full disclosure of interest and separation from decision making where a potential conflict exists,” Mwakasungula said
He added that if MRA followed all required procedures, including open bidding and independent evaluation, ownership alone cannot discredit the outcome
“Being a minister or senior public official does not automatically bar one from owning a business or bidding for government contracts,” Mwakasungula said
“I gave a response to your Times colleague on this issue yesterday [Monday],” Chalulu said
In yesterday’s edition of The Daily Times, she was quoted as reiterating that contracts had not yet been awarded and that the notice served to inform bidders and the public of MRA’s intention
Chalulu added that the notice is part of the ongoing procurement and evaluation process
“The publication of the intention to award is a transparency measure allowing any bidders with concerns or noting irregularities to come forward for MRA to address before the contracts are formally awarded,” she said
Public Procurement and Disposal of Public Assets Authority spokesperson Mandy Pondani requested more time to comment
The concerns raised by Kaiyatsa and Mwakasungula follow others voiced by activists and commentators such as Willy Kambwandira who have described the security deal as having “red flags all over”
Kambwandira also called on MRA to be transparent, adding that the contracts should be subjected to strict scrutiny to avoid waste or patronage
National Advocacy Platform chairperson Benedicto Kondowe said the amount was significant and required proper justification
On the other hand, economist Marvin Banda said although the figure appears high, it represents a small share of MRA’s overall budget. When asked whether proper procedures were followed and for the names of all companies that bid, MRA Head of Corporate Affairs Wilma Chalulu declined to comment.
