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ACB nabs two over EIB funds

The Anti-Corruption Bureau (ACB) yesterday arrested two people for allegedly misappropriating funds from the European Investment Bank (EIB) that was meant for purchasing prepaid meters for Lilongwe Water Board (LWB).

The board contracted the two, Charles Fodya and Inosi Maliano, owners of Swiss Investments as implementing managers for the project which was financed from the national budget along with a loan from the European Investment Bank (EIB).

Matemba: We made arrests on Friday
Matemba: We made arrests on Friday

The ACB has also seized computer equipment from two staff as part of the operation.

Deputy Director General of the ACB, Reyneck Matemba on Friday confirmed the arrest of the two, but refused to divulge more information on the matter.

“We have indeed arrested two people in connection with the embezzling of funds which is a loan from European Investment Bank that was meant to procure 5 000 prepaid water meters meant for a project funded by government,” Matemba said.

Weekend Nation has gathered that on Thursday ACB executed search warrants on two premises in Lilongwe in connection with allegations and also conducted searches in Zomba where one person was arrested and arrested and computer equipment was seized from two officers of the LWB.

A highly-placed source at ACB said the bureau found that Swiss Investments was a bogus company that was contracted to purchase the meters under dubious procedures.

ACB uncovered the irregularities some time ago and embarked on investigations while led to a large-scale operation involving ACB staff and supported by investigators from the Fraud Investigations Division of the EIB.

EIB has been the major funder of water board projects across the country, but has recently blacklisted Blantyre Water Board (BWB) from being a recipient of its 8 million euro financing following audit irregularities relating to the project on construction of water kiosks.

Southern Region Water Board (SRWB) audit has also uncovered irregularities in the procurement of goods and services under the projects funded by the bank.

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