Fiscal Police Department yesterday arrested four directors of privately-owned Foundation for Irrigation and Sustainable Development (Fisd) Limited over alleged fraud in its dealings with Malawi Government.
National Police Head quarter s spokesperson James Kadadzera confirmed in an interview yesterday the arrest of the four.
He said the Fiscal Police Department was investigating the company over alleged embezzlement of government funds, but fell short of citing the figures involved.
Kadadzera identified the suspects as Moses Chirambo, 40, from M ’ doni Village , Traditional Authority (T/A) Chikulamayembe in Rump h i ; Frank Mwenechanya, 40, from Mwakaboko Villag e , T/A Kilipula in Karonga; Kondwani Namchukwa,
40, from Njilika Village, T/A Kapeni in Blantyre; and, Arthur Mpama, 35, from Sosola Village, T/A Msamala in Balaka. 40, from Njilika Village,
He said: “The four suspects are directors of Fisd Limited Company. This company was awarded a contract by Ministry of Agriculture, Irrigation and Water Development to construct and rehabilitate water schemes in Ntcheu District.”
Kadadzera said the suspects will answer charges of conspiracy to defraud, forgery, uttering false document, theft by public servant, obtaining money by false pretence and money laundering.
The development comes on the back of a protracted legal wrangle in the High Court of Malawi Commercial Division between Fisd Limited and government as well as the African Development Bank on the management of a water supply project contract the firm was awarded in Ntcheu.
Lawyer Gift Nankhuni, who is representing the arrested officials, yesterday asked for more time to comment on the matter.
Separate civil procedures surround the termination of the November 2017 contract by government through the Ministry of Water Development and Irrigation granted to Fisd Limited to rehabilitate and expand gravity water supply systems at a cost of K2.4 billion.
Fisd Limited is jointly owned by a team of Malawians with expertise in various fields