Govt seeks disposal of ‘Cashgate’ buses

The Malawi Government is asking the High Court to release  the six buses suspected to have been bought using Capital Hill Cashgate exploits at about K520 million (US$1 277 641.3) by Ministry of Tourism.

The Ministry of Tourism disowned the 65-seater Scania Marcopolo Torino buses supplied by Automotive Products Limited (APL), the local franchise dealer for Scania. They were procured by the ministry’s chief tourism officer Leonard Karonga.

The proposed release of the buses, coming through an application filed in the High Court’s Lilongwe Registry by Director of Public Prosecutions (DPP) Bruno Kalemba and set to be heard next week Wednesday, shocked defence lawyer for Karonga, Joseph Kamkwasi.

Kamkwasi said in an interview he was surprised why government wants to release the buses it previously disowned when his client has not even taken plea and the matter is not yet concluded in court.

Argued Kamkwasi: “Government argued it never acquired them, why not return them to the supplier and claim the money? Those buses are not yet in the custody of the court and have not been tendered as exhibit, how can such  property be disposed of?

“Government appears it needs the buses now, but what they are forgetting is that for government to procure any property, there are issues of tender involved. It is surprising government wants to acquire the buses without following procedures.”

He said government gave an impression that the buses were irregularly acquired and he did not expect government to have any interest to own them now when the matter was in court.

But Kalemba said if the buses stay idle for a long time, they may develop some problems or deteriorate. He argued that the law allows disposal of perishable goods even when the matter is not yet concluded.

The DPP said the disposal is in many forms, including government owning them, selling them through tender or returning them to the supplier if the supplier agrees to refund the money. He said if sold, the court would keep the money while awaiting conclusion of the matter.

But Kamkwasi laughed off Kalemba’s reasoning, arguing brand new cars are not perishables and suggested they can be taken care of by the dealer. He said cars, under the care of the dealer, can stay up to seven years or more.

The lawyer said his client was going to object to the application because it was not making sense.

According to the DPP’s application dated March 28 2014, the State wants a court’s order that the six Scania Marcopolo Torino buses fraudulently purchased in the name of Ministry of Tourism using government money be disposed of by the State.

Karonga, who was first arrested on October 17 last year by the Anti-Corruption Bureau (ABC) for allegedly conniving with different people to defraud government, was charged with money laundering and theft by public servant.

Although the transaction went through the Ministry of Tourism vote, principal secretary in the ministry, Elsie Tembo, and her minister Moses Kunkuyu said they were not aware of the purchase or the need for the buses as they were new in their respective positions.

Sources indicated the buses were already paid for in full even before they were delivered.

Forensic auditors from a British auditing firm, Baker Tilly, established that under the Joyce Banda administration, K13.6 billion was looted at Capital Hill between April and September last year.

The Cashgate scandal led to the budgetary aid freeze by the country’s major donors and several social services by government are suffering including medical care.