Regulator suspends, deregisters Cashgate contractors
The National Construction Industry Council (NCIC) has suspended or deregistered about 27 contractors caught up in the Cashgate trap and warned various stakeholders not to award contracts to the companies.
At least two companies, Stadal Building Contractors belonging to Staffold Mpoola and WG Construction belonging to Godfrey Dzanjalimodzi have been struck off the register while 25 others have been suspended pending the conclusion of cases of theft and money laundering currently in court.
The suspension follows consideration of the report of the Ethics and Disciplinary Committee held on April 4 this year on contractors allegedly involved in Cashgate after considering their professional conduct.
“The penalties being imposed by the council on the contractors are not an indication of the guilt or otherwise of the said contractors in the ongoing criminal proceedings taking place in the courts,” NCIC chief executive officer Linda Phiri said in a press statement on Monday.
Dzanjalimodzi has pleaded not guilty to charges of theft and money laundering of government funds amounting to K338 million which he is alleged to have obtained from the Ministry of Tourism through his company WG Construction when it had not supplied any service to government.
Mpoola’s Stadal Building Contractors has been deregistered following allegations that he siphoned money amounting to K1.1 billion from the Office of the President and Cabinet (OPC) through the company.
Among the list of suspended contractors is O and G Construction belonging to former People’s Party (PP) heavyweight Oswald Lutepo who is accused of siphoning close to K1.2 billion from the OPC without rendering any services.
Carmu Civil Engineering belonging to Caroline Savala has also been suspended as she is accused of pocketing about K49 million from the Ministry of Tourism when her company had not rendered any service to government.
Zozama Civil Engineering, belonging to Mkhuzo Chirwa, is also facing criminal charges after he allegedly deposited three government cheques worth K55 million, K40 million and K20 million between August and September, 2013 into Clive Engineering Company owned by Denis Mwezi Mhango which he later on collected.
Both Zozama and Clive Civil Engineering companies have been suspended for their involvement in Cashgate.
