President Peter Mutharika’s wife Gertrude and his step son Tadikila Mabfuza have been implicated in a ‘ghost’ company scam which got a government contract worth K7.8 billion.
Local newspaper The Weekend Nation reported on Saturday that Black & Veach was awarded a lucrative contract worth K7.8 billion to provide technical support, supervision and management of the Kam’mwamba Coal fired Power Generation Project in Neno.
According to the paper, the company does not appear on the list of registered companies in the country despite getting the whopping contract.
But we have news that will shock Malawians! Black & Veach belongs to Mrs Mutharika and her son Tadikila Mafubza!
The two already got a payment of K1.4 billion for the contract.
“This contract was handled at the ministry of energy level because of its sensitivity. That is why even the senior managers of Kam’mwamba Power Generation Company (KPGC) were not aware of the contract, they were just told of the existence of the contract,” said our well placed source privy to the contract.
The paper also reported that KPGC did not take part in the negotiations of the contract and it was done at the Ministry level.
Insiders said Mrs Mutharika and Tadikila already cashed K1.4 billion to be used for procurement of protective gear for the yet to start project.
“The First Lady and Tadikila already got part payment of the contract. They said they wanted to buy protective gear so that when production starts, there should be no problems. So yes the money was paid to them,” said the source.
The newspaper also said Director of Public Procurement and Disposal of Assets (PPDA) Elias Hausi said the company was registered in the USA.
But USA embassy officials said they are not aware of the company.
Our source said the company is not registered and it cannot be found anywhere because ‘it is a briefcase company owned by the First Lady and Tadikila’.
“They can do all the searches in the world, this company will not be found. This is so because it is not registered, it is a briefcase company,” said our impeccable source.
Mrs Mutharika and her son are also said to have used various other companies with huge contracts with Electricity Supply Corporation of Malawi (Escom) some as high as K3.5 billion.
The source said Mrs Mutharika has been withdrawing millions of kwachas for the Escom contracts together with her son Tadikila.
“The First Lady and her son are probably richer than President Mutharika,” said the source.
Mrs Mutharika and her son Tadikila are never short of controversy. Recently Mrs Mutharika blew more than K60 million of taxpayers money to attend a seemingly private event, the graduation of Tadikila in the United Kingdom taking with her a horde of assistants and security personnel with her.
She was also joined on that trip by Vice President Everton Chimulirenji’s wife Judith who also took personal aides.