BLANTYRE--Malawian newspapers on Saturday exposed a K600 million fraud in the Malawi Police service and how government could be on the path to pay out millions in damages to several forex bureaus.
Malawi News, in its main story headlined Police Fraud: Govt blocks K600 million pay
, the article explains how the Police service "threw out a procurement recommendation" from the Office of the director of Public procurement (ODPP) to award a K600 million contract to supply uniforms and accessories to a South Africa company Genex Exports in favour of a local one, named Xelite Strips Limited.
This has raised a lot of suspicion as it is known who owns the local company and why the whole Police service subbed the ODPP recommendations.
The newspaper said the lid about the K600 million scam was blown off after a local bank refused to pay Xelite Strips because of a questionable signatory.
The question that should be answered is who owns Xelite Strips?
In the Weekend Nation, its main story was headlined Payout Frenzy
and it details how the government has been sued for K800 million by Victoria Forex Bureau, arguing it lost business in the last three years after it was forced to close.
Other bureaus have also claimed damages running in millions of kwacha after the Reserve Bank accused the bureaus of externalizing forex that led to serious shortages some years ago.
The payments have yet to be made as the issues have to be contested in court first between the bureaus and the Ministry of Justice.
The administration of Pres Joyce Banda is known to have settled out of courts claims by top civil servants who were booted before their contracts expired. Several cases are still in court, including the one by Clerk of parliament Matlida Katopola and Director of the ACB, Alex Nampota.
---(c) The Maravi Post 2012. Reproduction without acknowledgement prohibited