By Burnett Munthali
A storm is brewing over a K2.1 billion contract awarded by the National Economic Empowerment Fund (NEEF) to Luthando Holdings, as civil society voices serious concerns over alleged corruption, inflated pricing, and political interference.
The controversial deal, which involves the supply and delivery of 100 motorcycles at a unit cost of K21 million each, has attracted a formal complaint lodged with the Anti-Corruption Bureau (ACB) by a group of concerned Malawians, including social movement Malawi First.
The complainants are urging the ACB to launch an immediate investigation into the circumstances surrounding the procurement, which they believe may have breached both ethical and legal standards governing public procurement in Malawi.
According to the complaint submitted to the ACB, the timing of the contract award raises red flags, especially following a donation of motorcycles made by Luthando Holdings in October 2024 to the Shaping Our Future Foundation (SOFF), an initiative led by First Lady Madam Monica Chakwera.
While the donation was framed as part of Luthando Holdings’ corporate social responsibility, its close proximity to the awarding of the NEEF contract has triggered suspicions of a quid pro quo arrangement and possible political patronage.
The complaint further highlights the lack of transparency in the procurement process, citing the unavailability of evaluation results and absence of published competing bids as violations of open and competitive procurement practices.
The complainants argue that Luthando Holdings lacks a verifiable track record in delivering such large-scale supply projects, raising doubts about the company’s capacity to execute the contract.
Moreover, the pricing of the motorcycles has come under scrutiny, with the unit cost of K21 million each appearing to be grossly inflated when compared to prevailing market rates.
Without any public breakdown of the cost or comparison with market prices, concerns about value for money and potential financial abuse have taken center stage.
There are also allegations of possible informal connections between Luthando Holdings and public officials, which could have unduly influenced the awarding of the contract.
The entire procurement process, according to the complainants, may have violated the Public Procurement and Disposal of Assets Act due to a lack of fairness, competitiveness, and accountability.
In light of these concerns, the complainants are demanding a series of actions from the ACB, starting with a full-scale investigation into the procurement process to determine whether due procedures were followed and whether undue influence was exerted.
They are also calling for the disclosure of all tender documents, evaluation reports, and a clear justification for why the contract was awarded to Luthando Holdings over other potential bidders.
The role of SOFF and the Office of the First Lady in the awarding of the contract must also be examined to determine whether any political influence was exerted in the procurement process.
Furthermore, the ACB is being urged to conduct a thorough cost analysis of the motorcycles to establish whether public funds are being abused through inflated pricing.
The complainants are also requesting the immediate suspension of the contract to prevent any potential loss or misuse of public resources while investigations are underway.
They insist that the findings of the investigation must be made public to promote transparency, restore public trust, and ensure accountability in government procurement.
“This matter is of urgent public interest, and the precedent it sets may threaten the integrity of public procurement if left unaddressed,” the letter reads.
Among the key signatories to the complaint are activist Cde Edwards Kambanje and prominent civic voice Bon Kalindo, who have both vowed to continue pressing for answers and accountability.
They emphasize that it is the duty of the ACB to act swiftly and decisively to protect Malawian taxpayers from what they describe as exploitative and politically motivated procurement deals.
The allegations come at a time when public confidence in government spending is already fragile, following numerous reports of financial mismanagement and corruption in high places.
If substantiated, the concerns raised about this K2.1 billion deal could have far-reaching implications, not only for NEEF and Luthando Holdings but also for the credibility of the country’s procurement systems.
As the nation waits for a response from the ACB, one thing is clear—Malawians are watching closely and demanding answers.
