K183 Million ‘ghost contract’ scandal: CDEDI demands action as ACB file “vanishes” in EGENCO–aga deal

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By Suleman Chitera

A storm is brewing over a controversial US$105,650 (about K183 million) consultancy contract at the Electricity Generation Company of Malawi (EGENCO), with the Centre for Democracy and Economic Development Initiative (CDEDI) accusing authorities of presiding over what appears to be a “ghost contract” and a shocking collapse of accountability systems.

In a hard-hitting complaint to the Anti-Corruption Bureau (ACB), CDEDI Executive Director Sylvester Namiwa alleges that EGENCO irregularly awarded a consultancy contract to Hong Kong-based AGA Limited on March 24, 2023, under contract number EGC 581/55/G/FY 2022-23.

The contract, meant for a Grid Integration Assessment for the Chimgonda Hydropower Plant, is now at the center of serious allegations that no actual work was ever done—raising fears that millions in public funds may have been siphoned off under the guise of consultancy.

Even more damning are claims that EGENCO’s own planning and procurement departments were completely sidelined during the awarding of the contract. Such a move, if proven, represents a blatant violation of public procurement procedures and a deliberate weakening of internal controls designed to prevent abuse.

But the scandal does not end there.

CDEDI says the matter was previously reported to the ACB, and a case file was officially opened—only for it to mysteriously disappear without trace. The organization further alleges that the Financial Intelligence Authority (FIA), which was copied in the complaint, also “lost” key documents linked to the same القضية.

To critics, this is not mere administrative failure—it is a dangerous signal of possible institutional capture or deliberate obstruction of justice.

“This is not just about one contract. It is about a system that is either broken or being manipulated to protect wrongdoing,” argue governance observers following the case.

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CDEDI has now issued a direct challenge to the ACB: reopen the case, reconstruct the missing file, and deliver a transparent investigation that restores public confidence.

The silence from both EGENCO and AGA Limited has only intensified suspicion, with stakeholders questioning how a foreign firm could walk away with millions for work that allegedly never existed.

At stake is more than K183 million—it is the credibility of Malawi’s fight against corruption.

If institutions mandated to investigate graft cannot account for their own records, the implications are chilling: accountability becomes optional, and impunity thrives.

All eyes are now on the ACB. The public is waiting—not for statements—but for action.

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