Startling revelations in the High Court have exposed serious financial mismanagement during the Democratic Progressive Party (DPP) administration, with a government contractor admitting to being overpaid by nearly MK6.6 Billion (US$3.9 million).
During court proceedings in Lilongwe this week, Shiraz Ferreira, the owner of SF International, acknowledged that his company received an overpayment of MK2.4 billion (US$1.4 million) for supplying military equipment to the Malawi Defence Force (MDF).
This admission came after Ferreira was pressed by Attorney General Thabo Chakaka-Nyirenda who later demanded recalculation of contract figures in court using a calculator.
Ferreira blamed the overpayment on an error by his accountant, James Lindani of Simeon & Mathews Advisory Services. But this explanation was quickly overshadowed by Lindani’s earlier admission in the same court that SF International had already received another excess payments of MK4.2 billion (US$2.48 million).
Combining both figures, the AG concluded that SF International was overpaid by almost MK6.6 billion (US$3,896,156.15) – a sum too large to be easily explained as a mistake.
“This cannot simply be an accounting error. This is a deliberate abuse of public funds,” said a senior legal observer outside court.
This is what compelled the AG’s office to file a counterclaim against SF International, which had sued the government in the High Court, Commercial Division, demanding MK11.9 billion (US$6.9 million) in compound interest due to alleged delays in payment under a MK51.9 billion (US$30 million) contract signed between 2012 and 2017.
Further damaging revelations included Ferreira’s admission that he also received a MK11.9 billion (US$7 million) advance from the government before delivering any equipment during the DPP-led government under former President Arthur Peter Mutharika.
The court also learnt that Ferreira clandestinely and through the help of high ranking officials within the DPP administration managed to obtain highly confidential legal documents, including internal correspondence from the AG’s office and other government departments plus the MDF.
The Attorney General questioned Ferreira on how he got hold of these documents only for Ferreira to respond: “I believed the documents would benefit my case.”
As the courtroom drama unfolded, proceedings were cut short when Ferreira’s lawyer, Shabir Khan, suffered a severe coughing fit and was rushed for medical attention. Justice Dr. Chifundo Kachale, who is presiding over the case, adjourned the matter, setting the next hearing for June 2 to 4, 2025.
The case, now closely watched by the public, has sparked outrage over the apparent recklessness in managing public contracts, with many calling for full accountability for those responsible for draining taxpayer resources.
