One of the country’s leading motor vehicle dealers, HTD Malawi Limited has been asked to pay back money to government for delivering second hand military vehicles to Malawi Defence Force (MDF) contrary to the initial agreement.
In the initial tender, MDF had clearly stated that the vehicles to be delivered must be brand new, a requirement HTD agreed to when signing the paper work. The tender was valued at K11 billion.
However, the company supplied second hand vehicles procured from South African National Defence Force (SANDF).
The vehicles were also of older model as they were used by SANDF in the 90s. It was, therefore, not surprising that they were all parked within six months from delivery.
Our impeccable sources in government say the Attorney General’s office has finalized investigation on the same and will soon demand money from HTD for this transaction which disadvantaged government. The figure to be reimbursed is yet to be disclosed.
It is believed that the ‘rotten’ deal benefited the then ruling Democratic Progressive Party who have strong links with HTD as one the party’s major financiers.
There have been media reports previously of how the company skirted around internal procurement processes in other tenders that also involved delivery of vehicles to Malawi Police Service, Malawi Prison Services and State House.
It was at State House where HTD found a soft spot in then Chief of Staff, Peter Mukhito, who helped the company to cut many corners in procuring government deals. It believed that Mukhito received huge sums of money from HTD for his role.