A potentially costly legal showdown is unfolding in the High Court in Lilongwe, where the Malawian government is fighting to block a $30 million (approximately K53 billion) interest claim tied to a controversial military procurement deal. If the government loses, taxpayers could be on the hook for billions.
On Monday, former Malawi Defence Force (MDF) Commander General Henry Odillo took the witness stand in the case, which centers on a contract awarded to businessman Shiraz Ferreira, owner of SF International. Ferreira is demanding compensation for what he alleges was delayed payment on a deal to supply troop transport vehicles to the MDF.
General Odillo, who stepped down in June 2014, testified that by the time of his departure, SF International had delivered only 10 of the 180 promised troop carrier trucks and four of the 12 Samiel trucks. He clarified that he had no authority over foreign currency payments, which fell under the jurisdiction of the Secretary to the Treasury.
Under cross-examination, Odillo confirmed that none of the delivered vehicles were rejected and all met the military’s technical requirements. However, he emphasized that he would not have approved any procurement process that bypassed established public procurement procedures.
Ferreira has admitted to receiving partial payments for the contract but attributed delays in delivery to government interference. In a revealing twist, he also acknowledged that he remains indebted under a separate K4 billion contract with the Malawi Police Service and is unsure whether the government repaid the commercial bank that financed that deal.
The case also heard from economist Jonathan Kantayeni of the Public Procurement and Disposal of Assets Authority (PPDA) and Anti-Corruption Bureau (ACB) investigator Flattery Nkhata. Nkhata is expected to return to the witness stand for further cross-examination at 9 a.m. today.
As the case unfolds, the financial implications could be far-reaching, raising tough questions about transparency, oversight, and accountability in Malawi’s handling of large-scale government contracts.
