Africa-Press – Ethiopia. Every Malawian could feel the pinch if government loses a court battle over a controversial military equipment contract worth over K53 billion. Former Malawi Defence Force (MDF) Commander General Henry Odillo took the stand in the High Court in Lilongwe on Monday, testifying in a case where Attorney General Thabo Chakaka-Nyirenda is challenging a $30 million (about K53 billion) interest claim by businessman Shiraz Ferreira, owner of SF International.
Ferreira is demanding the money as interest for what he claims was delayed payment on a contract to supply troop transport vehicles to the army.
But Odillo, who left MDF in June 2014, revealed that by the time he exited, SF International had delivered only 10 out of 180 promised troop carrier trucks, and just four out of 12 Samiel trucks.
He stressed he had no authority over foreign currency payments, which were the responsibility of the Secretary to the Treasury.
Under cross-examination, Odillo said no trucks were rejected and all met military standards, but maintained he would not have allowed the deal to skip public procurement processes.
Ferreira previously admitted receiving some payments, but blamed delivery delays on government interference.
In a twist, Ferreira also confirmed he is still in debt over a separate K4 billion contract with Malawi Police Service and is unsure whether government repaid the commercial bank that backed the deal.
Economist Jonathan Kantayeni from PPDA and ACB investigator Flattery Nkhata also testified. Nkhata returns to court today at 9 a.m. for further cross-examination.
The outcome of the case could cost taxpayers billions, raising serious questions about accountability in high-level government contracts.
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