KHATO CLARIFIES $7 MILLION LILONGWE WATER BOARD PAYMENT | AfriTV Online

Khato Civils, a company awarded a multi billion Lilongwe-Salima water project, has clarified that the $7million it got from the Lilongwe Water Board was part payment for the engineering services and designs, which South Zambezi did on the project.   Kh...

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KHATO CLARIFIES $7 MILLION LILONGWE WATER BOARD PAYMENT

Published by: A. Odean
11/02/2020 10:28 AM

Khato Civils, a company awarded a multi billion Lilongwe-Salima water project, has clarified that the $7million it got from the Lilongwe Water Board was part payment for the engineering services and designs, which South Zambezi did on the project.

 

Khato is geared to execute the much-awaited project to tap water from Salima to Lilongwe with a reduced cost by about US $102 million. The clarification follows a spate of speculations on the social media querying the reasons for the $7million payment.

 

Khato Civils chief executive officer Mongezi Mnyani, responding to a Nyasa Times questionaire on Sunday, clarified that there is nothing new, deceitful or secretive about a payment which he said was for invoices submitted in relation to work done in respect to the Salima-Lilongwe Water project.

 

He said as at the time of the payment in 2018, there were cumulative invoices of US$55m for works done in respect to Geotech surveys, preparation of feasibility studies, concept designs, detailed designs, seismic surveys, engineering peer reviews and mobilization of engineering personnel and equipment. 

 

Mnyani emphasized that there is no official from the Malawi Government or Lilongwe Water Board who has benefited directly or indirectly from this pretty straight forward transaction which is well documented in public domain through mainstream media. The parastatal took a $17 million loan from National Bank approval by former Finance minister Goodall Gondwe and guaranteed by Treasury to settle the Khato’s invoices.

 

Reads one of the communications from Gondwe: “Therefore I am pleased to inform you that government consent is granted allowing Lilongwe Water Board to borrow an amount not exceeding US$17,000,000 from National Bank of Malawi.”

 

But ever since the award of the contract, there have been numerous allegations and reservations by a number of parties, some of whom have gone to the extent of using mercenaries to fight their dirty battles for reasons best known to themselves. The multibillion Kwacha project, once completed would address water challenges in Malawi’s capital, Lilongwe, and the surrounding districts.

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