The country’s central bank Reserve Bank of Malawi (RBM) has been caught on MK1.8 billion procurement scandal.

This is according to Human Rights Defenders Coalition (HRDC) report being exposed to the media.

.In its letter dated 12th November 2020 to Anti-Corruption Bureau (ACB) boss Reyneck Matemba, HRDC chairperson Gift Trapence notes  allegations of abuse of office in the procurement of ATC Equipment (RBM/ICT/008) and procurement of ICT hardware for flexicube upgrade (RBM/Ict/007/02) of the Reserve Bank of Malawi.

Trapence says they received allegations that three companies bid for the procurement of ATS equipment: namely,Market Insights Tracking (Mitra) MK1,068,732,141.30; Sparc Systems Ltd MK 989,865,480.39 and Move Secure MK 874,980,291.80.

He adds that it alleged that bids for the procurement of ICT hardware for Flexicube upgrade were as follows: Oranux MK1, 049,631,250.82; Sparc System Ltd MK 976,851,674.00; and Mitra Systems MK 757,133,881.49.

However, notes Trapence, it is further alleged that only two companies, Sparc Systems and Mitra, passed the administration evaluation and proceeded to technical and financial evaluation.

“It is further alleged that Sparc Systems came first in this evaluation. It is, however, alleged that RBM has a policy that states that two big contracts cannot be given to one company and thus to hedge the risk, the evaluation team recommended splitting the awards.

“It is further alleged that this resolution was made even though Mitra has been in operation for less than three years and therefore does not have enough experience,” said Trapence.

Shocking it is alleged that when seeking “no objection” from PPDA, RBM doctored documentation to indicate only Mitra satisfied the bid requirements and thus recommended that both contracts should be awarded to Mitra.

HRDC hence has appealed to ACB to investigate these allegations.

Both central bank and ACB are yet to respond on the alleged MK1.8 billion procurement scandle.