REQUEST FOR MACRA BOARD TO PROBE THE PURCHASE OF CONSOLIDATED ICT REGULATORY MANAGEMENT SYSTEM (CIRMS) MACHINE

The Chairperson 

MACRA Board of Directors

C/o MACRA

Salmin Amour Road

Private Bag 261

Blantyre

For the attention of Dr. Stanley Khaila

                                                                                                                 29 MAY, 2023

Dear Board of Directors,

REQUEST FOR MACRA BOARD TO PROBE THE PURCHASE OF CONSOLIDATED ICT REGULATORY MANAGEMENT SYSTEM (CIRMS) MACHINE

We hope this letter finds you well. We are writing to you on behalf of the Malawi Human Rights Defenders Coalition (HRDC) to bring to your attention concerning matters related to the procurement of the Consolidated ICT Regulatory Management System (CIRMS) machine by the Malawi Communications Regulatory Authority (MACRA) from Agilis International Inc, a US firm, in 2011 for a total cost of $22,961,719. We believe that there are several significant anomalies in the procurement process and subsequent software upgrades, which warrant a thorough investigation by the Board.

Recently, the HRDC discovered, through a court arbitration award, crucial details regarding the procurement of the CIRMS machine. It was revealed that MACRA had paid a staggering sum of $13,891,969 over ten years for software upgrades alone, surpassing the initial procurement cost. Furthermore, an arbitration hearing has ruled in favor of MACRA, ordering Agilis International Inc to refund the full amount due to their failure to meet the contract’s conditions. However, we contend that there are additional irregularities that need to be examined to understand the flawed nature of MACRA’s contract with Agilis International Inc.

Firstly, a cursory internet search reveals that Agilis International Inc lacks a known physical address, online presence, or even a website. Such a deficiency is perplexing for a  company that claims to be an internationally renowned IT services firm. This raises concerns about whether due diligence was adequately conducted for the companies that submitted bids for the provision of the CIRMS machine. We, therefore, urge the Board, in its investigative efforts, to scrutinize the tender documents closely and ascertain whether all guidelines were adhered to during the contract award process.

Additionally, we are deeply troubled by MACRA’s decision to continue paying Agilis International Inc a substantial amount of $13,891,969 for software upgrades over a span of more than ten years. This revelation emerged during the arbitration hearing, where it became evident that Agilis International Inc had failed to fulfill three out of the four deliverables stipulated in the contract. It is essential for the HRDC, as well as the entire nation, to understand the rationale behind MACRA’s choice to continue making these significant payments despite the evident breach of contract by Agilis International Inc.

In light of the aforementioned concerns, we strongly believe that a comprehensive investigation by the Board is necessary to shed light on the circumstances surrounding this contract. We hope that through this inquiry, we can obtain clarity regarding the procurement process and address the lingering questions that have arisen.

We appreciate your attention to this matter and kindly request that you keep us informed of any progress made in the investigation. Should you require any additional information or assistance from our organization, please do not hesitate to reach out to us.

Thank you for your prompt attention to this urgent matter. We trust in your commitment to transparency and accountability in ensuring the proper functioning of MACRA.

Yours sincerely, 

Gift Trapence | National Chairperson 

Beatrice Mateyo – Board Member | Michael Kaiyatsa – Board Member | Madalitso Banda – (Regional Chair – Eastern Region) | Masauko Thawe – (Regional Chair – Southern Region) | Walita Moya – (Regional Chair – Northern Region)