Saturday, March 2, 2024
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Government, Khato Civils Move to Impeach Chodzi Injunction Obtained Against Water Project Funding

Fryson Chodzi, standing in as an instrument used to oppose national water project

 

The Parliament in its April sitting passed a Bill enabling government to borrow money from NBS Bank and National Bank of Malawi who are positioned by the said Bill to be sponsors of Lake Malawi Water Supply Project. On 18th April, 2023 President Lazarus Chakwera assented to the passed Bill with his presidential stamp.

The instrument is enabling Government to borrow a total of MK105,000,000.00 from the two local banks   and other financial institutions for the financing of the Lake Malawi Water Supply Project which has delayed in its implementation largely due to external funding restrictions and challenges.

On Thursday, the 4th May, 2023, the Forum for National Development (FND) which is headed by a renowned Democratic Progressive Party (DPP) agent, Fryson Chodzi, obtained a Court injunction aimed at stopping the Government from implementing the project.

The project of which an implementing contractor is also a local construction conglomerate, Khato Civils, has gone through unprecedented uphill of derailment and unsuccessfully-attempted impediments largely sponsored by interested groups that have ranged from unsuccessful competing bidders to foreign financial institutions.

Added to the list of entities applying a fight against the project is a well-known local bank which also unsuccessfully applied to be a local financier for the project. The Government reportedly rejected its application for a trail of its corruption schemes, fraud and money laundering incidents perpetrated with the aid of the previous DPP regime.

Acting on behalf of this frustrated local DPP-linked bank is Forum for National Development (FND) whose leader is a well-known DPP cadet and operative, Fryson Chodzi.

Granting the injunction, Judge Manda who is allegedly reputed for issuing dubious injunction at an influence of bank notes, restrained the local banks from lending the Malawi Government the any money “on the basis of NBS BANK PLC AND NATIONAL BANK OF MALAWI PLC (LAKE MALAWI WATER SUPPLY PROJECT) LOAN (AUTHORISATION) BILL/ACT, 2023 until a further order of the Court”.

The Injunction further restricted the contractor, Khato Civils, from doing any performance on the project until further suggestions by Judge Manda or his alternative.

However, Shire Times understands that, both the contractor and the Government have stepped forward to the Court yard for a legal fight aimed at trashing the injunction. Representing Khato Civils in the action is lawyer Chancy Gondwe while representing the Government is the nominal principle legal counsel, the Attorney General.

Meanwhile, Shire Times understands that the contractor has already submitted its application this evening to oppose the injunction while the Attorney General is expected to file its application on Monday

 

 

 

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