Controversial businessman Mahmood Azhar Chaudhry, a Pakistani-born businessman who later acquired Malawian citizenship, has been linked to a Ministry of Energy contract worth more than MK2.4 billion under Phase 9 of the Malawi Rural Electrification Programme (MAREP)
Investigations allege that Chaudhry fronted Kumakoka Trading Company, one of three firms now facing legal action over alleged failure to deliver materials after receiving substantial advance payments from the government
According to court documents, Kumakoka Trading Company received an advance payment of MK523,538,243.57 but allegedly did not supply the contracted materials
vement has raised concerns about the integrity of the procurement process
“If one is fronting a company in bidding processes, obviously that is suspicious. These are matters for authorities to investigate,” a Ministry of Energy
The Attorney General’s Chambers is seeking to recover more than MK1.4 billion in upfront payments made to Kumakoka Trading Company, Africa Green Economy, and Loui Holdings Group (PTV) Limited. The three companies are accused of receiving government funds but failing to fulfil their contractual obligations
Court records indicate that Africa Green Economy received MK698,050,991.00, while Loui Holdings Group (PTV) Limited was paid MK144,674,756.91
The Ministry of Energy is also seeking interest, damages, and compensation, arguing that the alleged breaches resulted in increased project costs, inflation-related losses, and delays in extending electricity to rural trading centres under the MAREP programme
Africa Green Economy has acknowledged the government’s claims and is pursuing arbitration. The company has proposed repaying the principal amount in 30 monthly instalments, although it disputes liability for interest and damages
Loui Holdings Group has admitted that it only partially fulfilled its contract, attributing its failure to complete the remaining 20 percent of supplies to currency devaluations
Kumakoka Trading Company’s lawyer has also confirmed receipt of the Attorney General’s claim and indicated that the company has opted for arbitration
Chaudhry declined to comment when approached
The Ministry maintains that recovering the funds is essential to protect public reMAREP procurement contracts
Editor’s note: The allegations against Mahmood Azhar Chaudhry and the companies involved are the subject of ongoing legal proceedings. No court has yet determined liability or criminal wrongdoing
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