By Linda Kwanjana
Controversial businessman Mahmood Azhar Chaudhry, a Pakistan national who acquired Malawian citizenship, is alleged to have fronted Kumakoka Trading Company in a Ministry of Energy contract worth over K2.4 billion under the Malawi Rural Electrification Programme (MAREP) Phase 9.
Investigations reveal Kumakoka received an advance payment of K523,538,243.57 but failed to deliver the contracted materials.
Ministry insiders say Chaudhry’s involvement raises “serious red flags” about fraud and criminal intent in public procurement.
“If one is fronting a company in bidding processes, obviously that is suspicious. These are matters for authorities to investigate,” a source at the Ministry of Energy told us.
The Attorney General’s Chambers is pursuing recovery of over K1.4 billion in combined upfront payments from Kumakoka and two other firms—Africa Green Economy and Loui Holdings Group (PTV) Limited—all accused of failing to supply materials despite pocketing government funds.
Court documents show Africa Green Economy received K698,050,991.00, while Loui Holdings Group took K144,674,756.91.
The Ministry is demanding refunds with interest, damages, and compensation for escalated project costs, inflationary pressures, and delays in electrifying rural trading centres.
Africa Green Economy has acknowledged the claims and is seeking arbitration, proposing repayment in 30 monthly instalments but excluding interest and damages.
Loui Holdings Group admits partial supply, blaming devaluations for its failure to deliver the remaining 20 percent of materials.
Meanwhile, Kumakoka’s lawyer confirmed the Attorney General’s claim, but said their client was.opting for arbitration.
Chaudhry himself declined to comment.
The Ministry insists recovery of funds is critical, not only to safeguard public resources but also to restore confidence in the integrity of MAREP contracts.
