By Linda Kwanjana
Lawyer Bright Theu, representing controversial Blantyre businessman Mahmood Azhar Chaudhry, told journalists on Monday that the Ministry of Energy cancelled his client’s contract under the Malawi Rural Electrification Programme (MAREP) because of delayed supply of materials.
Theu made the remarks after a session at the Commercial Division of the High Court in Blantyre, where Chaudhry appeared in a dispute linked to the same contract.
However, findings from Ministry of Energy sources contradict Theu’s account. Documents show that Kumakoka Trading Company Limited, the proxy firm used by Chaudhry, breached its contract by failing to deliver materials despite receiving over half a billion kwacha in advance payment.
The materials, already in the country, were allegedly diverted to private markets. The Ministry, left without supplies, sued through the Attorney General’s Chambers to recover the funds.
The sources insist the MAREP contract was not cancelled as claimed, since the Ministry had already paid an upfront amount and was awaiting delivery until the supplier breached the agreement.
“If anything, we were surprised to hear that the container which was supposed to come to us was diverted. To make matters worse, the goods were cleared on the MAREP tariff by MRA, and what that means is that by taking the goods to the private market when they enjoyed MAREP tariff, that is fraud,” said one source.
According to the sources, once the goods arrived, the supplier was expected to formally notify the Ministry of Energy that the materials were ready and simultaneously request the balance of payment. Instead, the diversion of goods to private markets under the MAREP tariff raised suspicions of fraud and deepened the breach of contract.
This case, along with two other similar breaches, remains before the courts.
Weeks earlier, a whistleblower reported Chaudhry to the Malawi Police Service’s Fiscal Section, alleging that diverted MAREP materials were stored at a Blantyre warehouse.
In a statement dated June 8, 2026, the whistleblower said Chaudhry approached him in mid‑2025 seeking storage space for aluminium twin wire and stay wire. On June 2, 2025, 18 drums were delivered by Siku Transport.
The warehouse owner later discovered the goods belonged to MAREP under contract number 049‑IPDC‑MOE‑MAREP‑G‑NCB‑2021/22FY‑01 between Kumakoka Trading and the Ministry of Energy. He informed Fiscal Police, suspecting the goods were tied to the company’s failure to perform despite receiving advance payment.
The Ministry of Energy is pursuing Kumakoka Trading, Africa Green Economy, and Loui Holdings Group (PTV) Limited for allegedly pocketing nearly K1.4 billion in upfront payments under MAREP Phase 9 without fulfilling obligations.
Africa Green Economy received K698,050,991.00. Kumakoka Trading pocketed K523,538,243.57 while Loui Holdings Group breached the same contract, with an outstanding advance of K144,674,756.91 for undelivered cables.
