Citizens for Justice and Equity (CJE) says the Malawi Revenue Authority (MRA) followed all required procedures in awarding multi-billion-kwacha security contracts to three private companies, dismissing criticism from some civil society groups as baseless, Tuesday.
Addressing the media in Lilongwe, CJE chairperson Agape Khombe said the organization reviewed the procurement process and established that MRA complied with public procurement laws and regulations.
Khombe said allegations of wrongdoing surrounding the contracts are misleading and risk undermining lawful government procurement processes.
He said the Malawi Constitution does not prohibit individuals or companies linked to public officials from doing business with government, provided there is no breach of the law.
“Every person shall have the right freely to engage in economic activity, to work and to pursue a livelihood anywhere in Malawi,” Khombe said.
CJE said it believes economic participation should not be selectively restricted without clear legal justification and warned against politicizing procurement decisions.
MRA awarded the contracts to Masters Security Services, Kamu Guard Services and Iringa Security Services to provide security services at selected MRA offices for two years.
Masters Security Services, which has been publicly linked to Minister of State Alfred Gangata, was awarded a contract worth K3.3 billion, while Kamu Guard Services received K897.5 million and Iringa Security Services K1.14 billion.
However, the Malawi Human Rights Defenders Coalition (HRDC) has condemned the decision, arguing that awarding contracts to companies allegedly linked to individuals serving in government raises serious governance concerns.
HRDC chairperson Michael Kaiyatsa said in an interview that the decision was unacceptable and reflected a lack of transparency and accountability in the management of public resources.
HRDC has described the awarding of the contract as morally indefensible, saying Masters Security Services was previously prosecuted by MRA for allegedly tax certificates.