Lilongwe court has adjourned to 18 January a fuel testing van procurement case involving the former Malawi Energy Regulatory Authority (MERA) Chief Executive Officer Collins Magalasi.
On April 3, 2019, MERA awarded a procurement contract to City Motors, who indicated that they would procure the van on behalf of MERA at a cost of K 704 million.
On May 7, 2019, MERA paid K 563.2 million to City Motors as down payment for the procurement contract sum.
This was an 80 percent advance payment.
Despite this payment, City Motors never procured and supplied the van to MERA throughout 2019.
The deal was known to the public after Huma Rights Defenders Coalition (HRDC) reported to the Anti-Corruption Bureau (ACB) suspected fraud in the contract agreement for the procurement of the van.
Following an investigation by ACB, Magalasi was arrested.
