FND Demands Government Accountability for K105 Billion Loan to Khato Civils: Raises Concerns Over Potential Misuse

Forum for National Development (FND) has requested government to bring forward the information on why it has decided to borrow K105 billion on behalf of Khato Civils Limited to finance the LIlongwe-Salima water project.

On Friday last week,FND obtained an injunction stopping National Bank of Malawi and NBS bank from releasing the K105 billion to Khato, a loan which Parliament approved in the just ended meeting.

Though Khato has moved to challenge the injunction, FND insists the funds shouldn’t be released, fearing that they may be abused.

National Coordinator for FND, Fryson Chodzi has told a press briefing in Lilongwe that Khato as a contractor was suppose to get a financier on its own and not government borrowing on its behalf.

Chodzi says the grouping has already penned Anti-Corruption Bureau (ACB) to investigate what happened with the project’s former financier Quay Energy and how the K25 billion was spent on the project when there is nothing on the ground.

Source: Mzika