Malawi government has finally confirmed Bohnox Enterprise Ltd. (a subsidiary of Paramount Group of companies) tricked them on the sale of the presidential jet.
And it has also confirmed that money realized from the controversial presidential jet didn’t reach either Treasury or the Reserve Bank of Malawi (RBM).
But instead the Presidential Jet was sold in the old barter type of trade.
Speaking to journalists in Lilongwe, Finance Minister Maxwell Mkwezalamba said the presidential jet was sold to Bohnox Enterprise Ltd. at US$15 million.
Mkwezalamba said the money was not deposited into government’s consolidated account but highest bidder Bohnox Enterprise Ltd. paid directly to Paramount Group where government owed the company about US$19.2 million for military equipment.
He therefore said government then utilized money allocated to the Ministry of Defense which was earmarked to cover up the debt
According to Mkwezalamba, about K2.8 billion was used to purchase peace keeping military equipment, K1.5 billion for procurement of maize, about K1.5 billion for medical drugs.
The Office of President and Cabinet (OPC) earlier told the media that the jet money was saved in a separate government account but Chief Secretary Hawa Ndilowe admitted that government goofed on its remarks as it was just a cover up of the issue.
However on Tuesday President Joyce Banda was on record to say that government used part of the jet money for the procurement of farm input loan program materials, which government officials say it is not true.
The government officials have however refused to issue receipts of the sell of the jet.