The National Construction Industry Council (NCIC) has finally suspended about 25 contractors and has completely deregistered 2 contractors involved in the Cashgate scandal. The suspended companies include Oswald Lutepo’s O and G Construction Company, Laura Savala’s Hury Civil and Building Contractors,
While Stafford Mpoola’s Stadal Building Contractors and W.G Construction owned by Godfrey Dzanjalimodzi have completely unregistered, Osward Lutepo, who remains the prime suspect in the massive theft of billions of government resources, is said to have received over 1 billion Kwacha from Government without offering any services.
The businessman who has turned out to be a state witness in the scandal is very much connected and is also accused by government of K2.6 billion theft and money laundering. Hury Civil and Building Contractors whose owner is Laura Savala pocketed 160 million Kwacha.
Mpoola, the owner of Stadal Building Contractors is suspected to have been paid 1 billion Kwacha (about $2.5 million) while W.G Construction owned by Godfrey Dzanjalimodzi is accused of pocketing about 380 million Kwacha without any contract with government.
The suspension comes after the Suspension 46th Meeting of the Ethics and Disciplinary Committee held on 4th April, 2014.
According to the National Construction Industry Council (NCIC) CEO Linda Phiri, the decision for their suspension is in line with approved disciplinary rules and code of ethics for all contractors in the country.
“Penalties that have been imposed to the contractors is not an indication of them being guilty but in line with the ongoing criminal proceedings taking place in the courts,” said NCIC boss Linda Phiri.
She has however appealed to stakeholders to first verify with her organization before awarding of construction to contractors.
As it stands, the suspended contractors cannot carry out any business in the construction industry in the country.
The National Construction Industry Council (NCIC) was established under the Laws of Malawi and one of its functions is to exercise disciplinary control over the conduct of any person engaged in construction industry and practicing in the country