The Office of the Director of Public Prosecutions (DPP) says it is ready to prosecute the K2.4 billion fraud that took place from 2018 to 2020 at Nchalo GreenBelt Limited (NGBL) after reviewing the forensic audit report from 2022 regarding the latter. .

In an interview on Tuesday, DPP Masauko Chamkakala said: “The DPP’s office has finished reviewing the audit report and the case file. We are now verifying payments and beneficiaries. The matter should be in court soon.

“As per protocol, we will check the progress made by the Anti-Corruption Bureau (ACB) and see what areas we can focus on.”

The National Audit Office (NAO) report implicated at least 43 suppliers and 61 individuals who received payments from NGBL without providing proof of the goods or services they provided.

It also identified 35 individuals, including the chief executive, board members and directors, whom the report accuses of neglecting their duties, leading to the alleged misappropriation of funds.

The Agricultural Development and Marketing Corporation (Admarc) has entered into an agreement with NGBL to pre-finance the production of 4,700 metric tonnes (MT) of seed cotton with a loan facility of US$4.5 million (K7.87 billion at current exchange rate) from the Export Development Fund (FED).

As of 31 December 2020, Admarc has paid KK 2.5 billion, while NGBL has delivered seeds worth KK 92.2 million, leaving a balance of KK 2.4 billion.

ACB spokesperson Egrita Ndala is yet to respond to our query on what the office has done after the Blantyre Revenue Police arrested three former NGBL employees for allegedly embezzling K2.4 billion.

The suspects were identified as Imran Malidadi, 48, of Masinde Village, Malemia Traditional Authority (T/A) in Zomba District, who held the position of Human Resources and Administration Manager; Richard Nkhwazi, 46, of Bonje village, T/A Wasambo in Karonga district, who was the general manager; and Tozer Khonje, 77, of Nthunga village, T/A Mwamlowe in Rumphi district.

National Police spokesperson Peter Kalaya said in an interview on Tuesday that law enforcement officers are also looking for former GreenBelt Authority (GBA) Director General Henri Njoloma in connection with the same matter.

In an interview last week, GBA CEO Eric Chidzungu explained that the GBA board had previously sanctioned the forensic audit and that the report was later forwarded to the DPP’s office for action.

According to the findings of the forensic audit report which Weekend Nation saw, Admarc hired local farmers who had no experience managing a commercial project of this magnitude.

Furthermore, the report says no feasibility study has been conducted for the multi-billion kwacha project.

The report reads, in part: “The initial agreement was for working capital only, but there were no structures on the ground. The project was originally slated for 100 hectares, but failed catastrophically due to flooding, among other factors,

“However, Admarc advised NGBL to expand the project to 1,000 hectares despite the initial phase incurring losses.”

The findings also indicate that there is no evidence to suggest that EDF carried out a credit or risk assessment before allowing Admarc to channel funds to NGBL.

It writes: “Credit or risk assessment is mandatory and mandatory for any financier before granting a facility of this magnitude. It is not clear why this critical exercise was not carried out by EDF.”

EDF spokesperson Deliby Chimbalu asked for more time before commenting on what measures, if any, the institution has taken.

The audit report also revealed several alleged fraudulent activities, including purchase of plant, property and equipment, misuse of cashed checks, issuance of fraudulent checks without supporting documents, loan fraud and fraudulent administrative expenses.

Other findings included alleged fraudulent purchase of fuel, irregular purchase of spare parts for vehicles and machinery, abuse of office, fraudulent allowances for bosses and fraudulent purchase of fertilisers, chemicals, seeds, protective clothing and labor costs.

Admarc spokesperson Theresa Chapulapula, in an emailed response, indicated that the state-owned company sued NGBL for the difference between the amount financed and the seeds supplied, and the court awarded the company K2.2 billion in – a decision from 2021.

She said: “The matter is now in the enforcement phase as the defendant (NGBL) has no assets to honor its judgment claim. We are exploring other ways to enforce the judgment.”

Meanwhile, Parliamentary Public Accounts Committee (PAC) chairman Mark Botomani said the committee was not aware of the report’s existence, but that members would use the relevant legal provisions to ensure accountability was done.

Commenting on the matter, Center for Social Accountability and Transparency (Csat) executive director Willy Kambwandira called on the DPP to speed up the process and ensure that individuals involved in the robbery are brought to justice.

Kambwandira said: “It is deeply concerning that it has taken the DPP two years to complete an investigation into the Nchalo Green Belt robbery despite a forensic audit that clearly identifies those involved. The lack of arrests so far undermines public confidence in the investigation.”

The report shows that two contracts were signed, the first in May 2018 for 1,200 MT and the second in September 2018 for 3,500 MT.

Admarc’s late CEO, Margaret Roka Mauwa, and James Kaphale, Managing Director and Company Secretary, signed on behalf of Admarc. Managing Director Richard Nkhwazi and Agriculture Manager Tozer Khonje signed on behalf of NGBL.

In April 2018, Admarc applied for a $20 million (KK 35 billion) loan facility for agricultural marketing and crop production through contract farming. However, on 18 May 2018, the EDF board reduced the facility to $4.5 million.

The initial USD 4.5 million loan facility agreement between Admarc and EDF was signed on 27 June 2018. EDF CEO Rodrick Wiyo signed on behalf of the fund, while Mauwa and Harold Mwala signed on behalf of Admarc .