By IOMMIE CHIWALO
The Centre for Democracy and Economic Development Initiatives (CDEDI) has penned Public Procurement and Disposal of Assets Authority (PPDA) to consider deregistering KADO Auctioneers for flouting best practices that evidently amounts to corruption.
In a letter addressed to PPDA Director General, Eddington Chilapondwa, CDEDI has also appealed for cancellation of all public contracts awarded to the company.
CDEDI Executive Director Sylvester Namiwa is arguing that with information at hand, there is need for suspending all public auctions involving disposal of public assets, pending due diligence of all the auctions registered by the PPDA.
He says though declared obsolete, most public assets have economic value that usually end up benefiting a privileged few, instead of the whole nation, notably the poor majority whose lives could be saved with proceeds realised from public auctions, if they did not end up fattening pockets of auctioneers and those connected to them as often happens.
Namiwa has highlighted the calls are necessary following complaints stemming from the public auction held at Lilongwe Water Board (LWB) on Saturday April 27, 2024, where a number of items were sold through a public auction and that from investigation point of view, it was clear that the water utility board exonerated itself from allegations bordering on the sale of a HINO lorry registration number 5 SC 53.
According to Namiwa, CDEDI received additional complaints, on how the above public auction was conducted and of particular attention is a demand letter from Mbulo Attorneys at Law dated May 7, 2024, acting on behalf of Innocent Salim Gama, allegedly the major shareholder of KADO Auctioneers and General Dealers under the banner DEMAND BY MR. INNOCENT SALIM GAMA FOR DETAILED REPORT ON RECENT PUBLIC SALES CONDUCTED BY KADO AUCTIONEERS AND GENERAL DEALERS.
“According to the above letter, KADO auctioneers conducted two public auctions, one at the Reserve Bank of Malawi and another at the LWB, allegedly behind the back of the partner who reportedly pumped into the company MK100 million, representing 51 percent shares and those that raised eyebrows over the matter insist that KADO Auctioneers violated some public auction laid down procedures in the manner this vehicle was sold since they further argue that the falling of the hammer on the Hino 500 truck (5 SC 53) happened in an irregular manner.
They, in fact, claim that there were bids as high as K15 million but, surprisingly, the vehicle was given away to a MK10 million bidder,” he narrates.
Namiwa is convinced that all pointers are clear that there are serious flaws that smack of fraud and corruption, saying after postponing the auction despite calling for fresh bids, KADO Auctioneers invited the five selected bidders to the re-auctioning when, in fact, it had already issued both the notification to pay and a bid certificate in favour of Mr. Fabiano Mnayi on April 30, 2024.
Efforts to get side of the story from KADO Auctioneers proved futile but LWB defended the auction despite numerous complaints.
Meanwhile PPDA has confirmed receiving the letter but is yet to comment on its contents.
