Minister bribed in Air Malawi/Comair deal
Nyasa Times 27 October, 2008 01:00:00
Gondwe: Made several advance arrangements with Comair to buy major stakes in new airline
Malawi’s well respected minister of finance, Goodall Gondwe has been implicated in benefiting from corrupt means in the sale of the country’s flag carrier, Air Malawi to Comair of South Africa.
Nyasa Times has gathered information implicating Gondwe to have received knowing gratification from Comair in the deal to sell the country’s airline.
Government disclosed a few weeks ago that it would liquidate Air Malawi company and establish a new one jointly with a partner, Comair.Comair, according to a leaked memo from Finance Minister Goodall Gondwe to President Bingu Mutharika dated September 10, 2007 Ref. Number MF/3/19,could have taken over Air Malawi by December 1, 2007.
Gondwe told the last budget meeting of the national assembly that the airline has become a public liability.
Sources say Comair has made several advance arrangements with the Minister of Finance to buy stakes that are major in the National Airline.Gondwe met officials from the company in RSA (Michael Angelo Hotel) in June 2007, January, March, May and June through the then Minister of Transport Henry Mussa whereupon they were promised K40 million as a bribe.
In addition, the duo have from that time been hosted by officials of Comair in RSA and they are either accommodated at Michael Angelo, Intercontinental or Regents Hotels in Sandton.
Nyasa Times investigation reveals that Gondwe opened an account with Standard Bank with the 70,000 South African Rands he got from a Mr. Meyer acting on behalf of Comair.
A housing plot was identified in midlands between Johannesburg and Tswane area for the construction of a house but Gondwe opted for Gallager Residential area.
“When there was stiff from the then Chairperson Jimmy Koreia Mpatsa, Goodall Gondwe told Comair through Mr. Meyer to purchase a house at Isando closer to OR Tambo International Airport,” disclosed a well-placed source.
Malawi’s Finance Minister thus opened an investment account with ABSA bank close to Eastgate in August 2007.
This account, according to investigations has never done any transaction with a Malawian bank and all deposits are from within RSA.
In the interim Gondwe has officially communicated to the Privatization Commission and this official correspondence was forwarded to Comair as evidence so that the transaction for the Isando House can start in earnest.
Government is offering 49 percent shares in the new airline to Comair, with an option for the new operator to buy up to 80 percent of the stakes.
However, many Malawians criticised the sale of the flag carrier as former finance minister Aleke Banda said it will be a “huge mistake” for government to dispose off Air Malawi.
“It is important to preserve some of the national assets. Actually, government should do everything possible to save the airline. I know of countries that are regretting their decisions to dispose their airlines in a hurry,” Aleke who recently announced retirement form “hard core politics” said recently.
Another former finance minister Friday Jumbe said there was need for government to revitalize the ‘struggling’ airline for the sake of national pride.
Air Malawi established by an Act of Parliament and started operations in September 1967. has only three aircrafts, AT42-320, Boeing 737-300 and Boeing 737-500.
AT42-320 has a capacity of 50 passengers while Boeing 737-300 has a capacity of 116 passengers and are both used for short haul routes. Boeing 737-500 has a capacity of 132 and is being used for both short and medium haul routes.
“Air Malawi is technically bankrupt and keeping it as is, is basically betraying tax-payers in Malawi who require these resources for better use (health, education etc). Zambia has no national airline, but its airports are busier than those in Malawi. The private carrier currently operating has grown by the day,” argued economist Watipaso Mkandawire on his blog.
Mkandawire said succumbing to the “reality in the world of flying” he is supporting that Air Malawi should be liquidated