MPC rejects Lilongwe Water Board’s request to have Itaye redeployed as Postmaster General

LWB CEO Godfrey Itaye

By Duncan Mlanjira

Malawi Posts Corporation (MPC) board of directors has rejected the request by Lilongwe Water Board to redeploy Godfrey Itaye to be the Postmaster General.

In a letter dated November 25, 2020 by MPC chairperson of the board, Noel Mkulichi, says recruitment of the Postmaster General  shall be effected after MPC’s Turnaround Strategy that has already been approved by government.

The letter says as a statutory corporation, MPC draws its mandate from the Communications Act of 2016 and the functions of the Corporation, including recruitment of the Postmaster General, are vested in its Board of Directors.

“The Board is expected to substantively fill the position of the Postmaster General in compliance with the Act and other statutory guidelines,” says the letter.

“At the opportune time, the MPC Board will float an advert, shortlist, interview and hire a Postmaster General that meets the requirements of the job.

“The Board’s keen interest is in the effectiveness of the key drivers of the Turnaround Strategy, including that of the Postmaster General to be recruited.

“The Board, therefore, declines your offer of redeployment of your chief executive officer as this is defective and is against the Tonse Alliance Government Philosophy.”

Mkulichi concluded by saying this is in line with President Lazarus Chakwera’s call for MPC to turn from loss to profit making and the Board’s agenda is make MPC to become a digitally driven organisation and it is its considered view that their stand “will be respected and appreciated”.

The memorandum No. BC/03 to MPC Board was written on November 19, 2020.

Itaye is embroiled in corruption and fraud allegations that took place when he was director general for Malawi Communications Regulatory Authority (MACRA) and when he was transferred to become LWB CEO a warrant of arrest was executed on him.

Following his arrest, the European Investment Bank (EIB) wrote Ministry of Finance attaching serious conditions that unless Itaye is removed at LWB, Malawi risked not to be granted its request made in May 2020 to increase financing of the construction of Lilongwe’s treatment works (TWIII).

The EIB is financing the project to construct a new water treatment plant and its associated works with coordination the World Bank and the financing was waiting the approval of the executive management later that month.

However, EIB reminded the Ministry of Finance of the irregularities at LWB some three years ago that involved the procurement of prepaid water meters that led to an investigation by the Anti-Corruption Bureau (ACB) which was supported by the EIB’s Fraud and Investigations Division.

Charges were brought against a number of individuals including Sinosi Maliano, who as of October was still employed by LWB as Head of Production and Distribution.

As a requirement of their lending, EIB asked Ministry of Finance that while he faced charges Maliano would be required to have no involvement what so ever in their project.

Jointly with World Bank, the EIB wrote a letter to Ministry of Finance in March 2020 highlighting their concerns of management changes at LWB from which the Ministry responded in April, assuring that the new CEO would be competitively recruited.

But the two donors never received that communication of assurance and only learnt through the media that Itaye, who had just been redeployed to LWB had been arrested.

This development, according to the EIB letter, was negatively going to impact the conclusion of the finance contract as they were unable to have persons under criminal charges involved in their projects.

Following EIB’s letter, Human Rights Defenders Coalition asked government to act on the concerns raised but nothing was done until now with LWB Board asking for Itaye’s redeployment.