CDEDI demands forensic audit on Malawi Airlines

Centre for Democracy and Economic Development Initiatives (Cdedi) officials have written Attorney General Thabo Chakaka-Nyirenda demanding forensic audit operations of Malawi Airlines.

In a statement, Cdedi claims there are some ‘systematic anomalies’ in the operations of the airline which was established through a public-private partnership (PPP) agreement in 2014.

Under the agreement, Malawi Government has 49 percent stakes in Malawi Airlines while the Ethiopian Airlines (ET) has 51 percent shareholding. 

In its letter to the AG dated January 8 2024, Cdedi says as expected dividends were supposed to be declared by Malawi Airlines and made public and failure to do so begs the question as to how Malawians are benefiting from the arrangement.

The civil rights group has since implored the AG to recommend forensic audit for Malawians to know how much Ethiopian Airlines brought as their equity contribution and also how much in profits have been declared so far.

Further, Cdedi wants an explanation with the evidence on what Malawi has benefited since the airline was established 

“Cdedi’s independent investigations show that Ethiopian Airlines deliberately failed to register the airline code for Malawi instead it opted to use ET as the boarding code for Malawian Airlines. 

“This systematic ‘anomaly’ allows Ethiopian Airlines to receive all air ticket money realised from travel agents across the globe who sale tickets on behalf of Malawian Airlines.

“Consequently, Malawi Airlines does not have any idea the amount realised on a monthly basis,” reads the letter. 

According to Cdedi, another interesting aspect of the contract is that all aircraft belong to Ethiopian Airlines and operate as Malawi Airlines on lease, meaning in the event there is termination of contract Malawi will be left without any aircraft. 

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