MRA still mum on allegations of procurement favors to corruption-tainted SICPA in fiscal marks contract

The Malawi Revenue Authority (MRA) is facing a fierce backlash from citizens, businesses, and concerned industry players after its controversial decision to award a key fiscal tax stamps contract to SICPA, a Swiss company mired in a web of corruption allegations. Despite mounting concerns and undeniable evidence that MRA flouted its own procurement guidelines, the Authority has remained tight-lipped, fueling suspicions of foul play and prompting cries for accountability.

A Shocking Twist in the Tender Process
The controversy erupted after it was revealed that MRA ignored its own procurement procedures to accommodate SICPA, a company with a long and documented history of corrupt practices. The tender, launched in April 2021, was for the supply and retailing of fiscal tax stamps—a crucial service for the nation’s tax collection system.

MRA’s guidelines explicitly state that any company with a history of corruption, fraud, or unethical conduct would be disqualified from the bidding process. The rules were clear: companies found to have engaged in corrupt practices would be barred from participating in public procurement for a specified period. Yet, SICPA, a company implicated in a massive bribery scandal in Brazil, not only participated in the tender but was poised to secure the contract despite the overwhelming evidence of its corrupt past.

Corruption-Tainted SICPA’s Dark History
A quick investigation into SICPA’s history reveals disturbing facts. The Swiss company has been embroiled in a scandal of unprecedented proportions in Brazil, where it was accused of paying millions in bribes to secure contracts with the Brazilian Mint. A former executive, Charles Nelson Finkel, was sentenced to prison for his role in orchestrating a bribery scheme that saw SICPA awarded a multi-billion-dollar contract under suspicious circumstances. Prosecutors alleged that bribes totaling $14.5 million were paid to a fiscal auditor to manipulate the bidding process and secure the lucrative deal for SICPA.

This scandal should have immediately disqualified SICPA from participating in any procurement process in Malawi, yet the MRA appears to have turned a blind eye to these troubling revelations. Worse still, the Authority has remained shockingly silent as questions mount about the transparency of the process and the integrity of the decision-making that led to SICPA’s involvement.

Allegations of Collusion and Corruption
Sources within MRA have come forward, revealing that the re-tendering process, which took place in March 2022, was little more than a thinly veiled attempt to favor SICPA. Bidders from the initial tender had already spent millions of Kwachas and thousands of dollars preparing their submissions. Yet, instead of honoring the original tender, MRA inexplicably re-issued the contract, citing no clear reasons for why the first tender failed.

The decision to re-tender raised eyebrows immediately, with many bidders alleging that top government officials had been in close contact with SICPA representatives. Insiders claim that these officials influenced the re-tendering process to favor SICPA, despite its controversial background. “It’s clear that the re-tender was set up to benefit SICPA,” one frustrated bidder confided. “Our bids are now public knowledge, and the pricing was altered to suit them.”

Despite repeated demands for clarity, MRA has refused to explain why the contract was re-tendered, leaving many to believe that the decision was influenced by political pressures. An alarming meeting between President Lazarus Chakwera and SICPA’s CEO, Phillip Amon, in February 2022, only further deepens suspicions of government interference. Was this meeting the turning point that sealed the deal for SICPA, despite its criminal track record?

MRA’s Deafening Silence
The biggest scandal of all may be the MRA’s refusal to address the growing concerns publicly. As public outrage escalates, MRA has chosen to remain silent, dodging requests for comment and leaving citizens in the dark. Head of Corporate Affairs Steven Kapoloma declined to offer any clarification, instead directing inquiries to another official, Wilma Chalulu, who has yet to respond.

The lack of transparency has raised alarm bells about the integrity of the MRA and its leadership. How could the Authority overlook such glaring corruption issues when it is supposed to be the gatekeeper of fairness and accountability in the country’s tax system? Why has MRA failed to address the serious allegations, and why is it ignoring the public’s right to know?

Public Outcry Reaches a Boiling Point
Malawians are demanding answers. The frustration is palpable as the public questions why MRA continues to protect SICPA, a company with a proven record of corruption, at the expense of the nation’s interests. “Where is the transparency? Why are we being kept in the dark?” one concerned citizen asked. “This is our tax money being spent. Why are they allowing a corrupt company to profit off us?”

Critics have also pointed to the astronomical K2.2 billion price difference between SICPA’s bid and the next most competitive bidder. If SICPA is awarded the contract, the people of Malawi will be left to foot the bill for a deal that could have been much more affordable. This further intensifies suspicions of corruption and misconduct within MRA.

Legal Action Looms
As more details emerge, one of the bidders has vowed to take legal action against MRA and SICPA, calling for a full investigation by the Anti-Corruption Bureau (ACB) if SICPA is awarded the contract. The prospect of a long, drawn-out legal battle looms large, as the stakes continue to rise.

“If they give this contract to SICPA, it will set a dangerous precedent for Malawi,” said the anonymous bidder. “We cannot allow corruption to continue poisoning our public procurement system. The ACB must investigate, and MRA must be held accountable.”

Conclusion: A Nation in Crisis
The controversy surrounding the MRA’s handling of the fiscal marks contract is spiraling into a full-blown crisis of confidence. The refusal to address serious corruption allegations, the secretive re-tendering process, and the continued favoring of a company with a history of unethical practices have left Malawians furious and demanding justice.

As the silence continues from MRA and the government, one thing is clear: the people of Malawi are not going to let this scandal go unnoticed. The question now is—how much longer will the MRA be allowed to keep their silence before the truth comes out? And what will the consequences be for those involved in this murky deal?

The nation is watching, and the pressure is mounting for a full investigation and accountability. The time for silence is over.

Sharing is caring!