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Malawi Communications and Regulatory Authority (Macra) board of directors has instituted an investigation into how the organisation spent K53.5 million ($504,717) instead of the projected K25 million on the construction of Macra House in the commercial capital Blantyre, board chair Abdul Pillane confirmed on Wednesday.
Insiders said after noting that Macra had spent about K53.5 million on the project, they contracted Chris Mullock, a chartered valuation surveyor, to conduct an independent valuation and advise it on the open market value of the building.
A Valuation Report by Chris Mullock dated September 5, 2003 indicate that the open market value of the building as at March 31, 2003 is in the sum of K26 million.
Mullock says in the report that the value of the land is K3 million while the buildings and other improvements totalled K23 million.
The report also reveals that Macra House, which is located on the west side of the Salmin Amour Road at Ginnery Corner, is in an area zoned for industrial development, according to the Blantyre City Assembly Urban Structure Plan dated 8/2/00.
“The present development and use does not comply with that zoning, but it is understood that all necessary planning approvals have been given,” reads the report in part.
The report also says Macra bought the land and building which it later refurbished from former cabinet minister Harry Thomson.
Pillane, flanked by Deputy Director General Shadreck Ulemu, Director of Administration Charles Makha, Director of Broadcasting James Chimera, General Counsel Jabar Alide and Deputy Director of Finance Wellington Mnesa, said the anomaly was brought to the attention of the board when it met for the first time in October last year.
“We instructed a sub committee of the board to investigate the matter and once that is done and we establish that yes there is something wrong is when we will take up the matter but as of now this is speculation,” said Pillane.
Alide said the subcommittee, chaired by board member Joseph Chapuma, recommended to the board of directors that the matter be referred to auditors for investigations before Christmas holidays.
“What is remaining now is for the committee to decide on who to give the task to. Maybe they have delayed because of the Christmas and New Year holidays,” said Alide.
Pillane said Ulemu was in charge of the building project and Mnesa was paying all the bills.
But Pillane was quick to say the two would not answer any question from Nation Online.
“The matter is being investigated. There is that problem and anomaly and at the moment Mr Ulemu or Mr Mnesa cannot answer until we have those facts,” said Pillane.
Pillane confirmed that Macra paid Thomson K15 million for the plot which included a building which Macra refurbished.
On the observation of Chris Mullock that the plot on which the house was built is zoned for industrial development which is not Macra’s core business focus, Pillane said Macra intends to build a regulatory unit building behind the Macra House which will be monitoring all broadcasters ‘and that is why we chose this industrial area because that is an industrial development’.
Thomson confirmed that Macra bought the plot from him through the building society.
Director of Town Planning and Development for the Blantyre City Assembly John Chome could not immediately comment on why they authorised Macra to build the House in an industrial area saying he was travelling from Lilongwe to Blantyre and needed to check files on what happened.,
Malawi Communications and Regulatory Authority (Macra) board of directors has instituted an investigation into how the organisation spent K53.5 million ($504,717) instead of the projected K25 million on the construction of Macra House in the commercial capital Blantyre, board chair Abdul Pillane confirmed on Wednesday.
Insiders said after noting that Macra had spent about K53.5 million on the project, they contracted Chris Mullock, a chartered valuation surveyor, to conduct an independent valuation and advise it on the open market value of the building.
A Valuation Report by Chris Mullock dated September 5, 2003 indicate that the open market value of the building as at March 31, 2003 is in the sum of K26 million.
Mullock says in the report that the value of the land is K3 million while the buildings and other improvements totalled K23 million.
The report also reveals that Macra House, which is located on the west side of the Salmin Amour Road at Ginnery Corner, is in an area zoned for industrial development, according to the Blantyre City Assembly Urban Structure Plan dated 8/2/00.
“The present development and use does not comply with that zoning, but it is understood that all necessary planning approvals have been given,” reads the report in part.
The report also says Macra bought the land and building which it later refurbished from former cabinet minister Harry Thomson.
Pillane, flanked by Deputy Director General Shadreck Ulemu, Director of Administration Charles Makha, Director of Broadcasting James Chimera, General Counsel Jabar Alide and Deputy Director of Finance Wellington Mnesa, said the anomaly was brought to the attention of the board when it met for the first time in October last year.
“We instructed a sub committee of the board to investigate the matter and once that is done and we establish that yes there is something wrong is when we will take up the matter but as of now this is speculation,” said Pillane.
Alide said the subcommittee, chaired by board member Joseph Chapuma, recommended to the board of directors that the matter be referred to auditors for investigations before Christmas holidays.
“What is remaining now is for the committee to decide on who to give the task to. Maybe they have delayed because of the Christmas and New Year holidays,” said Alide.
Pillane said Ulemu was in charge of the building project and Mnesa was paying all the bills.
But Pillane was quick to say the two would not answer any question from Nation Online.
“The matter is being investigated. There is that problem and anomaly and at the moment Mr Ulemu or Mr Mnesa cannot answer until we have those facts,” said Pillane.
Pillane confirmed that Macra paid Thomson K15 million for the plot which included a building which Macra refurbished.
On the observation of Chris Mullock that the plot on which the house was built is zoned for industrial development which is not Macra’s core business focus, Pillane said Macra intends to build a regulatory unit building behind the Macra House which will be monitoring all broadcasters ‘and that is why we chose this industrial area because that is an industrial development’.
Thomson confirmed that Macra bought the plot from him through the building society.
Director of Town Planning and Development for the Blantyre City Assembly John Chome could not immediately comment on why they authorised Macra to build the House in an industrial area saying he was travelling from Lilongwe to Blantyre and needed to check files on what happened.
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