The Anti Corruption Bureau (ACB) has arrested Malawi Congress Party errand boy and former National Economic Empowerment Fund (NEEF) Chief Executive Officer, Humphrey Mdyetseni, over alleged abuse of office in the awarding of multi-billion kwacha motorcycle contracts.
The arrest, carried out on April 1, 2026, follows a warrant issued by the Lilongwe Senior Resident Magistrate’s Court. Mdyetseni faces two charges under the Corrupt Practices Act.
According to investigators, Mdyetseni is accused of authorising an advance payment of MK364 million to Luthando Holdings in November 2024 for the supply of 150 motorcycles. The payment was allegedly made before delivery and without the required advance payment security bond.
In a separate allegation, he is said to have signed a contract valued at MK2.15 billion in June 2025 for the procurement of 100 motorcycles without securing the mandatory Performance Security an omission that reportedly exposed public funds to risk.
Following the arrest, Hendrix Laher, owner of Luthando Holdings, responded publicly, denying any wrongdoing. In a Facebook post, Laher stated that the company fulfilled its contractual obligations, delivering all motorcycles more than a year ago. He further claimed that NEEF now operating as the Malawi Economic Development Fund (MEDF) owes the company millions of kwacha.
Laher also suggested that the allegations may be part of an attempt to damage the company’s reputation.
Sources familiar with the investigation indicate that Mdyetseni’s arrest could be the beginning of a broader probe into procurement practices at NEEF/MEDF. Concerns have been raised that if proper procedures such as securing performance bonds were bypassed, other officials involved in the procurement process could also face accountability.
A procurement expert, speaking anonymously, highlighted the legal implications of the case. Under Malawi’s Government Standard Bidding Documents, advance payments are only permitted when explicitly provided for in the contract and must be supported by an advance payment security bond.
Additionally, awarded contracts are typically required to receive a “No Objection” from the Public Procurement and Disposal of Assets Authority (PPDA), ensuring compliance with procurement regulations.
The expert noted that authorising payments without these safeguards may constitute violations of Sections 25B(1) and 34 of the Corrupt Practices Act, potentially rendering Mdyetseni personally liable.
Meanwhile, a recent Parliamentary Committee report covering February to March 2026 exposed broader governance and procurement weaknesses within NEEF. The report revealed that agricultural inputs and equipment worth over K15 billion including fertiliser, seeds, solar-powered pumps, and irrigation systems were left unused in warehouses, with some items deteriorating due to prolonged storage.
The ACB has confirmed that investigations are ongoing, and the matter is expected to proceed through the courts in the coming weeks.
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