‘Network Opposes Renewal of Ilomba Mining Licence Over Corruption Scandal’ 25 November 2020

Natural Resources Justice Network has opposed renewal of operating licence for Ilomba Mining Company which is mining granite in Chitipa district following allegations of corruption amid reports that the transaction is mired in allegations of bribes in excess of $300 000 to renew the licence for the foreign owned company to continue operating at the Ilomba mine. Speaking during a Parliamentary Committee meeting aimed at tackling mining challenges, the Network's chairperson Kossam Munthali said the company has not been honouring the agreement to support the communities.

The Anti-Corruption Corruption (ACB) says it is investigating allegations of corruption shrouding the renewal of a mining license for Ilomba Granite in Chitipa following an audio clip which went viral on social media exposing Cassius Chiwambo, a high ranking official at the Department of Mines discussing a deal with a Chinese investor at the mine over the renewal of the license. In the audio, a Chinese investor is heard making an offer of money totaling US$300,000 (K225-million) to Chiwambo to be shared to a former Minister, licensing committee and himself in order to renew their license. But managing director for Ilomba Granite Faisal Hassan claimed that he has enough facts implicating Chiwambo, in the deal, accusing him of re-editing the audio to suit him.

…Meanwhile, some civil society organisations (CSOs) working in the extractive sector have asked government to investigate alleged corruption in the sector, if they are to adopt the 2016/17 Malawi Extractive Industry Transparency Initiative(Mweiti) report. Publish What You Pay Malawi coordinator Gloria Majiga Kamoto said the CSOs as a key partner in the extractive industry transparency initiative process will withhold their input until government takes prompt action on Ilomba mining licensing deal involving a Chinese investor and a government official. Kamoto said the CSOs also plan to meet Extractive Industry Transparency Initiative (EITI) Board political champion and Minister of Finance Felix Mlusu as well as political champion for public sector reforms Vice-President Saulos Chilima to map the way forward.