Malawi Communication Regulatory Authority (Macra) board chairperson Mervis Mangulenje has been appointed Chief Executive Officer of government controlled Malawi Enterprise Development Fund (Medef).
Insiders said Mangulenje has been offered the post although she is not qualified because of her 'relationship' with Chief Secretary to the Government Lloyd Muhara.
Mangulenje and Muhara are reportedly to have a three year old child together out of wedlock.
Muhara is officially married to former personal secretary of the late President Bingu wa Mutharika.
Reports say Muhara influenced the appointment of Mangulenje who was sacked at FDH Bank because of incompetency a few months ago.
She was acting Head of Corporate Banking at the state run Malawi Savings Bank (MSB) before it was bought by FDH Holdings and failed to tick with the new employers.
"Here is someone who failed to deliver at FDH Bank and was given a boot and now government thinks she can run Medef? If this is not nepotism, then tell me what it is," said the source.
Another source also said it is because of her government and Mulhakho wa Ahlomwe connections that she got appointed as Chairperson of Macra.
Meanwhile, Mangulenje led fund to a meeting with the Parliamentary Committee on Social and Community Affairs at Parliament Building in Lilongwe on Wednesday .
Mangulenje told the committee that inadequate resources are some of the challenges hampering the fund from achieving its goals.
The committee advised Medf to avoid political manipulation and interference to ensure that the fund meets its objectives.
Committee chairperson Richard Chimwendo-Banda also challenged the fund to move from being a "corporate social responsibility [CSR] organisation to a business entity".
He said it was unfortunate that some politicians have abused Medf for the benefit of their political institutions and as a tool for campaigning, thereby abusing the resources Parliament approves for the fund.