Malawi: Govt Awards $29.9 Million Passport Deal to Scandal-Plagued Firm Amid Procurement Irregularities

25 March 2025

The Malawian government has ignited a firestorm of criticism after awarding a $29.9 million (K52 billion) passport printing contract to Madras Security Printers Private Limited, an Indian company allegedly embroiled in corruption scandals, fraud allegations, and failed government contracts across multiple countries.

Despite the allegedly firm's tarnished reputation, Homeland Security Minister Ezekiel Ching'oma has defended the deal, touting its supposed cost-effectiveness while sidestepping serious concerns about procurement irregularities, national security risks, and the lack of oversight in the process.

A Company with a Global History of Fraud and Failure

Our online investigations shows that Madras Security Printers (MSP) carries a well-documented record of misconduct in nearly every country where it has operated.

In Kenya, the company was implicated in a counterfeit tax stamp scheme that allowed fake goods--including toxic fertilizer and sugar--to flood the market, leading to public health crises and deaths. Kenyan authorities took legal action against the firm's executives, yet Malawi has chosen to ignore these red flags.

In South Sudan, MSP was accused of siphoning millions of dollars from a failed tax stamp project, leaving the government with a non-functional system after payments were made. In India, the company was blacklisted for violating protocols in a national ID card project amid allegations of selling citizens' private data.

Similar controversies have followed MSP in Liberia, Sri Lanka, Bangladesh, and Mauritius, where its projects collapsed amid contract breaches, bribery claims, and data security failures. Despite this alarming track record, Malawi's government has entrusted the firm with producing its most sensitive travel document.

A Procurement Process Shrouded in Secrecy

Minister Ching'oma claims the contract was awarded through a restricted tender process, with 25 firms initially considered and six (four Malawian and two foreign) making the final bid.

However, key institutions responsible for oversight have either denied involvement or remained conspicuously silent, raising serious doubts about the deal's legitimacy.

When questioned, the Public Procurement and Disposal of Assets Authority (PPDA) refused to confirm its role in vetting the contract.

PPDA spokesperson Kate Kujaliwa evaded direct answers, stating, "Do your research to find out if the said procurement was submitted to PPDA because not all procurements are submitted to the authority."

Even more troubling, Attorney General Thabo Chakaka-Nyirenda admitted he was completely unaware of the contract. "I am blank, and the contract is yet to be submitted to my office," he said. "I didn't know about Madras. I am hearing it now from you."

The Anti-Corruption Bureau (ACB), when pressed for comment, asked for more time--an unusual response for a deal of this magnitude.

A Repeating Cycle of Passport Procurement Failures

This controversial contract follows a string of failed passport deals under the current administration.

In 2021, the government canceled a $60.8 million contract with TechnoBrain due to alleged irregularities under the previous administration. When no reliable replacement was found, the government temporarily re-engaged TechnoBrain in 2023 before switching to E-Tech Systems, which also collapsed within months.

In February 2024, the passport system suffered a mysterious crash, with President Lazarus Chakwera claiming it was hacked by "digital mercenaries" demanding ransom. While some officials pointed fingers at TechnoBrain, no evidence was provided. Now, Malawi risks repeating the same mistakes by handing its passport system to a company with a proven history of failure.

National Security and Public Trust at Stake

Security analysts warn that this deal is a disaster in the making. MSP's history of data breaches means Malawians' biometric and personal information could be exposed to cybercriminals or sold on the black market. If other countries question the authenticity of Malawian passports, citizens could face travel bans or heightened scrutiny abroad.

Most alarming is the lack of accountability. With PPDA, the Attorney General, and the ACB all failing to confirm proper oversight, there is no guarantee that due process was followed.

Conclusion: A Deal That Demands Answers

The awarding of this contract reeks of negligence, secrecy, and possible corruption. Critical questions remain unanswered:

Why was Madras selected despite its global scandals?

Why were oversight bodies like PPDA and the Attorney General kept in the dark?

Who stands to benefit from this deal?

Unless the government halts this contract and conducts a transparent review, Malawi risks another passport crisis--one that could waste billions, endanger national security, and further erode public trust.

The stakes could not be higher.

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