LILONGWE, Malawi – Former Member of Parliament Ulemu Chilapondwa has been arrested over allegations that K884.6 million in Value Added Tax (VAT) was collected but not remitted to the Malawi Revenue Authority (MRA).

The alleged tax offence involves K884,653,566.72 reportedly charged on an invoice issued under the Malawi Rural Electrification Programme (MAREP).

According to the MRA, the invoice, dated November 11, 2024, was issued to the Ministry of Energy for supplies under the rural electrification programme. The authority alleges that VAT was charged and collected despite the businesses involved not being registered for VAT purposes.

MRA identified the businesses as Chamachete General Dealers and J.U.C Investments, which are reportedly operated by Chilapondwa and based in Mponela, Dowa.

The authority says the alleged conduct contravenes Section 109(3)(a) of the Tax Administration Act, 2021.

MRA Head of Corporate Affairs Wilma Chalulu said the authority remains committed to enforcing tax laws while observing due process and respecting the rights of suspects.

The arrest places Chilapondwa at the centre of an investigation involving a substantial amount of tax allegedly collected in connection with a government-funded programme.

However, the allegations remain subject to investigation and determination by the courts. Chilapondwa is presumed innocent unless proven guilty.

The case also raises questions about tax compliance and accountability in transactions involving public-funded projects.

NewsLane will continue to follow developments in the case.