A local IT firm is demanding more than K23 billion from the government after its emergency contract to restore Malawi’s passport system was terminated. The claim adds to a troubled project marked by procurement disputes, contested payments and questions over control of critical technology.
A local IT firm is demanding more than K23 billion from the government after its contract to restore Malawi’s passport system was terminated.
E-Tech Systems was hired under emergency procedures after a ransomware attack halted passport production in March 2024.
The claim is contained in an Ombudsman systemic investigation report which also raises questions about emergency procurement and management of passport system data.
The Ombudsman says its office placed the Attorney General’s Office on notice over possible payment irregularities linked to E-Tech’s demand.
According to the report the Attorney General’s Office had not provided written responses to the K23 billion claim when the investigation was finalized.
It also had not responded on safeguards against vendors withholding source codes and data access.
The Ombudsman has called for a forensic audit. It wants to establish whether the irregularities were accidental or deliberate.
The 21-day deadline
The E-Tech deal followed a major disruption to Malawi’s passport system.
A ransomware attack crippled the Department of Immigration and Citizenship Services in March 2024. Passport production stopped nationwide.
Then-President Lazarus Chakwera gave the department 21 days to restore the service.
Former Attorney General Thabo Chakaka-Nyirenda SC told investigators that an interministerial task force recommended single-sourcing E-Tech.
The task force was co-chaired by the Office of the President and Cabinet.
Nyirenda said his office cleared the emergency contract on March 1, 2024. The clearance was issued under reference MJCA/AG/014.
He said E-Tech offered a local solution costing less than K900 million.
International firms, he said, had quoted in billions of kwacha. Some also needed six to 18 months to restore the system.
But the emergency procurement has raised questions.
The Public Procurement and Disposal of Assets Authority told investigators it could not confirm whether formal minutes were kept during task force meetings.
Former Director of Immigration Brig. Gen. Charles Kalumo gave a different account. He told investigators that single-sourcing was not used.
Nyirenda said his role was limited to legal advice. He said contract management was the responsibility of the procuring entity.
He also said he had no role in the procurement or execution of the subsequent Madras Security Printers Private Limited contract.
Passport quality questioned
The Ombudsman also examined complaints about passports produced during the E-Tech intervention.
Nyirenda told investigators that early barcode failures were not caused by E-Tech’s software.
He blamed poor-quality legacy booklets supplied by Techno Brain.
He said the problem eased after E-Tech introduced a quality-assurance platform.
Investigators also examined whether E-Tech and Techno Brain withheld source codes and data access rights from the immigration department.
The issue raises a broader question about government control of the passport system.
Techno Brain Dispute
The E-Tech claim follows an earlier dispute involving Techno Brain.
The company secured a $60.8 million build-operate-transfer contract with the Department of Immigration in March 2019.
Nyirenda told investigators that businessman Zuneith Sattar influenced the procurement process.
He said Two Trees Investment, which initially emerged as the successful bidder before withdrawing, and Iris Corporation Berhad were linked to Sattar.
Nyirenda alleged that Sattar exerted considerable influence over the award of the passport contracts to Techno Brain.
He said the involvement of interconnected companies compromised the integrity and transparency of the procurement.
The government terminated the Techno Brain contract in December 2021.
It cited overpricing and procurement irregularities.
Techno Brain later filed a K20.6 billion claim against the government over unpaid invoices.
The company transferred operational credentials in mid-2023.
Nyirenda also questioned the financial structure of the Techno Brain deal.
Under a build-operate-transfer arrangement, the contractor finances the infrastructure and recovers its costs through user fees.
But Nyirenda said Techno Brain stopped supplying consumables after pandemic-related travel restrictions reduced passport revenues flowing into the escrow account.
More than K43 billion at stake
The two passport-related claims now exceed K43.6 billion.
Techno Brain is seeking K20.6 billion.
E-Tech is demanding more than K23 billion.
The government’s final liability in either case has not been established.
But the disputes have exposed wider problems in the management of the passport project.
The Ombudsman has raised concerns about procurement, billing, contracts and access to critical system data.
The Anti-Corruption Bureau told investigators on Feb. 2, 2026, that its vetting was based on the completeness of documents submitted by the Department of Immigration at the time.
The Ombudsman’s findings now put the focus on how the passport project was managed.
They also raise a larger question.
How much will taxpayers ultimately have to pay for the procurement decisions and emergency interventions that followed the collapse of Malawi’s passport system?
