The Malawi Revenue Authority (MRA) has arrested Ulemu Jermoth Chilapondwa, a taxpayer registered for income tax purposes, trading as Chamachete General Dealers and J.U.C Investments, of P.O. Box 20, Mponela, Dowa, on allegations of unlawful collection and non-remittance of Value Added Tax (VAT) amounting to MK884,653,566.72.
According to MRA Head of Corporate Affairs, Wilma Chalulu, the allegations relate to Invoice Number 105, dated 11th November 2024, issued to the Ministry of Energy for supplies under the Malawi Rural Electrification Programme (MAREP).
“Mr. Chilapondwa is alleged to have charged and collected VAT despite not being registered for VAT purposes and subsequently failed to remit the amount to MRA,” she explained.
MRA says the alleged conduct constitutes an offence under Section 109 of the Tax Administration Act, 2021 (Act No. 13 of 2021).
Chilapondwa is a well-known political figure and former Member of Parliament for Ntchisi South Constituency. He first entered Parliament under the Democratic Progressive Party (DPP) and later represented the constituency under the Malawi Congress Party (MCP), winning the seat in the 2019 parliamentary elections. He served as MP for Ntchisi South until the end of that Parliament.
In Parliament, Chilapondwa also held senior committee responsibilities. Parliamentary records list him as Vice-Chairperson of the Defence and Security Committee and as a member of the Budget Committee.
He also served as Vice-Chairperson of the Parliamentary Committee on Agriculture and Natural Resources, where he at one point presented a report recommending that the Affordable Inputs Programme (AIP) be transferred from the Ministry of Agriculture to the Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRFM).
MRA says it remains committed to enforcing the civil and criminal provisions of Malawi’s tax laws, safeguarding public revenue and upholding the public’s right to information, while respecting the presumption of innocence and due process of law.
