Minister warns againstsubstandard projects

The Malawian government has issued a stern warning to players in the construction industry, signaling a heightened commitment to combating corruption, poor workmanship, and professional misconduct. Minister of Transport Jappie Mhango emphasized that offenders risk severe sanctions, including exclusion from the sector. This directive underscores the government's intent to enforce existing regulatory frameworks, notably the recently enacted Construction Industry Act No. 28 of 2025 and the Public Procurement and Disposal of Public Assets Act No. 7 of 2025, alongside professional codes of conduct. Legal professionals and industry stakeholders must prepare for increased scrutiny, rigorous compliance audits, and a potential rise in litigation as the state prioritizes quality infrastructure and ethical conduct in national development projects.

The Malawian construction sector is on notice following a definitive warning from the government against substandard projects, corruption, and professional misconduct. Speaking at recent Construction Day celebrations in Lilongwe, Minister of Transport Jappie Mhango declared that such practices would no longer be tolerated, with severe sanctions and exclusion from the industry awaiting offenders. This pronouncement reflects a critical juncture for Malawi, where public infrastructure development is paramount, yet often undermined by a lack of adherence to quality standards and ethical principles.

The Minister's statement is not merely a rhetorical flourish but a clear signal of intensified enforcement under Malawi's evolving legal and regulatory landscape. It highlights the government's determination to safeguard public resources, ensure value for money, and protect public safety, all of which are compromised by poor quality infrastructure. For legal practitioners, this development necessitates a thorough understanding of the robust legal frameworks now in place, the potential liabilities for non-compliance, and the implications for clients operating within the construction and public procurement spheres. This article will delve into the statutory and regulatory provisions underpinning this governmental stance, analyze the mechanisms for enforcement, and discuss the practical implications for legal professionals advising industry players.

Malawi's construction industry and public procurement processes are governed by a comprehensive, albeit recently updated, legal framework designed to promote professionalism, transparency, and accountability. Central to this framework is the Construction Industry Act No. 28 of 2025, which established the Construction Industry Regulatory Authority (CIRA), replacing the erstwhile National Construction Industry Council (NCIC). This Act mandates the licensing and registration of all construction firms, material suppliers, and manufacturers, and provides for enhanced compliance mechanisms, including inspections and penalties for non-compliance. CIRA is vested with stronger enforcement powers and broader oversight across the construction value chain.

Complementing the construction-specific legislation are Acts governing professional bodies. The Malawi Engineering Institution Act, 2019 (Act No. 13 of 2019), established the Malawi Engineering Institution (MEI) and the Engineering Registration Council, regulating the engineering profession through qualifications, registration, and disciplinary measures. Similarly, the Architects and Quantity Surveyors Act (Cap 53:02 of the Laws of Malawi) establishes the Board of Architects and Quantity Surveyors, serving as the qualifying, registering, and disciplinary authority for these professions. Both Acts criminalize the practice by unregistered individuals and provide for disciplinary action against professional misconduct.

Furthermore, the Public Procurement and Disposal of Public Assets Act No. 7 of 2025, which superseded the 2017 Act, governs public procurement. This Act established the Public Procurement and Disposal of Assets Authority (PPDA) and introduced robust mechanisms to enhance transparency, accountability, and value for money in public resource management. Key reforms include the compulsory declaration of beneficial ownership to curb bid rigging and collusion, and strengthened oversight powers for the PPDA, encompassing audits, inspections, investigations, and the imposition of penalties and sanctions. The overarching anti-corruption efforts are enshrined in the Corrupt Practices Act (Act No. 18 of 1995), which established the Anti-Corruption Bureau (ACB) and criminalizes various forms of corruption, including bribery and abuse of office, in both public and private sectors.

The Minister's warning signals a proactive approach to leveraging these legal instruments to foster a more accountable and quality-driven construction sector. The Construction Industry Act No. 28 of 2025, through CIRA, provides the primary regulatory teeth for enforcing standards and penalizing poor workmanship. The Act's provisions for mandatory licensing, registration, and enhanced compliance mechanisms, including inspections, mean that firms and individuals operating outside these parameters face direct legal consequences. For instance, the former NCIC, now CIRA, has previously deregistered firms for professional misconduct, demonstrating the practical application of such disciplinary powers.

Professional bodies, such as the Malawi Engineering Institution and the Board of Architects and Quantity Surveyors, play a crucial role in upholding ethical standards. The Malawi Engineering Institution Act, 2019, explicitly outlines disciplinary measures for professional misconduct, and Section 56(1) of the Act imposes significant fines and imprisonment for employing unregistered persons. Similarly, the Architects and Quantity Surveyors Act criminalizes the practice of architecture or quantity surveying by unregistered individuals, with Sections 35 and 40 being particularly relevant. These provisions empower the respective boards to take disciplinary action, including suspension or revocation of licenses, against professionals who engage in poor workmanship or unethical practices.

The Public Procurement and Disposal of Public Assets Act No. 7 of 2025 provides a critical layer of oversight for government projects. The PPDA's strengthened powers to conduct audits, inspections, and investigations, coupled with its authority to impose penalties and sanctions, directly address issues of corruption and malpractices in public contracts. The requirement for beneficial ownership declarations is a significant step towards preventing bid rigging and ensuring fair competition, directly targeting the corruption lamented by the Minister. Furthermore, the Corrupt Practices Act provides a robust framework for prosecuting individuals and entities involved in bribery and other corrupt activities, with the Anti-Corruption Bureau mandated to investigate and prosecute such offenses.

However, the implementation of blacklisting, as threatened by the Minister, must navigate the principles of natural justice and due process. A recent High Court ruling in *Mulli v Attorney General* (2026) serves as a critical precedent. In this case, the Court overturned a government directive blacklisting a businessman and his companies from public contracts, finding it unlawful, malicious, and issued without legal authority or an opportunity for the affected parties to be heard. This judgment underscores that while the government has legitimate grounds to sanction non-compliant entities, such actions must strictly adhere to statutory procedures and constitutional rights, including the right to be heard, to avoid legal challenges and potential significant compensation liabilities. Therefore, any move to exclude contractors must be procedurally fair, legally sound, and based on verifiable breaches of contract or statutory provisions, rather than arbitrary executive directives.

The Malawian government's unequivocal warning against substandard projects, corruption, and professional misconduct marks a new era of accountability in the construction industry. Practitioners, including contractors, engineers, and architects, must recognize that the regulatory environment has significantly tightened, with the Construction Industry Act No. 28 of 2025 and the Public Procurement and Disposal of Public Assets Act No. 7 of 2025 providing robust legal tools for enforcement. Compliance with licensing, registration, and quality standards is no longer merely advisable but a non-negotiable prerequisite for operating in the sector.

Legal professionals advising clients in this sector must prioritize comprehensive compliance audits, review existing contracts for adherence to technical specifications, and ensure robust internal controls against corruption and professional negligence. The *Mulli v Attorney General* judgment serves as a crucial reminder that while the state has powers to impose sanctions, these must be exercised within the bounds of law and due process. Attorneys should prepare clients for increased regulatory scrutiny, potential inspections, and a higher likelihood of litigation or disciplinary proceedings for non-compliance. The emphasis on ethical conduct and quality infrastructure is set to reshape the industry, demanding a proactive and diligent approach from all stakeholders to avoid severe penalties, including exclusion from lucrative public contracts.