Kairu Mbuthia and Kiingati Advocates is accused of illegally receiving payments from the high commission amounting to Sh51.4 million and failing to use the same for the intended purpose.
The Malawi government claims the law firm failed to provide the services despite receiving full payment.
The law firm accused the Malawi government of failing to pay up and stalling the rehabilitation works.
A contractual dispute has erupted between a Kenyan law firm and the Malawi High Commission in Nairobi, causing diplomatic tension between the two African nations.
The law firm, Kairu Mbuthia and Kiingati Advocates, is accused of illegally receiving payments from the high commission amounting to $500,000 (Sh51.4 million) and failing to use the same for the intended purpose.
The Malawi government in an audit sanctioned by its attorney- general and auditor- general claims the law firm failed to provide the services despite receiving full payment.
“We have commenced legal action against the Kenyan law firm,” Malawi attorney- general Charles Mhango told the local press.
The law firm confirmed that the Malawi government had appointed it to handle legal work and consultancies in Nairobi as well as facilitate the repair of its Nairobi chancery and high commissioner’s residence even as it denied the allegations of fraud, insisting it honoured the contract.
The law firm accused the Malawi government of failing to pay up and stalling the rehabilitation works.
Malawi’s deputy high commissioner to Kenya Nakari Mwanamvekha said in an interview that Mr Mhango had visited Kenya to probe the matter further.
“The AG has been in Kenya to carry out investigations regarding audit queries raised,” Mr Mwanamvekha said.
The Malawi government raised the disputed payment with the law firm following publication of the auditor- general’s 2012-2013 audit report.
Malawi’s Foreign Affairs principal secretary Isaac Munlo told the Malawian Parliament that the government had taken the law firm to court for breach of contract.
“…Kairu Mbuthia and Kiingati Associates were fiduciary custodians of Malawi government property who did not discharge their duties as contained in the letter of appointment,” Mr Munlo said.
The claims have been disputed by the law firm.
“Further with their official’s approval, we appointed a contractor to work on their properties as per the contract, which work was not completed due to non-payment by the Malawi government,” said Mr Kairu Mbuthia.
“We do point out that the total amount of money received from the Malawi government is $111,440 (about Sh11.51 million), which amounts (we) were able to fully account for.”
Malawi’s Parliamentary Accounts Committee chairman Alekeni Menyani has called for a public enquiry on the firm involving experts and the Malawi Law Society.
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