President-elect warns civil servants, politicians over irregular contracts, loans as state-owned microfinance institution ceases operations.
By The Forum
Just days after President-elect Peter Mutharika warned civil servants and politicians against plundering public resources during the transition period, the National Economic Empowerment Fund (NEEF) has been ordered to shut down.
NEEF Chief Executive Officer Humphrey Mdyetseni confirmed the closure on Monday, saying government directed the state-owned lender to cease operations.
Mutharika first raised alarm on Friday, declaring: “Huge payments are being made, money is being transferred, vehicle numbers are being changed, dubious contracts are being honoured, and questionable loans are being given. I want to warn those civil servants who are doing this that they must stop. And politicians who are facilitating this, they must stop.”
In a statement released Monday, Mutharika doubled down, assuring Malawians that “any illegal or irregular decisions made during the transition period will be nullified.”
Founded in 2014, NEEF has gone through several iterations — formerly known as MARDEF and MEDF before taking its current form in 2020. While officially created to provide microloans to small businesses, the fund has long faced criticism. Opponents accused politicians of using it to reward ruling party loyalists, many of whom never repaid their loans.
Mutharika defeated outgoing president Lazarus Chakwera in the September 16, 2025 elections, winning with 57% of the vote against Chakwera’s 33%. He will be sworn in on October 4, 2025, marking his second term in office after serving from 2014 to 2019.
