… Dozens Count Their Losses as Government Scrambles to Regulate Rogue Agencies By Julius Mbeŵe JULIUS MBEŴE For more than five years, a quiet crisis has been unfolding in Malawi’s booming real estate sector. Behind the glossy adverts and fast-talking agents lies a darker reality: buyers are sinking life savings into plots that never materialise. Now, clients of Umodzi Building Real Estate Agency — a firm that government officials confirm has been operating without a license — are breaking their silence. After paying in full and waiting over two years for promised land, many have come to a painful realisation: the firm sold them plots it never legally owned. The fallout has ignited ownership disputes in communities like Mpemba and Matindi in Blantyre, leaving buyers locked in legal limbo and unable to begin construction. “I invested everything I had, believing I was securing a future for my children,” said one victim, visibly shaken. “Instead, I’ve been left with nothing but debt and court dates.” The scale of the scandal has forced the government’s hand. Through the Real Estate Agency Council, authorities are moving to tighten oversight and close loopholes that allow rogue firms to flourish. Officials now urge prospective buyers to conduct thorough background checks and verify agents' credentials before signing any deal. Yet for those already caught in the chaos, these measures may come too late. Between June and September 2023, dozens of clients paid in full, trusting the company’s promises that land allocation would be completed within two months. Yet more than two years later, many are still waiting, with communication from Umodzi Building Agency reduced to silence or a series of shifting excuses whenever deadlines pass. Frustration among buyers has continued to mount, with some now weighing legal action. However, efforts to secure refunds have faced stiff resistance, as Umodzi Building reportedly put up barriers to discourage claims. Of three clients who requested refunds for plots purchased in Matindi in June 2023, only one managed to recover their money — and only after involving the police. In Chigumula, another client who reversed a plot purchase in September 2023 was promised a refund through installments starting on December 30. However, no payment has been made. In February 2024, the client filed a legal claim seeking MK3 million in principal and MK450,000 in legal fees, but the struggle to recover the funds continues. Meanwhile, some clients who received plots found themselves assigned land they had not originally purchased, while others have faced further delays due to missing infrastructure such as access roads and boundary beacons. Even when plots are handed over, many buyers encounter fresh hurdles — including difficulties registering their land with the Ministry of Lands, further delaying full ownership rights. When Linda (not her real name) set out to purchase land from Umodzi Building Real Estate Agency, she believed she was making a sound investment. Instead, she now finds herself locked in a legal battle after paying K5 million and receiving nothing in return. Desperate to recover her money, she has dragged the company’s managing director, Euro Gift Chiwowa, to court. Linda first approached Umodzi Building in search of a plot. After being shown several options, she selected one — but found the area thick with overgrown bushes. She asked the company to clear the land so she could properly assess it before finalising the deal. “They refused,” Linda recalled. “They told me it was the rainy season and that if I decided not to buy the plot after they cleared it, their efforts would be wasted.” Instead, Umodzi demanded a K25,000 payment to secure the plot. Trusting the company's assurances, Linda paid — believing the land would soon be cleared for inspection. But despite taking her money, Umodzi never fulfilled its promise, leaving her with no opportunity to properly assess the land she hoped to buy. “I didn’t push too hard at that time because I was still interested in buying,” she said. “But I was already starting to feel uneasy.” Despite the early warning signs, Linda moved forward with the purchase, making an initial installment of K1.5 million. What followed was a barrage of pressure from various individuals claiming to represent Umodzi, each urging her to complete the full payment as quickly as possible. “I would get calls from people I didn’t even know, all pushing me to complete my payment. Yet, there was no clear agreement on when I would get the land,” she explained. It was during this time that Linda received a chilling warning. “One day, a security guard at their office pulled me aside and said, ‘Be careful. The people you are dealing with are crooks. Many people have come here trying to shut down their offices. Sometimes, the owners even flee because they have too many complaints.’” Alarmed by this revelation, Linda confronted Chiwowa, seeking reassurance. “I told him what I had heard, and he admitted that there had been issues in the past but claimed they were isolated cases.” Convinced by their explanations, Linda continued making payments until she had completed the full K5 million. In return, she received a sales agreement that promised the plot would be transferred to her within two weeks — unless "unforeseen circumstances" caused delays. Weeks stretched into months, but Linda still had no land. Each time she followed up, Umodzi staff offered only vague excuses and empty assurances. “They kept saying, ‘We are waiting for documents from the city council,’ or ‘The lands office hasn’t processed them yet.’ It was always something,” she said. Frustrated and feeling cheated, Linda decided to take legal action. “I gave them every chance to do the right thing, but they never did. They left me with no choice but to go to court,” she stated firmly. Linda’s experience is far from isolated. Numerous other buyers have faced similar frustrations — from prolonged delays after full payment to never receiving their plots at all. One such buyer is Feston Kaliati. On October 25, 2022, he paid K1 million for a 30x15 residential plot (Plot No. 6) in Mpemba. Nearly three years later, he is still waiting to take possession of the land. “I have been following up with them at their offices in Blantyre, but when I got there, I found that the offices were no longer operational. I was also informed that staff from Umodzi Building, where the company was based, had stopped reporting for work,” Kaliati told the PIJ. Kaliati’s efforts to contact Umodzi Building through its official phone numbers have been unsuccessful. Another client, Shyreen Maliro, who paid K1.9 million last year for a plot in Matindi, faces a similar predicament. Despite settling the full amount, she has yet to receive her land. “The last time we visited the land, we were told that they did not have measuring tape and could not allocate us our plot. When we followed up later, they claimed they were busy,” Maliro recounted. Frustrated by the prolonged wait, Maliro and other affected clients dug deeper — only to discover that Umodzi Building had quietly shut down its offices, leaving them with no clear point of contact. “We called them again, but this time, they informed us that the land they had shown us was under dispute and that they could not proceed with allocations. As of now, their phone numbers are no longer reachable,” she added. With the Umodzi Building Real Estate Agency seemingly vanishing, buyers who invested their hard-earned money have been left in limbo — uncertain whether they will ever recover their funds or receive the land they were promised. Many, like Linda, have now turned to the courts, clinging to hopes of justice. Sue the Company Not Me - Umodzi Owner Says Responding to mounting allegations, Umodzi Building’s Managing Director, Euro Gift Chiwowa, spoke to PIJ but distanced himself from personal accountability. "First of all, don’t put my name on there," Chiwowa said. "That’s a limited company. It’s not only me. There are a lot of people there, so when you write my name, you should also be aware that it’s not me." Chiwowa claimed the company had successfully served "several thousands of clients," insisting that many satisfied buyers could testify to receiving their plots. "We can take you to the places, and they [clients] can be the witnesses," he said. However, he admitted that unresolved cases remained. "Of course, there are other clients whom we haven’t ‘done’. That’s true. I won’t lie to you," Chiwowa said. "After realising all these things, that’s why we stopped selling land. Not that we don’t have land — we have plenty — but we saw these issues keep coming, so we need to iron them out first." He further claimed the company was working to address the backlog. "There are about 12 clients whom we are about to sort out, who paid money but are yet to be allocated their plots. We guarantee you that by next week we will sort them," Chiwowa said. When asked about specific legal cases, Chiwowa grew defensive. He blamed Linda for allegedly failing to complete her payments on time, saying: "She sued me for something she was not dealing with. She was dealing with Umodzi. That was very wrong. I can sue her back." Chiwowa also denied that Umodzi knowingly sold land it did not own, instead arguing that land transactions are inherently complicated. "There are a lot of issues regarding many real estate companies. It is not only Umodzi that has such problems, but issues of land are also difficult," he said. In a communication posted on Umodzi Company's Facebook page on January 29, 2025, the managing director advised customers to contact the company directly for assistance. Investigations by the Platform for Investigative Journalism (PIJ) have uncovered troubling findings, with the Ministry of Lands offering new insights into Umodzi Building’s status — and advising affected clients on their next steps. Umodzi Not a Licensed Real Estate Firm The Ministry confirmed it has received numerous complaints about delays in land allocation after full payments were made. Responding to inquiries, Mickson Chiundira, Commissioner for Estate Management and Evaluation, revealed that Umodzi Building Real Estate Agency is not registered as a licensed estate agent in Malawi. “All estate agents in Malawi who are operating legally are registered with the Land Economy Board, which is now being replaced by the Real Estate Agency Council. Umodzi Building Real Estate Company doesn’t appear on the legally operating real estate agency list because there are so many who are just operating without proper registration,” he explained. Chiundira noted that many people remain unaware of the Land Economy Board’s role in regulating real estate agents. He stressed that the Board publishes an annual list of licensed real estate agents in local newspapers, aiming to help the public identify legitimate businesses and avoid falling victim to fraud. “The unfortunate part is that many people don’t know that there has been a Land Economy Board that has been regulating real estate agents. Every year, we publish the names of those who are practicing as authorised real estate agents in the newspapers at least once. As the Land Economy Board, we have been regulating those with licenses, but anyone who doesn’t have a license falls out of our regulatory activities. So, we deliberately put the list in the newspapers so that people don’t go to someone who can dupe them,” he added. The Ministry has acknowledged a rising number of complaints related to fraudulent land transactions. Chiundira emphasized the importance of due diligence, urging citizens to verify that they are dealing with registered agents to avoid falling victim to scams. “We have been receiving these complaints, and we have advised people to follow the right people to do this business; otherwise, they may be having these problems with people who are just coming. Where we are going, there will be a change in the manner these people are monitored, so it will be tough because there will be close monitoring now, having seen what has been happening, and that’s where we are going,” he stated. Regarding claims by Umodzi Building Real Estate Agency that delays were caused by pending approvals from the Ministry of Lands, Chiundira dismissed the assertions. He advised clients to always verify such information directly with the Ministry to avoid being misled. “If someone is being told that the processes are underway with the Ministry of Lands, that person should come to the Ministry of Lands to check with us because we will inform them of the truth. From there, they can follow alternative means to ensure that they are being treated in the right manner. Someone should not use the Ministry of Lands as a scapegoat,” he said. The revelations raise serious concerns about rampant fraudulent activities within Malawi’s real estate sector. As the government moves to tighten regulation and oversight through the Real Estate Agency Council, potential land buyers are being urged to conduct thorough background checks and verify agents' credentials before engaging in any transactions. For now, Linda and many others remain hopeful that the justice system will finally bring closure to what appears to be a growing land scam — one that has left countless clients financially and emotionally devastated. This article was produced by the Platform for Investigative Journalism, a non-profit public interest centre for investigative journalism. ABOUT THE AUTHOR JULIUS MBEŴE is a PIJ investigative journalist. He has previously worked for YONECO FM. Email: [email protected] X: @CaleoneMbewe A Buyer’s Nightmare
A Pattern of Deception
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