South African based Malawian owned company Khato Civils, has refuted reports that its Executive Chairman Simbi Phiri was arrested in South Africa.

Some local media houses and various social media platforms reported on Tuesday morning that the Malawian business tycoon, Simbi Phiri was arrested and granted bail on allegations that he has been defrauding the South African government.

In a statement signed by its Chief Executive Officer Mongezi Mnyani said some prominent politicians intend to tarnish the company’s image for their own benefit.

Khato went on to describe the allegations as untrue and malicious.

The company has therefore warned that it will take legal actions against any media house which does not withdraw the story with immediate effect.

Khato Civils Company is the engineer of the long awaited salima- Lilongwe water project which will pump, sanitize and transfer water from salima to Lilongwe.