Police have arrested the owner of a company allegedly posing as a legitimate medical research firm, following an investigation into the misappropriation of K5 million allocated for COVID-19 research and testing. Detective Superintendent Robert Volo, Director of the National Fraud and Anti-Corruption Directorate (NFACD), confirmed the arrest, stating the company was not registered as a certified medical or pharmaceutical research institution. According to police, the company received K5 million in 2022 through the National AIDS Council Secretariat (NACS), intended for scientific research into COVID-19 treatments. Investigators claim the funds were misused, with no evidence of research or testing being conducted. Police allege the suspect registered the company in August 2020 during the peak of the COVID-19 pandemic and submitted a funding proposal to the National Executive Council. The NEC reportedly approved a total of K10.2 million for the project. Superintendent Volo said that K5 million was later transferred into NACS’s trust account for disbursement to the company. However, the investigation revealed that payments were redirected to individuals and service providers unrelated to medical research, including legal fees, hire car services, and private creditors. “The funds were clearly misapplied and did not go towards the intended scientific research. This was a deliberate act of fraud,” Mr. Volo said. The suspect remains in police custody as investigations continue. Authorities have not released the individual’s name, pending further legal proceedings.