Center for Democracy and Economic Initiative (CDEDI) has challenged President Lazarus Chakwera to suspend State House officials who have been implicated in the Crossroads Hotel scandal.

It is alleged that some officials from State House have embezzled public funds amounting to K65 million which was paid to Crossroads Hotel.

However, Presidential spokesperson Brian Banda refuted the speculations and labeled it as Fake news.

Contradicting to the report from State House, officials from Crossroads Hotel nodded to have received K12.5 million from the State residents to cater for accommodation of some Israel guests who are in the country to train security personnel.

President Chakwera has however asked ACB to investigate the matter.

CDEDI Executive Director Sylvester Namiwa has argued that investigating the matter is not enough but those mentioned in the saga should be suspended.

According to Namiwa, the scandal has potential to dent the amplified talk on clearing the rubble by the Tonse administration.

Namiwa has since demanded the indefinite suspension of State House Chief of Staff Prince Kapondamgaga and Director of Finance Gideon Kumbalu to pave way for investigations.

State House is yet to comment.