Malawi's President Peter Mutharika has dismissed calls by activists to resign over allegations he received a kickback from a $4m (£3m) a government contract, news agency Reuters reports.

The country's anti-graft body, the Anti-Corruption Bureau (ACB), has been investigating a $4m police food supply contract awarded to Pioneer Investments, a firm owned by businessman Zameer Karim, who has denied any wrongdoing.

A leaked ACB report published by Malawi's two main newspapers said the businessman deposited $200,000 into an account belonging to the ruling party and of which Mr Mutharika is the sole signatory, Reuters reports.

The ACB said that its leaked report is not final.

Mr Mutharika, 77, has called the allegation "fake news" and says it is intended to malign his name ahead of elections next year.

The main opposition Malawi Congress Party (MCP) has supported calls for Mr Mutharika's resignation, saying, "He needs to resign and call for early elections".