Few days after Foundation for Irrigation and Sustainable Development (Fisd) Limited directors and Attorney General (AG) Thabo Chakaka Nyirenda exchanged words over unpaid dues in the multimillion kwacha Phalombe water project, the company has taken the government to court.
In a statement signed by chief executive officer for the company, Raymond Mwenitete, the company says the Attorney General will soon be served with legal documents.
Mwenitete says it’s unfortunate that the Attorney General has described the multimillion worth water project as a product of poor workmanship.
The Attorney General, Thabo Chakaka Nyirenda has been quoted in the press accusing Fisd limited company of receiving double payment in a water project in Ntcheu and displaying poor workmanship in the Phalombe project.
The decision by FISD comes barely two days after Attorney General warned directors of the company not to act on their threats to dismantle solar-powered water equipment in Phalombe District.
AG’s remarks came against the background that, this week, Fisd officials announced that they would dismantle the solar-powered water system they Had installed as the government was yet to honour its K600 million payment.
The AG warned that dismantling the structures would amount to vandalism, which he described as a criminal offence.
“Fisd has some contracts with government, some [of them] successfully and some unsuccessful. We have one in Ntcheu District and the other one in Phalombe District which are under dispute. The thing is that we had some poor workmanship in these contracts as well as we had a [case of] double payment in Ntcheu, which they accepted but are refusing to refund [us],” he said as quoted by Times.
Chakaka Nyirenda said the contract between the company and the government has a dispute-resolution mechanism that provides for arbitration.
“Any rightful contractor would not resort to vandalism or barbaric actions in resolving the dispute. I am, therefore, surprised that this is coming from a company that has been there for some time doing a lot of contracts. One thing that I must tell you [the company] is that if you say you are dismantling [equipment], that is a criminal offence under vandalism and is a serious one,’’ he said.
FISD hit back saying some technocrats in government were deliberately misleading the AG over contracts being performed by the company.
“We feel the AG is being misled by some greedy technocrats who have kept critical information packs and communication trails under wraps,” said Mwenitete.
“It is very unfortunate that up to date, the AG is failing to get correct information from concerned officials in government about issues concerning the so-called double payments for the Ntcheu project,” he added.
Four of the directors at FISD Limited Company were arrested in connection with the issue of Ntcheu project and it has been 14 months since their arrest and the state is yet to commence the case against them in court.