According to media reports The Mutharika government has cancelled a $145 million arms deal with South Africa’s Paramount Group. This was confirmed by Finance Minister Goodall Gondwe.
“The agreement between the Malawi Government and Paramount Group has been abrogated. That is all I can confirm and say,” Gondwe said.
The paper quoted a source within the finance ministry as saying the government of President Peter Mutharika told the firm the deal was “illegal and expensive”.
The agreement with Paramount, Africa’s largest private defense firm, was signed by the former administration headed by Joyce Banda, who was ousted by Peter Mutharika in May elections.
Under the deal, the government was expected to make quarterly payments of $5 million over several years for patrol boats and other military equipment.