BLANTYRE-(MaraviPost)–The death of George Bakuwa, who was company secretary of Agricultural Development and Marketing Corporation (Admarc), has been linked to the rotten maize deal currently under probe.
According to the Daily Times, the joint parliamentary committee probing the dubious maize deal has gathered that the Zambian Cooperative Federation (ZCF) paid for the funeral expenses of the late George Bakuwa including repatriation of the body to Malawi.
rampant corruption in Malawi government departments
Bakuwa died while on a maize procurement assignment in Zambia. This was his last assignment as an Admarc official as he had just been sworn in as High Court judge.
Leader of the Malawi delegation Joseph Chidanti-Malunga explained to the local paper that ZCF officials admitted to have paid for the expenses perhaps as courtesy since Bakuwa was one of government officials who the company was dealing with in the procurement of the 100,000 metric tonnes of maize.
“We have been told that ZCF arranged payment for the expenses of everything including transport and we are wondering how this was possible because we expected government to have handled that. So, we have arranged some unofficial meetings on Friday [today] with some people to share us some details on what they know,” he said as quoted by the Daily Times.
Meanwhile, Director General of Kaloswe Commuter and Courier Limited, Felix Nyirongo, has reaffirmed its plans to sue the Admarc, saying they were duped in the maize deal.
It is reported that Admarc officials persuaded Kaloswe to alter some clauses in the contract so that payment should be made through ZCF.
The revelation contradicts what Admarc Chief Executive Officer, Foster Mulumbe, told Parliament that it was Kaloswe which suggested that the Letter of Credit amounting to $34.5 million should be in favour of ZCF.
According to Nyirongo, once the contract was altered Admarc officials, kicked Kaloswe out of the deal.
Fresh details emerging on the Zambia maize saga show that officials involved in the maize deal between Admarc and Kaloswe had planned to cheat Malawians as they set to supply only a few tonnes of maize but ask for payment for the entire 100, 000 tonnage of the grain according to The Daily Times paper.
ADMARC: planned to supply few tonnes but get paid for the entire 100,000 tonnes
Sources close to the deal confided in the paper that Admarc connived with officials from Zambia to purchase only a few tonnes as Zambia Cooperative Federation did not have the needed 100,000 metric tonnes.
Although these details are fresh, they are not at all surprising as earlier last week Admarc boss Foster Mulumbe admitted before members of a parliamentary joint committee of Agriculture and Public Accounts that both Zambian traders–Kaloswe and ZCF–had neither maize nor capacity to supply maize to Malawi but went ahead anyway to contract with them.
“It’s very clear that ZCF could not manage to supply the 100,000 tonnes and so the question is why Admarc did sign such a contract when the supplier had no capacity? The plan was to move only few tonnes and pay for 100,000 tonnes,” the paper quotes the source.
According to the paper, the source further disclosed that ZCF is money-deficient and has serious problems sourcing the maize from cooperative members because the profits to be realized are small and the cooperatives are demanding on-point cash payments.
Speaking when he appeared before the parliamentary joint committee on the maizegate last week Secretary to the Treasury Ronald Mangani frankly told the joint committe members that Admarc officials by-passed the seat of government in going ahead to sign the contract as it did with Kaloswe and ZFC. He asid that in doing so Admarc officials gravely breached procedures.
Other government officials from the Malawi Revenue Authority (MRA) and Office of Director of Public Procurement (ODPP) have given the parliamentary joint committee on maizegate differing information which seriously points to shady dealings in the maize procurement scandal.
Meanwhile, the parliamentary joint committee plans to visit Zambia to gather more information on the maizegate to beef up its finding.
The Government of Malawi borrowed K24 billion from PTA Bank for the purchase of the 100,000 metric tonnes of maize to alleviate hunger as it was forecast that many Malawians would face hunger this year.
LILONGWE-(MaraviPost)-The joint parliamentary committees of Agriculture and Public Accounts on the on-going Zambia maize scam probe has trashed Consumers Association of Malawi (CAMA)’s inquiry as lacking in depth on the matter adding that its methodology is questionable.
John Kapito: parly says his inquiry on maizegate lacks depth
The lawmakers observed that CAMA’s findings on the matter are shallow as they failed to look into other substantial issues in the deal including the procurement process which is the main source of controversy.
CAMA appeared before the committee on Monday following its report released last week that said that there were no shady dealings in the procurement of maize from Zambia but faulted suspended Agriculture Minister George Chaponda for interfering with procurement of maize which is lcally currently being sold at MK12, 500.
The committee’s member, Richard Chimwendo-Banda, questioned how the consumer rights body achieved its study objective on price justification without going much into procurement.
Chimwendo-Banda added that the study’s findings that Admarc signed contracts with Kaloswe and Zambia Cooperative Federation (ZCF) on the same day to supply the cooperation with 100,000 metric tones
each is not true.
The committee’s chairperson Joseph Chidanti-Malunga said he respected CAMA’s efforts but chided the report saying it left a lot to be desired in the sourcing of the information and documentation used in the study.
But a three-member CAMA team of Executive Director John Kapito, Director of Legal Affairs Yusuf Nthenda and Project Officer Maurice Mkawihe defended the study’s findings arguing that the report is not below standards despite the study not going into procurement technicalities.
The CAMA officials said the main objectives of the study were to establish whether maize was procured from Zambia, the procured maize arrived in the country and whether the price of maize in Admarc markets is justified.
On justifiability of current maize price of MK12, 500, Kapito questioned the role played by Parliamentary committees on agriculture and public accounts to ensure that the maize bought by Admarc, which is a commercial entity, was accessible and affordable to the poor Malawians.
“It’s a known fact that the maize prices are high but what have the committees done to ensure that such huge duty of procuring maize is not only left in the hands of Admarc or executive branch of government? Parliament should be on the forefront leading such procurement to ensure that poor Malawians are not punished”, said Kapito.
CAMA’s investigative study revealed that Chaponda lied to the nation that his ministry and him as a minister did not interfere or get involved in any procurement arrangements of maize in the country and
yet the ministry was able to obtain a letter of no-objection from the Office of the Director of Public Procurement (ODPP) when it is not a procuring entity of maize for Admarc.
The investigation further revealed that ministry of agriculture, with Chaponda’s blessings, tried to influence Admarc to purchase maize from local suppliers at exorbitant prices without considering its impact on consumers’ affordability to buy such maize.
According to CAMA’s investigation, two Zambian suppliers namely Kaloswe Commuter and Courier Limited and Zambia Cooperative Federation Limited (ZCF) failed to supply Malawi with maize as stipulated in their contracts. ZCF only managed to supply less than 5,000 metric tones.
CAMA noted that Kaloswe Commuter and Courier Limited contract with Admarc was terminated and that there was no activity from both sides.
“Our investigation revealed that no funds have been remitted so far to any of the two suppliers and that the ZCF request for payment has not been effected. It has been observed that both ZCF and Kaloswe
contracts need to be terminated as they both failed to meet the requirements of their contractual obligations”, reads the report in part.
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The CAMA report added that letters sourced from Reserve Bank, ZCF and Admarc confirm that no money out of the US$34.5 million which the grain marketer was expected to pay for 100,000 metric ton of maize ZCF was expected to supply to Malawi has been paid.
According to contractual agreement between Admarc and ZCF, payment was to be made for tranches of 10,000 metric tons upon presentation of Loading Order, Commercial Invoice and Goods Received Note. However ZCF has only managed to supply 1,530.508 metric ton of maize which is below the contractual requirement.
The company is currently seeking payment of the supplied maize amounting to US$528,025.26 which the Reserve Bank of Malawi has refused to authorize considering that the supplied maize did not meet the required amount to trigger payment as stipulated in the contract.
Both commission of inquiry set by President Peter Mutharika and the Anti-Corruption Bureau (ACB) are also under way whose dateline is January 31, 2017.
The Country’s grain marketer has reportedly paid US$34.5 million (MK26 billion) for the maize, which is US$13 million (MK9.5 billion) more than the US$21.5 million (MK15 billion) it could have paid had it
bought the maize from Zambia government.
Admarc however still insists that it is buying the staple grain from ZCF, a government agency, but documents show that Admarc may have used a private Zambia company that may be more expensive than if the deal were government to government.
The suspended Agriculture Minister Chaponda, who gave a ministerial statement in last Parliament sitting on the maize procurement saga, has been refusing to resign arguing that his hands are clean and that those wanting him to leave the office do so out of jealousy.
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