Chaponda irked with Goodall over Eurostar maize deal despite Malawi Cabinet rejection

Agriculture Minister George Chaponda is fuming wigh anger against Goodall Gondwe, Minister of Finance and Economic Planning for continueing to get   involved in direct procurement of maize for over a K7.5 billion deal despite Cabinet rejection.

Gondwe: Eirostar deal is  Cashgate like

Gondwe: Eurostar deal is Cashgate like

Chaponda is also not amused that Gondwe is sidestepping him in procuring the grain and not the responsible ministry.

Gondwe has procured maize directly from outside Malawi by signing contracts on behald of Agricultural Marketing and Development Corporation (Admarc) to get 300,000 metric tonnes.

But Chaponda feels Gondwe is procuring maize “unilaterally” and that it is “against the set rules.”

Cabinet rejected   a K7.5 billion governments’maize deal after  donors raised eyebrows as Treasury was dealing with a foreign intermediary company amid fears of overpricing.

The decision to purchase about 100 000 metric tonnes of maize came after government announced that 6.5 million people in the country will face hunger this year due to low maize harvests in the 2015/16 as a result of the prolonged dry spell which reduced maize yields by 39 percent.

Gondwe is dealing with  Dubai-based intermediary called Eurostar Trading Company.

Cabinet reaised questions over the company’s capacity after it turned out that the company was to obtain a $105 million loan from the PTA Bank to procure the maize on behalf of government to be repaid at 2 percent interest up to 2018.

Treasury was supposed to act as guarantor of the loan.

The deal is “Cashgate-like”  with  concerns of overpricing for purposes of wrongful self-enrichment.

The maize is to be purchased for State grain marketer Agricultural Development and Marketing Corporation (Admarc).

But Gondwe has defended the deal said Treasury had done “due diligence”.

This development comes after newspaper reports indicated that government is processing a U$105 million loan (about K75 billion in current exchange rate) through American financial giant JP Morgan Chase for Admarc to import 300,000 metric tonnes of maize.

This loan has a 2 percent repayment rate and will run for 14 years which include a grace period of four years.

The tonnage from this loan is part of the 490,000 metric tonnes which will be made available to Admarc over a period of five months.

Malawi News reported that JP Morgan Chase line of credit is one of several which the government is undertaking for the purpose of maize procurement in its response to the dire food situation in the country.

The government has also established a line of credit with the PTA Bank to finance the importation by Admarc of 100,000 metric tonnes of maize from Zambia.

It has also provided two bank guarantees to CDH Investment Bank for the procurement of an estimated 90,000 metric tonnes of maize on the local market.

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21 thoughts on “Chaponda irked with Goodall over Eurostar maize deal despite Malawi Cabinet rejection”

  1. Thawale says:

    Pamalawi chilungamo chidapita ndi kamuzu pano people they want to getrich on the back of the poor..if I was peter munthali ndikada khaulitsa andale …I could ve changed malawi for the poor malawians……even if andiphe ..koma ndikadakhaulitsa including IG …. police yanthu ikulowa bwemba… bcouse chilungamo sichuyenda

  2. Mulomwe says:

    God give us the wisdom and brevity to fight back and remove these people from power. Anthu oipa mitima a dpp

  3. Mlenje says:

    Pathetic government, clueless indeed allowing pipo to steal government money just like that and do nothing. Hunger has now become a tool to enrich yourselves, THERE IS A DAY OF JUDGEMENT your stolen money will not save you. Eat now and satisfy your selfishness for when the time comes you will not.

  4. Rrrrrrrr says:

    The figures reported here seem not to be verified. If you divide the amounts reported by A Wanga Gwede here, the maize has been priced at MK88/kg and each of the 6.5 million affected persons will get a share of 40kg.

  5. Chriss phiri says:

    Lavuta apa ndi dyera makosanawa

  6. be humane says:

    its better to be led by a headless live leader that a dead opposition leader. Peter Mutharika must be our lesser evil that Chakwera. So come 2019, he will be back in power. Love it or hate it

  7. Fisi Nicholas Harry says:

    For the first time I feel aGondwe is doing the right thing. Chaponda can’t be trusted with cash to buy food for the poor. He is right to go it alone, cabinet approval or not!

  8. HE the Life President Mfuti Kasinja? says:

    Zimenezo ndiye za utsiru, zau machende ndi za nkutu, the president is against corruption and Goodall is at it. Mr Dearest President, fire Goodall, arrest him and let him die in that jail.

    1. Baba wa Boyi says:

      Are you that stupid to think Gondwe would be doing that without the approval of the President. If you must know, Chaponda is probably the one with one foot out of the door.

      If there is minister who tries to do the right thing, it is Gondwe, times are just hard. Gondwe is nor corrupt.

      A corrupt person does not start being corrupt because they are in Malawi. Bingus history of misuse of public funds started being heard way before he became president, Goodall was acting president of ADB (Malawi government(JZU)refused to endorse him as president) did you Malawians even hear whispers of him being corrupt? Ndiye ayambe lero?

  9. sabata says:

    We Malawians do we really love our country. This issue of hunger has just now become cashgate tool. Tiyeni nazoni come 2019 we still vote you back to government period very sad

  10. Opals says:

    Borrowing for consumption. Pathetic.

    1. Zomvesadi chisoni…..tidya then nkupita ku toilet…kuiwala. nkumalipilano ngongole 14 years….atsogoleliwa ndi mbuli za anthu

  11. kalala says:

    when you lead by headless pple … these are the results.. We have a lot of commercial farmers in the country who can be engaged to grow maize on govt behalf. Many of them have irrigation facilities which can are used for tobacco farming….. engage these guys… we Chipeni’s in Zomba, these farms along BT-ZA road, Illovo and many more others….

    1. Zomba Malindi says:

      Hunger is not next year, it is Now!! The hunger is because there is no rain, or too much rain, so what you and your friend below are saying is Rubbish

      What can Malawians do, with their laziness?

      Do you think there are no people in this country with money to farm commercially?

      Mvula si ili kubwela bwino. Nothig to do with giving people cash kuti alime

      1. MAVURUVURU PHIRI says:

        A certain Sugar Company was at one time contracted to grow maize on behalf of GOVT. Prices were so exorbitant. Please check.

        1. kalala says:

          Was the contact negotiated in good faith? The challenge these days is that pple negotiate contracts on the basis of ” Oyenga mono Satuwa”. I am so sure that we can have maize in the country if govt can request some of these commercial farmers and promise to subsidize/provide inputs like fertilizer and seed. Better prices can only come if all is done honestly….

      2. kalala says:

        Its because we are lead by pple like you who can not think/see beyond their nose.. when did you know that we will have hunger in this country? Even now we have plenty of water just flowing down to the ocean. What govt and NGOs need to do is to empower Malawian to use this water.. Maize get mature in less than 100 days… how long is the process of buying maize from abroad.. when will this maize be available to Malawians. Buying maize from abroad is not done in good faith. Politician are greedy pple who always what their pple to be suffering so that these pple look up to them for help and in the process earning unwarranted praise.

        1. Zomba Malindi says:

          Why is it always someone’s responsibility to feed you? “When did you know” when did who know? what about you? so you want to sit there and wait for someone to think for you.

          Malawi is a subsistence economy, everyone produces their own food. You do not just wake up one morning and you create commercial farmers, it is a process.

          It might come as a shock to you, non-politicians are more greedy and more corrupt than politicians, this is the old saying ” Mbuto yakalulu idakula ntazaonani”

          wake up do something for yourselves, you talk about water, is the water being sold? so why can’t people with money in Malawi start using the water?

          You will always be crying, and those with progressive attitudes will always just look at you like you are a fool.

    2. Mbereka says:

      great thinking

  12. Achimidzimidzi says:

    Two of you, George Chaponda and Goodall Gondwe are very insensitive to our problems. You could have contracted local companies to grow the maize, under the green belt concept. That could have created jobs to a lot of Malawians. And at the same time reducing expenses. K7.5bn is a lot at our level.

    1. Mbuzi za anthu amwene……

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