Agricultural Development and Marketing Corporation (Admarc) chief executive officer Foster Mulumbe remains on forced leave as Zambia’s private company Kaloswe Commuter and Courier Limited has taken the state grain dealers to court demanding K11.8 billion.
Admarc board chair James Masumbu said the board of directors are yet to meet to decide the fate of the beleagured CEO at the centre of a messy procurement process of maize from Zambia.
Masumbu said the board has called for a special meeting to deliberate the findings of two commissions of inquiry into the purchase of maize from Zambia before a decision on Masumbu was made.
The Peter Mutharika appointed commission of inquiry on maizegate and a joint parliamentary committee recommended disciplinary proceedings against senior Admarc management.
Masumbu could however not say when exactly Admarc board would discuss the fate of Mulumbe.
Mulumbe denies any wrong doing in the maize procurement process.
As Mulumbe is enjoying his forced leave, Kaloswe has slapped Admarc with the K11.8 billion suit for loss of business following the abrupt cancellation of maize supply contract.
The Daily Times has reported that the company, through its lawyer Mwansa Mukoloba on Wednesday applied to the High Court in Zambia to amend writ of summons and claims and add Admarc to a case in which Kaloswe sue Zambia Cooperative Federation (ZCF) in October last year.
The lawsuit, among others, seeks an injunction restraining ZCF from spendin “spending, transferring, administering or dealing with”US$35.4 million from PTA Bank which was paid in its account number 0003203000439 for the purchase of 100000 metric tonnes of maize by Admarc. Kaloswe is demanding, according to the newspaper, from the two payments of K9.6 billion being the difference between the US34.5m paid by the PTA Bank and the contract sum of US$21500000.
Admarc allegedly entered into a contract with the Zambian firm in June 2016 to supply maize before terminating it and signing a fresh one with ZCF.
The company is also suing for general damages and special damages worth K2.2 billion from both Admarc and ZCF.
Masumbu, who is also a private practising lawyer and partner to Justice and Constitutional Affairs Minister Samuel Tembenu in a law firm, said the matter is not as straight forward “because Admarc is not resident in Zambia so they will have to do one or two things like applying for an application again to serve outside the jurisdiction, among others.”