Admarc by-passed Treasury in Kaloswe deal, ST Mangani tells ‘maizegate’ inquiry

A parliamentary inquiry on maizegate on Thursday heard a testimony from Secretary to the Treasury Ronald Mangani that State produce trader Agricultural Development and Marketing Corporation (Admarc)  by-passed  treasury in the  controversial  procurement of maize when they had a deal with  middleman Kaloswe Commuter  and Courier Limited of Zambia.

Secretary to the Treasury Ronald Mangani (l) says Treasury was by-assed

Mangani said Admarc told Treasury on June 8 2016 that they wanted a guarantee to obtain  a $50 million loan from Ecobank for maize purchase with $10 million  for local maize procurement and $40 million for the international purchase.

He said Treasury wrote Reserve Bank of Malawi on June 13, 2016 on the matter and the central bank response with an advice same day that Admarc and Kaloswe were signing the dotted lines for a maize deal.

“The Reserve Bank advised us not to use Ecobank as per Admarc’s request, but to use an already existing line of credit with PTA bank which would be  a bit cheaper and efficient,” said Mangani.

He said Treasury wrote Reserve Bank on their agreement with their advice for the use of letter of credit with PTA.

When she appeared before the MPs, director for debt and aid in the Ministry of Finance, Economic Planning and Development, Madalo Nyambose, said the ministry’s role ended at seeking advice from the central bank on a line of credit which Admarc could use after asking for a guarantee from government.

Two committees of Parliament—the Public Accounts Committee and the Parliamentary Committee on Agriculture, Irrigation and Water Development—are conducting an inquiry into the procurement of maize by State grain marketer – Agriculture Development and Marketing Corporation (Admarc) – to establish whether there was an element of fraud and corruption in the deal.

Mangani said it was  up to the inquiry to establish if Admarc  followed the Public Procurement Act and Public Finance Management.

“Government is an institution of trust. Thus, we never expected that there could be a contract signed before {substantive} issues were addressed,” said Mangani.

Karonga central MP Frank Mwenefumbo asked Secretary of Treasury if Admarc will be able to repay the PTA Bank  loan  which parliament approvedfor purposes of maize purchase , Mangani expressed doubts, saying the State produce trader may not be able to repay the loan.

Chairman of the inquiry Dr Jospeh Chidanti Malunga said they are winding up the inquiry this Friday and expect Agriculture, Irrigation and Water Development Minister George Chaponda to appear before the inquiry.

Chaponda and Admarc CEO Foster Mulumbe are grilled on  corruption element in the procurement of maize.

Both Chaponda and Mulumbe deny any wrong doing.

Malunga said they expect to have inquiry report ready for submission by end of next week.

He however he said the joint committee is scheduled to travel to Zambia this weekend where  they want to interview  whistle blower Saviour Chishimba, an opposition leader as well as Kaloswe.

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simulemba
Guest

There is no corruption here. Dr Mangani please grow up populism will not help you. Your statement to the parly committee is contradictory. Its obvious that you were not by passed at all but as usual you are trying to look smart wgen in fact you are displaying university tendencies.

chipolopolo
Guest

Please , is Chaponda being mentioned here? Brian Banda and the so called chief In Editor of Times newspaper, George Kasakula.Are you not ashamed? You are only relying on Chishimba’s witness. Now only opposition members of parliament.

Ngiringinde
Guest

Koma ine lero ndifunseko pan’gono anthu amene mumadya zakubanu mumanjoya? Mitu yanu imagwira koma?timisalanso mulinato ndithu uzimunso woti ndinu munthu mulibe, koma akazi anu amadziwa kuti ndinu mbava?Bwanji ife sitiba koma tili moyo,kunjoyanso kwambiri!

Palani
Guest

They had to by-pass treasury becoz they were under instructions from chief thieves – matchona awiri

Imagine
Guest
The Treasury akuzikola okha on the following points: 1 Mangani said Admarc told Treasury on June 8 2016 that they wanted a guarantee to obtain a $50 million loan from Ecobank for maize purchase with $10 million for local maize procurement and $40 million for the international purchase. 2 He said Treasury wrote Reserve Bank of Malawi on June 13, 2016 on the matter 3 “The Reserve Bank advised us not to use Ecobank as per Admarc’s request, but to use an already existing line of credit with PTA bank which would be a bit cheaper and efficient,” said Mangani… Read more »
Kanthu Ako!!
Guest

Why do you jump the statement that: “He said Treasury wrote Reserve Bank of Malawi on June 13, 2016 on the matter and the central bank response with an advice same day that Admarc and Kaloswe were signing the dotted lines for a maize deal”

Before your Number 1 ADMARC has already agreed with Kaloswe. So YES treasury was bypassed.

Mika Kumbire
Guest

The Zambia Trip will be useless. This is just a money making initiative by the parliamentary committees. Saviour Chishimba of the UPP Party which has no single MP in parliament is busy fighting his own corruption charges. We Malawians are just helping him to be relevant. At the moment he is busy collecting signatures for “Return Our Money Campaign” where he wants all people who had taken Government money to return the assets and property within a month.

nyaka 1
Guest

thieves are always smart , how i wish i was the minister i could have not been too selfish as he did , let him face the law together with mulumbe, one good bad thing with matchona is too much shortcuts to gain more may god help them go back to exile coz they are of no use in this country

wpDiscuz

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