‘Dobadoba’ takes maizegate mater to court:  Kalosye sues ADMARC, Zambia Co-operative Federation for breach of contract.

Zambian private company, Kaloswe Commuter and Courier Ltd  which was used as middleman (dobadoba) in the controversial maize deal between State grain trader Agricultural Development and Marketing Corporation (Admarc)   of Malawi and Zambia Co-operative Federation (ZCF) has filed legal suit  in Lusaka High Court on breach of contract.

Commissioners in the maizegate inquiry

Kalosye, set to make US $13 million in a 100 000 tonnes maize deal with Malawi,  is dragging to court both Admarc and ZCF for failing to supply the maize.

The maize deal has since given rise to suspicion of criminal impropriety  and in Malawi  different sectors including civil society organisations have called for the resignation or firing of Agriculture, Irrigation and Water Development Minister George Chaponda and Admarc chief executive officer Foster Mulumbe who are implicated in ‘maizegate’

The use of a private company to supply maize has raised suspicion of corruption element  when Malawi government is on record to have said iits Minister Chaponda was in discussion with the Zambian government over the maize import deal, and at some point, engaged in discussions directly with Zambian President Edgar Lungu.

Both Chaponda and Mulumbe have denied any wrong doing in the  ‘maizegate’

According to report in Daily Nation of Zambia,  Kaloswe has accused ZCF of failure to supply of 100, 000 metric tonnes of maize meant for export to Malawi despite receiving full payment for the consignment in the sum of US $34, 500, 000.00.

Commuter and Courier Limited chief executive officer Isaac Kapambwe  in a statetemt of claim filed at the court said his company entered into contract with ZCF for the supply of the said quantities of maize at a unit cost of US $215 per metric tonne at a total contract sum of US $21, 500, 000.

“The plaintiff will aver that subsequently, on 17th June 2016 the plaintiff entered into a contact with ADMARC Limited (ADMARC) a company registered and domiciled in the Republic of Malawi, for the supply by the Plaintiff to ADMARC of the 100, 000 metric tonnes of 2014-2015 ex-stock Non GMO white maize at the price of US $345.00 per metric tonnes,” Mr Kapambwe said.

He explained that the contract Kaloswe Commuter had entered into with ADMARC of Malawi was to be financed by Eastern and Southern African Trade and Development Bank, a bank domiciled in Nairobi, Kenyan (the “PTA Bank”).

And that to ensure efficient delivery of the maize to ADMARC, the PTA Bank was to pay the full contract sum of US$ 34, 500, 000.00 directly to the source that the commodity would be purchased from, that is, ZCF.

“The plaintiff will further aver that on 1st September, 2016 the PTA Bank transferred the US $ 34, 500, 000.00 into the defendant’s account, number: 0003203000439, held with First Capital Bank, Lusaka Main Branch,” he said.

But that ZCF was only supposed to get US $21, 500, 000 for the 100, 000 tonnes of maize supply to Kaloswe based on the contract, and release an excess of US$ 13, 000, 000 to Kaloswe Commuter and Courier Limited.

Kapambwe in the statement says that on 30th August, 2016, wrote to ZCF for an initial advance payment of US$350, 000.00 from the excess US$ 13, 000, 000 to begin facilitation of transportation and associated logistics but that the request was rejected on the pretext that there was no need as the export permits for the maize had not yet been issued by the Ministry of Agriculture.

He has stated that it was wholly unjustified for ZCF to reject the request for payment as it was clearly indicated in the contract that “Zambia Co-operative Federation will assist the buyer by way of facilitating the process of obtaining all the relevant permits to allow the movement of grain from Zambia”.

And further argued that it was never a condition precedent either orally or in writing that the funds for logistics and associated costs would be released to Kaloswe upon issuance of export permit by the Ministry of Agriculture in Zambia.

Kapambwe has further stated that following the legal principle of “privity of contract” ZCF is not permitted to interfere with the contact between Kaloswe Commuter and Courier Limited and ADMARC as it was not a party to it.

He has since applied to the court for an order of interim injunction to restrain ZCF from spending, transferring, administering or dealing with the said US $34, 500, 000.00 paid into its account by the PTA Bank as per contract before determination of the matter.

“The Plaintiff (Kaloswe Commuter) is of the view that the actions of the Defendant (ZCF) are not in good will and are deliberately intended to frustrate, not only the contract between the Plaintiff and Defendant, but also the contracts between the Plaintiff and ADMARC and the transporter,” he said.

He has also requested for the courts to order ZCF for specific performance of the defendant’s obligation under the contract dated 31st May 2016 between Kaloswe and ZCF.

President Peter Mutharika has instituted a Commission of Inquiry to investigate the scam in which Admarc reportedly bought maize at K26 billion from the Zambian company and it is believed that Malawi could have saved about K9.5 billion if it had bought the grain directly from the Zambian government.

The commission is being chaired by former Chief Justice Anastazia Msosa, Solicitor General Janet Banda, auditor Isaac Kayira and Mike Chinoko.

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egwalle mwani
Guest

nobody is perfect.why are you so concerned with what dpp government si doing?mind on ur bussiness

BobbyJ
Guest
I am saddened and heavily heart broken. Its time we rise and do something about this as a nation. When will this day light robbery ceasevin Malawi? Our highly populated small lazy nation of genii is being strangulated by the few I’ll minded genii. I wonder if Chaponda angenuis himself will be brought to book and found in the wrong. This conniving, calculative thieve made his homework nicely so that he could get away with this, imagine from the outside observation, 1-Admarc as governmemt owned commercial entity governed by policies approved through its board under its bylaws which passed through… Read more »
Thinktank
Guest

Kaloswe will prevail in court. It wll be paid its share as an agent(and share with malawi officials as originally planned)….Losers still remains Malawian people;stuck with loan payments that never benefited the nation but Dpp and corrupt leaders

Tull
Guest

I am DPP. But I think the president has a duty to perform here. Not to fire the minister but rather to see to it that what we procured is indeed supplied.We Malawians shall not be happy to pay for this loan whose maize may not have been supplied for our benefit. However, ine pambuyo pa DPP nganganga!

Helpless Help
Guest

you ‘zomba’, aaaaa! PTA bank did pay but for your one and only best debtor admarc. And the $34 500 000 so paid is the zfc-kaloswe-admac dubiously bloated deal! you didnt get it deliberately i know.

Chambe
Guest

Can a contract of the amount of this magnitude really omit the exit clause for either parties? Do you think Bakuwa the then Company Secretary and his commercial legal team could have not vetted the contract leaving it susceptible to such risks? I really doubt it very much that there was no such a clause and no waiver clause missing.

James
Guest

Gogodasi, you have appended a very good analysis.

Chiling'oma
Guest
Malawi govt asked for a loan from PTA bank for purchase of maize to feed the hungry Malawians. The PTA bank, knowing the tendency of Malawi govt (DPP) of stealing and corruption, told the Malawi govt (borrower of loan) to identify the maize supplier and that the bank would be making direct payment to the supplier (and not to Malawi govt). You will notice that major multilateral donors and banks are now not using Malawi govt to handle funds meant for Malawians, for reasons that we all know. Malawi govt identified ZCF as supplier. In their continued desire to steal,… Read more »
h.
Guest

Dziko lino a Dpp aliwononga bolanso kukhala opanda president ndi nduna popeza ndiye otsogolera kuba tax payers money mfiti amenewa

ALOSWEA
Guest

Malawi know that only can rescue ,can’t you things are turning ,Daniel said to Nebugarnezzer there is only One God who leaves in heaven who can revile secrets , see now My fellow Malawians ,who knew that ADMARC can fail to sell maize ,praise GOD

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