‘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.
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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nobody is perfect.why are you so concerned with what dpp government si doing?mind on ur bussiness
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 parliament had to adhere to its policies on the procurement process which was most probably overseen by the ODPP, and legitemately tendered out with tough strict conditions that no Malawian owned company would qualify giving the chance to the dobadoba so they can play the games. Nothing wrong will be found by the commission of enquiry, all necessary processes were followed.
2-Admarc being a commercial entity meant to make a profitnfrom the resell of the maize. Admarc, responsible for the development and marketing, if you try and define the “Admarc” and most probably its original objectives when Kamuzu established it, was not to be used as in this scam case, this loan from PTA is not supposed to be paid by government, Admarc is supposed to pay through its profits on this maize sell. I totally reject this loan to be inherited by we poor Malawians let’s reject it. Admarc should pay from its coffers full stop.
3- I think this maize should have been distributed for free to the hunger stricken Malawians not to be sold. If government wanted to really help Malawians, they should have directly entered into an agreement with ZCF or who soever had maize to supply this maize through NFRA/establish a relief commission and distribute it freely using Admarc platforms, only then would we be liable to pay that loan.
This minister is a danger to the future of this country, remember God listens to Malawi, we are a blessed nation and HIS ways are not ours, if Chaponds doesn’t want to gracefully resign, God can force him to resign and go straight to judgement we saw this in 2012 when Malawians cried to their God for change.
It is very dangerous to give lazy people complicated tasks to perform because they find the easy waysof doing them sometimes those easy ways include kuba. Chaponda has an ambition he is aspiring to be the next president he is stealing to bankroll his campaigns. The dangers of having Lazy genii is that they will kill us with their well calculated moves………
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
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!
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.
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.
Gogodasi, you have appended a very good analysis.
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, the DPP govt decided to use Kaloswe as dobadoba to hijack part of the money from PTA bank to ZCF. They knew ZCF would not allow Malawi to have a hand on the money. But Kaloswe, as middleman, would accept to share part of the money with Malawi govt. So Malawi dealt not with ZCF but Kaloswe on matters to do with the money. ZCF is not legally bound to remit the money to Kaloswe. Malawi govt has used ADMARC as a pawn to procure the maize and swindle part of the money from PTA bank. ZCF has blocked the ADMARC-Kaloswe deal because it is a bad and dishonest deal bordering on theft. ZCF will use part of the money to deliver the maize itself to Malawi. Meanwhile the PTA bank has done its job, and Malawi govt (not DPP but Malawians) will have to repay the loan. Malawians (taxpayers and maize buyers) are suffering because of their poor choice of who should be Malawi’s president.
Dziko lino a Dpp aliwononga bolanso kukhala opanda president ndi nduna popeza ndiye otsogolera kuba tax payers money mfiti amenewa
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
Shame on Reserve Bank of Malawi. RBM said no money transfer took place. Who is fooling who? Can the RBM come forward and challenge the authenticity of the bank account through which the maize gate transaction took as paraded in this news article?
Malawi got a loan from PTA and wired directly to Zambia for 100000 MT of maize. Only 4000 MT was delivered to Kanengo Malawi and 96000 MT still not delivered while Malawians are dying of hunger. My simple question is who will pay that loan? Are we serious as a nation or what we are doing is drama. Kaloswe comes in with his own demands aaaaaaaaaaaa. Stupidy at its best
There is one thing that I don’t understand. The MERA Chief Kamoto and Head of Finance were suspended to pave way for investigation, MEC officials including Kalonga were suspended to pave way for investigation just to mention a few and no one resisted. In these organisations we did not hear about government setting up commissions of inquiry, why is it difficult for the authorities to do the same with Mulumbe and his boss Chaponda? This raises eye brows when precedence was already set. I am also baffled that the our meda including Nyasa Times do not bring up these examples are references to back their arguments.
in this edition it clearly shows that admarc indeed has not paid a penny. bravo admarc. things unfolding in favour of govt of malawi against wishes of times report.
dont be daft, do you think PTA bank would just wire plenty of dollars without agreeing with malawi govt? i think you are ignorant enough to believe so.
The sun will shine over maizegate and we will see who is in the grannery stealing our staple grain. Good move by Kaloswe.
Shameful zamanyazi ku Malawi, known of bad things shame to you Peter and your Minister, you have disgraced us 100times.