Kapito says Zambia maize deal ‘stinky’ and humiliating Malawi leadership: Kaloswe sues Admarc
Consumers Association of Malawi (Cama) executive director John Kapito has called the rot in the procurement process of maize from neighbouring Zambia as “stinky” and also “humiliating” to the leadership of Malawi for its suspected corruption scandal.
The maize purchase deal is currently marred with controversy regarding contractual issues involving the State-produce trader Agricultural Development and Marketing Corporation (Admarc).
While Admarc boss Foster Mulumbe insists that Admarc is buying the staple grain from Zambia Cooperative Federation (ZCF), a government agency, documents show that Admarc is actually using a private Zambian company, Kaloswe Commuter and Courier Limited.
“This transaction is not only stinky, it is also humiliating to the leadership of this country,” said Kapito on Daybreak Malawi program aired on Capital Radio on Thursday.
Kapito has since backed calls for an inquiry to be carried out.
He, however, said the Parliamentary Committee on Agriculture, Irrigation and Food Security should outsource an independent body of expertise to conduct the probe.
Human rights activist Charles Kajoloweka also backed the calls for a commission of inquiry to be set up to investigate the entire process.
And Timothy Mtambo the executive director of Center for Human Rights and Rehabilitation (CHRR) has said the Anti-Corruption Bureau (ACB) should. institute investigations into reports of corruption in the purchase of maize from Zambia “as a matter of urgency.”
Mtambo said: “ACB should be seen to be proactive in fighting corruption rather than waiting for a complaint, as we have recently been made to believe.”
Meanwhile, Kaloswe is suing Admarc for breach of contract.
According to Kaloswe chief executive officer, Isaac Kapambwe, his company signed a contract with Admarc in June 2016 to purchase and deliver maize.
Kapambwe said his company has “all communications” on the deal with Admarc.
Minister of Agriculture, Irrigation and Food Security George Chaponda has not commented on the matter.
But Parliamentary Committee on Agriculture, Irrigation and Food Security chairperson Joseph Chidanti-Malunga said they will grill Chaponda to explain the perceived mess, particularly on the use of a private company as a broker of the maize deal in Zambia.
Malawi government spokesman and Minister of Information, Nicholous Dausi, has said accusing government of corruption in the maize deal is “fallacious”, saying the matter is being blown out of proportion by Zambian opposition leader, Saviour Chishimba.
Chishimba said in statement that on 6th September 2016, Admarc boss Malumbe wrote an email to Kaloswe “in which he was categorically re-affirming that all logistical costs on the Zambian size would be met by Kaloswe as per the agreement. “
The same email was copied to the First Capital Bank.
“On 6th September 2016, ZCF wrote a letter to Kaloswe in which they were confirming that logistical payments are to be made to Kaloswe on need-based. This letter was signed by a Mr. Frank Munthali the ZCF director of finance. The director of finance was replying to the request by Kaloswe to be paid an advance of US$350, 000 for logistics. Apparently, ZCF indicated that the payment would be considered ‘…once the documents are finalised,” Chishimba claimed.
But Dausi said on Capital Radio: “These are intentional statements by political party leader opposition in Zambia Mr Chishimba. We would want to have the details of the allegations that he has levelled against both sides of the government.”
Dausi, a former state chief spy said he cannot be drawn into “international police investigators or crime investigators.”
Malawi government obtained a loan of K26 billion from the Eastern and Southern African Development Bank (PTA Bank) to purchase 100, 000 metric tonnes of maize from government of Zambia through Zambia Cooperative Federation (ZCF).
In October, Admarc said by November it would have brought in about 300 000 metric tonnes from Zambia and overseas countries such as Brazil, Mexico and Romania.
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If the DPP is going to win again in 2019 there will be war in this country. No well
meaning Malawian will allow these thieves to be in power again .Mark my words.
Let us be patriotic to our country. We should not support a party just because its leaders are from where we come from. This corruption is not only affecting people from the north or the centre. Malawians from all corners are suffering. To you cadets you will die poor while the leaders you are supporting are getting richer and richer because of your ignorance. Some of you cadets are graduates and you know better. Let us fight for a better Malawi. We should not be ruled by thieves who are there just to loot and plunder our meagre resources. With issues of corruption emerging everywhere do you think donors can trust us? What do you think of a villager?
While at it, some of us have not forgotten Mr Peter Mlamba. Where is he? Why?
The only hope malawians have is an immediate coup de tant. Muthalika must go by any means necessary. He is finally showing his true colors. A bonafide thief!!
Malawi will be in tatters by 2019 if God does not intervene because, Malawians and watch dog institutions are just looking on when so much corruption is going on, on a day to day basis.. Lord have mercy for the poor Malawians.
This is very pathetic for Malawi as a country. I don’t know when we shall learn to consider those poor villagers who have got literally nothing to point at as food. No wonder a 50kg bag of maize was raised from MK5000.00 to MK12000.00. This is it. aMalawi kusamva, fisi ndi fisi, olo angasinthe ntchile amakhalabe fisi basi
Let me repeat what I have said not once, not twice, not thrice but times without number that Malawians made a big mistake voting DPP back to power. DPP is a grand master of theft in Malawi, the master of cashgate. Have you ever wondered why they don’t want to investigate the 577 billion MK. Malawi will develop but not with DPP. These guys will milk the think cow to death. The next thing that we must wait for is terrorism, a trade mark of the zikwanje party.
Interesting that the late Bakuwa who was at the heart of these deals died in Zambia. Was somebody trying to hide something by killing him?
Kapito and all commentators including Zambian opposition are empty tins making the most noise. Kapito is busy failing as board chair of minute water utility company as well as in the consumer body but he wants to be a champion in matters of government. Many of you do not know what is involved in International trade.The writer clearly says the maize is not directly owned the gov’t of Zambia but ZCF with logistics of transport ccontracted to Kaloswe. Please let professionals have their input in such matters and the nation will be ably infored. Kapito is not a competent professional just like the Zambian opposition and some CSO leaders/executives in Malawi. Leave ACB and its highly qualified leader alone. Off him your uncalled for interferences. Thank you so much for reading along with me.Have a blessed and productive 2017 to turn your sweat into sweet rather than poking your noses into an unfamiliar fields.
lets wait and see the progress,ACB is watching as well here… No need to inform them. Let them show their independent as a body.
The govetnment you people vited for is too evil deserves hell….Dausi mbiri yako inayipa kale…ndipo ukhale chete wafika nthawi yolakwika…pa Minister of Information…your political mileage is being finished this season just as Ntaba…i cant warn you….coz you leave in your own world…mMunthu ukamafa…mumayamba ndimnkhutu kugotha…iwe…mwako mwatsekeka…you cant see you are blind and cant hear you are deaf…to hell DPP enough is enough….imunthu milibe alomwe inu!
de only word inheld from self estteemed chaponda on this was threatening to arrest any one publishing false rumours on this scam…,basi……thus y ndale zakunonzimativuta,,,,,,wen we have a problem responsible authorities arw quite,,,,,,,,,daz it taje chaponda to scrutinise the deal?,,,,,,,,,silence is golden soni bet chaponda knows somthing,,,,,,,,,,,Dasusi u betta b quite if yu aint betta plac3d tonspeak,,,,,,,,
yo friend aGobbels had time framw wen to comment tings nde follow the chain
Our brothers and sisters are in the Southern region see no mistakes in all these and come 2019 will still for DPP. After all they are majority period. For others just find a better way to survive
Copied: THE ENTIRE MANAGEMENT OF ADMARC AND ZCF MUST RESIGN TO PAVE WAY FOR CRIMINAL INVESTIGATION
Maize Gate Evidence Part 2
The CEOs and management teams of ADMARC and ZCF in Malawi and Zambia respectively must resign to pave way for criminal investigations into the scandalous exportation of 100, 000 metric tonnes of maize from Zambia to Malawi.
We maintain that the transaction was not a government to government deal. If it were, there was no way the Zambian Government was going to sale the maize to Malawi at such a high price. The people of Malawi have a food deficit and there is no way Zambia can take advantage of the situation to extort money from our good neighbour when there is a crisis. Zambia and Malawi share a common heritage and history of British colonialism. This bond is unbreakable. We owe a duty to each other as the two countries.
Crooked public officers like Foster Malumbe must be arraigned before the courts of law in Malawi for creating conditions that facilitate plunder of public resources even when there is a national food crisis. Malumbe lied that the contract with Kaloswe was terminated in June, 2016. Facts to support our position are as follows:
1. Pursuant to the agreement between Kaloswe and ADMARC, Kaloswe wrote the letter of instruction to ADMARC for the purposes of wiring US$35.5 million into the account of ZCF. This letter addressed to the CEO of ADMARC is dated 22 June, 2016.
2. On 26 July 2016 at 12:04:13 hours, PTA Bank wired the funds on behalf of ADMARC.
3. On 6 September 2016, the ZCF Director of Finance wrote to Kaloswe that a down payment of US$350, 000 which they had requested for logistics was going to be made after the export papers were finalised. This amount was to be paid from the US$34.5 million which came from Malawi.
4. On the same date 6 September 2016, Mr Malumbe wrote an email to Kaloswe confirming that all logistical costs on the Zambian side would be met by Kaloswe.
5. On 7 October 2016, Mr Malumbe wrote another email to Kaloswe in which he confirmed that ADMARC refused to deal with a ZCF official who travelled to Malawi in the first week of October because ADMARC did not have any direct legal relationship with ZCF.
It is therefore absolute nonsense and absurd for Mr. Mulumbe to continue misleading the government and people of Malawi over this very sensitive litigable and criminally indictable matter.
We are further astounded that as ADMARC is looking for a cover up, the same is being done by ZCF and other corrupt senior officials in the Zambian Government who connived with ADMARC to circumvent Kaloswe to create an opportunity for looting.
We have learned with great shock that the permanent secretary of the Ministry of Agriculture in Zambia reportedly issued a statement in which he categorically stated that the Government of Zambia is exporting the 100, 000 MT of maize to Malawi through a Malawian company called Transglobe Limited. We need to investigate this company so that it can explain how it is being used by looters to siphon public resources.
There is total confusion because ZCF is also claiming to have a contract with ADMARC, but central government is denying this. According to the permanent secretary the export permit was granted due to a contract between ZCF and Transglobe. This new player in the whole deal is clearly the one ADMARC, ZCF and other senior officials are using to power personal pockets.
If Malumbe has morality and if at all the contract with Kaloswe were terminated in June as he has falsely claimed why didn’t he renegotiate the deal downwards in June since it was going to be a government to government transaction? The private sector sell at higher prices due to the profit motive and tax obligations that they ought to meet.
The Zambian Government cannot sell the maize to the needy people of Malawi at such an unreasonably high price.
Malumbe must be prosecuted and we urge His Excellency Prof. Peter Mutharika the President of Malawi to dissolve the entire management of ADMARC and let them explain why they have caused the government to spend a huge amount of money at a time that Malawi is seeking economic stability and growth.
We stand to corporate with investigative wings in Malawi and Zambia to deal with the culprits.
Dr. Saviour Chishimba
UPP PRESIDENT
We should not wait for what prompted General San Abachas to take over government in Nigeria from one civiian ruler to befall many African nations. Corruption must go. What I see is that discontent is now at 80%. Someone should not pretend that Africans are sleeping people. Not anymore!
We are tired reading and listening to nasty negative stories
Will there be time kapito will talk positive. Every time he goes to the toilet bed brushing his teeth combing his hair he thinks of negatives
We are tired of some of you nasty Malawians who thinks less than life or flies in the toilet
Stop being too biased and learn to be positive in some issues.you will loose nothing
Malawi wake up. This practice of cashgate, maize gate, Watergate, electricity gate, coupon gate, maize gate, energy gate, escomgate intact everything gate is taking this country nowhere. Time has come to grow up and change our mindset. Of course this may reflect public policy failure at all levels. The whole system should be overhauled. Let us ask ourselves what can we do for our country to regain sanity? We do not need talkers but doers. We have one and only Malawi and if this country is allowed to sink, we will sink together. We should do something to save this great nation. Time to make Malawi great again!
What something should be done? Come up with a solution pliz!
Shame to DPP corrupt government. They don’t care about the poor Malawian but expect the same suffering Malawian to vote for them in 2019………mumfune…..we thank God that some of the secrete corrupt acts are being uncovered………muyaluka…….kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk