Malawi govt lied on Zambia maize deal: Objective evidence reveals scam

Documents on the deal for the purchase of  100, 000 metric tonnes by Malawi’s grain marketor Admarc were signed with a  Zambian private  company called Kaloswe Commuter and Courier Ltd  and not government to government deal as claimed by Admarc.

Admarc CEO Foster Mulumbe: Signed the deal with private trader , its in black and white

On Tuesday  December 20 Nyasa Times published a story which said Zambian opposition leader has raised suspicion over transactions between ADMARC and a private firm involving Zambia maize exports to Malawi, alleging there was some racketeering by some top Zambian government officials.

But ADMARC CEO Foster Mulumbe came fighting that they were buying maize from Zambia Cooperative Federation (ZCF).

“We have a contract with ZCF,” said Mulumbu,

However, documents seen by Nyasa Times shows a contract which Mulumbe signed alongside CEO of Kaloswe, Isaac Kapambwe dated June 17, 2016.

On 31st May 2016, Kaloswe Commuter and Courier Ltd entered into a contract for the purchase of Zambian White Maize (Non-GMO) with the Zambia Co-operative Federation Ltd (ZCF). A Mr. James Emmanuel Chirwa in his capacity as Director General signed, under seal, for ZCF while a Mr. Isaac Kapambwe in his capacity as CEO signed, under seal, for Kaloswe. Under this agreement, ZCF agreed to reserve 100, 000 MT of maize at the selling price of US$215 per MT.

“On 17th June 2016, two agreements were executed. The first being betweenKaloswe and ADMARC Ltd. Under this agreement, ADMARC was going to buy the maize from Kaloswe at US$345 per MT. All transportation of maize to Malawi and other logistical requirements were to be met by Kaloswe. This agreement was signed by a Mr. Foster C. Malumbe for ADMARC and a Mr. Isaac Kapambwe for Kaloswe.

“The second agreement was an addendum in which the parties mutually agreed that since ZCF was the ultimate source of maize it would be prudent to pay the whole amount of US$34.5 million into their (ZCF) account. ZCF would in turn deduct US$21.5 million due to it (ZCF) as duly agreed with Kaloswe on 31st May, 2016. The balance was going to be paid to Kaloswe whose legal duty it was to transport and handle all logistics in the whole transaction,” this is revealed by president of the opposition UPP in Zambia, Saviour Chishimba.

Admarc could have saved huge amount of dollars  had it  purchased the maize directly to ZCF as Kaloswe bought maize from ZCF at $215 per metric tonne before relling it to Adamrc at $345 per metric tonne, the documents shows.

ZCF sold to Kaloswe at US$21.5million, then Kaloswe sold to ADMARC at $34.5million and the difference is US$13million. So

According to Chishimba, June 22, 2016 Kaloswe issued an instruction, in line with the agreement, to ADMARC to process and wire the US$34.5 million into the ZCF account number 0003203000439 at First Capital Bank.

He says that on July 13, 2016, PTA Bank wrote a letter of comfort to ZCF. In this letter referenced PTA/TF/ZCF/20160713,  jointly signed by a Mr. E Ali and Mr. G. Mudange, PTA Bank was confirming with ZCF that the Reserve Bank of Malawi has approached PTA to support the transaction involving the importation of 100, 000 MT of white maize through a programme that the bank extended to the Republic of Malawi. PTA Bank further confirmed, in the same letter, that there was an existing arrangement between the Agricultural Development and Marketing Cooperation (ADMARC) and PTA Bank over maize importation financing.

“On 26th July 2016 at 12:04:13 hours, US$34.5 million was wired into the account of ZCF at First Capital Bank via Standard Chartered Bank (Mauritius) Ltd.

“On 6th September 2016, Mr. Malumbe of ADMARC 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,” the statement says.

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mmc
Guest

Palibe nkhani apa. Give us more details then we will judge ngati Pali corruption!

Joseph Banda
Guest

DAILY TIMES GOT IT ALL WRONG. When government bans the selling ground nuts outside the country
does not mean it stocks the ground nuts. Equally the Zambian govt said yes
we shall sell the maize did not it had stocks but its citizenry.

THINK, THINK,THINK. Chepetsani ndalezi

kajonkhe
Guest

ADMARC management is most corrupt, heartless, nepotistic. a graduate in ADMARC is paid k49000.00 per month, a lot of wage descrination, no regard to welfare of an employee except those from a particular region.

konda nzako
Guest

zowopsa?? sitinati tu mpaka 2019 kulira

Bristone Mabichi
Guest

CASHGATE yatuluka panja ndipo nkobvuta kuti yilowenso m’nyumba. Zagwa zatha!! Misonkho yathu, Yehova akuwona ndipo akumva kulira kwa anthu – Ndanena kuwopela mawa. Tapunduka aMalawi, tanokhala ngati dziko lobwereka. Ambuye Alowelere

Nastc
Guest
Mwina some other information is not provided here. From what has been presented is all that is there, I see no issue. What ZCF did was the role of a middle-man. Is ZCF a govt agency? Did ADMARC engage ZCF to get maize stock? So, the contractor subcontracted to a private enterprise, huh? How corrupt is that arrangement. If I contract company A to supply me, and the company engages the services of company B to do the work, will I be telling people that I contracted company B for the work? And then The Zambian opposition leader goes on… Read more »
Michael
Guest

My Point Of View Is That There Is No Secret On Earth. Otherwise We End Up Sinning More And More Because God Is There Watching Every Micro-seconds We Stand At The Podium Telling Innocent People A Total Lie,just to please someone Oops!!!. We Are Lucky God Has His Own Time And He Is Most Gracious. Where are we going?

kajonkhe
Guest

ok

santana
Guest

Chimene akufuna anthu ndi chimangacho basi. Zikakhala zolephera kugula iyo ndi nkhani ina.

D.PHIRI
Guest

Malawians WHEN on earth are we going not hear news of corruption involving our people entrusted with top positions in various Government Institutions and the ruling government and its president are on daily basis denying of such deals taking place in their own eyes?
If this is not corruption THEN Mr.President of Malawi what do you make of this?
Am very seriously concerned citizen as it is our tax payers money individuals are enriching themselves.
PLEASE GOD ASSIST MALAWIANS TO END THESE BAD CORRUPT PRACTICES.

Choka Muntu
Guest

God will never assist u but u assist God to Take action . its really shame to hear from our neighbouring country about our corrupted ministers. What is going Into mind of these people? Are they sick? Everywhered they deal a business corruption is involved. We in Malawi have become what Nigeria used to be. Once we get lid of parasiters Malawi will Catch up. Its we citizens. This is just too much. Abale. Wantu angokala ziwenge wenge.

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