Malawi govt urged to act with speed on cancellation of maize deal payment with PTA Bank

Malawi’s flagship dialy newspaper, Daily Times is urging the government to act with speed in canceling the K24 billion Zambia maize deal payment.

Kalua for cancellation of loan with PTA(left) while Gondwe says he does not want to do anything with the transaction

This follows an economics expert, Ben Kalua’s advice to government to seriously consider nullifying a loan from PTA Bank worth K24 billion that is meant to be used to procure 100000 tonnes of maize from Zambia, saying the country stands to lose a lot if it proceeds with the deal.

Kalua, an economics professor at Chancellor College, told The Daily Times that the maize crop looking promising in the fields, the country may be faced with serious storage challenges if it procures additional tonnes from Zambia.

Parliament last year borrowed the money in the wake of looming hunger which threated at least 6.5 million people across the country.

“There is over production of maize in Zambia this time around and even here we may have a surprise and be able to fill up our empty silos but we don’t need too much of it.

“If there is need to supplement in just a few districts where people will not harvest enough, the the government can purchase locally but we don’t need the remaining tonnes from Zambia,” he said.

Finance minister Goodall Gondwe refused to comment on the issue, saying he was not involved in the procurement of the maize.

Chairperson of joint committee of parliament that probed, Joseph Chidanti Malunga said the committee regrets the loan adding that now the issue of getting back the funds is critical.

In its Friday editorial comment, the paper says it is clear now that the Malawi government’s attempt to buy maize from Zambia was badly handled and that Malawi stands to lose out in the transaction.

It says the government cut a lot of corners in their effort to purchase the maize. As a result, the government ended up committing to pay Zambian Cooperative Federation for the maize which the state grain trader did not even have.

The comment says the government has to make a concrete decision before Malawians continue to pay for the mistakes of a few individuals who apparently wantedd to fleece off Malawians.

“As the government mulls over how to get out of this unnecessary debt, interests and other charges continue to accrue on this transaction,” says the comment in part.

The comment further says it is disheartening to learn that the minister of Finance Goodall Gondwe does not want to have anything to do with the transaction.

“But Gondwe must know and accept that someone within government has to clear this mess. And he is the right person to correct the mess which his own government dragged Malawians into,” says the comment.

In conclusion, the comment says it is imperative that the government must bite the bullet and cancel the whole deal.

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4 thoughts on “Malawi govt urged to act with speed on cancellation of maize deal payment with PTA Bank”

  1. peter mshali ku salima says:

    bravo gondwe dont involve yourself in the cancellation coz that alone will turnish your image as econominist.you PTA banks loan conditions.worse still maizegate surrounds this transaction.buy maize from zambia thats the loan purpose simple

  2. FUN says:

    PROBLEM IS THAT IF THE DEAL IS NOT CANCELLED, THE MINISTERS LIKE GONGWE WILL NOT GET THEIR CUT. CHAPONDA ALREADY GOT HIS K200 MILLION ADVANCE FROM TRANSGLOBE. SO THE OTHER GUYS WANT THE PTA PAYMENT TO BE MADE SO THAT THEY GET THEIR SHARE.

  3. Lt. Frazer Chakhaza Mwale says:

    IF indeed Goodall Gondwe is saying that he does not want to do anything with cancellation of a loan our government obtained from PTA bank to purchase maize from Zambia because he was not involved in the procurement then who is the right line minister to do this? You see, Malawians have been sold a raw deal and if nothing is done in time Malawians will pay through their nose by way of taxes. This has happened beacuse of a few greedy individuals who wanted to reap the government and enrich themselves at the expense of poor Malawians. Worse still we hear Foster Mulambe is back at ADMARC and next we will hear that Chaponda has been sent to UN as a special representative of government. Is our government really serious with the plight of Malawians. Fellow Malawians, this country needs a revolution otherwise nothing will improve…………………we can talk and talk but the DPP government will not listen. As Malawians we have suffered enough and we need to show our frustration through action.

  4. benjones says:

    Malawi land of corruption.

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