Malawi President vows to take action on Minister Chaponda, Transglobe: Maizegate inquiry report asks ACB to probe corruption element

  • Procurement procedures were not followed
  • No money exchanged hands
  • ACB to probe Chaponda’s conduct with Transglobe
  • Admarc officials should be subjected to dispclinary

President Peter Mutharika has said he would take action on Minister of Agricultute, Irrigation and Water Development, Geogre Chaponda and Transglobe who have been recommended in the presidential commission of inquiry on Zambia  maize procurement saga to be investigated by the Anti-Corruption Bureau (ACB).

President Peter Mutharika receives a report of maizegate inquiry from Justice Anasatnsia Msosa at Kamuzu Palace(C)Stanley Makuti
Commissioners present at Kamuzu Palace (C)Stanley Makuti
President Mutharika going through thereport submitted by the commissioners (C)Stanley Makuti
President Mutharika pose for a group photo with commissioners (C) Stanley Makuti.
President Mutharika meets the Minister of Justice Samuel Tembenu on Saturday (C)Stanley Makut

Mutharika said this on Saturday when he received a report on maizegate from the State sanctioned commission of inquiry.

Retired Chief Justice Anastazia Msosa, outlined key issues when presenting her statement to the President.

Msosa was chairing the probe team which included secretary of the commission Mike Chinoko, the Solicitor General Janet Banda and public auditor Isaac Kayira said their findings are based on the testimony of witnesses interviewed by the Commission both in Malawi and Zambia; the observations of the Commission as it interviewed the witnesses; and on the analysis of the documentation made available to the Commission.

She also saif the Commission also found helpful some of the interviews conducted by the Joint Committee of Parliament tasked to investigate the surroundings concerning the purchase of maize by ADMARC from Zambia

Whilst not naming Chaponda and Transglobe directly, Mutharika said he would act on the recommendations.

The Justice Anastanzia Msosa commission found Chaponda and Transglobe of suspicious corrupt practices on the procurement of the maize from Zambia.

“He (Chaponda) was reckless in providing guidance in the whole deal,” says the report.

Msosa said procurement procedures were flouted, ministry of Justice officials were completely left out whilst Admarc officials were reckless in the whole maize procurement process.

“The Commission also established that when Hon. Chaponda went to Zambia as a special envoy, a Tayub of Transglobe was also in Zambia meeting with officials in the Ministry of  Agriculture. The Commission found two notable things about this development. First, the export ban was lifted. Second, the Ministry of Agriculture in Zambia issued export licences to both ZCF and Transglobe splitting the contract tonnage of 100,000 metric tons that was contracted between ZCF and ADMARC in equal share of 50,000 metric tons with Transglobe.

“This development cannot be attributed to coincidence. It raises suspicion in relation to dealings between the Minister and Transglobe. One can therefore not rule out the possibility of corrupt dealings between the two parties,” reads the report in part.

She said the report therefore suggests the graft busting body should investigate Chaponda and Transglobe whilst Admarc officials involved in the procurement of the maize need to be disciplined.

The report also recommends that the government should ensure maize at the strategic food reserve is always stocked at 75 per cent.

This puts to rest weeks of investigations totaling to 40 days on the suspicious of maize procurement.

The Commission established that management of ADMARC entered into the Kaloswe contract without the knowledge of the Board despite the huge sums involved guaranteed by Government.

In addition, Internal Procurement Committe  of ADMARC was not involved at this stage.

“Further, the Commission established that ADMARC management entered into the said contract without seeking prior approval from ODPP (Office of the Director of public Procurement) and without the involvement of  Mistry of Justice and Constitutional Affairs regarding the vetting of the contract as required by the Public Finance Management Act Cap: 37:02 of the Laws of Malawi.

“The non-compliance with the Public Procurement Act at the time of signing this contract rendered this a misprocurement. The Commission established that after signing the Kaloswe contract on the 17th June, 2016, ADMARC IPC met on the same day and recommended the single sourcing of Kaloswe as a 35 supplier of the maize. However, the Commission noted that the IPC did not identify and consider at least three suppliers nor justify the choice of Kaloswe as required by the Public Procurement Act.

“Further, the minutes of the IPC were signed by the Chairperson, Mr Feckson Kantonga, who was at the time of the meeting in Zambia. Based on these factors, the Commission finds that the procedure adopted by the IPC of ADMARC was irregular. The Commission concludes that this process was invalid,” reads the report.

The Commission found that no money has been drawn under the Letter of Credit. The Letter of Credit expired on 31st December, 2016.

The Commission also established that if there are costs associated with the Letter of Credit, the same will be borne by ZCF after failing to deliver on the contract.

Further, the Commission noted that although Government guaranteed this loan, ADMARC has in the past fully serviced the loans on their own under similar arrangements.

It is the Commission’s finding that the use of the letter of credit and the way it was structure ensured that Government would not be exposed to financial loss from this arrangement.

The report is likely to be welcomed by civil society organisations who forced Mutharika to take action following the suspicious maize procurement deals which involved the Agriculture minister Chaponda and Admarc CEO Foster Mulumbe.

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Malangizo Kwa Mwana
7 years ago

Mwana wanga ngakhale zitavuta chotani usazavotere president wa Ku mpoto Kapena Pakati. Peter akasankha Chaponda Mbala kuti azaimile u president Zamuvotere kulekena ndi kupeleka u president Kwa agaru odya masanzo awo omwe.

Papa Chalo
Papa Chalo
7 years ago

Malawians, what do you make out of the following points. • Chaponda hindered ATI (Information bill) to be tabled • Times Media told to stop querying maize scandal • Msaka warned Civil servants never to release any government information • Chaponda said Commission of inquiry was a waste of time and resources • Mutharika said Commission of inquiry was a waste of time and resources (mmmm, birds of same feathers) • Dausi wondered “Kodi a Chaponda ali pa Tchuti? Ayi poyankha funso lanulo bla bla bla …………….” • Kalirani wondered after Mutharika received a report from Msosa; “Kupumitsa a Chaponda… Read more »

7 years ago

These are highly respected thieves in our society. HA!ha!ha!ha
7 years ago

Mr. President, if every time money changes hands, there is an inquiry, can you deny the claims that you are incompetent since you can’t even choose a trust worthy officer for procurement nor protect donated money for the supply of maize to the hungry? When former Dr. H. Banda’s ways could no longer be tolerated, the people voted him out. The security apparatus aka the malawi youth league, malawi young pioneers, special branch, that he had setup, were dismantled. You ran on the promise of fighting corruption but can you look in the mirror or better still stand infront of… Read more »

7 years ago

Eish malawiano umbava suzatha

Wailesi Kanthunkuona
7 years ago

Mwaona zimene zachitika zomwe a inquriry report yawo yanena? Nanga inu owombera m’manja pazolakwika, pazoipa zili zonse mukuti chiani? Shame on you. Anthu wosaganiza bwino, pomwe a Malawi osalakwa uphatikizapo makolo anu kumudzi kwanu akuvutika ndikusauka kovetsa chisoni, pomwe inu anthu opanda chisoni ndi chifundo, mukusangalala ndikuwombela m’manja. Mau a Mlungu amati chobisika chidzaululika. Ngati muli ndi mzimu wa Yehova, welengani Mateyo: 10 v 26 to 28 or Luka 12 v 2 to 4. Muwelengenso 2 Timoteo 3 v 7.

kamphere pusi
kamphere pusi
7 years ago

what a report. so chaponda will be further investigated?

7 years ago

Thunbs up,Anastasia and the whole crew of commisions of inquiry.Kumeneko ndiye timati kufufuza mwa ukadaulo,leaving no stone unturned.

7 years ago

Mr KYG Mphepo, in his lengthy submission, has requested the president “to do the needful”. Needful? APM?
In the USA, where he spent over 4 decades, he would have done the “needful” immediately after the report’s release. But, as they say, you can take a “savage” out of Africa and they remain savage on their return. Locally, you can take a Nyikan out of the Thengeres, but they will be Nyikan.
So, APM will do NOTHING on this issue.

7 years ago

This is very bad news to the Northern region.This Chaponda was the chief architect of quota system selection to public universities. What happens if he comes out clean? If the rumors that he may be the next DPP czar are anything to go by then the north may be in trouble. Is he not going to bulldoze quota system in the other sectors?This is the same man whom it is claimed that he challenged that DPP would win the 2014 polls without the North.Politics in Malawi is so regionalistic such that the people from the south vote for anyone as… Read more »

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