Zambia Co-op reveals rot in Malawi maizegate: Admarc forgery, lies and corruption element

Zambia Cooperative Federation (ZCF), a government agency, has told Members of Parliament (MPs) in Malawi under the Parliamentary Committee on Agriculture, Irrigation and Food Security who are investigating the procurement process of maize from Zambia, that State-produce trader Agricultural Development and Marketing Corporation (Admarc) lied on contracts.

ames Chirwa, ZCF Director General: Testified

James Chirwa, executive director of ZCF testified before the Malawi parliamentary inquiry members in Lusaka on Wednesday that  they have been following  submission of Admarc boss Foster Mulumbe to the inquiry but noted that he has said lies one too many.

Committee co-chair Kamlepo Kalua is on record to have warned Mulumbe that he was under oath and would be dealt with accordingly if he gave false information to the inquiry.

Chirwa also gave credence to allegations of corruption element and misprocurement when he disclosed that Admarc is the one that proposed the $345 price tag for maize per metric tonne.

Mulumbe told the MPs however that: “The $215 per tonne cost was calculated as delivery from the northeast of Zambia while $345 per tonne was for Lilongwe delivery which Admarc opted for.”

Parliamentary Committee chairperson Joseph Chidanti-Malunga disclosed that ZCF has also disowned a tax invoice for clearing over 1,000 metric tonnes of the grain, saying it did not originate from ZCF and may have been forged.

Malunga said during the hearing with ZFC, they have found “a number of massive discrepancies”.

He said there were “fake documents” which were presented to Malawi Revenue Authority (MRA).

“Basically, forged and fake documents were used to pre-clear the 100,000 metric tonnes,” Malunga said.

He also said Malawi High Commission in Lusaka was sidelined in the procurement as officials from the mission said Admarc made its visits without its knowledge.

ZCF also denied claims by Admarc that 45 tonnes of maize said to have been rotten at Chilambula Depot was sent back to ZCF, saying they never received any maize that was rejected.

The maize purchase deal is currently marred with controversy regarding contractual issues involving Admarc which claimed it is buying the staple grain from ZCF but documents show that Admarc is actually using a private Zambian company, Kaloswe Commuter and Courier Limited as a broker of the maize deal.

The MPs will meet Kaloswe on Thursday and also hear from whistle blower Saviour Chishimba, a Zambian opposition leader.

Malawi obtained $40 million loan facility from PTA Bank for Admarc to buy maize.

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keith
Guest

It seems these so called Kamulepos and friends are there just to fatten their berries not for real businesses. They just want to lengthen the period of inquiry to accumulate more allowances. Malawi sidzathekanso.

Grace Involved
Guest
Kaloswe Courier says they came to know ADMARC through a Grace Mhango. Is this Grace the one who is a president of Grain Traders Association of Malawi? Isn’t she the same person who influenced NFRA to fix the maize price at K250.00 ? When NFRA flighted a tender for maize purchase in the local Dailies, It was surprising that the purchaser , in this case NFRA, had fixed a CIF K250,000.00/ton. Why? I thought NFRA was supposed to invite open tenders where suppliers were supposed to offer prices? When traders started deliveries of maize stock to Kanengo Silos why did… Read more »
Mcp die hard
Guest

There is no way Malawian officials can go to zambia to discuss business without the knowledge of the ambassador. This ambassador knows something and He has to be investigated and be kicked out
Whom are you cooking here. Chiwra from zambia is a Tumbuka as well as Kamlepo. What do you expect from these idiots

mtete
Guest

The purpose of the investigation is to find out whether or not Chaponda was involved in corrupt practices. He can end up clean. However his behaviour and arrogance, a lawyer as he is, leaves a lot to be desired. U Bulldozer wanuyu ukusandutsani chindere chakufikapo

Hatton
Guest

Can ZCF come up very clearly; who reduced the tonnage from 100,000 mt to 50,000mt? No document was tendered by ADMARC as an amendment to the contract. Why was ZCF silent about their dealings with Transglobe? Was Transglobe introduced to ZCF by ADMARC or the Ministry of Agriculture? A committee mukabwelera opanda mayankho amafunso amenewa we will conclude that you went there to enjoy with prostitutes at East point.

mwamwitu
Guest

This is ridiculous these people in the parliamentary enquiry are also involved in cash gate through bogus allowances in the name of conducting enquiries on maize gate. This is the end of times anthu adzakhala okonda ndalama in the name of allowances

Zuze
Guest

Stupid Chaponda.

santana
Guest
Iam yet to see where Chaponda is fitting in the whole story. Remember that the big target of all this is Chaponda because of his closeness to the president. Where can we connect Chaponda in the whole story here? Mapeto ake muyaluka nazo izi. There was a time during the Mwanza Murderers case when JZU’s was in every Malawian’s mouth implicating him as the masterminder of the murder yet the outcome from the courts found him clean. From the look of things Chaponda can not be traced in the whole story. What we want to hear from the inquiry and… Read more »
Dodolido
Guest

You dull guy. You can’t see the connection here. Who is Minister of Agriculture? Who reported in parliament the 100,000 tonnes
were purchased from Zambia ? Who went to Zambia as an envoy of APM to seal the deal? Santana you are dull

Hoitty
Guest

He is very dull indeed

John
Guest

Shaah! Government borrowing $4o million from PTA bank to buy maize but here is the product Malawians get. Its terrible experience. k

HIM
Guest

Everything is always proved with facts/documents. I suspect Zambia is finding a way to run off on this. May they tell us what was the initial price ? And that should be proved by papers with authoritative signatories. And MRA presented document should be questioned and seen clearly on its possible.

Nawo a Zambia anadyapo, now akusambira mmanja anzawo. SHAME !!!!!!!!

Chingaipe Chilindimwini
Guest

The details of the new deal – the one directly between ZCF and ADMARC – are as follows, all according to Chirwa: ADMARC will still buy the maize at $345 per tonne, but ZCF will bear all costs, including purchase ($285/tonne), transport ($38/tonne), documentation ($5/tonne) and letter of credit from PTA Bank ($8/tonne), coming to a total of $336 per tonne. As the quantity of maize has been reduced from 100,000 to 50,000 tonnes, ZCF will make $450,000 on the deal, he told the Daily Nation.

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