The High Court Commercial Division in Lilongwe on Thursday heard that government overpaid businessperson Shiraz Ferreira by more than $1.4 million (over K2.4 billion at current rate), when he was contracted to supply military equipment to Malawi Defence Force (MDF).
The case between the Attorney General (AG) and Ferreira’s SF International, which is presided over by Justice Chifundo Kachale, judge-in-charge of the Commercial Division, centres on a financial dispute concerning Ferreira’s contract to supply the equipment to MDF.
After conceding the excess payment following recalculation of figures with a calculator, Ferreira attributed the error to the company’s accountant being his field of expertise.
This admission follows another from SF International’s witness James Lindani, the accountant mentioned by Ferreira from Simeon & Mathews Advisory Services, made that $2 479 899.15 (about K4.4 billion) was also overpaid to the company under the same deal.
Following the fresh calculations, it was learnt in the court that the excess payment was $3 896 156.15 (about K6.8 billion.
The amount is what compelled the Attorney General’s office to file a counterclaim against SF International, which had sued the government demanding $6.9 million (about K12 billion) in compound interest due to delayed payments on a $30 million MDF contract.
During cross-examination, Ferreira further admitted that his firm already received a partial payment of $7 million (about K12.3 billion) before delivering any equipment between 2012 and 2017.
The AG also pressed Ferreira to explain how he came into possession of highly sensitive documents, including two legal opinions from the AG’s office and confidential correspondence between the AG, the Secretary to the Treasury, the MDF, and the Ministry of Justice.
“I believed the (confidential) documents would benefit my case,” Ferreira responded.
On Thursday, the case was unexpectedly adjourned after Shabir Khan, the private practice lawyer representing SF International, fell sick and needed medical attention.
Hearing continued on Friday but according to Ministry of Justice spokesperson Frank Namangale proceedings were adjourned following a request from Ferreira’s lawyer Khan.
The lawyer arrived at the court 15 minutes after continuation of hearing of the case had begun.
Initially, Justice Kachale declined Khan’s request for an adjournment agreeing with Chakaka-Nyirenda’s objection that the case had already faced numerous delays.
Kachale agreed with the AG, arguing the lawyer displayed a lack of seriousness and professionalism because of the delay. He noted that at the very least, Khan should have provided a medical report.
However, upon assessing Khan’s condition the court agreed, though with a word of caution.
“The judge advised the lawyer that, in future instances, he should either have a colleague from his office assist him or ensure another legal representative is briefed and prepared to proceed in his absence.
“With these considerations in mind, Justice Kachale stated the case would resume on June 2, 3 and 4, 2025. Parties in the case are expected to make necessary preparations to ensure the proceedings move forward without further interruptions,” explained Namangale.
Ferreira claims he supplied the military equipment at $30 million in two chunks, but the interest is due to delayed payment and legal collection fees.
On November 4 2021, Ferreira commenced the present proceedings against the Attorney General, claiming the sum of $6 942 359.49 being compound interest for delayed payments for the supply of various equipment, legal collection costs in the sum of $208 270.78 and costs of the action.
According to the AG in 2013, the supplier received advanced payment for the contract and was paid about $10.8 million and that Ferreira only supplied for only $8 million after three years.
