Admarc faces new K850 million claim
A privately owned company has sued Agricultural Development and Marketing Corporation (Admarc) for K850 million over breach of a maize supply contract.
The lawsuit by Missie Trading follows another from Dalitso General Dealers, who last year obtained an injunction to prevent Admarc from terminating a contract to sell the firm maize.
In the summons filed at the High Court’s Commercial Division in Lilongwe, Missie said it struck an agreement with Admarc to buy from it 10 000 metric tonnes (MT) of maize at K205 per kilogramme.
However, the company states in the court documents that Admarc has not committed to the agreement despite efforts to force its hand.
“As a result of the defendant’s actions, the claimant (Missie) has suffered…loss of 10 000MT of maize (and) loss of K850 000 000.00…
“Despite several reminders, the defendant has refused to supply maize and has neglected to pay the claimant the sum of K850 000 000.00 up to this date,” the summons reads.
Through its lawyers G. Nankhuni and Associates, Missie said after clinching the Admarc deal, it entered agreements to supply 10 000MT of maize within the country and in Zimbabwe.
“[After signing the Admarc contract] the claimant then went to inspect the maize and arrange to collect the same, but the defendant never honoured the written agreement.
“The claimant (Missie) went into contract agreements with various businesses in Malawi and Zimbabwe on the understanding that he had secured 10 000 metric tonnes of maize,” reads the summons.
Meanwhile, Admarc acting general manager Ethel Zilirakhasu said she needed time to confirm the fresh lawsuit.
However, she said it might be related to the contracts which the Ministry of Agriculture ordered Admarc to terminate.
“Like the Dalitso General Dealers issue, if the lawsuit is related to the cancellation of the contracts, then it is the ministry which can respond since it is the one that asked for the cancellation,” said Zilirakhasu in an interview on Wednesday.
In the Dalitso matter, Admarc penned an agreement to sell Dalitso 10 000MT of white maize at K204 per kilogramme, according to a copy of contract signed by then Admarc general manager Rhino Chiphiko.
However, Admarc cancelled the contract in June last year when Dalitso had already paid for 6 500MT.
The parastatal attributed the decision to a Ministry of Agriculture resolution to suspend the sale of maize by Admarc until consolidation of the country’s grain requirements.
Admarc’s key maize sale deals have, since the turn of last year, been locked in controversy.
The parastatal attracted widespread condemnation when it signed a contract with Grain Millers Association of Zimbabwe to supply maize valued at $22 million.
The contract would have seen Admarc supplying 100 000MT by July 2023. However, the deal collapsed following allegations that the board flouted contract procedures.
