AG, Cdedi fail to agree on K750m deal
A meeting between Attorney General Thabo Chakaka-Nyirenda, Centre for Democracy and Economic Development Initiatives (Cdedi) and some concerned citizens ended in a deadlock on Friday.
The engagement meeting was facilitated by the Lilongwe District Commissioner’s (DC) office to discuss issues about the recovery of $543 750.00 or euro 516 975.00 (equivalent of K750 million) which Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) paid to Barkaat Foods of United Kingdom (UK).
The funds were paid to Barkaat Foods on June 14, 2022 to supply fertiliser to SFFRFM for the Affordable Inputs Programme (AIP) but the UK firm cancelled the contract after pocketing the advance part-payment.
Cdedi and the concerned citizens planned to hold vigils outside AG’s office at Capital Hill in Lilongwe on May 22 2023 to force him to resign for failing to recover the said public funds.
However, Lilongwe DC Lawford Palani called for a stakeholders meeting where it was agreed to postpone the vigils as the AG was willing to have a roundtable discussion on the issue.
Both Chakaka-Nyirenda and Cdedi executive director Sylvester Namiwa confirmed in separate interviews after their meeting failed to reach an agreement on the matter. The meeting took place at AG’s office.
“Our coming here was primarily to get proof or evidence that indeed the AG has managed to recover the K750 million earmarked for the procurement of fertiliser for the 2022/2023 AIP..” said Namiwa.
He added: “So we have failed to get what we wanted as such starting from Monday next week we are proceeding with our vigils to force him to resign.”
On his part, the AG said he explained to the team the status of the issue and assured them the money would come back once all the processes are concluded.
“I even showed them the documents in the case file but they insisted on the issue of resignation. But the question is how have I failed to recover the money?
“The period they are claiming I have failed to recover the money, we are talking about a matter that is still in court in Germany. Only after the case is dismissed by the court can they boldly say I have failed,” he said.
SFFRFM paid $543 750.00 to a Barkaat Foods account domiciled at FIDOR Bank AG in Munich, Germany and another $181 250.00 on May 13, 2022 following the firm’s instruction to Bova Investment Corporation’s account at Chase Bank, New Jersey, USA.
Bova Investment Corporation was said to be Barkaat Food Limited’s nominated beneficiary, but according to AG’s inquiries, the account belonged to Solomon Chaudhry.
The AG then facilitated the recovery of the $181 250.00 which eventually returned to SFFRFM and the amount yet to be recovered is the $543 750.00 which is now subject of court proceedings in Germany.
In his letter dated May 18 2023 addressed to Palani, the AG said court processes to have the funds confiscated were already initiated in Munich, Germany and once the order is granted the funds shall be repatriated to Malawi.
“Due process needs to be followed before the funds are repatriated to Malawi. Additionally, the matter involves several jurisdictions including the United Kingdom, Ireland, Germany, United States of America, Estonia and Malawi. I reiterate my undertaking to have the said sum of euro 516 975.00 recovered. However, patience is required as court processes take long,” reads the letter.
