Attorney General Thabo Chakaka Nyirenda claims that Malawi Defence Force (MDF) military hardware supplier Shiraz Ferreira of SF International was overpaid by about $2.5 million (about K4.3 billion) between 2012 and 2017.
Making a submission in the High Court of Malawi Commercial Division in Lilongwe in a case where Ferreira is claiming $7.1 million (about K12.4 billion) from government, the AG told the court that in 2013, the supplier received advance payment for the contract and was paid about $10.8 million, but only supplied equipment worth $8 million (about K14 billion) after three years.
In his claim, Ferreira claims that he supplied the said 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 AG, 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.
During cross-examination of accountant James Lindani, who did calculations for the claimed interests, Nyirenda pointed out that there was undersupply of more than $2.5 million.
He said: “The claim for interest is even on an advance payment which they say was not paid in full yet that was paid in full and actually overpaid.”
The AG also told the court that there is a claim for interest over goods that were not even supplied, and that it is on the competence on the one who was doing the computation.
He said the State has three witnesses, one from Public Procurement and Disposal of Assets Authority, Anti-Corruption Bureau and former MDF commander General Henry Odillo (retired) who he said was not aware of the contract as it was signed by a different office not mandated to represent MDF in such transactions.
Ferreira’s lawyer Shabir Khan said he would grant an interview after the hearing.
Ferreira sought a default judgement on December 7 2021, but it was set aside to allow the claimant provide an amended statement and also for the AG to file a statement of defence, which was done.
In the initial statement of claim, Ferreira stated that the said agreement was agreed upon on December 17 2012 where the company was to supply various military equipment worth $30 million.
