AG debars some firms

The Office of the Attorney General (AG) has debarred some companies owned by businesspersons of Asian descent for allegedly making huge and questionable claims against government.

In three separate letters we have seen, AG Thabo Chakaka-Nyirenda has stopped Malawi Police Service (MPS) and Malawi Defence Force (MDF) from dealing with the companies and their owners.

He has also advised the Public Procurement and Disposal of Assets Authority (PPDA) to implement his resolution not to deal with the cited companies.

In a letter addressed to the Inspector General (IG) of Police George Kainja dated November 30 2021, the AG says in view of the meeting he held with police on November 11 2021 and claims against his office by companies owned by the businesspersons in question, MPS should immediately stop dealing with the companies.

Nyirenda says the companies have court cases against government and that most of the cases were questionable as they range from breach of contract to payment of interests.

The AG writes: “The meeting singled out business entities owned by Messrs. Karim Abdul Batatawala, Aslam Batatawala, Shiraz Ferreira and C.A. Mahmood as some of the business entities that have the habit of making dubious claims against government and of engaging themselves in unfair trading.”

He cited 17 companies owned by the Batatawalas, namely Lido Electrical and Engineering, African Commercial Agency, Kasco Enterprises, SS Express Agency, HG General Supplies, ZamZam General Dealers, Gratorite General Dealers, Novatech Engineering Supplies, Jets 200, Elegant General Dealers, L&G Tools and Engineering, Iris Group SA, Challenge International, Ary Solutions, Milton Connection, Universal Kit Supplies and Reliance Trading.

Nyirenda says the meeting was further informed that the companies owned by Shiraz Ferreira also lodge huge claims against the Malawi Government behind the back of the police.

He said: “It was further observed during the meeting that Mas International owned by C.A. Mahmood has also been making dubious claims against the Malawi Government. The conduct of the above mentioned businesspersons create huge drain to the country’s economy.

“The said companies usually operate as a cartel in breach of the Competition and Fair Trading Act, the Public Procurement and Disposal of Assets Act and the Corrupt Practices Act.

“As such, the meeting resolved to bar all companies owned by Messrs. Karim Abdul Batatawala, Aslam Batatawala, Shiraz Ferreira and C.A. Mahmood from doing business with the Malawi Police Service and that all existing contracts with the above mentioned entities, including the contract appearing on the list of verified arrears contained in the letter from the Auditor General to the Secretary to the Treasury should be terminated based on convenience and public interest pursuant to section 46(c) of the Public Procurement and Disposal of Assets Act.”

Nyirenda further advised Police to stop dealing with intermediaries to procure military equipment and hardware, but to buy directly from the manufacturers.

He also said the payments for the contracts performed or goods delivered must always be on time to avoid court battles.

“The contracts must be negotiated and drafted in a way that interest is capped or is modest. Payments must only be made after the goods have been delivered or contracts performed as specified in the contract,” Nyirenda said.

He gave similar advice to MDF and PPDA.

In an interview on Monday, MDF Commander General Vincent Nundwe confirmed receiving the advice from the AG’s office not to deal with the firms he listed.

He said his institution is in agreement with the AG’s advice because the “unfair claims” have made so many Malawians suffer.

Police asked for more time to respond while PPDA was yet to acknowledge receipt of the questionnaire.

When contacted last evening, Batatawala declined to comment, saying he had not seen the AG’s communication.

The AG said his office is faced with claims in excess of K2 trillion, which is beyond the K1.9 trillion 2021/22 National Budget, and was giving strict scrutiny to K800 billion worth of demand letters for compensation from lawyers because some of them appear fraudulent.