More mess in K750 million deal

Dust is refusing to settle in the K750 million fertiliser deal after Government Contracting Unit (GCU) said it did not vet the matter while the Public Accounts Committee (PAC) has launched an inquiry.

PAC’s inquiry into the purported contract between the Ministry of Agriculture and a United Kingdom firm, Barkaat Foods Limited, to supply fertiliser for the 2022/23 Affordable Inputs Programme (AIP), will also look into the United Nations General Assembly (Unga) delegation expenditure and the K17.5 billion Covid-19 funds fraud.

GCU’s position in response to a questionnaire on Friday, follow the Anti-Corruption Bureau (ACB) revelation on Thursday that it also did not scrutinise this deal. ACB is legally mandated to vet all high-value contract under the Provisions of the Public Procurement and Disposal of Assets Act said

Vincent Sikelo, director of GCU—a section under the Office of President and Cabinet which vets all public contracts to ensure that there is value for money—told Nation on Sunday they did not have a look at this contract.

He said: “The contract was not submitted for vetting by GCU”, adding that the unit will follow up with responsible ministries, departments and agencies (MDAs).

In an interview on Friday, ACB principal public relations officer Egrita Ndala said they have since recorded a complaint on the matter.

Ndala said: “The bureau has interest in the issue of procurement of fertiliser and has since recorded a complaint. It will be reviewed as is the procedure to ascertain if there is merit to warrant the bureau’s action according to law”.

In a letter dated 14 October 2022, PAC’s chairperson Shadrick Namalomba has summoned the committee members to the round of enquiries starting tomorrow to November 4 at Parliament Building in Lilongwe.

The letter further indicates that the inquest will extend to the abuse of cash allowances at the Accountant General’s office, the Export Development Fund K12 billion misappropriation and Admarc’s insurance fraud.

The meeting has been summoned, according to Namalomba “in the wake of growing levels of looting, fraud and corruption in a number of government ministries.”

The Agriculture Committee of Parliament’s chairperson Sameer Suleman has been at the missing.centre of claims that about K30 billion meant for procuring of AIP fertiliser has gone

It is alleged that the Ministry of Agriculture engaged a dubious firm to supply fertiliser which disappeared after pocketing the funds. Capital Hill has dismissed the claims.

On Thursday, the Ministry of Agriculture issued a statement which indicated that it paid about K750 million as a commitment fee to Barkaat Foods to supply fertiliser but the firm cancelled the contract after pocketing the advance part payment.

While there was widespread anticipation that this deal, which has raised eye-brows, would move President Lazarus Chakwera into action, he is yet to comment on the matter.

Government has also not been forthcoming on how much was spent on this year’s Unga trip.

“Key issues for consideration before the committee shall include but not limited to… conducting an enquiry into allegations of certain presidential aides salivating over bundles of United States dollars.

“Conducting an enquiry into expenditures incurred during the recent Unga trip,” the letter reads in part.

Namalomba justified the probe in the letter saying “as a committee, we are mandated by sections 18 and 19 of the Public Audit Act and Standing Order 161 of Parliament to provide oversight into usage of public resources by public officials including ministers, civil servants and anyone in receipt of government resources.

“Public Accounts Committee carries out its mandate through several means, including summoning, subpoenaing any person to appear before it and conducting investigations, hearings and enquiries, among others.”

Meanwhile, Centre for Social Accountability and Transparency, has said though it values the PAC’s move, it doubts the inquiry’s effectiveness.

Said its executive director Willy Kambwandira in a written response yesterday: “It is very important for the PAC to play its oversight role, especially at this moment when corruption and abuse of funds is getting out of control.

“However, we are not satisfied in terms of how the committee is holding oversight institutions. Their meetings appear more ceremonial than action oriented. The committee can do more in holding perpetrators of fraud to account.

“As it stands now, recommendations of audit reports are largely ignored. There are no sanctions and law enforcement agencies are not being held to account for their failure to act on audit recommendations and reports of abuse of funds.”