Mulli misses out on govt maize supply contracts
Mulli Brothers Limited (MBL) Holdings has missed out on all contracts Malawi’s National Food Reserve Agency (NFRA) has awarded to procure maize for its strategic grain reserves.
This is despite the company, through its chairperson Leston Mulli, declaring that they have huge stocks of maize in their warehouses which they are offering at low prices.
Mulli joined the bids through his seven companies, including Thuchila Estate, Zao Marketing, Steco, Sapitwa Construction, Chikale Estate, Namphasa Farm and Mulli Brothers, but all the bids in about 33 slots were turned down despite some of them offering low and competitive prices.
The Nation
has learnt that NFRA has awarded maize supply contracts in two categories, one entirely funded by donors and the other wholly funded by Malawi Government.
The donors are buying about 30 000 metric tonnes, while government is buying 11 700 metric tonnes lower than the targeted 80 000 metric tonnes.
NFRA acting chief executive officer Clement Lwanda on Thursday said: “Thank you very much for contacting the agency on the issue of Mr. L. Mulli’s businesses. I feel not competent to comment on this issue.”
Rejected bidder
But inside government sources confided in The Nation last week that Mulli’s bids were rejected because they quoted unrealistic prices.
However, in the lot for Mzuzu deliveries, Mulli’s Thuchira Estate offered to deliver the maize at the unit price of K112 (about 28 US cents) per kg, but the agency has awarded contracts in the slot to other companies with some of them offering to do the same job at about K120 (about 30 US cents) per kg, according to documents we have seen.
In the lot for Luchenza deliveries, Mulli offered to deliver the maize at the second lowest price of K110 (27 US cents) per kg through his Zao Marketing firm as compared to other bidders offering K125 (about 31 US cents) per kg, but all his bids flopped.
Donor involvement
The Nation
has also learnt that donors restricted procurement of all maize using their funding to three suppliers, namely National Association of Smallholder Farmers in Malawi (Nasfam), the Agricultural Commodity Exchange (ACE) and Admarc, while the government-funded tender was open to all suppliers.
Reads the memorandum of understanding (MoU) government signed with donors in December last year: “Three organisations, Nasfam, ACE and Admarc will supply maize, mainly from smallholder farmers, between May and August 2013.”
In an e-mailed response on Friday, Norwegian Ambassador Asbjørn Eidhammer said: “It was agreed to go for a limited tender and invite three large organisations that buy directly from farmers so that smallholder farmers could benefit from the purchase of maize.”
Irish Aid official James Sherry also said: “A closed tender was chosen to try and facilitate market access for smallholder farmers – the organisations chosen being well placed to do so.”
Mulli’s failure to get any share of the maize supply contracts comes in light of the Minister of Justice and Constitutional Affairs Ralph Kasambara’s September 5 2012 directive that giving government business to MBL Holdings would jeopardise investigations into alleged corruption, money laundering and tax evasion charges against the company and Mulli himself.
World Bank has warned government that unless it has proof against Mulli, it is unacceptable to deny MBL business opportunities from World Bank-funded despite winning tenders.
But this is very unfortunate why punishing him in that way but mind u zimatha izi next time mudzakhala inu Mulli dont worry u have been in business for quite so long they are trying to finish u but God is there u will sail through,
Mulli’s companies used to win contracts unfairly at the expense of other more deserving companies simply because he was a big supporter of DPP. Thus some of the money he earned would go back to support DPP’s political shenanigans. How is that a recipe for development? Had other companies got the same chance as Mulli, more people would have employed, the wealth would have been spread to other less fortunate Malawians instead of being concentrated between Mulli and his DPP counterparts.
nothing wrong,my company was rejected several times during Bingu…now is my time to enjoy.who told you that Muli cant be rejected?wamwano ameneyo musiyeni adye mwano wakewo..asssaaa!!!!