Procurement specialist Jonathan Kantayeni has told the High Court of Malawi Commercial Division that the disputed $30 million (about K52.5 billion) Malawi Defence Force (MDF) military equipment contract flouted procedures.
Standing in the dock as State witness in a case where businessperson Shiraz Ferreira of SF International is suing the Malawi Government for $6.9 million (about K12 billion) in compound interest over delayed payments, Kantayeni from the Public Procurement and Disposal of Assets Authority (PPDA) testified in court yesterday that the authority did not give any ‘No Objection’, making the entire process a misprocurement.
During cross-examination, he told the court that MDF requested single-sourcing for the contract, but PPDA rejected the proposal. He said MDF was instead advised to follow restricted tendering process.
“There is no record at our office about this contract. If MDF proceeded with the procurement despite our clear guidance, then it was a misprocurement, meaning it did not follow procedures,” he said.
When Attorney General Thabo Chakaka Nyirenda asked him why PPDA took no action after the MDF proceeded, Kantayeni said the Anti-Corruption Bureau (ACB) was already investigating the matter; hence, PPDA did not want to interfere.
“For a K9 billion contract, MDF knew this was beyond their threshold to approve the contract and that it needed a ‘No Objection’ from PPDA and, by proceeding, it raises questions about the legality of the contract itself,” said Kantayeni.
The State also called retired MDF commander General Henry Odillo who told the court that he was not aware of the December 2012 MDF contract as he did not sign it.
He said his deputy at the time, Lieutenant General Clement Kafuwa (retired), chaired a procurement committee handling the matter.
Odillo also said he was not aware that an earlier November 2012 MDF contract with SF International had been abandoned.
Evidence tendered in court showed that the November 2012 contract was worth K9 billion while the December agreement quoted in US dollars was valued at $30 million.
Odillo told the court: “What I know is that part of the consignment was yet to be delivered as of May 2014 when I retired.
“Only four units of Samil trucks were delivered against the requested 12 and also MDF wanted 180 troop carriers, but less than 10 were delivered.”
He further said former secretary to the Treasury (ST) negotiated with the supplier on behalf of the MDF and he saw no approval
Earlier, Ferreira testified that he was unaware that the government settled his K6 billion loan with FDH Bank, claiming he was already negotiating repayment terms with the bank directly.
He also told the court that standard MDF contract procedures allow contractors to begin sourcing items based solely on the letter of award, prior to formal contract signing.
Today, Ferreira’s lawyer, Shabir Khan, is expected to begin re-examining the final State witness, an ACB officer.
