The Democratic Progressive Party (DPP) administration has awarded fertilizer procurement contracts under the 2016/17 Farm Input Subsidy programme to fake companies owned by party members, it has been claimed.
According to one Gerald Kampanikiza, some of the firms which have been given tenders only exist on paper and are owned by members of the ruling party.
He gave the example of Yafuka produce and General Trading which he said is owned by a DPP regional governor.
Government has given a total of 27 companies the go ahead to supply fertilizer under the Fisp. The programme this year will target 900,000 beneficiaries
According to a letter from the office of the president addressed to the chief executive officer of Smallholder Farmers Revolving Fund of Malawi (SFRFM), the approved companies will procure a total of 54,000 Metric tonnes of fertilizer worth K16.2 billion.
Among the companies that have won tenders to procure fertilizer for the 2016/17 Fisp is a computer firm trading under the name Computer Systems Malawi Ltd. The company has been trusted to supply 1,000 tonnes of fertilizer to the tune of K300 million.
Other companies that have been approved to supply fertilizer this year are Mulli Brothers who will supply 4000 tonnes of fertilizer worth K1.2 billion and Innovations Marketing Agency who are expected to supply 1000 tonnes of fertilizer at the tune of K300 million.