Admarc cancelled Kaloswe contract without govt knowledge, inquiry hears

Malawi government through the ministry of finance has claimed that it was not informed about the cancellation of the US$34.5 million contract Admarc had with Kaloswe Courier Limited to supply maize to the country.

Director of Debt and Aid Management in the Ministry of Finance Madalo Nyambose made the revelation when she appeared before the parliamentary committees of public accounts and of agriculture which are probing the maize saga. Nyambose said the ministry was not informed in the cancellation of contract with Kaloswe.

The response raised eyebrows among the committee members who questioned the seriousness of the ministry.

Legislator for Rumphi East Kamlepo Kaluwa expressed worry following the failure of the ministry to track down the process of maize purchase that involved billions of kwacha.

During his appearance before the committee on Wednesday, Admarc Chief Executive Officer (CEO) told the members that he had cancelled the contract with Kaloswe saying the company was not an eligible supplier.

Mulumbe then disclosed that Admarc went on to sign a contract with Zambia Cooperation Federation to supply maize to Malawi and the Office Public Procurement gave a ‘no objection’ to the contract.

But Zambia has since disclosed to have had no hand in the dealings of maize purchase that Malawi had arguing that the country was dealing with vendors.