The Agricultural Development and Marketing Corporation (ADMARC) has angered Zambia Cooperative Federation (ZFC) for failing to pay for over 4000 metric tonnes of maize the Malawian parastatal bought from the neighbouring country.
Reports reveal that ZCF has demanded the immediate payment of the money with interest failure of which they are to sue ADMARC.
Further reports reveal that ZCF director general James Chirwa is in the country to force ADMARC to pay the money.
Spokesperson for ADMARC Agnes Chikoko admitted that they are yet to pay ZCF arguing the process was delayed due to expiry of the company’s contract with PTA Bank.
ADMARC obtained a K26 billion loan from PTA Bank for the purchase of 100,000 metric tonnes from Zambia.
The loan was sourced through a Letter of Credit which required that payment was to be made upon delivery of all the 100,000 metric tonnes of maize.
But only 4000 metric tonnes of maize was delivered in Malawi forcing ADMARC to cancel a contract with ZCF. The grain marketer also failed to access the K26 billion as the Letter of Credit expired on December 31, 2016.
There were also reports of corrupt practices during the purchase of the maize leading to a probe which saw the fall of former minister of agriculture George Chaponda.
