Transglobe Produce Limited on Friday voluntarily vacated its injunction against implementation of the Farm Input and Subsidy Program (Fisp), days after being told to do so by the Parliamentary Committee on Agriculture.
According to reports, lawyers representing the company withdrew the injunction which was preventing Ministry of Agriculture from selling inputs under Fisp.
Transglobe has reportedly vacated the injunction to allow for judicial review on how contracts to supply farm inputs under Fisp were awarded.
The state however wants Transglobe’s application for a judicial review to be withdrawn and Judge Kenyatta Nyirenda is expected to make a ruling on the state’s application at a later date.
Transglobe obtained the injunction in protest after its bid to be one of the suppliers for the programme was rejected.
The Smallholder Farmers Fertilizer Revolving Fund of Malawi last month approved 14 companies to supply inputs under Fisp but Transglobe was reportedly left out following a recommendation from the Parliamentary Committee on Agriculture which said the company should not participate in the program because one of its directors is answering a case over irregularities during government’s procurement of maize from Zambia last year.
Recently, chairperson of the Parliamentary Committee Chidanti Malunga warned that Parliament will consider revoking Transglobe’s licence if the company refused to vacate the injunction.
He added that the committee will also probe Transglobe’s past dealings with Malawi Government.