Agricultural Marketing and Development Corporation (ADMARC) general manager Rhino Chiphiko, who is also a member of the ruling Malawi Congress Party (MCP), has bought a K107 million official vehicle without approval from the company’s board.
This is according to Alexander Kusamba Dzonzi, chairperson of board of directors of the struggling company which has instituted a probe into the procurement.
However, Chiphiko has hit back saying the K107 million vehicle is cheaper than the vehicle he is entitled to use.
Speaking to the local media, ADMARC board chairperson Alexander Kusamba Dzonzi said the ADMARC general manager is not entitled to the vehicle the company bought for him.
He added that Government released a circular in 2017 advising CEOs of government owned companies against buying vehicles that are not in line with government’s policy.
However, Chiphiko, also speaking to the local media, argued that the ADMARC board which was there in 2019 before he became ADMARC boss, approved the procurement of the vehicle.
The former MCP Member of Parliament further argued that the Nissan Patrol which he has bought is cheaper than the vehicle he is entitled to, a Land Cruiser TX.
“The car was purchased at K107 million less than a Toyota Prado TXL [K124 million] and Toyota Prado VXL [K154 million]. The Nissan Patrol is cheaper than its recommended equivalent Toyota TXL,” he said.
Chiphiko added that the car he was using is old as it has clocked 368 000 kilometres, which he said is beyond the 200 000 km allowed.
“It was bought in 2012 by Dr. Jerry Jana and has been used by CEOs [Foster] Mulumbe, Late [Agness Roka] Mauwa, Felix Jumbe and acting CEO Ms Dehlisile Matondo Phiri. The car is 10-years-old.”
However, Kusamba Dzonzi wondered why Chiphiko used a decision made in 2019 to purchase the vehicle now.
He added that the current board knows that the vehicle which was available to Chiphiko was old but advised management to procure a cheaper and smaller vehicle.
“I can state here, that our management has not yet come back to the board with clearance from the comptroller’s office advising Admarc Board to procure a smaller vehicle like a Toyota Fortuner for its GM as opposed to the authorized Toyota Land Cruiser Prado TX,” he said.
Meanwhile, ADMARC has come under fire from Malawians over the procurement of the vehicle which comes as the corporation has been facing financial struggles.
In February, employees at the company protested over delays of the January salaries which ADMARC attributed to cash flow problems.
The purchase of the vehicle is also against a directive made in December last year by President Lazarus Chakwera who ordered ministries to review their plans for travel and for procurement of new vehicles during the 2021-2023 Malawi recovery period with the aim of reducing spending.
Chakwera warned that his government would not tolerate wastage of taxes
“I myself have not added a single new car to my convoy, but continue to use the cars inherited from my predecessor, and I am already scaling down my travel plans for the recovery period, and so I expect every Ministry under my Administration to do the same,” he said.
