Malawians could soon be forced to shoulder a staggering K16 billion bill after the Lazarus Chakwera administration’s controversial attempt to buy two grounded helicopters from a Zambian company collapsed into an international legal fight.
At the heart of the dispute is a $9.29 million (K16 billion) contract that the Malawi government signed with AYA Technologies Limited, a Zambian firm, to buy two Bell 412 helicopters, aircraft that inspectors later found had been grounded for over a decade.
Documents obtained by the Platform for Investigative Journalism (PIJ) show that AYA Technologies has dragged Malawi to the International Court of Arbitration (ICC) in Paris, demanding USD 4.6 million (K8 billion) for breach of contract.
The company insists that the government failed to honor its obligation to pay half of the total contract within a week of signing, even after making an initial advance payment of USD 500,000 (K867 million) as a sign of commitment.
“AYA Technologies has since asked the court to order Malawi to comply with the $9.29 million contract immediately or pay damages for breach of contract, including applicable interest and the full costs of the arbitration,” reports PIJ.
The deal, signed on July 18, 2024, was reportedly overseen by former MDF Commander General Valentino Phiri and then Defense Minister Harry Mkandawire. PIJ reports that barely days later, technical inspectors warned that the helicopters were unsafe for service, having last flown in 2013.
Sources indicate that Attorney General Thabo Chakaka Nyirenda advised the immediate past President Chakwera to cancel the deal after receiving the technical findings, but before the advice could be acted upon, the MDF quickly made a part payment to the supplier.
The Attorney General’s office has since filed a counterclaim to recover the advance payment and terminate the contract officially, citing multiple technical and legal breaches.
“A decision my office made was to terminate the contract and counterclaim the $500,000.00 advance payment that was made. Those helicopters are not airworthy. The notice of default was a process towards terminating the contract without consequences/liability,” Chakaka Nyirenda told PIJ.
A technical report seen by PIJ found that the aircraft, identified as CC09 (Serial No. 81313) and CC11 (Serial No. 81315), were manufactured in 1988 and had been grounded since 2013 and 2014 respectively. It also revealed discrepancies between the helicopters presented to Malawi officials and those shown for inspection in Italy, suggesting possible misrepresentation by the supplier.
As the legal case proceeds in Paris, ordinary Malawians watch with growing concern. If the court rules against Malawi, the government could be forced to pay not just the $4.6 million claim, but also the entire $9.29 million contract, additional damages, and arbitration costs
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