A District Commissioner’s vehicle has been seized in Chitipa, as the council scrambles to resolve a K74 million debt linked to a seedling supply contract.
The vehicle was impounded by a court sheriff following a legal dispute between the council and Shuta Shuta General Suppliers over unpaid supplies under the Songwe River Basin Project in Misuku.
The supplier, Daniel Simkonda of Shuta Shuta General Suppliers, took the matter to court, claiming that his company had not been fully paid for seedlings supplied to the project.
Chitipa District Council spokesperson Aliko Munde has confirmed the seizure, saying the outstanding amount under the contract is K48,560,400, while legal costs amount to K25,720,350, bringing the total claim to K74,280,750.
Munde said the council does not directly control the funds for the project, as payments were administered centrally by the programme secretariat based in Kyela, Tanzania.
He said the council has since written to the Ministry of Agriculture, Irrigation and Water Development and the Attorney General, who is representing the council in the matter, seeking intervention to resolve the dispute with the supplier.
“We have engaged the relevant authorities to address the matter because the funds for the project were being managed centrally,” said Munde.
The council hopes that resolving the payment dispute will lead to the release of the impounded vehicle.
The development has also raised concerns about the implications for local authorities when project funds are managed outside their direct control, particularly when payment disputes result in legal action against councils and their assets.
