ADMARC has been accused of “blackmailing” Malawians over its controversial tarpaulin procurement. Analysts say the grain trader is using threats of maize losses to evade scrutiny and accountability over plans to pay nearly K30 million for a single tarpaulin.
The controversial procurement is under investigation by the Anti-Corruption Bureau (ACB) over suspected corruption.
Yesterday, Chief executive Ben Botolo warned that maize and fertiliser could be lost without the covers, while dismissing criticism of a proposed purchase costing nearly K30 million per tarpaulin.
His remarks follow an ACB restriction on the planned K3 billion award to Maiden Investment for just 100 tarpaulins. The restriction came three days after Malawi24 exposed the proposed expenditure on October 6 and questioned the price.
ADMARC’s notification of intention to award identified Maiden Investment as the successful bidder for a contract worth3 billion — approximately K29.7 million for each cover. In the notice, ADMARC said it had “finalized the evaluation process for the procurement of Tarpaulins” and intended to award the contract to the selected supplier.
But on October 9, ACB Acting Director General Gabriel Chembezi stopped the proposed award. His restriction notice directed ADMARC not to award the contract to Maiden Investment or any other company without his written consent.
The bureau said it was investigating a suspected offence under the Corrupt Practices Act. The expenditure had sparked public criticism. Malawi24’s October 9 report quoted concerned citizen Fraser Enock questioning the spending by a corporation previously struggling for funding.
“This is a company that once came close to shutting down its operations because it had no money and inadequate funding,” he said.
Botolo has now defended the procurement, saying it had only reached the intention-to-award stage and that no competing bidder had formally challenged it. “What appeared in the papers was an intention to award. No single bidder has challenged the intention to award. The ones making noise are not the bidders,” he said.
However, the absence of a challenge from competing bidders does not resolve the pricing questions or the concerns under investigation by the ACB.
Botolo said most competing suppliers had submitted quotations exceeding K2.9 billion, with some bids reaching K3.5 billion and K4.5 billion. He also said a Blantyre-based company manufactures similar tarpaulins for approximately K24 million each, with every unit taking a full day to produce.
Malawi24’s earlier market checks found large heavy-duty industrial tarpaulins available for less than K3 million each.
However, ADMARC’s public procurement notice did not disclose the dimensions, material, thickness or technical specifications. That prevented a direct comparison with the cheaper products and left unanswered whether specialised requirements could explain the difference.
Meanwhile, Botolo said the shortage was affecting fumigation and exposing stored commodities to infestation. “ADMARC will be forced to offload most of its commodity because fumigation will only be done using these tarpaulins. Now we are faced with challenges of fumigation and infestation of grain since we do not have tarpaulins in some areas,” he said.
However, analysts and activists have accused ADMARC of attempting to blackmail Malawians. One analyst said the grain trader was deliberately invoking the threat of maize losses to avoid being held to account.
“This is textbook blackmail. ADMARC is trying to hold Malawians to ransom. Anyone involved in this procurement must be investigated. This ‘threat’ must not be allowed to shield them from accountability,” a senior member of the ruling DPP who has been outspoken on corruption involving senior party officials told Malawi24 on condition of anonymity for fear of reprisals.
The criticism follows accusations of corruption within the ruling party by Speaker of Parliament Sameer Suleman. His calls for investigations have faced resistance within the DPP, drawing public attacks from the information minister and senior party officials.
