SFFRFM CEO Richard Chikunkhuzeni says he was advised by officials from the Ministry of Agriculture not to engage PPDA as yet on the K750 million fertiliser procurement deal since it was just a price locking agreement.
Under the agreement, he says 25,000 metric tonnes of fertiliser was to be delivered as a trial run.
He has also disclosed that the fund paid for a trip to South Africa for Minister of Youth Richard Chimwendo Banda, Minister of National Unity Timothy Mtambo and two others from SFFRFM.
The officers apparently went to look for fertiliser suppliers but came back empty handed, technically because government at the time did not have the money to pay for any contract.
Meanwhile, Funds amounting to US$181, 250 (K187.7 million Kwacha) have been recovered from the K750 million that Malawi was duped through a fertilizer deal with a UK based company.
Richard Chikunkhuzeni, Chief Executive Officer for Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRFM) has disclosed this during a meeting with a Joint Parliamentary Committee inquiring into the AIP funds.
According to Chikunkhuzeni, efforts are being made by the Attorney General Thabo Chakaka Nyirenda and an external lawyer to recover the rest of the funds.
He has asked that the issue involving the money be reported professionally and in a way that it shouldn’t get to the international media to avoid prejudice.
Chikunkhuzeni, says any bad reporting on the issue may affect recovery of the remaining amount which he said is 90 percent.
But Gladys Ganda said the matter is already in the public domain therefore no need for the CEO to make such calls.
Chikunkhuzeni has also told the Committee that the UK Supplier gave a condition that an advance payment must be made in order to lock the price.
According to Chikunkhuzeni, himself, former General Manager of ADMARC, Principal Secretary in the ministry of Agriculture, a lady and a man who were working with the ministry, Director of extension services, Secretary to Treasury, Budget Director, and some two ladies whom he can’t recall their names were present during a meeting where this was discussed.
He tells the committee that, government had not yet finalized the deal that’s why Public Procurement and Disposal of Assets Authority (PPDA) was never involved.
“The ministry was too desperate ‘for a good reason’ to have enough fertilizer, so it was a bit difficult to advise the ministry otherwise,” Chikunkhuzeni has told the Committee.
He added that “The SFFRFM Board passed the resolution on procurement of this fertilizer with confidence because there were some ex officios that told the Board that the matter was already discussed in their respective ministries.
Chikunkhuzeni, has also told the Committee that there was one Moses Khombe attending the meetings, and the ministry of Agriculture officials were comfortable having this man and his colleague in the meetings.