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Malawian authorities are fighting with hope to recover K750 million they paid a UK based company through the Smallholder Farmers Fertilizer Revolving Fund of Malawi-SFFRM, in a flopped fertilizer supply deal.
The deal was for the initial supply of 25 thousand metric tonnes of fertilizer for the 2022/2023 Affordable Inputs Programme.
Secretary for Agriculture, Sandram Maweru has confirmed this; saying SFFRFM engaged a UK based Barkaat Foods Company which had a production line with another company in that country, Yara Limited for the deal.
“SFFRM was requested to make a commitment fee amounting to USD 727, 000 (about K750 million) to lock the price which was remitted through Ecobank,” says Maweru in a statement.
Unfortunately, Barkaat Foods Company failed to supply and consequently terminated the contract. It cited loss of production line Yara Uk and that they could not longer commit to supply the fertilizer.
Further explains Maweru: “This advance commitment fee of K750 million is under recall by Ecobank and will be received by end of this month of October 2022.”
All these revelations have come out as the Agriculture Ministry tries to trash allegations that some UK based company duped it K30 billion.
Amid intense public backlash and ridicue, authorities have downplayed the allegations; describing them as lies.
A few days ago, Chairperson of the Parliamentary Committee on Agriculture, Sameer Suleman alleged that K30 billion had vanished at the Ministry of Agriculture after it was duped by a UK based company in a fertizer deal.
He faulted the ministry for being silent on this year’s Affordable Inputs Programme when the rainy season is almost here.
Suleman is yet to comment on the ministry’s statement on the matter.
Source:Malawi Wathu
