By Mercy Matonga:
Blantyre Water Board (BWB) is seeking the cancellation of a contract it entered into with Roads Engineering Company (Rec) over allegations of fraud.
However, Rec contends that the matter went to court after BWB failed to respond to the firm’s legal counsel’s demand letter and that they expect the issues to be resolved by June or July 2025.
According to information we have received, BWB contracted Rec for the supply, delivery, installation and commissioning of a water bottling plant under a contract valued at over K1 billion.
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However, Rec has allegedly failed to comply with some of the terms of the contract, prompting the board to seek the termination of the agreement.
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In a letter sourced by The Daily Times and addressed to Attorney General Thabo Chakaka Nyirenda, the contract was terminated on August 15, 2024 due to Rec’s alleged non-compliance, dishonesty, fraudulent practices and failure to provide performance security.
“Rec has since challenged this termination in court, seeking multiple reliefs, including specific performance, an extension of delivery deadlines and compensation for legal fees. Blantyre Water Board is defending the matter,” the letter states.
It was from BWB and through it, the board sought advice from Chakaka Nyirenda on how to proceed with the matter.
The letter further indicates that the bidding document clearly specified that due diligence would be carried out by conducting factory assessment tests and that Rec had committed to complying with this requirement.
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However, the company is being accused of falsely claiming to have procured the machine and “misled BWB into sending a delegation to China for the factory assessment test”.
The delegation reportedly discovered and confirmed with the manufacturer that no machine had been paid for or produced.
Rec Limited is also said to have requested BWB’s assistance in making a foreign exchange payment of €170,373.69 (equivalent to K316,103,891.00) to the manufacturer.
However, the company allegedly failed to remit the funds as promised and instead insisted that the board proceed with making the payment to the manufacturer.
Chakaka Nyirenda confirmed the matter to The Daily Times but fell short of providing more details on the current status.
“All I can say is that, yes, the issue is in court,” the AG said.
BWB spokesperson Evelyn Khonje declined to comment on the matter or provide further details about the contract, saying that the board is unable to comment on the issue as it is currently the subject of ongoing litigation in court.
“However, we can confirm that we do not have a current agreement or contract with Roads Engineering Company and no payments have ever been made to them,” Khonje said.
Rec Managing Director Wavisanga Silungwe told The Daily Times in a separate interview that the matter went to court after BWB failed to respond to the demand letter from their legal counsel, Jivason & Co.
“The construction of the factory at Nguludi is at roof level as of today and by the time the construction is finished, say in June or July 2025, we hope to have resolved the matters before the court and be ready to proceed,” Silungwe said.
