By Cathy Maulidi:
Ministry of Agriculture Principal Secretary responsible for Technical Services Medrina Mloza Banda has said the ministry sought advice from Attorney General (AG) Thabo Chakaka Nyirenda on the Romania East Bridge fertiliser deal.
He said the AG advised ministry officials to go ahead with the deal, describing barter trade as “feasible”.
Mloza Banda told the Parliamentary Committee on Agriculture that, after consulting the Public Procurement and Disposal of Assets Authority (PPDA), the authority referred the ministry to the AG, saying they do not deal with issues bordering on barter trade.
“The Office of the Attorney General was consulted and advice we got was that barter commodity swap trade is feasible. Following this advice, the ministry proceeded to do the commodity exchange transaction,” Mloza Banda said.
She said due diligence on East Bridge company was done and that it was concluded that the company does, indeed, exist.
According to Mloza Banda, the deal would ease forex pressure as the company is ready to accept to be paid in Kwacha in an event that the government does not aggregate enough produce to settle the debt.
Mloza Banda added that the deal gives Malawi an opportunity to have fertiliser at a cheaper price.
But Chairperson for the Agriculture Committee of Parliament Sameer Suleman wondered why the AG went ahead to approve the deal.
“If you look at this deal, it raises more questions than answers. You wonder how the AG approved it. Everything about this deal raises questions but we have dedicated Friday specifically for this issue. They should give us answers,” he said.
Suleman also wondered why the government offered to exchange cotton when the country cannot produce enough cotton.
“Again, we are offering our maize at about K11,000 per bag, when government set farm gate prices at K27,000. Who will fill the gap as the government does not produce maize but farmers do. So, where will government get this cheapest maize to settle the debt with?” Suleman queried.
And, in a response to our questionnaire, AG Chakaka Nyirenda said the advice he gave on the deal was that due diligence should be done.
“I have given [a] series of advice on the transaction— four times, including the need for a thorough business, financial, anti-money laundering and legal due diligence,” he said.
