Haunting AIP deal

Ombudsman resurrects the ghosts of Malawi’s fraudulent K750 million fertiliser contract with a UK butchery in 2022, demanding immediate criminal investigations for those that were involved.

By Rebecca Chimjeka:

Amid no movement from the government to take to task those that were responsible for a fraudulent deal in which Malawi entrusted a butchery in the United Kingdom (UK) with procurement of fertiliser in 2022, the Office of the Ombudsman is now demanding immediate action.

It has directed the Office of the Director of Public Prosecutions (DPP) and the Office of the Attorney General (AG) to institute criminal investigations against all public officers that were involved in the contract.

In 2022, government entered a deal with Barkaart Foods Limited of the UK for the supply of 25,000 metric tonnes of fertiliser for the Affordable Inputs Programme (AIP).

Government paid the firm K750 million for the consignment.

In a statement, the Ministry of Agriculture said the firm had said it had a supply line with globally-renowned fertiliser manufacturer, Yara Limited.

However, the firm, which turned out to be a butchery, terminated the contract at the eleventh hour after it had already pocketed the money, arguing it had lost the supply line.

That set off a year-long marathon by the government to recover the money in response to intense pressure from both the public, politicians and activists for the government to get back the money.

In August last year, Attorney General Thabo Chakaka Nyirenda announced that government had finally reclaimed the money.

Now he has one more assignment: to prosecute those who had made Malawi enter what turned out to be a bad deal.

Among the contents of her Systemic Investigation Report on the implementation of AIP for the 2022-23 and 2023-24 growing season, Ombudsman Grace Malera has also directed the Ministry of Agriculture to mete out disciplinary sanctions on some officials in his ministry for unethical conduct.

Malera wants such proceedings commenced immediately.

“The Ministry of Agriculture in conjunction with the DPP and the Office of the AG should follow through with disciplinary and criminal investigations, as appropriate, and ensure that attendant disciplinary sanctions as well as criminal prosecution, as the case maybe, ensue in respect of all the public officials or persons involved in relation to the transaction with Barkaat Foods Limited…” reads the preliminary report reads in part.

Malera has also called for a forensic audit of the AIP in the last two financial years considering the incidences of fraud, financial mismanagement, unethical conduct and other malpractices that she said continued to characterize the implementation of the programme.

According to Malera and the findings of the investigations, the outcomes of the AIP do not measure up to the financial investments that government puts in the programme, a development she says should be of concern for all well-meaning Malawians.

“The Government, through the Ministry of Finance and the National Audit Office should commission a forensic audit of the AIP. The forensic audit should be carried out within the next two financial years.

“If we are to make the programme better all illegal activities should be exposed and worked on by responsible stakeholders,” Malera said in a separate interview.

In the preliminary report, the Ombudsman also laments politicisation of the AIP which she said is on a larger scale defeating the objectives of the programme of ending hunger and empowering small scale farmers.

She has since called on the government, through the Ministry of Agriculture, to put in place a strategy for depoliticization of the AIP which should be in place and operationalized by the 2024-25 growing season.

Both DPP Masauko Chamkakala and AG Nyirenda said they are yet to receive the Ombudsman’s report.

“The office of the Director of Public Prosecutions has not been formally provided with the report and the supporting documentation necessary to commence the recommended action. We believe it’s on its way,” Chamkakala said.

Kawale said his ministry takes note of the directives which he said are complementing the efforts that they have been implementing in improving the AIP.

He said government considers the AIP as a safety net programme that aims at cushioning small-scale farmer households against hunger while keeping with and adhering to laid down laws, procedures and policies.

“Most of the findings the Office of the Ombudsman made during the investigations are what the ministry also found in the course of its work.

“It’s important to note that as a ministry we are facilitating a transition from subsistence farming which characterizes AIP to commercial farming, hence the other programs that have been introduced such as Mega Farms and the Irrigation Schemes,” Kawale said.

The Barkaat deal rocked the country that time leading to President Lazarus Chakwera sacking the then Minister of Agriculture, Lobin Lowe, and his deputy, Madalitso Wirima, on October 25.

It also led to a public inquiry by a joint parliamentary committee led by chairpersons of agriculture and business committee Sameer Suleman and Gladys Ganda respectively.

But that inquiry has come to nothing after the committee failed to drag some government officials before it for questioning.

Suleman welcomed the Ombudsman’s call yesterday, saying it is important to teach lessons to those who would want to abuse public funds.

“This should serve as a lesson to all those that steal Malawians tax payers money. Let me urge the Ombudsman to also look at the issue of maize which was stolen and suspects are still free to date,” he said.

Suleman said his joint committee failed to conclude its investigation because Speaker Catherine Gotani Hara refused to extend the investigation as per the committee’s request.

He said the Barkaat issue is straightforward and justice should be done for Malawians.