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Kaloswe Commuter demands K11.8 billion

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Kaloswe Commuter and Courier Limited has sued the Agricultural Development and Marketing Corporation (Admarc) for breach of contract which also allegedly led to loss of business for the Zambian private company.

The company through its lawyer Mwansa Mukoloba on Wednesday applied to the High Court in Zambia to amend writ of summons and claims and add Admarc to a case in which Kaloswe sued Zambia Cooperation Federation (ZCF) in October last year.

The lawsuit, among others, seeks an injunction restraining ZCF from spending $35.4 million from PTA Bank which was paid in its account number 0003203000439 for the purchase of 100,000 metric tonnes of maize by Admarc.

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Kaloswe is also demanding from the two a payment of $13,000,000 (K9.6 billion) being the difference between the $34.5 milion paid by the PTA Bank and the contract sum of $21,500,000.

Mukoloba also said that Kaloswe is suing for general damages and special damages worth $3million (K2.2 billion) from both Admarc and ZCF.

“That additionally, the plaintiff has evidence which it intends to plead to the effect [that] the failure by the defendant to perform its contract obligations to the plaintiff and the subsequent cancellation of the contract as between the plaintiff and the proposed 2nd defendant [Admarc] was as a result of the acts of both the defendant and the proposed 2nd defendant to induce the breach of both said contracts,” reads in part the application.

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According to Mukoloba, the order is expected to be signed today before commencement of the proceedings.

In an earlier interview in December last year, Kaloswe Chief Executive Officer (CEO), Isaac Kapambwe, confirmed that his company signed a contract with Admarc in June 2016 to purchase and deliver the maize, contrary to what Admarc CEO, Foster Mulumbe told journalists during a press briefing in Blantyre that the contract was terminated.

Said Kapambwe then: “Firstly, I have dragged ZCF to court and I am coming to Admarc thereafter. We signed a contract with Admarc on 17 June. There were a lot of things going on; some people were coming behind our back. We have all communications between us and Admarc but I cannot say much I need to consult my lawyers.”

He also said that his company earlier entered into a contract with ZCF to be supplied with 100,000 metric tonnes of maize for 2014/15 year and that Kaloswe already had a customer in the name of Admarc.

Findings by a joint committee of Parliament and a Commission of Inquiry instituted by President Peter Mutharika to probe the maize deal have recommended for further investigations of Minister of Agriculture George Chaponda by the Anti-Corruption Bureau and the police. The commission described Chaponda’s conduct in the dealings as inappropriate, suspicious and tantamount to corruption.

The two committees have also called for stiff disciplinary action to be taken against some senior officials of Admarc for flouting procurement procedures as well as perjury proceedings against some senior government officials.

The joint committee also expressed concern that the conduct of Malawian officials exposed the country to possible litigation.

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