The Reserve Bank of Malawi (RBM) has said the Standard Chartered Bank of Mauritius, which PTA Bank hired to make payments and receive money in Letter of Credit arrangement with Agricultural Development and Marketing Corporation (Admarc), rejected the only known invoice that Admarc received from Zambia Cooperative Federation (ZCF).
RBM Governor, Charles Chuka, said ZCF was demanding payment for about 1,000 metric tonnes out of slightly above 4,000 metric tonnes supplied but the Mauritian bank refused to make payment because of discrepancies.
“When that invoice was sent to Standard Chartered Bank, they said they could not pay for it citing discrepancies as it was not in line with the conditions in the Letter of Credit and at this point we have not received any message that payment was made for that invoice,” Chuka said.
He said the discrepancies included the mixing up of figures.
Chuka said if there are any discrepancies to an invoice and the agent bank makes payments, it is the agent bank that bears the cost, so they are always careful.
The central bank governor said in the bank’s documents, there is no such a supplier as Kaloswe Commuter and Courier and stressed that in the agreement, the supplier was supposed to be mentioned.
“If any payment was paid to Kaloswe, it might not have passed through our system,” he said.
Chuka said Admarc can still pay for the slightly above 4,000 metric tonnes that ZCF is said to have supplied quashing the earlier statements that in the arrangement Admarc could only pay ZCF after the supply of a minimum of 10,000 metric tonnes.
“Although the LC has technically expired, Admarc can still pay for the maize delivered,” Chuka said.
A vibrant writer who gives a great insight on hot topics and issues