The Ministry of Agriculture has on Thursday refuted the reports that the government got scammed K30 Billion by a bogus company on Fertilizer deal.
The Ministry said it is saddened with the allegations that the government was swindled MWK30 billion saying it is not true.
In a statement released by the ministry signed by the Secretary for Agriculture, Sandra Maweru made it clear that the government through the ministry of Agriculture agreed with Smallholder Farmers Fertilizer Revolving Fund (SFFRFM) to procure them with the 2022-23 Affordable Inputs Programme (AIP) fertiliser.
“The government of the Republic of Malawi through the Ministry of Agriculture engaged Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) as has always been the case, to process the procurement of fertilisers towards the 2022/23 AIP,” reads part of the statement.
The Ministry adds that SFFRFM made contracts with a number of companies to supply 2022/23 AIP and one of the companies was UK based company called Barkaat Foods Limited which had a production line with a well-known supplier, Yard Limited (UK), for an initial 25,000 metric tons of fertilizers.
“SFFRFM was requested to pay a commitment fee amounting to USD727,000 which is about MWK750 million to lock the price, which was remitted through Ecobank.
“Barkaar Foods Limited failed to supply and consequently ferminated the contract citing loss of the production line at Yara UK and that they could no longer commit to supply the fertiliser and the greed to transfer the fee back to SFFRFM through the same Ecobank,” adds the statement.
According to the Ministry of Agriculture, the advance commitment fee payment is under recall by Ecobank and it will be received by the end of this month of October.