Public Procurement and Disposal of Assets Authority (PPDA) procurement specialist Jonathan Kantayeni on Tuesday told the High Court of Malawi Commercial Division that the Malawi Defence Force (MDF) flouted procedures in the disputed $30 million (about K52.5 billion) military equipment contract.
In December 2012, MDF awarded businessperson Shiraz Ferreira of SF International a contract to supply military equipment.
In the case, Attorney General (AG) Thabo Chakaka-Nyirenda is challenging Ferreira who is suing the government for 56.9 million (about K12 billion) in compound interest over delayed payments.
During his testimony, Kantayeni said that PPDA did not give any ‘No Objection’ after the MDF requested single-sourcing for the contract, but they were advised to follow restricted tendering process.
“There is no record at our office about this contract. If MDF proceeded with the procurement despite our clear guidance, then it was misprocurement, meaning it did not follow procedures.
“For a K9 billion contract, MDF knew this was beyond their threshold to approve the contract and that it needed a “No Objection’ from PPDA and, by proceeding, it raises questions about the legality of the contract itself,” said Kantayeni who added that PPDA took no action after the MDF proceeded because the Anti Corruption Bureau (ACB) was already investigating the matter.
Former MDF commander General Henry Odillo distanced himself from the contract saying he knew nothing about it.
“What I know is that part of the consignment was yet to be delivered as of May 2014 when I retired.
“Only four units of Samil trucks were delivered against the requested 12 and also MDF wanted 180 troop carriers, but less than 10 were delivered,” he said adding that his deputy at the time, Lieutenant General Clement Kafuwa (retired), chaired a procurement committee handling the matter.
