How Dubai Company Won K839m Fertilizer Tender Without Any Registration In Zambia

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By Mwenya Mofya,

THE Public Accounts Committee has heard that the Ministry of Agriculture in 2017 procured 80,000 metric tonnes of urea fertiliser at a total cost of K839,366,520 from Rockliffe Trading FZC, a Dubai-based company without proper establishment in Zambia.

And the Committee has heard that the Ministry debt swapped K839,366,520 worth of urea fertilizer with K160 million debt owed to three fertilizer suppliers in 2017 without the approval of the Attorney General.

According to the Auditor General’s Report, the ministry debt swapped without any documentation and justification on the basis of how the fertilizer procured at a cost of K839, 366,519 by government was swapped for a total debt of K160, 000,000 that was owed to the fertilizer suppliers.

And speaking during the Public Accounts Committee (PAC) meeting, Tuesday, nominated member of parliament Likando Mufalali wondered why government signed a contract with a foreign company without proper establishment in Zambia.

“The Companies Act number 10 of 2017 requires that a foreign company must have local Directors and registered offices for correspondence. Is this company registered in Zambia and does it have local directors here? We want to deal with the local directors concerning this matter. We cannot be struggling to find people that have no office in Zambia but went into contract with the government,” he said.

In response, Rockliffe Trading FZC representative Henry Chiyota admitted that Rockliffe did not have employees in Zambia.

“It is true that Rockliffe is a foreign company. There is a company called Sealand Commodities, therefore the shareholders of Sealand are the same shareholders of Rockliffe, the company based in Dubai. Rockliffe company does not have staff per se. We who belong to Sealand Commodities are the ones providing services and running everything on behalf of Rockliffe. From the time the contract was issued to date, this is how we have been running. Rockliffe does not have employees here. In Sealand Commodities, I am one of the directors but in Rockliffe, I am not a director. On the contract that was signed, it was done by the team based in Dubai,” he said.

But Nalolo UPND member of parliament Imanga Wamunyima argued that there was need to avail adequate documentation of the memorandum of understanding between the two companies including the Power of Attorney granted to Chiyota.

Meanwhile, Chavuma UPND member of parliament Victor Lumayi wondered why the Ministry went ahead with the debt swap when it was not approved by the Attorney General.

“This contract was approved by the Attorney General on 26th September 2017 with amendments. However, on the same day, 26th September 2017, [the] treasury had given authority to go ahead to pay out this debt swap. The Attorney General rejects the contracts because it needed to be amended but on the same date, the ST gives a go ahead to give the pay out. It is confusing. This credit facility may even be above the committee’s mandate,” he said.

And in response, the Ministry of Agriculture’s former Director of Finance Fredrick Katulwende revealed that the contract credit facility was being spearheaded by the Ministry of Finance.

“I wish to state that I did not participate in the contract credit facility that is being tabled in the House. The facility was issued at the Ministry of Finance and the payments through the supplier were made at the Ministry of Finance,” he said.

Meanwhile, Ministry of Agriculture Permanent Secretary Green Mbozi proposed that the Ministry of Finance needed to be present in order for questions to be answered adequately.

“To specifically answer the questions, maybe it would be better if the Ministry of Finance was here. We do not seem to have that information as to who started the process. So I think it would be fair for all of us to be here including the treasury so that we are there as one government to explain to you,” he said.

PAC chairperson Warren Mwambazi adjourned the meeting in order to allow the right witnesses to respond to the issues.

“We seem to be going round in circles because only the Ministry of Finance seems to understand this contract. So we have no adequate people to give us adequate responses. We will also wait for adequate documentation from the directors of Rockliffe so that the right people are granted the mandate to appear before PAC. PS we also want you to communicate to the Ministry of Finance and everyone involved in this contract to come and answer. You make sure to tell them that this is what is at hand and we want people to give us information to that effect,” said Mwambazi.

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