Zambian Supplier in Helicopter Purchase Scandal in Malawi

amb. Emmanuel Mwamba writes:

Zambian Supplier in Helicopter Purchase Scandal in Malawi

Govt transferred K3.4 billion advance payment for faulty choppers – New Court Documents Show

The Malawi government told the International Court of Arbitration it mistakenly paid the Zambian supplier some $500 000 instead of canceling the invalid contract.

The Supplier says wrong: You paid us $2 million!

The Malawi government paid a Zambian supplier an advanced payment of USD 2 million (approximately 3.4 billion kwacha) for two alleged grounded Bell 412 helicopters, some USD 1.5 million more than the figure cited by the Malawian government in court documents as the part payment it accidentally made to the company.

The company, AYA Technologies LTD, is suing the Malawi government at the International Court of Arbitration (ICC) in Paris for a sum of USD 4,644,718, (an estimated 8,065,552,807 Malawi kwacha) which represents 50% of the total Agreement Price, due on July 25, 2024–seven days from the contract execution date of July 18, 2024, according to documents sourced by PIJ.

As previously reported by PIJ, the controversial deal by the Malawi Defense Force (MDF) to acquire has escalated into a high-stakes international legal battle with a Zambian firm suing the Malawi government for billions over the controversial, now botched, attempted procurement.

In previously reported court documents, the Malawi government conceded paying the company a part payment of $500 000 but argues the contract should be canceled because the supplier has failed to live up to the terms of the contract by failing to submit documents proving the helicopters are safe to fly.

But in freshly acquired documents, the company counters that the Malawi government is making up allegations to avoid payments and cites the advance payment of  $2 million as proof that the government committed itself to the contract.

“The gist of Respondent’s Counterclaim is that it actually never entered into a valid and binding agreement with Claimant, and yet some unidentified individuals within the Malawi government made a “mistake” and paid to Claimant more than half a million USD “under the mistaken belief that the sum was due and owing, when in fact no such obligation ever arose”,” reads the counterclaim from the lawyers of the Zambian company.

It adds: “The problem with this contention is that it is entirely refuted by the facts. Moreover, not only does it make no sense that half a million USD were ‘mistakenly’ paid, but it is also based on a wrong factual premise.

The Respondent made not one payment to Claimant, as asserted in the Counterclaim, but two payments totaling roughly USD 2,000,000The firm describes the assertions by the Malawi Government as “a rather strange story,” arguing that a highly detailed Agreement was signed and executed by the Commander of the Malawi Defence Force and the Chief of Staff of the Malawi Defence Force.  

As previously revealed by the PIJ, the deal to purchase two grounded Bell 412 helicopters was led by former MDF commander General Valentino Phiri and then Defense Minister Harry Mkandawire, but it immediately raised eyebrows after inspectors’ reports revealed that the helicopters were unsafe for service, having last flown in 2013.

Sources say the Attorney General Thabo Nyirenda acting on technical report findings, wrote a memo to then President, Lazarus Chakwera, advising the president to cancel the deal.

But before the president moved on the matter, the MDF quickly made a part payment to the supplier.

The International Arbitration Claim

The documents reveal that AYA Technologies Ltd. (Zambia) filed a Request for Arbitration (ICC Case No. 29357/CPB) on March 10, 2025, with formal notification sent to the Malawian government in May 2025.

The basis of the supplier’s claim is the government’s alleged “repudiatory and material breach” of the contract (MDF/HEL/61/24). AYA Technologies asserts that Malawi was obligated to pay the first installment—50% of the Agreement Price, amounting to USD 4,644,718—on July 25, 2024, and was in arrears for over seven months when the arbitration request was filed.

AYA Technologies has since asked the court to order Malawi to comply with the $9.29 million contract immediately or pay damages for breach of contract, including applicable interest and the full costs of the arbitration.

According to court documents, Malawi contacted the company on June 12, 2023, for the purchase of the Bell 412 helicopters. The company says in April 2024, a final performance inspection of the specified helicopters “passed with flying colors” and a final agreement was reached on 18th July, 2024.

The company says it issued the first request for payment on 23rd July 2024, accompanied by an invoice No.001/MDF/2024 for an amount of USD 4 644, 718 which was 50 percent of the contract sum, but Malawi did not respond to the request and did not pay the amount.

The company says it made further requests on 9th August 2024 and 13th September 2024 and on 11th October 2024, made another payment reminder and officially asked Malawi for a 28-day negotiation prior to entering arbitrationGovt transferred K3.4 billion advance payment for faulty choppers – new court documents