By Mercy Matonga:
Attorney General Thabo Chakaka Nyirenda Wednesday demanded that supplier Shiraz Ferreira pay the State over $2 million for a deal that was allegedly botched.
The supplier has been demanding $7 million in compensation.
Chakaka Nyirenda argued that the amount represented the value of military equipment the supplier was contracted to deliver to the Malawi Defence Force (MDF) but allegedly failed to do so.
He made the request in court in Lilongwe Wednesday during the hearing of a case in which businessman Ferreira is demanding $6,942,359.49 (about K12 billion) compensation from the government.
In 2021, Ferreira sued the government for delayed payment for items he reportedly supplied to the MDF between 2012 and 2014.
According to Chakaka Nyirenda, the claimant supplied or delivered various military equipment worth $8,382,000.00 in 2016 but was, in 2013, inadvertently paid the sum of $10,861,899.15.
“The defendant repeats the contents of paragraph 19 hereinabove and pleads that the sum of $2, 479,899.15 remains due and owing from the claimant to the defendant,” Chakaka Nyirenda said.
He further said documents that the defence sourced showed that Ferreira failed, or neglected, to supply or deliver military equipment worth $2, 479,899.15.
He further alleged that Ferreira failed or neglected to pay back the sum of $2, 479,899.15 to the government.
“And, therefore, the defendant counter-claims from the claimant compound interest on the said sum of $2, 479,899.15 at 5 percent above [the] commercial bank lending rate from 2013 to the date of payment,” Chakaka Nyirenda said.
Lawyer for Ferreira Shabil Khani refused to comment on yesterday’s proceedings.
“I do not have anything to say. The matter has been adjourned,” Khani said.
According to court documents, the matter originates from 2012 when the MDF reportedly issued a legal purchase order (LPO) to Ferreira to, through his SF International, supply goods to the military in a contract worth K24 billion.
The matter is being heard by Judge Chifundo Kachale of the Commercial Division of the High Court.
0 Comments