Govt reiterates its stand on Sattar contracts: “No new contracts signed, we paid manufacture for goods already manufactured.”
Government says after terminating all contracts with companies linked to corruption suspect Zuneth Sattar in 2021, it proceeded to initiate payment for goods already manufactured in the initial deal with Sattar’s company Malachite but this time around straight to the manufacturing company, International Armored Group FZE.
Kunkuyu made the remarks today at a press briefing underway in Lilongwe held alongside Minister of Defence Harry Mkandawire and Colonel Gilbert Mittawa from MDF.
He said what government did is in line with Section 46 of the Public Procurement and Disposal of Assets (PPDA) Act, reiterating that government does not have a running contract and has not signed any new contract with Sattar companies.
“Despite that all contracts related to business person Zuneth Sattar were terminated, government was still under legal obligation to pay for goods already supplied and manufactured in line with Section 46 of the Public Procurement and Disposal of Assets (PPDA) Act.
According to the Minister, government through the Auditor General instituted an audit and other investigations which established that some goods were already delivered while some had already been produced hence the move to initiate payment of $19 million.
Said Kunkuyu: ” The payment is yet to be externalised by the Reserve Bank of Malawi. However, there has been misinformation and media sensationalism to the effect that the government is “still in bed with Sattar” and making payments.
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