
High Court Judge Simeon Mdeza has ordered government to compensate four companies for denying them fertilizer supply contracts for Affordable Inputs Programme (AIP) during 2020/21 farming season.
High Court found that the four companies Mulli Brothers, Rock Ba, FF Trading and Web Commercials were unlawfully denied the opportunity to supply fertilizer contracts as authorities cited that the firms had an outstanding government loans as a reason for rejection of their bids.
The ruling by High Court indicate that the companies had gone through procurement process with relevant procurement and disposal entity recommending that the be given the contracts to supply and deliver fertilizer but subsequent the contracts were not awarded to them.
High Court Judge Simeon Mdeza declared that the four companies were unlawfully denied supply contracts and the decision was irritation and procedurally unfair and the decision to exclude the companies was made beyond the power of the authorities involved.
The four companies had taken a legal action against the Public Procurement and Disposal of Assets Authority (PPDAA), the Smallholder Farmers Revolving Fund of Malawi and Attorney General.