Malawi: Judge Blasts Govt's Fertiliser Contracts Decision As 'Irrational' and 'Unlawful' - Now Taxpayers Must Foot the Bill

What the report says

A Malawi High Court has ruled that the government acted unlawfully when it excluded four local companies from fertiliser supply contracts tied to the 2020/21 Affordable Inputs Programme, now known as the Farm Inputs Subsidy Program (FISP). The case was brought by Mulli Brothers Limited, Web Commercials Limited, Rock Ba Rock, and FF Trading after they said they had been selected through the procurement process but were later left out.

According to the report published by Nyasa Times and distributed by AllAfrica, Judge Simeon Mdeza in Lilongwe described the government’s conduct as outside its legal powers, irrational and procedurally unfair. The court found that the companies had shown the authorities did not act within their statutory authority. The dispute also involved the Public Procurement and Disposal of Assets Authority Review Committee, the Attorney General, and an attempt to shift the contract to the state-owned Smallholder Farmers Fertiliser Revolving Fund of Malawi.

The ruling orders the government to compensate the firms for losses including missed business, profit and revenue. If the parties cannot agree on the amount, the Registrar will determine it. The report says the judgment adds pressure on officials over how agricultural input contracts are awarded and withdrawn, a sensitive issue in Malawi because fertilizer access is central to farming and food security.