The High Court has ordered government to compensate four companies that were denied contracts to supply fertiliser under the 2020/2021 Affordable Inputs Programme.
The companies are Mulli Brothers, Web Commercials Limited, FF Trading and Rock Ba Rock.
The firms are seeking compensation for losses in business, profits and revenue after they failed to secure the contracts.
In his ruling, High Court Judge Simeon Mdeza said the decision to deny the companies the contracts was unlawful.
Court records show the four companies had submitted bids and were recommended for the contracts.
The records also indicate the Secretary in the Ministry of Agriculture blocked them on the grounds the Reserve Bank of Malawi indicated the owed loans to government.
However, Justice Mdeza said the records showed the companies’ bids had already been evaluated, meaning they were eligible to be awarded the contracts.
The four sued Public Procurement and Disposal of Assets Authority Review Committee and Smallholder Farmers Fertilizer Revolving Fund.
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