Govt intervenes in Paladin, local traders wrangle

Paladin (Africa) Limited (PAL) has bowed down to pressure from Karonga business community to have the mining firm source locally goods and services required at Kayelekera Uranium Mine (KUM).

The traders have all along been accusing the company of not empowering local communities economically; hence, complaining to Minister of Industry and Trade Joseph Mwanamvekha.

The traders were irked by importation of various items such as food for use at the mine when they have the capacity to supply the company.

Mwanamvekha recently summoned PAL officials in Lilongwe to understand what was stopping the company from sourcing items locally. The two parties reached an agreement to have PAL source some of the goods and services from local traders.

On Tuesday this week, the minister also summoned PAL officials to have a dialogue with Karonga Community Development Trust (KCDT) at Karonga District Council on the issue of empowering local communities.

Mwanamvekha said local businesses ought to benefit from KUM, adding that involving local traders helps to empower Malawians economically and also contributes to the socio-economic development of the country.

He said following the discussions, PAL will commit itself to having some services and items sourced locally.

Mwanamvekha said there will also be a deliberate measure to ensure that traders in the district have a larger share of the business. He asked them to impress on quality.

The minister said there is need to put on paper the commitments PAL has made so that it is signed by the minister, PAL officials and traders for future reference.

“The business community came to me, complaining that they are not being empowered economically. They accused Paladin of sidelining them in its activities.

“However, I am pleased to say that we have reached an agreement and Paladin is ready to have the local businesspersons participate in bidding of the services,” said Mwanamvekha.

“Paladin has also assured that of the services and items sourced locally, a large percentage will have to be done by the traders in Karonga.”

PAL general manger Greg Walker said the company will encourage maximum participation of the locals in tenders, observing that every Malawian is free to participate.

He said local traders will take part in bidding processes and PAL will also have to guide them on how to prepare bids so that they go through.

“We have no problem having people here participate in the tenders. We have also committed ourselves to teaching the people on how to come up with good bids,” said Walker.

KCDT chairperson Mclean Sikumbawa said they expect PAL to adhere to the agreement made so that local traders benefit from KUM.