Mwadiwa speaks out on $100m IDs deal
Malawi’s Secretary to the Treasury Randson Mwadiwa says he never ignored a court notice to attend a crucial mediation meeting between government and the Swiss firm asking for $100 million compensation for breach of a national identity (IDs) cards contract awarded 12 years ago.
The Commercial Court in the capital, Lilongwe last Monday cancelled the mediation between Malawi Government and Secucom Holdings Limited because Mwadiwa reportedly failed to turn up on three occasions before Judge Ken Manda.
The meetings were scheduled to discuss the terms of payment of $8 million which was agreed in July 2011 when the Swiss firm consented to waive all interest and agreed to drop its claim for damages for breach of contract.
Said Mwadiwa: “I only knew about the first meeting on April 10 2013 and I had sent my apologies that I was not going to make it because I was travelling to Washington DC for the IMF annual meetings.
“The other two meetings I was not aware about them… No one ever told me that I was supposed to appear before a judge on April 26 and later on May 6.”
Mwadiwa said on May 6 he again travelled abroad for meetings because he was never contacted. When Weekend Nation tried to reach him last week Friday, he was said to be out of Malawi.
“I only arrived in the country over the weekend and that’s when I learnt about all this… I was not going to do that if I was informed about this because it’s public money at stake here,” he added.
But Titus Mvalo, lawyer representing Secucom, said Monday a notice of the final meeting was served on Mwadiwa’s office on April 26, 2013 and was signed for, acknowledging receipt.
Following the court order, government now risks losing property it owns abroad to pay off about $100 million for breach of the national identity card contract. The claim includes interest that has accrued over the past 12 years.
Manda’s ruling gives Secucom the option to take the matter to the International Court of Arbitration either in London or South Africa as per the contract agreement.
According to Mvalo, Mwadiwa was key in the discussions to endorse the consent orders for payment of $8 million as proposed during a last settlement negotiation meeting between Secucom and government held at Ministry of Justice in Lilongwe on July 22 2011.
In an e-mail response on Wednesday last week, Secucom chairperson and chief executive officer Anatol Weinstein warned that he was going ahead to take the case to London.
Government and Secucom agreed on a 0.2 percent penalty interest per day and a maximum of six percent per month to be charged each day on Promissory Notes that remained unpaid.
