Police on Saturday impounded a 15-tonne truck belonging to Simama which was offloading 600 bags of subsidised fertiliser mixed with sand at Katuli Admarc Depot in Mangochi.
Deputy Minister of Agriculture Ulemu Chilapondwa confirmed the development, saying the ministryâ€™s principal secretary and Admarc regional manager for the Southern Region briefed him on the issue.
Asked whether this means the end of Simamaâ€™s deal in the subsidy programme, Chilapondwa was non-committal, saying the ministry will examine police reports before making a decision.
“When I met transporters at Capital Hotel, I warned them that even if itâ€™s their drivers involved in malpractices, they will be affected,” he said.
Early this month, government and police warned that they will deal with companies that mess up the subsidy programme.
Recently, the Ministry of Agriculture and Food Security ordered a fresh list of beneficiaries after the first one was plagued by irregularities.
This was after government had cancelled contracts awarded to transporters after noting that some companies which won contracts did a bad job last farming season.
In this yearâ€™s subsidy programme, 15 companies will provide the seed while 27 others will deliver fertiliser.
A bag of fertiliser will sell at K500 ($1.50), maize seed at K150 while the legume is free.