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Publisher holds K1.2bn textbooks

A South African publisher contracted to supply textbooks for Malawi’s junior secondary schools is withholding its consignment because of a contentious bank guarantee letter.

The publisher—Pearson Education Africa—is one of the publishers that have a contract with Malawian firm Inspired Computer Technologies Consultants (ICTC).

Msaka: There are procedures to be followed

ICTC won a $7 million (around K5 billion) Ministry of Education, Science and Technology tender as a consolidator for at least 800 000 junior secondary school textbooks targeting the Central and Southern regions under the African Development Bank (AfDB)-funded Malawi Protection of Basic Services Programme.

Now the South Africa-based publisher has withheld the roughly 200 000 books, worth around K1.2 billion, it should have supplied, claiming that ICTC’s FDH Bank guarantee was suspect.

But ICTC executives told Nation on Sunday in a recent interview that the bank guarantee letter in question was sent directly by FDH Bank to Pearson Education Africa; hence, are surprised by allegations that the document was in dispute.

The publisher has since said it would refund the money it received from ICTC for the books, although Nation on Sunday could not immediately ascertain if the funds have indeed been returned.

The dust-up could affect thousands of learners in the country’s Central and Southern regions, who may have to wait longer to access the learning materials, if at all.

So far, ICTC says it has delivered books from other publishers, meaning that up to 75 percent of the total consignment could reach students in time.

Pearson Education Africa managing director responsible for Southern and Eastern Africa Fiona Macgregor told Nation on Sunday last week they wrote the Ministry of Education and ICTC, explaining their position.

“Pearson’s primary concern is to ensure that schools and students receive their textbooks as quickly as possible. It is of utmost importance that we ensure that these textbooks are provided through lawful, fair and transparent business practices.

“We have informed the Ministry of Education, Science and Technology and ICTC—that we are unable to supply books through ICTC. The Ministry of Education has been informed that we are willing and committed to [working] with other agents/suppliers to ensure the books are delivered swiftly.

“We hope that the ministry will join us in finding a solution that benefits teachers and their students,” said Macgregor.

Last December, Pearson wrote the Ministry of Education informing them that FDH had disowned the bank guarantee letter purportedly sent by the bank to Pearson.

“We received a bank guarantee from their bank FDH Banking Limited, Malawi, which the bank has identified as fraudulent…However, we are reluctant to proceed with the dispatch of the order until we have received a communication from the Ministry of Education, Science and Technology, about the action we should  take next.

“We are ready to dispatch the books in question, but not to … [ICTC]. Please advise if there is any other route to get these books to the ministry and the learners in Malawi,” reads the letter to the ministry Nation on Sunday has seen.

The letter from FDH that triggered Pearson’s decision was purportedly signed on behalf of FDH Bank managing director Eric Ouattara and reads in part: “We refer to your undated letter which we received through your email, dated 22nd December 2017, seeking our confirmation as to the validity of the above guarantee. We wish to advise that FDH Bank Limited did not issue the guarantee in question to ICTC Limited.”

But a letter from the Ministry of Education to Pearson, dated December 8 2017 and signed by Principal Secretary Justin Saidi, which Nation on Sunday has also seen, says the publisher could not use another route apart from ICTC due to contractual obligations.

“As a ministry, we recognise that there is a contract between you and ICTC our consolidator, while Malawi Government working through the ministry, has a binding contract with ICTC, as such at this point in time the ministry cannot advise other route of dispatching the books to Malawi since there are contractual obligations,” reads the letter in part.

In an interview with Nation on Sunday, ICTC chief executive officer Patridge Shycal Nthakomwa rubbished the allegation of presenting a fraudulent guarantee letter, saying it was the work of their competitors and politics of the business they are involved in.

He said Pearson Education Africa is just one of the 14 book publishers they hired to print over 850 000 books.

Further, the company’s managing director Jane Nthakomwa said the guarantee letter under contention was directly sent to Pearson by FDH Bank and hence dismissed allegations of using a dubious bank document.

In a separate interview, AfDB country manager Frank Mvula—whose organisation funded the books’ procurement, said his institution is aware of the controversy.

Mvula said: “The allegations of fraudulent activities have been brought to our attention, also in public domain and are under investigation by relevant authorities. Once the investigations are completed, appropriate action will be taken in line with the Bank Policy, Financing Agreement and Government of Malawi policy on fraud and corruption based on the findings and recommended actions.”

But, according to sources, the AfDB’s Office of Integrity and Anti-Corruption investigated the matter and submitted a summary of its findings to the Anti-Corruption Bureau (ACB) for further investigations.

A statement from Secretary to Treasury Ben Botolo, dated February 8 2018, noted that AfDB’s Office of Integrity and Anti-Corruption carried out independent investigations on the procurement and award of contract to ICTC, adding that government is reviewing submissions and recommendations for further action.

Botolo said government will act at the conclusion “of the follow up work being conducted.”

ACB publicist Egritta Ndala told Nation on Sunday that the bureau has received a complaint on the matter and that investigations have since been commissioned.

In a telephone interview last week, the Ministry of Education spokesperson Lindiwe Chide allayed fears that the issue will affect students’ learning, saying the delivery of the books is within the agreed period.

In an earlier interview, Minister of Education Bright Msaka said books were supposed to be in the country before commencement of the second school term on January 8 2018.

He indicated that the ministry is aware of the allegations against ICTC and that the matter is being looked into by relevant authorities, including the Attorney General.

“There are procedures to be followed. We just cannot act on speculations. There is need to verify the information provided. This is an issue of procurement and the ODPP is better placed to clarify matters.

“I am surprised that the ministry is being dragged into the allegations. ICTC is our consolidator and our main focus is to have the books delivered as agreed in the contract, the rest will be handled by relevant offices,” said Msaka.

When contacted whether they are aware of the alleged fake bank guarantee, FDH’s Quattara said the matter has been reported to Fiscal Police, which is currently handling it.

National Police Spokesperson James Kadadzera confirmed that the matter is under investigation through Fiscal Police and that an FDH employee, alongside Jane Nthakomwa, was interviewed.

Coincidentally, on December 11 last year, Jane Nthakomwa was reportedly kidnapped by unknown people as she drove to her Area 47 residence in Lilongwe, Her vehicle was reportedly found abandoned around Gateway Mall near Lilongwe City-Lilongwe West Bypass-Mchinji Roundabout while she was found in Kasungu two days later.

Police arrested one person in connection with the alleged kidnapping, but Kadadzera said they have not established a connection between the kidnapping and the issue at hand.

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