Corruption suspicions have arisen after a day old Company, Golden Manela Investments Limited, based in Lusaka, was awarded eight lucrative contracts by the Food Reserve Agency (FRA) for maize sales amounting to 7,258.31 metric tons, worth K29,033,240.00.
According to audit findings by the Auditor General, Golden Manela Investments Limited based in Chamba Valley, Lusaka Province was incorporated on 23rd June 2022 and started trading with FRA on 24th June 2022.
This has raised serious questions about due diligence and transparency in the awarding of contracts by the FRA. How could a company that was incorporated just a day before be awarded such lucrative contracts, without any prior track record or experience in the industry?
The audit findings also revealed that, as opposed to the contract agreement, Golden Manela Investments Limited only collected a total of 5,336.10 metric tonnes valued at K21,344,386 from various FRA Depots in 6 Provinces despite it being based in Lusaka Province. This raises further concerns about the legitimacy of the contracts and the processes followed by the FRA highlighting the urgent need for transparency and accountability in the awarding of government contracts.
The Golden Manela Investments Limited case must serve as a wake-up call to the government to take action and restore public trust in the procurement process.
“An examination of Maize Sales Contracts entered into by the Agency and Golden Manela Investments Limited revealed that the company signed a total of eight (8) contracts for maize sales amounting to 7,258.31 metric tons valued at K29,033,240.00 during the period under review.”
“A review of PACRA documents revealed that Golden Manela Investments Limited was incorporated on 23rd June 2022 and the following day, 24th June 2022, the company started participating in maize purchases at FRA and was subsequently given maize sales contracts for 7,258.31 metric tons valued at K29,033,240,” the report revealed.
“It was therefore questionable how FRA conducted due diligence on a company that was incorporated on 23rd June 2022 started trading with FRA on 24th June 2022 and was awarded contracts for 7,258.31 metric tons of maize valued at K29,033,240 which it collected from six (6) other provinces despite it being domiciled in Lusaka Province.”
“An examination of maize collection documents from various FRA Depots revealed that Golden Manela Investments Limited collected a total of 5,336.10 metric tonnes valued at K21,344,386 from various FRA Depots in six (6) Provinces namely Lusaka, Southern, Luapula, Northern, Muchinga and Central Province despite Golden Manela Investments Limited being based in Chamba Valley, Lusaka District, Lusaka Province,” revealed the report.
