K26 Billion Cotton Scandal: Admarc Cornered as Lawsuit Deadline Lapses, New Evidence Exposes Trade Deal Chaos - Malawi Nyasa Times - News from Malawi about Malawi

State-owned trader Admarc is embroiled in a significant scandal involving a $15 million (K26 billion) dispute with local textile firm Chartia Textiles. The company missed a November 24, 2025 deadline to make payment, triggering potential lawsuits and scrutiny over Malawi’s cotton trade management. Chartia accuses Admarc of breach of contract, wrongful interference, and sabotage of international cotton transactions, claiming damages totaling millions of dollars.

Documents reveal overlapping cotton deals and questionable trade decisions, including a conflicting sale of cotton to Swiss buyer Ecom Agroindustry and a separate deal financed by a Letter of Credit for a shipment to Bangladesh. Chartia is seeking specific performance of agreements or compensatory damages, alleging Admarc’s actions led to breaches with multiple global cotton firms and damaged its international reputation.

The dispute stems from existing court cases, with Chartia citing a previous judgment allowing for further litigation. Financial records demonstrate Chartia’s capacity to fulfill its obligations, and the company’s CEO threatens a separate lawsuit for reputational damage caused by a published article. The scandal raises serious questions about governance, accountability, and competence within Admarc, with potentially billions of kwacha at risk for taxpayers.

(Source：Nyasa Times)