The High Court has ordered government to compensate four companies after ruling that they were unfairly excluded from fertilizer supply contracts under the Affordable Inputs Programme (AIP) during the 2020/21 farming season.

The companies are Mulli Brothers Limited, Rock Ba, FF Trading and Web Commercials.

High Court Judge Simeon Mdeza found that the firms were unlawfully denied the opportunity to supply fertilizer after authorities cited outstanding government loans as the reason for rejecting their bids.

According to the ruling, the companies had gone through the procurement process, with the relevant procurement and disposal entity recommending that they be awarded contracts to supply and deliver the fertilizer.

However, the contracts were not subsequently awarded to the companies.

Judge Mdeza has described the decision to exclude the four firms as irrational and procedurally unfair, further ruling that it was made beyond the powers of the authorities involved.

The companies had taken legal action against the Public Procurement and Disposal of Assets Authority (PPDA), the Smallholder Farmers Fertilizer Revolving Fund of Malawi and the Attorney General.

The court has consequently directed government to compensate the affected companies following its determination that their exclusion from the contracts was unlawful.