Govt not under obligation to settle losses in Technobrain passport deal

Attorney General Thabo Chakaka Nyirenda insists that government is not under any obligation to pay for the loss of profits following the termination of a contract with Techno Brain Global FZE on passports.

Nyirenda says the deal has been terminated.

Nyirenda has said this after government has served Technobrain a 30-day notice of contract termination based on Section 46(e) of Public Procurement and Disposal of Assets Act.

According to Nyirenda the Act does states that government is not under any obligation to pay for loss profits but only for   services rendered and goods supplied.

In 2019, the Government awarded a US$60.8 million (about MK50 billion) electronic passports contract to Techno Brain Global FZE for the supply of 800,000 passports.

The Tonse Alliance during campaign promised to reduce the passport fees to K14,000.

Last year, President Lazarus Chakwera blamed the Techno Brain contract for his government’s failure to reduce the fees.