State-owned Admarc is facing a heightened legal threat after a two-week deadline it was given to pay a local textile company over $15 million (approximately K26 billion) passed without a resolution.
The demand was made in a letter dated November 10 2025, in which Chartia Textiles Limited demanded that Agricultural Development and Marketing Corporation (Admarc) pay the sum of $15 046 393 by November 24.
Admarc head office
Chartia claims this is for breach of contract, inducing breach of contract and wrongful interference related to agreements for the supply of cotton lint.
The letter, addressed to then Admarc chief executive Daniel Makata, which Weekend Nation has seen, reads in part: “We hereby give you until the 24th November 2025 to make a payment of the total sum of $15 046 393.00.”
It adds that if the payment is not made, Chartia will proceed with ongoing court proceedings and institute a new lawsuit for reputational damage.
When contacted for comment on the lapsed demand, Admarc spokesperson Theresa Chapulapula said the matter was sub judice.
“All the issues raised are part of an ongoing case before the High Court Commercial Division, Blantyre in Commercial Cause No. 148 of 2023 between Admarc Limited and Chartia Textiles Limited. Therefore, we cannot comment anything now,” said Chapulapula.
Separate documents Weekend Nation has seen show that on July 1 2022—during the same period— Admarc issued a proforma invoice No. 90922 for 150 metric tonnes (MT) of Malawi raw cotton to a different Swiss buyer, Ecom Agroindustry Corp, at a price of $1 829.82 per MT.
The core of Chartia’s claim, however, involves a separate and larger transaction.
A Letter of Credit (No. IX01117016341737), issued on July 1 2022 by Banque Cantonale Vaudoise in Switzerland, facilitated the payment for 500 MT of cotton to be shipped from Beira, Mozambique, to Chattogram, Bangladesh, with Chartia Textiles listed as the beneficiary.
Chartia’s current claim breaks down into four demands. First, they seek the specific performance of an old pre-financing agreement for the supply of 480 MT of cotton lint. Second, as an alternative, they demand $9.3 million as “compensatory damages for breach of contract”.
Third, they claim $582 240 for “wrongful interference” with a separate contract they had with a company called CDI-Cotton Distributors Inc.
Fourth, they demand $5.12 million as relief for allegedly causing Chartia to breach contracts with four other international cotton firms, namely Baobab Cotton Group, CDI, OTTO Group, and Ecom Cotton.
The letter references an earlierlegal case, Commercial Case No. 148 of 2023, which resulted in an agreed order on May 13 2024. Chartia states that clause VI of that judgement “provided room for further litigation on the parties’ other claims,” which they are now pursuing.
Other documents show that Chartia had secured banking facilities. The financial backing for Chartia is further evidenced by a 2021 facility letter from Standard Bank Malawi, which offered the company a guarantee by Bank Facility limit of K512 million to assist with issuing security bonds for its operations.
Furthermore, a letter from Ecobank Malawi dated July 19 2022 to the Export Development Fund (EDF) references a sale of a cotton ginnery to Chartia Holdings and a Sight Letter of Credit worth $1 399 221 meant to facilitate payment through cotton sales.
Chartia’s CEO Richard Kamoto Ashan, who signed the demand letter, warns that failure to pay will lead to an additional lawsuit over a newspaper article.
“We reserve our right to institute separate proceedings against you for reputational damage arising from an article titled ‘Admarc loses K234 Cotton money’,” the letter states, alleging that the article was published at Admarc’s “behest” and has caused “massive financial losses”.
