Heads are expected to roll at Salima Sugar Company Limited (SSCL) and in the former governing Democratic Progressive Party (DPP) following revelations that Indian shareholders and DPP officials turned the company into their cash-cow.
It is the forensic audit reportregarding equity contribution, loan and other facilities, resource management and utilization that has opened this can of worms.
According to the report, which Attorney General (AG) Thabo Chakaka Nyirenda, read to journalists on Tuesday this week, the action by Indian shareholders and DPP officials left the already heavily taxed Malawians with debts close to K20 billion locally and over K130 billion internationally to settle for the sugar that has not been sold on the street.
Nyirenda disclosed that dozens of Indian businesses have been collecting sugar, including industrial sugar and have profited from it, but did not pay for the product or contracts, apart from producing inflated prices for equipment and services, milking the company dry.
The company has also been declaring losses, despite making billions of kwacha in hugely secretive sugar sales.
Recently, Centre for Democracy and Economic Development Initiatives (CDEDI) questioned the figures and demanded more details on the enormous amount being spent and its justification.
Meanwhile, The Investigator Magazine reports that the Fiscal Police are this week expected to obtain and execute warrant of arrests for all Indian directors and some of the managers, including the factory manager who has since gone to India.
Others to go to jail are some former DPP officials over different cases at the company.
The reports that former Secretary to the President and Cabinet (SPC) Lloyd Muhara, former Finance Minister Joseph Mwanamvenkha, and former Inspector General of Police Duncan Mwapasa are among those being earmarked for arrest over the plunder at the sugar company.
Others, according to the magazine, include former National Oil Company of Malawi (NOCMA) Chief Executive Officer George Dulla, former Salima Sugar CEO Njoloma and unconfirmed individual who allegedly had contracts and obtained loans up to K300 million to set up sugar plantations.
“Police already got the files, but they did not find anything. These were commercial agreements they are supposed to deduct from the sugar cane supplied. Right now they have not paid most of the suppliers,” said one of the named officials, wondering how far will the mess at the company drag on.
All Indian directors and shareholders including former Executive Chairman and shareholder Shireesh Betgiri who was already arrested before, are being accused of using the company to raise share capital and never contributing a cent from their own funds.
The directors also paid themselves annual US$50,000 dollars as fees and all suppliers were a web of their own companies, family and friends. Some of the suppliers and contractors who received Salima.Sugar and did not pay will also be arrested. We will publish the list of suppliers and contractors on Thursday.
The former shareholders registered another Salima Sugar in Dubai and wanted to use it to borrow loans up to US$300 million for the company they claimed was not making profits.
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