The Centre for Democracy and Economic Development Initiatives (CDEDI) has expressed disappointment with the recent forensic audit commissioned by the Malawi Government on Salima Sugar Company Limited (SSCL), estimating it will cost Malawians close to K1 billion.
In a statement signed by its Executive Director, Silvester Namiwa, CDEDI underscores that, despite Malawians holding a 40 percent share in SSCL through the Greenbelt Authority (GBA), the company was established to break the monopoly enjoyed by Illovo Sugar Company for the benefit of low-income consumers.
“As a watchdog and voice for the voiceless, we at CDEDI have closely followed developments at Salima Sugar, hence our interest in matters surrounding the forensic audit commissioned by the government. We were shocked to read in The Nation newspaper of November 30, 2023, an article titled ‘Salima Sugar accounts frozen over K623 million debt,’ revealing that SSCL owes Audit Consult K623 million following the recent forensic audit,” said Namiwa.
CDEDI has meanwhile urged Attorney General Thabo Chakaka-Nyirenda to lift the injunction crippling SSCL’s operations.
The organization has also challenged SSCL’s executive chairperson, Mr. Wester Kosamu, to disclose the audit’s scope, related reimbursements, and any relevant documentary evidence justifying the K623 million claim by Audit Consult.
“Malawians may wish to know that the initial contract for the audit signed in June 2023 was pegged at K160 million and was duly paid but by the time the draft audit report was released the cost for producing the audit had ballooned to K250 million. In the same vein, CDEDI demands an explanation from SSCL former Executive Chairperson Mr. Shirieesh Betgri on why he accepted liability for an audit that was commissioned by government in exercise of its oversight role.
“Frankly speaking, current developments at SSCL smack more of politics than institutional governance, which we fear will have far-reaching consequences on survival of the company. And this, for sure, will scare away both existing and potential investors. That is to say the least about its impact on the country’s ailing economy,” he explained.
CDEDI has emphasized that current developments at SSCL appear more political than institutional governance, potentially harming the company’s survival and deterring investors, affecting the nation’s economy adversely.
CDEDI has warned politicians to refrain from interfering in this public-private-partnership initiative, considering previous failures due to political interference.
The organization also points out concerns about political party financing influencing SSCL, jeopardizing its potential to provide affordable sugar, create jobs, and contribute to the country’s economic growth.
CDEDI has given seven days to the concerned parties to address these issues, threatening drastic action in the interest of the common good if necessary.
