Former Secretary to the President and Cabinet (SPC) Lloyd Muhara has been named amongst public officers who dipped their fingers into the coffers of Salima Sugar Company Limited (SSCL), leaving the company bruised with huge debts.
Muhara is being mentioned alongside former Minister of Finance and Democratic Progressive Party (DPP) presidential aspirant, Joseph Mwanamvekha, and former Inspector General of the Malawi Police Service Duncan Mwapasa.
Other DPP influential figures being accused of taking part in the free-for-all plunder of the resources at the sugar company are former National Oil Company of Malawi (NOCMA) Chief Executive Officer (CEO) George Dulla, former Salima Sugar CEO Njoloma and an unconfirmed individual who allegedly had contracts and obtained loans up to MK300 million to set up sugar plantations.
They are alleged to have collaborated with Indian shareholders, led by Shirieesh Betgiri, to defraud Malawians through sharing of the profits from the company.
The allegations and accusations come barely days after the Attorney General (AG), Thabo Chakaka Nyirenda, released a forensic audit report on equity contribution, loan and other facilities, resource management and utilization.
Nyirenda, who read the report to journalists at a press briefing that took place at the Ministry of Justice and Constitutional Affairs Headquarters in Lilongwe on Tuesday this week, said 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.
He 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.
The revelations prompted Centre for Democracy and Economic Development Initiatives (CDEDI) Executive Director Sylvester Namiwa to question the figures, demanding that more details need to be provided to Malawians on how the money was used and its justification.
According to The Investigator Magazine, 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.
The magazine indicates that more DPP officials, not cited in this article, would soon be heading to jail for participating in theft of the taxpayers’ money.
“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.
The magazine further reports that 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 contributed 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.
