K7 billion cashgate hits Admarc

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Public Accounts Committee (PAC) has revealed about a K7 billion cashgate at Agricultural Development and Marketing Corporation (Admarc).

It has been revealed that Admarc spent K7 billion without Treasury’s approval as required by the Public Finance Management Act.

Admarc

Admarc spent K7 billion without Treasury’s approval

The money was proceeds from the sale of maize but Admarc was required to first seek authorisation from Treasury before spending the funds.

According to the local media, Public Accounts Committee (PAC) revealed about the spending in its 2018 report.

“Admarc repeated this misconduct on proceeds from the sale of fertiliser and what was also surprising was the Malawi grain trading company claimed 40 percent of the revenue as operating expense,” says the report.

It also revealed that the Malawi Police Service spent without Treasury’s approval money generated through traffic fines.

Treasury spokesperson Davis Sado told the local media that the Ministry of Finance will deal with the issue after seeing the PAC report.

Recently, government bailed out the grain marketer with K45 billion. Government had guaranteed Admarc’s loans used to buy maize but the parastatal failed to sell the maize and government was forced to repay yhe loans.

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