The Centre for Democracy and Economic Development Initiatives (CDEDI) has raised questions over payments for audit at embattled Salima Sugar Company Limited (SSCL).
CDEDI Executive Director Sylvester Namiwa told journalists on Monday in Lilongwe that they have given concerned parties seven days to do the needful otherwise his organisation will be forced to take drastic action in the interest of the common good.
Namiwa’s calls for transparency follow reports 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.
Now media reports indicate that Salima Sugar accounts are frozen over K623 million debt’ meaning that will cost Malawians close to K1 billion.
Namiwa has since urged the Attorney General Thabo Chakaka-Nyirenda to vacate the injunction which has crippled SSCL’s operations.
“Thus far, CDEDI challenges the SSCL Executive chairperson Mr. Wester Kosamu to make public the scope of the audit work and related reimbursements as well as any relevant documentary evidence to justify the K623 million claim by Audit Consult,” he said.
Namiwa has also demanded an explanation from SSCL former Executive Chairperson 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 said.
He has henceforth warned politicians to take their hands off the company’s undertakings. He said politicians promise more public private-partnerships yet others have collapsed due to political interference.
“Without mincing words, political party financing is rearing its ugly face at SSCL,” he said.
Apart from Malawians having 40 percent shareholding in SSCL—through the Greenbelt Authority (GBA)—the company was established to break the monopoly enjoyed by Illovo Sugar Company for the benefit of the low-income consumers.
It was hoped that someday sugar would not only be affordable but also that the company would create more jobs and help to generate the much-needed foreign currency in improving
