Attorney General Thabo Chakaka-Nyirenda says over US$30 million (about K51 billion) has been misappropriated at Salima Sugar Company.
This has been disclosed by the Attorney General during a press briefing at the Ministry of Justice office in Lilongwe.
Chakaka said through an instituted inquiry into Salima Sugar Company it has been revealed that there has been rampant mismanagement and misuse of resources at the company.
“Malawi Government is currently repaying debts obtained by the company from various institutions without the board’s approval or government advisory,” said Chakaka-Nyirenda.
He added that the law will take its course on everyone involved as the inquiry has also exposed the involvement of some company officials, civil servants as well as other government officials.
“Audit consults who were appointed as forensic auditors found that Salima Sugar Company Limited was dealing businesswise with related and suspicious companies incorporated in foreign countries, in particular India, United Arab Emirates – Free Zone Area, Seychelles, and South Africa.
“Additionally, a senior officer incorporated Salima Sugar Company Limited in Dubai without the knowledge of the Malawi Government. A bank account in the name of Salima Sugar Company Limited was opened in Dubai,” he explained.
He indicated that government hasn’t benefited from the forex revenue earned through the company’s exports which he described as a set back to the country’s economy.
Chakaka-Nyirenda has, however, assured Malawians that his office is doing all it can to recover the money and make sure that the law takes it’s course on those involved.
