The Human Rights Defenders Coalition (HRDC) has asked the Malawi government to remove the board members of the Electricity Generation Company (EGENCO) and the Agriculture Development Marketing Cooperation (ADMARC) because they have failed to perform their duties.
The chairperson for the grouping, Gift Trapance, made the statement following the recent allegations of multi-billion Kwacha frauds at the two government parastatals, highlighting a system-wide problem of gross negligence and incompetence that can’t be ignored by officials.
He stated that ADMARC’s 2022 audit revealed that the produce trader suffered losses of K330 million due to alleged fraud and abuse orchestrated by employees, including managers and directors.
“This is a clear indication of a breakdown in internal controls and a lack of accountability at all levels of the organization. On the other hand, EGENCO’s situation is even more egregious, with the company losing K6.7 billion due to an alleged misprocurement mess between January 2017 and March 2022,” explained.
Trapence further revealed that this alleged scandal involves unissued items in stock, unauthorized requisitions, and a rampant single source of material and services, bypassing the required national competitive bidding process because the actions not only contravene procurement laws but also demonstrate a blatant disregard for ethical government and fiduciary responsibility. the
He said HRDC believes that delays by the boards in acting on audit queries perpetuate the abuse of public funds, as those responsible are emboldened by the lack of immediate consequences saying the oversight on implementing audit recommendations is grossly inadequate, rendering the boards of the parastatals ceremonial entities that waste taxpayers’ money without adding any value.
He asked the government to appoint qualified professionals based on their merits, while also ensuring that public funds are spent wisely and accurately recorded.
Trapence asserted that these measures are the only way to rectify the systemic issues that plague the state institutions and protect the interests of the Malawian people. Additionally, they will continue to hold those in authority accountable for their actions.
