LILONGWE-(MaraviPost)-The country’s civil rights group, Centre for Democracy and Economic Development Initiatives (CDEDI) on Monday, December 4, 2023, demanded Salima Sugar Company Limited (SSCL) Executive Chairperson Wester Kosamu to make public the scope of audit work justifying the MK623 million claim by Audit Consult.

CDEDI Executive Director Sylvester Namiwa told the news conference in the capital Lilongwe that his grouping wants the Sugar company to also disclose all other related reimbursements as well as any relevant documentary evidence that validates the amount being claimed.

The grouping calls came barely a week after the High Court in Blantyre froze all Salima Sugar bank accounts until the company settled the MK623 million it owes to the audit firm which conducted a forensic audit.

“It is given this that we urge Attorney General Thabo Chakaka-Nyirenda to vacate the injunction which has crippled SSCL’s operations. Malawians may wish to know that the initial contract for the audit signed in June 2023 was pegged at MK160 million, and was duly paid but by the time the draft audit report was released the cost of producing the audit had ballooned to MK250 million.

“In the same vein, Cdedi demands an explanation from SSCL former executive chairperson Shirieesh Betgri on why he accepted liability for an audit that was commissioned by the government in the exercise of its oversight role,” said Namiwa.

Namiwa notes that current developments at SSCL smack more of politics than institutional governance, which, if not checked, will have far-reaching consequences on the survival of the company.

CDEDI therefore believes the developments will scare away both existing and potential investors.

Below is CDEDI’s full statement…..

DEMAND FOR TRANSPARENCY IN SALIMA SUGAR AUDIT PAYMENTS

The Centre for Democracy and Economic Development Initiatives (CDEDI) has learnt with dismay that the recent forensic audit commissioned by the Malawi Government on Salima Sugar Company Limited (SSCL) will cost Malawians close to MK1 billion.

It is worth highlighting that 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.

So, it is with that understanding that as a watchdog, and a mouthpiece of the voiceless, we at CDEDI have been closely following developments at Salima Sugar; hence our interest in matters surrounding the forensic audit commissioned by the government.

To put it bluntly, we, like most well-meaning Malawians were shocked to read in The Nation newspaper of November 30, 2023, an article titled ‘Salima Sugar accounts frozen over MK623 million debt’.

According to the article, SSCL owes Audit Consult MK623 million following the forensic audit it conducted on behalf of Malawians recently.

It is given this that we urge 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.

Malawians may wish to know that the initial contract for the audit signed in June 2023 was pegged at MK160 million, and was duly paid but by the time the draft audit report was released the cost of producing the audit had ballooned to MK250 million.

In the same vein, CDEDI demands an explanation from SSCL’s former Executive Chairperson Mr. Shirieesh Betgri on why he accepted liability for an audit that was commissioned by the government in the 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 the 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.

That said, CDEDI wishes to warn politicians to take their hands off this otherwise only promising public-private partnership initiative, knowing that the rest have collapsed due to political interference.

Without mincing words, political party financing is rearing its ugly face at SSCL that brought hope to many Malawians that someday sugar would not only be affordable but the company would also create more jobs and help to generate the much-needed foreign currency in improving the country’s economy for the betterment of all.

Last, but not least, CDEDI hereby gives concerned parties seven days to do the needful; or we will be forced to take drastic action in the interest of the common good.