Tag Archives: Salima Sugar Company Limited (SSCL)

Business, Malawi

Wrong MK3bn mill spares procurement hits Salima Sugar as ESCOM, water board suspend services

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LILONGWE-(MaraviPost)-The embattled Salima Sugar Company is reportedly facing a severe financial and operational crisis, following concerns over the procurement of wrong mill spare parts valued at approximately MK3 billion during President Lazarus Chakwera’s Malawi Congress Party (MCP) regime.

According to information gathered, the company is struggling to maintain the mill in readiness for the upcoming production season.

This is despite the significant investment in spare parts, raising questions about the effectiveness of the procurement process.

Sources further indicate that utility providers, including ESCOM and the Water Board, have suspended services due to outstanding payments, worsening the company’s operational challenges.

Investigations also suggest that conditions at the factory have deteriorated, with reports pointing to poor hygiene standards that may pose risks to both workers and the surrounding environment.

Additionally, there are growing concerns over broader financial mismanagement, with claims that over MK20 billion in public funds allocated to the project may have been misused over time.

These allegations include suspected procurement irregularities and inflated contracts, which have drawn public scrutiny.

This comes as previously reports exposed on mismanagement yet none has been held accountable.

There are also questions surrounding the tenure of the former Chief Executive Officer of Salima Sugar Wester Kosamu with some stakeholders calling for a thorough investigation into decisions made under previous leadership and any potential links to financial losses.

MCP regime used Salima Sugar as a cash cow to steal billions of tax payers money .

These are tax payers money stolen and those involved must be accountable to Malawians .

President Peter Mutharika’s Democratic Progressive Party (DPP) government is yet to reinstitute Salima Sugar Company for productive state firm.

Politics

CDEDI takes on suspended Salima Sugar Chief Kossam’s incompetence, fraudulent acts: Demands urgent Mutharika’s Govt action

Shaffie A Mtambo

LILONGWE-(MaraviPost)-The Centre for Democracy and Economic Development Initiatives (CDEDI) has released a hard-hitting statement warning that Salima Sugar Company Limited (SSCL) has become a “ticking bomb” due to massive mismanagement, corruption and political interference.

Addressing the news conference on Monday, CDEDI Executive Director Sylvester Namiwa,accuses senior executives and politically connected individuals of siphoning billions of kwacha from the company through fraudulent contracts, irregular payments and reckless decision-making.

CDEDI says the situation threatens the survival of the company and risks severe losses for the Malawian economy.

SSCL was originally formed as a joint venture between the Malawi Government through Greenbelt Holdings Limited and India’s AUM Sugar and Allied Limited. Its mandate was to introduce competition in the sugar market and provide affordable sugar to ordinary Malawians.

Instead, CDEDI says the company has been turned into a breeding ground for corruption.

The organisation links the current crisis to a 2023 directive by then Secretary to the President and Cabinet, Colleen Zamba, who instructed that all company matters be routed through Executive Chairman Wester Kossam. This position allowed Kossam to assume control over crucial operations of SSCL.

Although he appointed an acting CEO, Roy Apoovra, the CEO reportedly left Malawi for India shortly after his appointment, leaving Kossam to combine the duties of Managing Director and Chief Executive Officer without oversight.

According to CDEDI, the consequences have been catastrophic. During the 2024–2025 crushing season, SSCL produced only 8,400 metric tonnes of sugar against a target of 20,000 tonnes, compared to 18,000 tonnes produced the previous season.

The organisation warns that this sharp decline puts the company on the brink of losing around K30 billion in revenue. With rains already falling, hundreds of sugarcane farmers now fear their uncrushed cane will go to waste.

The poor output has been attributed to chronic machine breakdowns and failure to maintain the company’s sugar mill, which has the capacity to crush up to 300,000 metric tonnes of cane annually.

CDEDI also reports that the drip irrigation system collapsed during the growing season, causing large portions of the crop to dry up before harvest.

Beyond operational failures, the organisation has raised serious allegations of personal enrichment. It claims Kossam authorised a K15 million payment for his private super-link trailer and awarded a lucrative K1.3 billion sugar import contract to ESTT Holdings, a firm linked to a politically influential individual, Ronald Mdoka.

A delegation sent to Brazil to inspect the purchased sugar reportedly found stock that was already destined for another country and the sugar has never arrived in Malawi. The payment remains unrecovered.

Further allegations include the use of a foreign currency account belonging to an honorary consul in the Middle East to facilitate the Brazil transaction and the issuing of unpaid credit facilities worth about K1 billion to politically connected individuals.

CDEDI also reveal scandalous fertiliser deals in which suppliers received hundreds of millions of kwacha upfront but delivered nothing.

On governance, CDEDI argues that Kossam’s recent suspension is meaningless because his term effectively expired when the Greenbelt Authority board was dissolved in August 2024 and again reconstituted in 2025 without his name.The organisation says government cannot suspend someone whose mandate ended long ago.

CDEDI has urged the government to ensure that all funds allegedly acquired unlawfully are refunded. It wants law enforcement agencies to summon all individuals involved, including those linked to the failed sugar import deal.

The organisation is also calling for an urgent audit of the entire company and for the Ministries of Finance and Agriculture to explore ways to rescue SSCL from a crippling loan that is costing the company over K1.1 billion every month.

CDEDI Executive Director Sylvester Namiwa warns that unless decisive action is taken, Salima Sugar Company is headed for total collapse, leaving cane growers stranded and Malawians counting heavy losses.

Law and order, Malawi

CDEDI pens AG Nyirenda demanding progress report on MK51bn misappropriation from Salima Sugar Company

Maravi Post Author

By IOMMIE CHIWALO

BLANTYRE-(BLANTYRE)-The Center for Democracy and Economic Development Initiatives (CDEDI) is demanding for an immediate intervention from the Office of Attorney General to take action by challenging Court order on freezing SSCL bank accounts.

In a letter copied to Salima Sugar Company Limited and Green Belt Authority, CDEDI Executive Director Sylvester Namiwa wants the commitment made by Attorney General Thabo Chakaka-Nyirenda in recovering public finances come to pass.

Namiwa is against the current trend of selective justice that is portraying the office of the Attorney General as among compromised agencies.

The call by CDEDI are coming after Malawians have had a rude awakening from verified media reports indicating that the High Court had ordered the freezing of the SSCL’s bank accounts yet it has been on the mercy of its stakeholders.

For instance Mount Meru which also had its bank accounts frozen oover dubious exportation of 1,500 MT Salima Sugar to Rwanda and asked
the current management of SSCL to have mercy as the company was willing to be a government witness.

The Attorney General has been reminded that the SSCL was set up to among others provide the much-needed competition
to the Illovo dominated sugar industry, for the betterment of the majority low-income consumers that are struggling to access the basic commodity,
fortified with Vitamin A supplement.

“For your own information, Illovo has
raised sugar prices twice this year, in a space of six months, therefore
Malawians’ eyes are fixed at the developments unfolding at the SSCL to provide affordable sugar, hence their interest on this matter,” says Namiwa.

The government principal legal advisor has since been urged to challenge the High Court ruling as well as ensuring that the remaining suspects are arrested, starting with their local agents, who are currently facilitating the freezing of the SSCL’s bank accounts.

Chakaka-Nyirenda has also been ordered to give a progress report and
justify the apparent selective application of justice on arrests, including how much in cash and assets has been recovered so far, ten months after committing to address the vice.

“Failure to do the needful, will prompt Malawians to conclude that you are too compromised to defend public interests, therefore,
the noble thing to do is to force you Sir, to resign since you made that public undertaking while fully aware of its implications,” reads the letter from CDEDI and the office of the Attorney General has confirmed receipt of the same.

The recent media reports that the High Court’s commercial division in
Blantyre has barred Salima Sugar Company Limited (SSCL) from using $2.3 million (about K5.3 billion) in its bank accounts, pending the conclusion of an outstanding case between the firm and Mukteshwar Sugar mills Limited,
coupled with the Illovo Sugar price hike, has reminded Malawians of an undertaking AG Chakaka-Nyirenda publicly made on December 5, 2023 when officially unveiling the contents of the November 2023 forensic audit commissioned by the Malawi Government on SSCL, which brought to light reports that about US$30 million (about MK51 billion) was misappropriated.

He made the pledge through a televised press briefing where Malawians were assured that all the money would be recovered and those involved would be arrested with their assets forfeited to recover the public funds, some of which included public debts.

Initially SSCL Chairman Shirieesh Betgiri, was arrested and the national police spokesperson Peter Kalaya told the nation that the police had secured five warrants of arrests for Betgiri, Dr. Henry Njoloma, Prashant Sharma, Vikas Hirawatt and Sachin Nikam.

While there was a commitment by the Malawi Police Service to bring suspects home so that they can answer the charges in court, there has been deafening silence on the matter until in May this year when Media reported that Mount Meru is off the hook having appealed for mercy.

corruption, Malawi

Mzuzu Youth Caucus drumming for expulsion of Salima Sugar Chief Wester Kosamu

Maravi Post Author

By Iommie Chiwalo

BLANTYRE-(MaraviPost)-Pressure is continuing to mount on the calls to have Salima Sugar Company Limited (SSCL) Acting Executive Chairperson Wester Kosamu to be removed from his position.

Joining the calls is the Mzuzu City Youth Caucus is urging the Attorney General’s office to expedite the prosecuting of the culprits who swindled public money.

“We also ask the appointing authority for the immediate removal of Mr Wester Kosamu as a Chairperson of Salima Sugar company for he is compromised to continue exercising his duties,” reads the statement signed by Gomezgani Nkhoma.

He noted with concern that recently MYC wrote Salima Sugar Company demanding information in line with the Access to Information Act but the efforts yielded no results.

“We believe the act was deliberate to frustrate our efforts of holding officers at the company accountable. The Mzuzu Youth Caucus therefore demands the immediate removal of Mr Kosamu to save the face of a company and the reputation of our beloved country,” he said.

He says the action is necessary now because it is still fresh in the minds of Malawians that the Malawi Law Society Disciplinary Committee had recently suspended Kosamu from practising Law for six months for allegedly misappropriating a client’s money.

“This major development is enough for Kosamu to be removed from office and it has left tongues wagging as to why he’s still manning the institution at a time when his judgment is questionable,” he said.

The grouping has since commended the office of the Attorney General for making public findings of the audit his office ordered to be carried out at Salima Sugar.

Salima Sugar is currently entangled in a web of misfortune due to poor management at the helm of it largely due to personal aggrandizement.

corruption

CDEDI presses for removal of Salima Sugar Chief Kosamu

Maravi Post Reporter

By IOMMIE CHIWALO

BLANTYRE-(MaraviPost)-The Centre for Democracy and Economic Development Initiatives (CDEDI) is questioning the merit of maintaining Salima Sugar Company Limited leadership that is characterized by numerous financial scandals.

The target in the whole process is Executive Chairperson Wester Kosamu who at the moment is not understandable as to how he rose to the ranks and files of the company soon after the Malawi Law Society (MLS) Disciplinary Committee suspended him from practising law for six months on alleged misappropriation of clients money.

While commending Attorney General Thabo Chakaka-Nyirenda for making public contents of the recent forensic audit commissioned by the Malawi Government on SSCL, Namiwa says the starting point should be to immediately remove the SSCL Executive Chairperson Wester Kosamu from his position.

“The best expected of him was to step down then. To be precise, we at CDEDI find Mr. Kosamu too conflicted to continue representing the interest of Malawians at SSCL, let alone at the Greenbelt Authority (GBA),” says CDEDI Executive Director Sylvester Namiwa in a statement.

“If the AG is really serious about clearing the corporate governance rubble at SSCL, we believe government’s starting point should be to immediately remove the SSCL Executive Chairperson Mr. Wester Kosamu from his position. Actually, he does not seem to represent the kind of change Malawians anticipate to see at SSCL,” he says.

There is also documentary evidence indicating that in just a few months that Kosamu has served as SSCL Executive Chairperson he has suspectedly abused his position by instructing SSCL to pay K7, 514, 250 in respect of customs duty for his personal property, a super link trailer.

According to Namiwa, infact based on available documents, SSCL paid in two instalments of K3,514,250 through Payment Voucher 1767 and Cheque no: 008058 and also Payment Voucher 1766 and Cheque no: 008057.

Further confirming the abuse of power, it is also alleged that Kosamu single-handily signed a consent order for an out-of-court settlement on a lawsuit involving SSCL without the boards approval, and committed SSCL to pay about K252 million in respect of the same.

“In view of what has transpired at SSCL, CDEDI urges government to keep an open eye on all joint venture entities under the GBA as we strongly fear that what is happening at SSCL could also be happening elsewhere. It should start with forensic auditing of all those GBA entities,” he said.

Namiwa has therefore, urged government to desist from selective justice when pursuing the matter at hand.

“In the same vein, CDEDI would like to appeal for periodic updates on the matter, to avoid speculations and misinformation that may thwart the well-intended exercise,” he says.

Through the televised press briefing beamed live on Malawi Broadcasting Corporation television, the AG recently assured Malawians that every tambala suspected to have been lost in this enterprise will be recovered.

“We would like to believe that the AG meant what he said, and he will keep his word to the letter,” said the CDEDI Executive Director.

Meanwhile, CDEDI seeks support from all well-meaning Malawians towards the AGs efforts in bringing sanity at SSCL.

“We know that all these efforts are aimed at saving SSCL, which was established to break the monopoly in the sugar manufacturing industry for the benefit of low-income consumers,”.

Business, Malawi

CDEDI pens RBM on Mount Meru’s non-remittance of sugar export proceeds

Maravi Post Reporter

CDEDI to hold vigils for deliberation and passing of emergency Maize Bill

LILONGWE-(MaraviPost)-The country’s rights group, Centre for Democracy and Economic Development Initiatives (CDEDI) has written the Reserve Bank of Malawi (RBM) Governor Wilson Banda to act on Mount Meru Millers’ failure to account for proceeds from sugar export in Rwanda.

CDEDI’s action follows a Forensic Audit Report the Malawi government commissioned on Salima Sugar Company Limited (SSCL) which exposed Meru’s fiscal fraud

In a letter dated December 5, 2023, which The Maravi Post Post has seen, CDEDI wants RBM to act on the company.

“Right at the onset, CDEDI would like to draw your attention to pages 28 and 29 of the Forensic Audit Report the Malawi government commissioned on Salima Sugar Company Limited (SSCL) 5.1.7 under the sub-headline Malawi Kwacha Capital Contribution Repayments.

“The last paragraph on page 28 reads in part “SSCL supplied 1,500 MT of sugar inventory to Mount Meru Millers Limited and also provided an export clearance letter to the Malawi Revenue Authority (MRA) for Mount Meru Millers Limited to export 12,000 MT of Sugar,” reads part of CDEDI statement signed by its Executive Director Sylvester Namiwa.

Namiwa adds, “CDHIB did not issue any release order in favour of Mount Meru Millers Limited, implying that this sugar was delivered without the approval of CDHIB. Mount Meru Millers Limited sold SSCL sugar in Rwanda and no sale proceeds were declared to the Reserve Bank of Malawi.”

“Needless to remind you, Sir, that the economy is on its knees due to the acute scarcity of forex. It is, therefore, our expectation that matters of non-remittance of export proceeds ought to be treated with the seriousness they deserve”.

He demands, “CDEDI, therefore, is requesting your office to act on the aforementioned, and ensure that the said proceeds are recovered and that Malawians are informed of the same in line with both the Republican Constitution and the Access To Information (ATI) Act”.

Mount Meru Millers authorities are yet to respond on the matter.

corruption, Malawi

CDEDI on Salima Sugar Chief Wester Kosamu’s head over MK623m Audit consult expenditure

Maravi Post Reporter

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.

Agriculture, Regional

Zimbabwe farmers impressed with Salima sugar quality

Dorica Mtenje

LILONGWE-(MaraviPost)-A delegation of Zimbabwean commercial farmers and agriculture authorities have hailed the Salima Sugar Company Limited (SSCL) for the ‘brilliant sugar product’ the company is producing.

During the interaction, the two sides exchanged Sugar from their respective countries as symbols of unity in the production of sugar.

The Zimbabwean cane growers visited Salima Sugar on Tuesday, to appreciate the company’s progress in sugar production as well as the development of sugarcane farming among smallholder farmers.

Leader of the Zimbabwean delegation Dr. Tendai Chibarabada said there was a need for the Malawi Government to intervene in creating a conducive environment for Malawian smallholder sugarcane farmers to make the industry more competitive.

Among others, the Zimbabwean visitors observed that Salima Sugar Company’s product was of high quality and was being produced using modern and commendable technologies.

On his part, Chief Executive Officer for the Greenbelt Authority Eric Dudley Chidzungu said the visit had given the Authority its subsidiary and more insights that will help in fostering growth.

“We are currently undertaking reforms that will open more doors for smallholder farmers’ participation in the sugar industry which is deemed lucrative,” said Chizungu.