By Jonah Pankuku:
Local accountability and governance groups have expressed discomfort at the delay of investigations and potential arrests into the systematic plunder of funds amounting to K51 billion at the Salima Sugar Company Limited.
The financial scandal dates back to 2021.
The groups further cast doubt whether all the abused money will ever be recovered anytime soon as pledged by Attorney General, Thabo Chakaka Nyirenda, at media briefing on December 5 2023.
The frustrations follow revelations that government has instituted a high-level taskforce comprising key law enforcement agencies and intelligence institutions to investigate the matter.
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This comes three months after Attorney General Thabo Chakaka Nyirenda pledged to expedite the process of recovering the stolen funds and arrest those behind the financial scandal that implicates both politicians and civil servants.
Spokesperson for the AG’s office, Emmanuel Lawyer, confirmed the setting up of the taskforce.
It comprises officials from the Anti-Corruption Bureau (ACB), Financial Intelligence Authority, National Intelligence Bureau, Director of Public Prosecutions, Reserve Bank of Malawi, Malawi Revenue Authority and Malawi Police Service, among others.
“As you know that this is a big issue that has attracted the attention of local and international institutions including the donor community, government would want to do this job thoroughly and without jeopardizing the investigations. As such I would not want to divulge more than that, at least as at now,” said Lawyer.
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However, Centre for Social Accountability and Transparency (Csat) Executive Director, Willy Kambwandira, said it is surprising that to date no one has been arrested.
According to him, tracking of the suspects needs no special taskforce.
“This smells of selective application of the law. Malawians want recovery of their taxes and prosecution of all involved individuals involved in the plunder not a taskforce.
“The government inactiveness on the matter raises serious questions that it could be protecting some individuals, and that it is not ready to prosecute those involved. Otherwise this is just public perception management for government to be seen that they are doing something on this matter,” he said.
Centre for Democracy and Economic Development Initiatives (Cdedi) Executive Director, Sylvester Namiwa, said the delay reduces public confidence and trust to an extent that it will be difficult for people to take the AG seriously next time he goes public to make yet another undertaking to do with public funds recovery.
“We at CDEDI saw it coming. We proposed regular updates to enhance public confidence and trust in the process and setting up of a special recovery vehicle complete with clear terms of reference and timeframe to ensure efficiency,” said Namiwa, further observing that a forensic audit report on the matter did all the donkey work.
Earlier, the AG warned that politicians, civil servants and all those involved in the loot would be arrested and prosecuted. Nothing to that effect has happened since.
Chakaka Nyirenda indicated then that a team of investigators, prosecutors and legal experts was already working diligently on the matter.
“The impact of such fraudulent activities on our economy is deep: our economic growth is stifled, public service compromised and public trust eroded.
“Therefore, our efforts to recover the stolen funds are driven by our unwavering commitment to upholding the rule of law, promoting transparency and ensuring that those responsible are held accountable for their actions,” he said.
In its report, Audit Consult—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 (UAE)-Free Zone Area, Seychelles and South Africa.
