By Deogratias Mmana
Attorney General (AG) Thabo Chakaka Nyirenda has vowed to fight tooth and nail to recover over $30 million (about K51 billion) that is alleged to have been abused at Salima Sugar Company Limited (SSCL).
This follows a company forensic audit which focused on equity contribution, loan, other facilities, resource management and utilisation, among other things.
Addressing a press conference in Lilongwe yesterday, Chakaka Nyirenda said it was unfortunate that some of the people implicated in the loot are politicians and senior civil servants.
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He said politicians, civil servants and all those involved in the loot would be arrested and prosecuted.
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“The revelations contained in the forensic audit report about the illicit financial activities involving politicians, public servants and others parading as foreign investors have understandably raised concerns among the citizens.
“My office takes these concerns very seriously and is fully committed to ensuring justice and accountability for all,” Nyirenda said.
The AG said a team of investigators, prosecutors and legal experts is working diligently to uncover every instance of corruption and financial wrongdoing perpetrated by the suspected looters.
“The impact of such fraudulent activities on our economy is deep: our economic growth is stifled, public service compromised and public trust eroded.
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“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,” Chakaka Nyirenda said.
According to the audit report, Audit Consult— 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 (UAE)-Free Zone Area, Seychelles and South Africa.
Additionally, a senior officer of the company allegedly incorporated SSCL in Dubai, UAE, without the knowledge of the Government of Malawi and that a bank account in the name of SSCL was opened in Dubai. Chakaka Nyirenda said the company never obtained prior approval to enter into foreign loan agreements with foreign companies as required by Malawi’s Exchange Control Regulations.
He further said although sugar is an important export commodity, no foreign export earnings have been declared by SSCL.
Chakaka Nyirenda also said SSCL opened three more bank accounts with FDH, First Capital Bank and MyBucks without board approval and that chairperson Shirieesh Betgiri and his son Director Bruhat Betgiri were the only signatories.
“Billions of Kwacha were lost through misprocurement between 2016 and 2022, mostly from related parties and without declaration of interest,” he said.
According to Nyirenda, inequality and wage disparities exist between staff of Malawian origin and those of Indian origin, claiming that some staff of Indian origin were receiving salaries overseas for salaries sourced in Malawi.
Further, Temporary Work Permits were issued to employees and contractors of Indian origin for expertise that is in abundance locally to fit positions—in some cases through unlawful and illegal directives.
It was also learnt that no position in the company has ever been advertised but that all staff were employed by Betgiri without the involvement of the board.
“Among other things, to prevent and deter future instances of procurement fraud and corruption, we will work on strengthening our legal framework as we continue enhancing investigative capacities and enforcing stricter regulations to safeguard public finances,” Chakaka Nyirenda said.
Meanwhile, Centre for Social Accountability and Transparency Executive Director Willie Kambwandira has lamented the situation at the company.
“It is clear, from the report, that it was free for all at Salima Sugar Company Limited. The revelations put to serious question the oversight of institutions such as Parliament, Malawi Revenue Authority, the Department of Immigration and Citizenship Services including the Ministry of Trade and Industry,” he said.
In November 2012, the National Assembly passed the Export-Import Bank of India (Loan) (Authorisation) Bill, authorising the Ministry of Finance to borrow $76.5 million from India Exim Bank, out of which $35 million was used for the development of the irrigation network under the Greenbelt Initiative and the setting up of refined processing equipment in Salima under the Greenbelt Initiative.
