By Deogratias Mmana:
Up to 1,500 metric tonnes of sugar valued at K1.050 billion from Salima Sugar Company was allegedly exported to Rwanda under misty circumstances.
The sale arrangement of the sugar is said to have been made by the company’s former chairman Shirieesh Betgiri as the payment was made into his Mother Daily and Energy (MDE) Farms Limited bank account as per his instructions.
This is according to a forensic audit report on Salima Sugar Company Limited (SSCL) dated November 20, 2023 produced by Audit Consult Advisory Services Limited.
According to the report, SSCL raised an invoice of K1.050 billion dated January 2022 after offering 12.50 percent advance payment discount to supply 1,500 metric tonnes of sugar to Mount Meru Millers Limited.
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Meru also issued 16 payment instructions to two banks to transfer K1.050 billion to MDE Farms Limited as requested by Betgiri in exchange for sugar.
The report says a director at SSCL Vikas Hirawat acknowledged receipt.
“SSCL therefore supplied 1,500 MT of sugar inventory to Mount Meru Millers Limited and also provided an export clearance letter to MRA for Mount Meru Millers Limited to export sugar.
“The second batch of 1,500 MT was paid directly to SSCL bank account also in advance just like the first payment,” the report reads.
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The report says for sugar to be issued out, CDH Investment Bank would be informed of a sale.
Then the bank would issue a release order for sugar to the factory or warehouse.
“However, CDHIB did not issue any release order in favour of Mount Meru Millers Limited implying that this sugar was issued out without approval of CDHIB but with the authorization of chairman Shirieesh Betgiri,” reads the report.
The report further says: “Mount Meru Millers Limited is said to have sold SSCL sugar in Rwanda and no sale proceeds were declared to the Reserve Bank of Malawi.
“Mount Meru Millers Limited confirmed that they did not owe SSCL any money for sugar supplies as at 31 March 2022 and 2023 because the money was already paid to chairman Betgiri’s MDE Farm bank account according to the Chairman Betgiri instructions.”
According to the report, K1.050 billion and overall transfers of K3.741 billion were made from MDE Farms Limited to Aum Sugar and Allied Limited and then to SSCL with no Aum shareholder or board member questioning it implying that they were all aware and approved the transaction.
The report says despite Mount Meru Millers Limited confirmation that K1.050 billion was for the sale of sugar as per arrangement with Betgiri and despite the confirmation made to forensic auditors that Meru did not owe SSCL any money, director Prashant Sharma kept insisting Aum would settle the loan with Mount Meru Millers Limited “thereby embracing the fraudulent activity that took place”.
Yesterday, we asked SSCL executive chairman Wester Kosamu to explain how the company is handling the issue to recover the money that did not go into its accounts.
He said: “The sum already reduced their shares as recommended by the auditors. However, Meru will be our witness in several criminal charges filed against the directors involved that include fraud among others.”
Some directors including Betgiri were already arrested and are facing charges.
On August 29, 2023 Mount Meru Millers Ltd wrote to SSCL explaining their involvement in the sugar transaction.
“As forex sourcing was difficult in 2022 and there was a requirement of sugar in Rwanda, Mount Meru Millers approached Salima Sugar, who was a customer of Mount Meru Petroleum for diesel at their factory.
“Meru Petroleum transferred the money to Meru Millers as Millers were short of funds,” reads the letter from Miller signed and has the company’s seal.
Mount Meru also had its bank accounts frozen over the matter and asked the current management of SSCL to have mercy as the company was willing to be a government witness.
“We kindly request to unfreeze both Petroleum and Millers accounts as millers need to make payment for soya seed purchases. We are willing to testify as witnesses on behalf of the Government of Malawi or any statutory authority as and when called for,” reads the letter with a signature from one of the officials from Meru.
In an interview yesterday, Director of Public Prosecutions Masauko Chamkakala confirmed that the accounts for Mount Meru were now unfrozen.
