By Wezzie Gausi
The appointment of Clement Kumbemba as Chief Executive Officer (CEO) for Salima Sugar Company Limited has triggered debate over corporate governance issues at the troubled State-owned company.
Governance advocates have since questioned the process that was used to fill the position in the absence of a board of directors.
Kumbemba’s appointment was announced by Company Secretary Charles Thupi, who said the new CEO brings more than 20 years of experience in business management in both the public and private sectors.
The development comes as Salima Sugar remains without a substantive board of directors, a situation that has raised questions about who authorised the appointment and whether procedures were followed.
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The appointment has also renewed scrutiny over the status of former Chief Executive Officer Wester Kosamu, who was suspended amid allegations of mismanagement.
To date, government and the company have not publicly disclosed the outcome of the investigations or announced whether his contract was formally terminated.
Centre for Social Accountability and Transparency Executive Director Willy Kambwandira said government must explain how the appointment was made.
“We need the government to be transparent on how this appointment was made. Salima Sugar does not have a board of directors and Malawians deserve to know which process was followed,” Kambwandira said.
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However, Attorney General Frank Mbeta said all legal and procedural requirements were followed.
Mbeta said the absence of a board did not prevent the appointment because the company’s shareholder has the authority to act on behalf of the institution.
“The government has followed all the procedures in the appointment. In the absence of a board, the shareholders have the mandate to make such appointments and, in this case, that shareholder is the Greenbelt Authority,” Mbeta said.
He said the appointment was necessary considering the challenges the company was facing.
“Salima Sugar has been facing a number of issues and it was only proper that government appoints a controlling officer to ensure there is sanity and leadership at the institution,” he said.
Parliament recently heard that the company requires a multi-billion Kwacha bailout to remain operational.
