By Chisomo Phiri
Following revelation that about K51 billion was misappropriated at Salima Sugar Company Limited (SSCL) through dubious deals for the past years, Centre for Democracy and Economic Development Initiatives(CDEDI) is demanding for the immediate removal of the company’s Executive Chairperson Wester Kosamu.
At a media briefing in Lilongwe on Wednesday morning, CDEDI Executive Director Sylvester Namiwa, while applauding Attorney General (AG) Thabo Chakaka Nyirenda for pledging to recover the aforementioned amount at the company, said he believes that the starting point should be clearing the corporate governance rubble at the company.
“In fact, in the spirit of good governance, we do not understand how Kosamu finds his position at SSCL tenable after the Malawi Law Society Disciplinary Committee recently suspended him from practising law for six months on alleged misappropriation of clients’
money. The best expected of him was to step down then.
“To be precise, we at CDEDI find Kosamu too conflicted to continue representing the interest of Malawians at SSCL, let alone at the Greenbelt Authority. Actually, he does not seem to represent the kind of change Malawians anticipate to see at the company,” argued Namiwa.
He added documentary evidence shows that Kosamu allegedly abused his position by instructing the company to pay K7, 514, 250 in respect of customs duty for his personal property, a superlink trailer.
Namiwa continued:”Thus far, 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.
“He is also alleged to have single-handily signed a consent order for an out-of-court settlement on a lawsuit involving SSCL without the board’s approval, and committed SSCL to pay about K252 million in respect of the same.”
CDEDI has since called on all well-meaning Malawians to rally behind the AG’s efforts in bringing sanity at the company to break the monopoly in the sugar manufacturing industry for the benefit of low income consumers.
“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,”says the grouping.
On Tuesday, Nyirenda vowed to go after some politicians and public servants suspected to have ransacked Salima Sugar Company through fraud and corruption; a development he described as shameful and a big blow to the country’s already struggling economy.
“Our dedicated team of investigators, prosecutors, and legal experts is working diligently to uncover every instance of corruption and financial wrongdoing perpetrated by people that yearn to enrich themselves at the expense of all of us,” said the AG.
A forensic audit by Audit Consult exposed that payments amounting to at least K50 billion could not be validated at the company.
Meanwhile, High Court froze bank accounts for the company until it settles debt amounting to K623 million it owes consulting firm for conducting the forensic audit.
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