By Chisomo Phiri
Malawi’s prominent civil society organization Centre for Democracy and Economic Development Initiatives (CDEDI) has written Attorney General (AG) Thabo Chakaka-Nyirenda demanding, among others, a forensic audit into operations of Greenbelt Greenhouses Limited (GGL).
GGL is a company established in 2019 through the Greenbelt Authority (GBA) and was partnered by an Israel based company Innocellia to manage a vegetable farm in Lumbadzi, Dowa district.
In the letter to the AG dated January 8 2024, CDEDI wants government to institute an audit following allegations that the company does not declare dividends let alone annual financial revenue and reports.
Government through Treasury in 2018 made available funding amounting to $5.5 million and allocated 30 hectares of land to establish the said modern vegetable farm.
Then, a greenhouse fitting on a hectare of land was pegged at $100 000 and 16 greenhouses were erected by the Israeli company which became both the manager and partner.
“Just like the case with SSCL [Salima Sugar Company Limited], the partner [Innocellia] was expected to inject in funds as equity that should have translated into GBA having 49 percent shares while 51 percent shares were from Innocellia.
“It should be put on record that apart from the initial $ 5.5 million, the Malawi government pumped in K2.2 billion and K2.7 billion respectively. As if this is not enough, Malawian taxpayers pay this company every month huge sums of money in what is known as management fees. If the above is anything to go by, then this entity ought to declare dividends and also make public its annual financial statements,” reads the letter signed by CDEDI Executive Director Sylvester Namiwa.
The organization also claims it has gathered that on two different occasions, between 2020 and 2021, a team of auditors from the Auditor General’s office was blocked from accessing the GGL premises.
CDEDI further demands GBA to explain to the nation on the process that was followed to identify Innocellia as both a partner and manager.
“GBA should demonstrate how it has exercised its delegated authority from Malawians and has managed to represent their interests given that the Authority has been prevented from placing an officer at the farm,” adds Namiwa in the letter.
Meanwhile, Chakaka Nyirenda says he has acknowledged the receipt of the CDEDI letter and that the government will look into the issues raised.
Recently, the AG decried the massive plunder of public resources at Salima Sugar Company where at least K51 Billion was not accounted for after a forensic audit.
He faulted some politicians and civil servants for being behind the plunder while pledging to expedite the process of recovering the funds and arresting the suspects.
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