Centre for Democracy and Economic Development Initiatives (CDEDI) is calling on the government to swiftly engage relevant authorities to recover billions of kwacha, that were allegedly shared among politically-connected individuals at Salima Sugar Company Limited (SSCL), through dubious contracts and fraudulent payments.

Speaking to journalists in Lilongwe this morning CDEDI executive director Sylvester Namiwa accused the company's executive chairperson Wester Kossam of illegally benefiting from the company despite being suspended from his position.

Namiwa said the company is a joint venture between the Malawi government, through the Greenbelt Holdings Limited (GHL) and India-based AUM Sugar and Allied Limited (AUM SAL), established to provide the much-needed competition in the sugar industry in the interest of low-income consumers.

 “Our call for action was prompted by the public statement dated October 20, 2023 issued by the former Secretary to the President and Cabinet (SPC) Colleen Zamba, themed ‘Forensic audit of Salima Sugar Company Limited.’

“Through the statement Zamba directed that all matters relating to the business of the company, must first be channeled to SSCL executive chairman Wester Kossam who by then was the Board Chairperson for the Greenbelt Authority which owns (GBHL).” Said Namiwa,

Namiwa claims that under Kossam’s watch, the company is on the verge of losing about K30 billion in revenue, following revelations that at the time the company was supposed to wrap up the process of crushing sugar canes, it had only produced 8, 400 metric tonnes (MT) of sugar, Out of a projected 20, 000 MT.

He says “CDEDI has information that Kossam single handedly awarded a credit facility contract to a Malawi Congress Party (MCP) functionary and her son, who trade in different names, but jointly owe SSCL K1 billion in unpaid sugar supplies.

“We implore government and other stakeholders on the following; 1. Kossam should pay back all the money accrued as salaries and benefits from August 2024 to date, 2. Law enforcement agencies should summon him to clear his name from the allegations levelled against him and that ministers of finance and agriculture should engage the Export Bank to take over the CDH loan where SSCL is paying over K1.1 billion every month.”

Reacting to the accusations Kossam described the route taken by CDEDI as unfortunate, saying as a law practitioner, he has professionally managed the affairs of the company to the current state, while challenging the organisation to bring forward evidence supporting the allegations.

“It is a very sad development that Namiwa has decided to take that route. Otherwise, I am a Bonafede citizen of this country, I know the law and the procedures. I kept the company intact until the government changed. I don’t know where all these allegations are coming from, because nothing of that sort happened. If they have evidence, let Namiwa bring it forward, I am ready to defend it even in the court of law.” Said Kossam.  

Salima sugar company was established to bring competition in the sugar industry for the betterment of low-income consumers, but this is yet to be achieved as the company faces some operational challenges.