Admarc shutdown under scrutiny

The shutdown of operations of Admarc and subsequent sending of staff on indefinite leave has come under scrutiny as the Comptroller of Statutory Corporations Peter Simbani says his office was not consulted.

During an appearance before a joint parliamentary committee looking into the closure and suspected insurance fraud at Agricultural Development and Marketing Corporation (Admarc), he said the Department of Statutory Corporations was surprised to learn about the State produce trader’s suspension of operations.

Simbani said: “When the announcement was made, I followed up on the issue of leave with the PS [Principal Secretary in the Ministry of Agriculture]. I followed up to say how long is this leave? I was mindful of the fact that if you go beyond a certain period, it becomes an issue of the law.”

On why he was surprised, he said such a decision to send people on leave and suspend services needed his office to be engaged.

He said government procedures ought to be followed when making such decisions.

Simbani said: “Our mandate is to follow up on matters of corporate governance, issues of administration in all parastatals. This is an administration issue.

“We should have been told, we should have been informed that this is what is going to happen. Then maybe hear from us what advice we can give.”

He noted that Admarc employees have now gone without pay for two months September and October, and he cast doubt on whether they will be paid for November.

The Admarc employees have since petitioned the Office of the President and Cabinet (OPC) over non-payment of their salaries.

Simbani said if the Ministry of Agriculture had consulted his office, such things would have been avoided.

He said ideally the ministry was supposed to write the Comptroller of Statutory Corporations in the OPC to communicate to the Secretary to the President and Cabinet (SPC) on the ministry’s plans to close Admarc. 

Former minister of Agriculture Lobin Lowe, who announced the decision to suspend operations and send employees on leave, refused to comment on the matter, saying he is no longer in office.

University of Malawi professor of law George Kadzipatike said the decision to send employees of Admarc on forced indefinite leave violates the employees’ right to fair labour practices under Section 31 of the Constitution.