Admarc Limited has suspended five senior executives following findings of an internal audit report that alleges gross incompetence and possible fraud at the financially struggling State produce trader.
The suspended officials are director of finance Richard Kwatiwani, director of corporate affairs Ethel Zilirakhasu and director of operations Fodreck Nyongani. Others are procurement manager Grace Chatepa and former Admarc chief executive officer Dan Makata who was seconded to Blantyre City Council, but continued enjoying full benefits from Admarc, including salary, fuel and an official vehicle.
suspension. | Nation
Admarc board chairperson Gray Nyandule Phiri confirmed the suspensions in an interview yesterday, saying the decision was with immediate effect.
“I can confirm the suspension, nothing more,” he said.
Admarc insiders said the irregularities include alleged production and distribution of rotten maize flour valued at about K100 million.
The internal audit report is also said to have uncovered suspected fraud in the entire maize flour production process, including outsourcing of milling services and utilisation of funds which involved all the suspended officials.
Early this month, Parliamentary Committee on Agriculture asked Admarc to submit within seven days a detailed report on the withdrawal of rotten maize flour on the market, an incident that raised public concern in December last year.
Admarc chief executive officer Ben Botolo assured to submit the report within five days which he did, adding that the findings pointed to weaknesses in the outsourcing of milling services.
In December last year, Admarc withdrew about 45MT of maize flour valued at approximately K100 million after the product was found to be rotten.
