Cdedi wants Salima Sugar K623m debt explained
Centre for Democracy and Economic Development Initiatives (Cdedi) has asked Salima Sugar Company Limited (SSCL) to make public the scope of forensic audit work done by Audit Consult to justify its K623.3 million claim.
In a statement issued yesterday, Cdedi described the K623.3 claim as outrageous and shocking and has since urged Attorney General Thabo Chakaka-Nyirenda to vacate the order that has crippled SSCL’s operations.
“Cdedi challenges the SSCL executive chairperson Mr. Wester Kosamu to make public the scope of the audit work and related reimbursements as well as any relevant documentary evidence to justify the K623 million claim by Audit Consult,” reads the statement signed by executive director Sylvester Namiwa.
Cdedi’s demand comes after the High Court of Malawi in Blantyre last week froze all SSCL bank accounts to force the company to pay the debt.
Contacted for his reaction, Kosamu said he cannot comment on the audit fees at this stage.
He said: “My quick reaction is that a lot of people lack full information about what is happening at SSCL. Despite the fact that government has a stake in the company, it remains a private company.
“As executive chair [person] l need not respond to everything. I am the face of the company at the moment so l will be very slow in divulging more information to the public.”
The forensic audit report is expected to be made public at an appropriate time.
But Cdedi said Malawians wish to know how the K623.3 million was arrived at considering that the company duly paid the initial contract amount for the audit as signed in June 2023 which was pegged at K160 million.
It also claimed that despite settling the said amount, by the time the draft audit report was being released, the cost for producing the audit ballooned to K250 million.
“In the same vein, Cdedi demands an explanation from SSCL former executive chairperson Shirieesh Betgri on why he accepted liability for an audit that was commissioned by government in exercise of its oversight role,” the statement further reads.
