Committee wants fresh audit at Admarc
The Parliamentary Committee on Agriculture has called for a fresh audit into the Agricultural Development and Marketing Corporation (Admarc) to verify goods and financial transactions following government’s decision to fire all employees.
Committee chairperson Sameer Suleman said in an interview on Monday Admarc had in stock a number of items, including maize, rice, groundnuts and cotton which should also be audited.
He said: “There are reports of commodities being stolen at Admarc. So, it is only proper that an audit takes place to check what has been left.”
Suleman, who is Blantyre City South East legislator, further said his committee will visit Admarc depots for physical inspection of the facilities.
In a circular letter to staff dated January 30 2023, Admarc acting general manager Ethel Zilirakhasu told employees that the State produce trader was implementing a 100 percent retrenchment and that the last working day for all staff was January 31 2023.
She said the employees were to receive letters of retrenchment at least within seven days from the day of the circular letter.
In an interview on Monday, Zilirakhasu said Admarc was open for an audit as a State enterprise.
She said: “Actually, we still have skeleton staff on the ground. The staff is looking into operations of Admarc. In fact, internal auditors are also carrying out audits at Admarc.”
Zilirakhasu stressed that 100 percent retrenchment did not mean that there are no workers on the ground to look into operations.
” There are still about 1 700 people working. They will do the handovers once the new staff is recruited,” she said.
On August 31 2022, former minister of Agriculture Lobin Lowe announced the decision to suspend operations and send employees on leave.
He said shareholders of Admarc observed continued low performance of the company and have decided to re-define the functions of the company, suspend all the services except social services until further notice.
Said Lowe at the time: “For over two years, we have been in government, we have been analysing best ways of restructuring the institution and my ministry together with other stakeholders has concluded that Admarc’s failure to tick and bring the desired results is attributed to numerous factors.”
Admarc is one of the parastatals that have been struggling financially and has over the years failed to serve Malawians as per its mandate as a produce stabiliser and ready market for farmers.
Admarc has also failed to perform its social function as government’s food security apparatus.
According to the 2021 Malawi Government Annual Economic Report, as at half year of the 2021/22 financial year, Admarc recorded a net loss after tax of K3.7 billion. The institution also owes banks over K60 billion.
Admarc has over 4 000 employees while it needs about 1 500.
An audit into the operations of Admarc last year exposed abuse and mismanagement with non-staff being enlisted on its medical insurance scheme while staff had their personal vehicle insurance cover paid for by the company without claims for the same.
