Govt reacts to Cdedi call, to probe airline, venture
Attorney General (AG) Thabo Chakaka Nyirenda says following demands by the Centre for Democracy and Economic Development Initiatives (Cdedi), Greenbelt Greenhouses Limited (GGL) and Malawian Airlines will undergo forensic audits.
In a written response yesterday, he said his office was processing paperwork on the demands raised by Cdedi in a statement released last month.
“I am working on the issue. Currently, I am analysing relevant documents,” he said.
In a statement dated January 12 2024, Cdedi executive director Sylvester Namiwa said findings indicate that such joint ventures (JVs) and public private partnerships (PPPs) have not been declaring dividends and annual financial reports.
Reads in part the Cdedi statement: “In the worst-case scenario, some people entrusted to run these ventures are turning public funds, sourced through loans guaranteed by government, into personal shares. This is daylight robbery which must be checked forthwith.”
The civil rights group challenged the government to create a special purpose vehicle targeted at recovering public funds which it alleged have ended up in fraudsters’ pockets through JVs and PPPs.
Through its findings, Cdedi claimed that on two occasions, auditors from the Auditor General’s officials failed to access GGL premises despite the government investing billions into the company; hence, owing taxpayers declarations of dividends and financial statements.
“Records show that in 2018, the Malawi Government provided through the Treasury $5.5 million. Government also pumped in K2.2 billion and K2.7 billion respectively.
“As if this is not enough, every month millions from the public purse go to this company to pay what is known as management fees,” further reads the statement.
GGL is a partnership venture between government through the Greenbelt Authority and an Israeli company Inosselia Agro Africa Ltd, which is managing a vegetable farm in Lumbadzi in Dowa District.
Namiwa also asked Nyirenda to make public shareholding information and for the GBA to explain the process it followed in identifying Inosselia as both a partner and manager.
But an annual progress report by the National Planning Commission for 2021-22 shows that horticultural products from the greenhouses are being exported to the Democratic Republic of Congo.
On Malawian Airlines where the Malawi Government has a 49 percent stake and Ethiopian Airlines holds 51 percent, Cdedi demanded that the AG should declare the amount of profits made thus far and give evidence of what the country has benefited from the venture.
