Following a leaked internal forensic audit report on Salima Sugar Company Limited (SSCL), the Centre for Democracy and Economic Development Initiatives (Cdedi) has written the Financial Intelligence Authority (FIA) director general Jean Phillipo Priminta to immediately institute money laundering investigation.
The report showed that payments amounting to K50 billion at the company in Salima District cannot be validated.
In a letter dated October 24, 2023, CDEDI executive director Slyvester Namiwa said what happened at the sugar firm, according to the forensic audit report, affords realistic ground to suspect acts of money laundering and that some funds being proceeds for crime.
“Almost eight years down the line, Malawians are yet to reap the fruits of the good intention that led to the establishment of the private entity with public stakes through the Greenbelt Authority,” he said while pointing at the issue of equity contribution, loan capital and utilization and the source of K3.741 billion AUM SAL equity contribution that was meant to be paid in United States Dollars (US$D).
According to the report, these transactions show that the company got a Pacific Limited loan amounting to MK1.8 billion on September 21, 2021, got a Mount Meru Millers Ltd MK1 billion loan on October 18, 2021, got a Mphoto Enterprises MK600, 000 loan on September 1, 2022, got another one from Rajash Salien (R Mart) amounting to MK25 million on September 8, 2022 and R Mart Investments where it got MK75 million on September 8, 2022
“Also as a public entity, Malawians have a right to know the unknown persons who gave out MK191 million to the Salima Sugar former Chairman Sherieesh Betigiri. According to the leaked audit report, the above transactions done without collateral and the said entities are not registered as financial lending institutions.
“This provides reasonable ground to suspect acts of money laundering and in a worst case scenario, what can stop someone to think that some of the funds are proceeds for crime given that such huge sums of money were carried as cash? In view of the above, and in line with the Access To Information Act (ATI), CDEDI is demanding prompt action on this matter of national interest within seven (7) days, before we decide to take the next course of action,” he said
