A total of 14 warrants of arrest were issued in favor of apprehending suspects of Salima Sugar Company Limited (SSCL) financial crimes ranging from corruption, fraud, loot and money laundering.
The five that have been arrested so far include include former Finance Minister Joseph Mwanamveka; former presidential advisor on economics Collins Magalasi; former Secretary to the President and Cabinet (SPC) Lloyd Muhara; former Secretary to the Treasury Cliff Chiunda; and former Company Secretary for Greenbelt Initiative, Jimmy Grey Kusamale.
Nine others still at large include Henrie Njoloma; Shirieesh Betgiri; Prasad Jadhav; Satish Tembey; Chandrashekhor Ogale; Millind Ulagadde; Sachin Nikam; Dhiraj Nikam; and Prashant Sharma, according to sources from the prosecution department of the Ministry of Justice at Capital Hill.
The Five individuals have been arrested today in Lilongwe in connection with financial crimes perpetrated at SSCL, a Government-owned company involving over $635 million (K1.07 trillion) out of which $274,500,000 (about K447.5 billion) is attributed to money-laundering activities alone.
Members of the public have, however, expressed frustrations over the prosecution’s tendency of stopping criminal pursuits in tracks once the suspects are released on bail. One outspoken lawyer, Silvester Ayuba James, has been particularly forthcoming with such sentiment remarking that: “I stopped getting carried away with such arrests…”
However, Government officials have emphasized their commitment to fighting corruption and ensuring everyone involved will face justice.
The Government instituted a forensic audit at the Salima Sugar Company in 2020 following reports that the company was used as a cash-cow by the purported investors from India in corroboration with local public officials. The audit focused on equity contribution, loan and other facilities as well as resource management and utilization another other aspects.
The findings, which were released in 2023, were particularly enraging: the audit report revealed that over $30 million (about K51 billion then) was abused at the Salima Sugar Company Limited (SSCL). The report further revealed that SSCL was dealing with suspicious companies incorporated in foreign countries, in particular India, Seychelles, South Africa and United Arab Emirates Free-Zone Area. Furthermore, a purported Indian investor incorporated the SSCL in Dubai without the knowledge of the Government of Malawi and a bank account in the name of SSCL was opened in that country which was used to receive foreign loan agreements without Government of Malawi approvals.
It was also revealed that Mr Shirieesh Betgiri, a purported foreign investor from India, opened bank accounts with FDH Bank, First Capital Bank and My bucks without board approval, making himself and his son, Bruhat Betgiri, as the only signatories. These shenanigans were made possible with the corroboration of the named former Malawi Government officials who opted to abuse their offices in furtherance of the crimes.
Further investigations to stakeout criminal trespasses of individuals was instituted resulting into further discoveries of looting: A total of US$635 million (about K1.07 Trillion) was looted from the company.
The culprits have been identified, which include Malawians namely: Joseph Mwanamveka; Lloyd Mhura; Collins Magalasi; Henrie Njoloma; Cliff Chiunda; Jimmy Grey Kusamale and Goodall Gondwe (Deceased) among other Malawians and 8 Indians which include: Shirieesh Betgiri; Prasad Jadhav; Satish Tembey; Chandrashekhor Ogale; Millind Ulagadde; Sachin Nikam; Dhiraj Nikam; and Prashant Sharma.
A total of eight (8) counts have been prepared for the suspects which include Conspiracy to use public office for advantage; Conspiracy to Expend Public Money without Appropriation; Conspiracy to Obtain Government Lending without Authority of National Assembly; Conspiracy to Obtain Government Guarantee without prior Authority of Cabinet; Making Misleading Statements; Fraudulent Trading; and Money Laundering.
The allegations detail a series of abuses, including the approval of government guarantees and loans totaling hundreds of millions of dollars without the mandatory legal procedures. Notably, charges include expending US$180.1 million without parliamentary approval and conspiring to secure unauthorized guarantees for loans to Salima Sugar Company Limited, amounting to US$118 million.
In what appears to be a sophisticated operation of corruption, the accused are said to have issued misleading statements and fraudulent paperwork to facilitate the illicit transactions. The charges involve making misleading statements to obtain loans, as well as fraudulent trading practices aimed at defrauding the government.
