Cables can reveal that Salima Sugar Company is reportedly facing a severe financial and operational crisis, following concerns over the procurement of wrong mill spare parts valued at approximately MK3 billion during the MCP rule.
According to cables gathered, the company is struggling to maintain the mill in readiness for the upcoming production season, despite the significant investment in spare parts, raising questions about the effectiveness of the procurement process.
Sources further indicate that utility providers, including ESCOM and the Water Board, have suspended services due to outstanding payments, worsening the company’s operational challenges.
Investigations also suggest that conditions at the factory have deteriorated, with reports pointing to poor hygiene standards that may pose risks to both workers and the surrounding environment.
Additionally, there are growing concerns over broader financial mismanagement, with claims that over MK20 billion in public funds allocated to the project may have been misused over time. These allegations include suspected procurement irregularities and inflated contracts, which have drawn public scrutiny.
Cables previously reported on several of these issues late last year, but those alleged to be involved in the mismanagement have yet to be held accountable, according to available information.
There are also questions surrounding the tenure of the former Chief Executive Officer of Salima Sugar Kosamu with some stakeholders calling for a thorough investigation into decisions made under previous leadership and any potential links to financial losses.
Malawi Congress Party used Salima Sugar as a cash cow to steal billions of tax payers money .
These are tax payers money stolen and those involved must be accountable to Malawians .
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