HRDC writes State over money laundering, tax evasion allegations at Salima Sugar Factory

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Salima Sugar Factory

SALIMA (MalawiTalk) –Rights activists are spearheading prosecution of officials at Salima Sugar Factory on allegations of money laundering and tax evasion.

The government of Malawi has a 40 per cent stake in the company while the 60 per cent is held by an Indian company.

Human Rights Defenders Coalition (HRDC) has since written the graft bursting body, the Anti-Anti-Corruption Bureau (ACB), Financial Interagency Authority and the ministry of Trade to investigate the suspected case of the money laundering and tax evasion at the company.

A letter signed by the HRDC leadership alleges the factory has failed its obligation to remit 12 million shares to government.

The letter further alleges that, Salima Sugar factory has been importing white sugar from Tanzania and repacking it when it gets in the country.

Mr Gift Trapence, Chairperson for HRDC said the grouping wants Salima Sugar Company to be investigated- as Malawians have shares in the company.

Ms Christina Chatima, PS in the ministry of Trade has confirmed receiving the letter but said she cannot  act on it as the ministry is not mandated to investigate money laundering allegations.

She however said, the ministry will look into the issue of importing white sugar from Tanzania.

Salima Sugar Factory spokesperson Mr Maganizo Mazeze refused to comment on the issue.

Sugar from Salima

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