CDEDI calls for action against High Court ruling freezing Salima Sugar Company’s assets
The Centre for Democracy and Economic Development Initiatives (CDEDI) has formally appealed to the government to challenge a recent High Court ruling that has frozen the bank accounts of Salima Sugar Company Limited (SSCL).
This decision has raised concerns about the future of the company and its ability to provide affordable sugar to Malawians.
The High Court’s commercial division in Blantyre issued the order to freeze approximately $2.3 million (about K5.3 billion) in SSCL’s accounts pending the resolution of a legal dispute with Mukteshwar Sugar Mills Limited. The ruling comes amid escalating prices for sugar, particularly from Illovo Sugar, which has raised prices twice in recent months, exacerbating the struggle for low-income consumers.
CDEDI’s Executive Director, Sylvester Namiwa, expressed alarm over the ruling, especially in light of the government’s earlier commitments.
In a televised press briefing on December 5, 2023, the Attorney General publicly pledged to recover an estimated $30 million (about MK51 billion) that had been misappropriated from SSCL, vowing that those involved would face arrest and asset forfeiture.
“While we welcomed the initial steps taken against former SSCL Chairman Mr. Shirieesh Betgiri, the recent court ruling represents a setback for our hopes of seeing justice served,” Namiwa stated. “Malawians deserve clarity on this situation, especially since SSCL was established to enhance competition in the sugar market and provide affordable prices for essential goods.”
The police had previously indicated that they were pursuing additional suspects related to the misappropriation of funds, raising public expectations for accountability. However, the recent developments, including reports of Mount Meru seeking leniency in exchange for cooperation, have led to public skepticism about the government’s commitment to justice.
The CDEDI is urging the Attorney General to take decisive action to challenge the High Court’s decision and ensure that the remaining suspects are arrested. “We call for transparency in this process and for the government to uphold its earlier promises,” Namiwa emphasized.
Additionally, the organization has requested a progress report on the recovery of misappropriated funds, as well as an explanation regarding the perceived selective enforcement of justice.
With the price of sugar increasingly burdensome for many families, the stakes are high. CDEDI’s appeal highlights the pressing need for the government to act swiftly to resolve this issue, restore consumer confidence, and ensure that SSCL can continue its operations.
As the situation unfolds, Malawians remain hopeful for a resolution that will allow SSCL to fulfill its role in the market, making sugar more accessible and affordable for all.
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