Director of Public Prosecutions (DPP) Steven Kayuni has asked the Malawi Police Service to proceed the criminal case against some Admarc employees for their alleged involvement in financial mismanagement that drained about K330 million from the struggling parastatal.
Kayuni observed that the mismanagement of funds led to a lot of lose and the institution’s underperformance in almost all its mandate portfolios and that it is an issue of trusting employees.
Kayuni said the possible charges for the suspects would include and not be limited to fraud other than false pretenses, misprocurement, abuse of office and insurance-related fraud.
“Admarc is on a sick bed, as such, he believed that what is happening at the institution is sabotage to the economy and a request to the Inspector General Merlyne Yolamu to continue with the criminal case will be the right route to take,” he said.
Yolamu said she would only be in a position to comment as the letter in question was in her office.
It showed that Admarc lost about K330 million to fraud and abuse masterminded by employees through bogus car insurance and medical cover claims and dubious staff loan scheme.
In January this year, Admarc appealed for a bailout to settle loans hovering around K58 billion obtained from various commercial banks which it said were hindering it from accessing finances to manage its operations.
Until 1987, Admarc was the sole buyer of smallholder produce, but in 2004, it was incorporated as a limited liability company with the government owning 99 percent of the shares.
