By Linda Kwanjana
Social media early this week has been awash with reports involving fertilizer business deal made between the Salima Sugar and Nyasa Hills Company where a transaction of upfront payment of K200Million was made to Nyasa Hills.
This publication took time to examine variables and genesis of the whole issue in order to find the truth of the matter.
Investigations made indicate that the business transactions indeed took place between the two entities in this case Salima Sugar and Nyasa Hills. We can furthur speak with determination that the business was genuine with no ill motive behind.
Background
Unlike what social media has been spreading, in 2024, Malawi experienced shortage of sugar cane fertilizer called MAP and MOP. This is a specialized fertiliser which is used in Sugar cane farming.
This is the same reason the company engaged the pre qualified companies to help in supplying the product of which Nyasa Hills qualified on the matter since had an existing supplier in China.
The supplier assured to lift the product but requested upfront payment of K200 Million which Salima Sugar honoured.
Money Transfer
On 15 April , 2024, Salima Sugar transferred K190Million into Nyasa Hills and later on 22 April, 2024, the same company completed transaction with the transfer of K10Million making a total of K200million.
This publication has also verified and certified that Nyasa Hills made payments to the MOP , MAP Chinese Supplier Xingtai Ruijin Import and Export Company on 25 April , 2024
SUPPLIER EXTRA DEMAND
The fertilizer supplier demanded that Nyasa Hills should pay off the whole fertilizer amount which was K604, 293, 888. What it meant was that Nyasa Hills had uphill battle of sourcing additional K400Million to have Bill of Lading done. These were fresh demand made after earlier assuring the company to release the product with the quarter payment.
CONCLUSION- SALIMA SUGAR ENGAGES THE LEGAL TEAM
This publication can also ascertain that after noting delays in supplying the product, Salima Sugar engaged their Retainer Lawyers Chris and Legal to demand return of the K200 Million due to contractual breach and recover the money.
This publication can testify that Chris and Legal are currently pursuing the matter.
Amidst baseless social media attacks, Salima Sugar Company Limited and its stalwart leader, Counsel Wester Peter Kosamu, deserve recognition for their tireless efforts in steering the company towards progress.
Despite facing governance challenges due to the previous government’s inaction in appointing a board for three years, Kosamu has remained resolute in his commitment to Malawians.
Under his leadership, the company has ensured timely payment of salaries to employees and growers, promoted local business, and fostered strong relationships with surrounding communities through impactful Corporate Social Responsibility initiatives.
The upcoming investment of $650 million from an African investor, aimed at expanding sugar production, fertilizer, and ethanol plants, presents a significant opportunity for the country’s economic growth. We urge the new government to swiftly constitute a board comprising experts in relevant fields to expedite this crucial process, which will help alleviate the country’s foreign exchange shortages.
Kossam has defended the move to recover the money.
