Auditor General recommends forensic audit at Admarc: Deloitte exposes more rot

An immediate forensic audit should be conducted at the Agricultural Development and Marketing Corporation (Admarc) , Auditor General has recommended  after an audit report for the year ended June 2018 revealed that the State produce trader could not give evidence on the  purchase of  items amounting to K3 billion.

Jumbe: Audit report exposes Admarc shortfall

The Auditor General Thomas Makiwa has described Admarc – which sought a K45 billion bailout from central government a loan it was failing to service with a commercial bank – as a high risk parastatal requiring immediate review and enhancement.

“I, therefore, recommend that a forensic audit of a high risk parastatal be conducted as soon as possible,” Makiwa said in his report submitted for tabling in the National Assembly.

He also recommended that the “governance arrangement, roles of top management and their performance should be assesses, especially for the period under review.”

The audit for Admarc financial statements for the financial year ending June 30 2018 was done by Deloitte on behalf of the Auditor General in line with Public Audit Act.

It reveals that the State produce trader does not prepare bank reconciliations on a regular basis despite the best practice requiring the parastatal’s bank reconciliation to be prepared on a monthly basis as a minimum.

“The entity could not provide us with basic reconciliation for the months of July 2017 to May 2018 for several bank accounts held at different banks,” reads the report in part.

“It appears that in the entire year ended 30 June 2018 the entity only prepared bank reconciliation for the month of June 2018 for external audit purposes.”

Among other things, National Audit Office (NAO) report indicated Admarc has been entering into contracts with farmers without specific recovery period, non-compliance with procurement procedures, non- remittance of pension contribution as well as non remittance of pay as you earn (PAYE), fringe benefits tax as well as withholding tax.

The audit report further reveals that the bank accounts owned by Admarc were not recorded in the general lodger as at 30 June 2018.

The parastatal owns FDH Bank account which has K58 666.40 and Ecobank savings account which had K2. 263.29.

“We only came to know about the bank accounts through bank balances confirmation letters which we received for audit purposes from the banks where the account are being held,” reads part of the report.

The acting chief executive officer for Admarc,  Felix Jumbe,  admitted he found the  entity  in a mess and that the parastatal has been addressing most of the issues and is  trying to rebuild to ensure profitable operations.

In the 2020/21 National Budget which was later withdrawn after change of government following the June 23 presidential rerun,  former Minister of Finance, Economic Planning and Development Joseph Mwanamvekha said Admarc was allocated K10 billion for the purchase of maize, legumes and cotton.

He had also allowed Admarc to borrow from commercial institutions.

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Malawi belong to the citizens
Guest

All DPP thieves should not hide behind political persecution.Peter Munthalika was apresident of mafias every palastal had DPP agents to steal money.They were like agents of the devil himself.

bishop
Guest
bishop

koma bungwe laboma lalikulu ngati admarc kukanika ndibank reconciliation yomwe yet kulima accountants zoona?zikonzedwe izi.you are not serious.if those accountants are members of accountants board sure they are supposed to be disciplined.

Charles Msukwa
Guest
Charles Msukwa

Bolani Bwana Thomas Makiwa munachokako bwinobwino ku Accountant General, taonani mmene waonongera Sungani Mandala kungokhala pa Accountant General position only 1 year. I cry for my country Malawi.

nafundo zalo
Guest
nafundo zalo

Chaponda
his lawyers
his judges
alipo????

Jinga
Guest
Jinga

kkkkkkk bwanja Jumbe paja munkasaka dzonona dza DPP – ndizimenezo! Ife a TONSE we are now clearing the rubble – kulambula, kenako tiyika ma peg basi kubandula kuyamba kukumba foundation nkumanga Malawi watsopano wokomera tonse!!

More fire tiyeni nawoni anganya amenewa kutiwonongera dziko!

Tutu
Guest

What goes around comes around. No need for vindictive politics. Chakwera has pathological hatred for Jumbe. Very sad that people are clapping hands to political persecution.

Francis
Guest
Francis

Iwe Tutu, do you know for sure what political persecution means? There is none when someone is being prosecuted for criminality be they politician or not. Going for Criminality can not be political persecution.

Citizen
Guest
Citizen

My friend, that nonsense, where is the connection here? Are you happy that people are dying without medicine in hospitals and you celebrate when people are stealing from the government? Shame on you.

Kholowa mkabudula
Guest
Kholowa mkabudula

Anthu opusa ngati inu nde ofunika kumakutibulani kuti muyele mmaso. Anthu akuvutika kunjaku nde muzinenanso zathobwa apa?

Charles Msukwa
Guest
Charles Msukwa

Cadet sunasiyebe kulira? Polani moto man.

Destroyer of liars
Guest

This is all about weak or corrupt management. Board of directors should periodically conduct or asses management performance. Each head of department should have agreeable targets every quarter where KRAs are set. Any failure to attain the agreed targets should have bankable explanations. Any manager should be aware of the company’s mission and vision through which you set Key result areas, key performance areas and the monitoring part which is the key performance indicators.

Mubvi wa Chilungamo
Guest
Mubvi wa Chilungamo

True. If all organizations were run like this they would have closed shop a long time ago. This is a big shame for Malawi.

Daimba kamara, Sierra Leone, Freetown
Guest
Daimba kamara, Sierra Leone, Freetown

Iam very much happy if the AG will do detailed forensic aduit ,so tha ,altMalawianswill once more enjoy their respective right to get basic needs. ,don’t forget that the president is a man of GOD all Malawian are equal before The ALMiGHTy GOD,press on for the truth. Thanks. Make africa a bettor place to live.

Amuna Kudambo
Guest
Amuna Kudambo

Kikiki! If boards are chaired by village chiefs and street pastors/reverends – what do you expect?

Thyolo Thava Boy
Guest

Komatu ndiye a pumbwa anafatsa kuwononga zipwete eeeeeeeeeeeeeee

God Bless
Guest

Zilikoliko if the New Government sustain draining the swamp surely light will soon be visible at the end of the tunnel.

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