Carlsberg Malawi confirms probe on huge financial scandal as reported by Nyasa Times

Malawi’s giant brewery, Carlsberg Brewery Malawi Limited, has confirmed that a probe is underway  into a huge ‘cashgate’  malfeasance that could amount o more than K5.2 billion as first reported by Nyasa Times.

The fraud has rattled the brewery’s management.

Carlsberg Malawi communications officer Towera Munthali confirmed that indeed there were “irregularities”  in the financial department at the brewery and that investigations are being carried.

“Investigations are currently underway,” Munthali told Capital FM on Wednesday.

Nyasa Times earlier reported that the scandal has led to the suspension of Carlsberg Malawi financial controller Geobra Kamanga, his deputy Austin Phiri and procurement manager Ezzra Njobvu who are suspected of defrauding the company.

In the report, Nyasa Times learnt that investigators uncovered the fraud mainly through purchase of raw materials like sugar and compromised procurement of raw materials and services.

It is also being alleged that some of the suspicious transactions involve trucks and businesses of the Fachis, a well known family in Malawi that has accumulated unexplained worth in recent years.

But Kamanga cautiously commented on Capital FM, saying “it is not clear”, saying the company will wait for full results of the investigations as they aren’t sure of any amounts yet.

The fraud mainly occurred through purchase of raw materials like sugar and the procurement of other services.

Carlsberg owns 59 percent of its subsidiary Carlsberg Malawi. Despite many attempts to spread on the African continent, Malawi in the only country where the brand has really taken root.

Carlsberg’s brewery in Malawi opened in 1968.