Govt Under Fire for ‘Illegal’ Suspension of Salima Sugar CEO
The Malawi Government is facing mounting criticism from governance and economic experts following its decision to suspend Salima Sugar Company Limited Chief Executive Officer, Counsel Peter Kosamu — a move described as unlawful, politically motivated, and a violation of corporate governance principles.
According to a suspension letter seen by this publication, Kosamu has been sent on leave with pay from his position as Executive Chairman pending a disciplinary inquiry. The letter, issued directly by government authorities, accuses him of abuse of office and financial mismanagement — but analysts say the move reeks of procedural irregularities and political interference.
Economist Dr. Ben Dzolowere condemned the suspension, saying government acted outside the law.
“It is wrong for government to single-handedly suspend Kosamu,” he said. “The law requires that such actions be taken by the board of directors, not by politicians or ministries. Government should have appointed the board first before making this decision. That’s what proper corporate governance demands.”
Dr. Dzolowere warned that the decision could backfire legally.
“We believe government must rescind this letter to avoid costly litigation. If Kosamu goes to court, taxpayers may end up footing huge bills in damages,” he added.
The move has revived concerns about the Democratic Progressive Party (DPP)-era habit of political meddling in parastatal operations. During that time, critics accused government officials of running state companies by decree — sidelining boards and professional managers.
Observers say the current administration risks repeating the same mistakes.
In the suspension letter, government claimed the decision was made to “pave the way for a conducive environment that facilitates a fair and unimpeded investigation,” adding that the action was “in accordance with relevant statutes and in the public interest.”
Kosamu has been ordered to hand over all official documents to the Director of Corporate Services and is barred from accessing company premises pending investigations.
However, several employees have expressed shock and disappointment at the decision, describing Kosamu as a reformer who rescued Salima Sugar from collapse.
“He’s the one who turned this company around,” said one worker who spoke on condition of anonymity. “He introduced reforms that improved production, ensured timely payments to sugarcane farmers, and improved salaries and working conditions. For the first time, we saw Salima Sugar packets proudly displayed in local shops — something that never happened when Indians were running the company.”
Employees credit Kosamu for saving millions of kwacha through efficiency reforms and promoting local ownership of the brand.
Critics say the government’s handling of the Salima Sugar issue will be a litmus test of its commitment to good governance and respect for corporate independence.
“If this stands, it sends a chilling message to all CEOs of state-owned enterprises — that professionalism can be punished and politics will prevail,” said one commentator.
As pressure mounts, all eyes are now on the Ministry of Trade and Industry to clarify whether the suspension will be reversed — or if government is once again treading the same path of political interference that crippled many parastatals in the past.
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