HRDC demands immediate action on parastatal board failures
The Human Rights Defenders Coalition (HRDC) has issued a strongly-worded statement, calling for immediate and decisive action against the boards of state parastatals following allegations of widespread fraud and mismanagement.
The HRDC expressed grave concerns over recent reports of multi-billion Kwacha frauds at the Electricity Generation Company (EGENCO) and Agricultural Development and Marketing Corporation (ADMARC), highlighting a systemic issue of negligence and incompetence.
At ADMARC, an audit revealed that the state produce trader incurred losses amounting to K330 million due to alleged fraud and abuse orchestrated by its employees, including managers and directors. This, according to the HRDC, indicates a severe breakdown in internal controls and accountability.
EGENCO’s case is even more alarming, with the company losing K6.7 billion due to alleged misprocurement between January 2017 and March 2022. The scandal involves unissued items in stock, unauthorized requisitions, and rampant single sourcing of materials and services, bypassing the national competitive bidding process.
“These instances are not isolated; they represent a broader pattern of maladministration and financial misconduct across state institutions,” said Gift Trapence, National Chairman of the HRDC. “The delays by the boards in acting on audit queries perpetuate the abuse of public funds, as those responsible are emboldened by the lack of immediate consequences.”
The HRDC criticized the parastatal boards for failing to uphold their mandate to ensure transparency, accountability, and prudent management of public resources. The coalition called for the immediate dismissal of board members who have demonstrated an inability to perform their duties effectively.
“It is imperative that these boards be held accountable for their inaction. This is not merely a call for accountability but a demand for justice on behalf of the Malawian people, whose trust has repeatedly been betrayed,” Trapence said.
The HRDC also highlighted the role of the Secretary to the President, who presides over these institutions as a member of all parastatal boards. The coalition accused her of allowing gross mismanagement to persist under her watch and called for her to take responsibility and initiate corrective measures.
The HRDC reiterated its call for the government to appoint qualified professionals to parastatal boards, emphasizing that these appointments must be based on merit. “The boards must be empowered and committed to holding the executive accountable for their use of public resources,” Trapence added.
In conclusion, the HRDC demanded comprehensive audits, swift implementation of audit recommendations, and the appointment of competent professionals to the boards. The coalition also called for the immediate dismissal of the boards of EGENCO and ADMARC.
“It is only through such measures that we can begin to rectify the systemic issues plaguing our state institutions and safeguard the interests of the Malawian people,” the HRDC statement concluded.
The HRDC reaffirmed its commitment to defending the rights and resources of Malawians and holding those in power accountable. “The time for change is now, and we urge all stakeholders to join us in this critical endeavor,” said Trapence.
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