National Oil Company of Malawi (NOCMA) has stopped an audit firm, Crowe J & W Malawi, from further rendering its services at the government owned entity over ‘gross incompetence’ Nyasa Times has established.
The firm belongs to the embattled Public Accounts Committee (PAC) Chairperson Shadreck Namalomba who is also facing the wrath of his fellow committee members as they have ganged up to remove him for displaying incompetence and misbehaviour.
Namalomba is a Managing Partner for Crowe J & W Malawi, an audit, tax, risk and consulting firm, which is also a member of a Swiss global accounting and consulting firm called Crowe Global.
Namalomba has also come under fire from the parliamentary Public Accounts Committee he chairs whom want him out due to recent statement made as Democratic Progressive Party (DPP) spokesperson, against the Anti-Corruption Bureau (ACB) as a major ground for his dismissal.
However, it never rains for Namalomba but pours as multiple impeccable sources have told Nyasa Times that while his committee members are baying for his blood as he faces massive resistance at parliament, on one hand, NOCMA has also resorted to discontinuing the ’shoddy’ audit services that were provided by Namalomba’s Crowe J & W.
Said the source at NOCMA: “It is very true that NOCMA has officially communicated to Crowe J&W that it no longer requires its services, going forward. The issue is that this company has been unable to conclude its annual audits with NOCMA despite pocketing huge sums of money.
For the past two to three years, the company has never managed to come up with a comprehensive audit or let’s name it finished product. It’s sad because NOCMA has been spending money on this company which never produced any substantive final audit reports over the years.”
Another source at Capital Hill, who is conversant with the matter, said the blue-eyed Namalomba was basking in the glory of the ousted DPP shadow hence could not be rebuked for his half-baked audit services at NOCMA since DPP was in power then.
“The issue is that this guy is a DPP politburo and he wields a lot of power. No one could reprimand him for his substandard audit work at NOCMA. It is also suspected that some of the money paid for the incomplete audit services were also diverted to DPP as a party.
Now what Tonse has done is only to clear such rubble by kicking him out as his escapades have proven to be costly to tax payers,” said the source.
Contrary to its practical experience, Crowe J & W Malawi insists on its website that the
company is known for its impeccable professional service, claiming that it has built a reputation in the areas of audit, tax, advisory and risk,
Says the firm on its website: “Our firm is well-established as a leader in its national
business community and is staffed by nationals, thereby providing a knowledge of local laws and tax regulations which is important to clients undertaking new ventures or
expanding into other countries. Crowe J & W Malawi is committed to impeccable quality
service, highly integrated service delivery processes and a common set of core values
that guide our decisions daily.”
It says some of the industries in which the company boasts of expertise and experience
include manufacturing, construction, retail, real estate, financial services, hotel, tourism
and leisure, healthcare, technology and telecommunications, governments, professional services, transportation, distribution, pharmaceuticals, education, media, automobiles, food and beverages, chemicals, industrial metals and mining, entertainment, textile,
paper and petroleum.
Efforts to solicit a comment from Namalomba proved futile as his mobile phone went
unanswered on several attempts.
A recent audit report by the National Audit Office (NAO) revealed massive weaknesses in
financial control and operations at NOCMA.
Among others, the audit exposed none availability of reconciliation, noting that there are no reconciliations prepared and reviewed on monthly basis and at year end except for
“The following are reconciliations not prepared: Supplier reconciliations (foreign creditors and major local creditors), debtors reconciliation, payroll reconciliation (between the payroll module and the salary ledger), salary related contribution (Medical Aid and Pension reconciliations), and also, there is no coding of fixed assets as fixed assets owned by NOCMA do not have an identification code with a sequential numerical number, as these assets are not assigned with a unique number that is affixed to the item with a permanent label and that the corresponding code is not entered into a fixed asset management register or an excel schedule.
“Further the asset register has significant deficiencies as other key identifications are not mandatory configured for instance, physical locations of the asset.
There is no password security policy for the system and as such no policy was configured.
The system is using standard password configuration that has inadequate security,” reads the report.
A 2021 annual economic report by the government shows that although NOCMA
maintained its profitability in the 2019/20 financial year, the performance was a decline
over 2018/19 with profit declining by 51 percent from K733 million to K359 million.
According to the report, the trajectory was projected to continue to the close of the 2020/21 financial year where a further decline to K50.5 million in profit was expected.Follow and Subscribe Nyasa TV :