The government is contemplating reviewing its 40% shareholding arrangement with Salima Sugar Company.
Minister of Finance, Sosten Gwengwe says the government of Malawi has invested more in the project but the profit realised from the deal is very less.
The minister was speaking in Lilongwe responding to calls from Parliamentarians to have government as the major shareholder of the company.
Gwenda says Attorney General has already provided his recommendation on how to revise the current shareholding arrangement with the company.
He disclosed that they are waiting for the registrar general to review the 40% shareholding arrangement.
“The Salima Sugar deal was not negotiated based on the interests of Malawians. We took on ourselves to review the shareholding agreement.
“The Attorney General has given us opinions. We sat down and reconsider the shareholding arrangement. We are currently waiting for the registrar general to certify us. We will then go into public and explain the new arrangement,” said Gwengwe.
Economic Expert Dr Betchani Tchereni has tipped the authority to properly analyse the shareholding agreement that is in place for the interest of Malawians.
“We noted that the important activities did not go through proper dues and indeed proper economic and financial analysis, especially when the government was investing in the deal.”
Salima Sugar Company was established to help the government to expand on experts, create jobs and empower Malawian Farmers.
Salima Sugar is one of the major initiatives under the green belt.