Carlsberg discovers financial irregularities

Forensic auditors have uncovered financial malfeasance at Carlsberg’s brewery in Malawi, amounting to nearly DKK 80 million (USD 12 million), it was reported. This has led to the suspension of three local employees, suspected of defrauding the company.

“We have become aware of irregularities in the financial department,” Carlsberg’s spokesperson Jens Bekke told Danish media, but refuted the alleged sum.

According to Malawi media, the fraud mainly occurred through the purchase of raw materials like sugar and the procurement of other services.

The scale of the fraud became clear when representatives from Carlsberg Malawi called auditors in Denmark to investigate a tip about the fraud.

“We are pleased that we have an effective whistle-blower system which makes it possible to draw attention to irregularities,” said Mr Bekke.

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 Danish brewer has really taken root.

Carlsberg’s brewery in Malawi, a small landlocked country in southern Africa, opened in 1968. It has a capacity of 300,000 hl beer annually. Carlsberg is the number two brewer with a market share of 44 percent. Per capita consumption of beer is 6 litres, says Carlsberg, or 1 litre according to SABMiller, which puts lager beer consumption at 218,000 hl in 2014.

The market is dominated by SABMiller’s unit Chibuku, which operates four sorghum breweries, selling about 800,000 hl annually.