90 percent of K577bn Cashgate squandered during PP era – Auditor General report

A forensic audit report by the Auditor General on the K577 billion (about $856 million) plunder of public money between 2009 and 2014 has exposed former ruling Peoples Party ( PP) as the main culprit in the plunder of more than 90 percent of that figure.

Kamphasa: Submitted tje report to parliament

Kamphasa: Submitted tje report to parliament

PP came into power as default government in 2012 when president Bingu wa Mutharika died in office. The following 24 months was characterized by wanton stealing of public funds through a process dubbed Cashgate.

The Auditor General’s report shows that hundreds of payments without supporting documentation were made from Capital Hill to PP politicians and close associates of immediate-past president Joyce Banda.

Most of the money was channeled to the party’s campaign activities towards the 2014 General Election preparations.

The report has diagnosed close to K555 billion that was siphoned out from the public purse between 2012 and 2014.

So far close to 10 people have already been convicted and all have testified how the then country’s  leadership used them only to dump them when everything was exposed in the aftermath of Paul Mphwiyo’s shooting.

Over the past weeks PP parliamentarian Kamlepo Kalua has been pushing Auditor General Stevenson Kamphasa to release names of the people in the report which the opposition had all along claimed it implicates ruling  DPP members.

The audit reveals that K83.5 billion was paid to 44 of the businesses which were selected as part of the sample of 50 businesses which matched to the bank transactions.

The report says to date, 13 businesses and K17.08 billion have been subject to review and that of these 13 cases alone have allowed the audit to identify at least $19.6 million in possible savings and recoverable costs.

These are $14.2 million in overpayments for goods and services; one duplicate payment of $5.45 million which the report says should be subject to immediate recovery; and $29 166 overpayment on shipping to wrong locations.

Accoring to the report, there is evidence to suggest that a number of cartels are winning contracts through restricted tender and single source procurements sometimes to supply quantities that do not reflect the actual needs of the MDAs.

“These groups of suppliers are owned by the same individuals with the majority of trade being inter-company implying that limited actual trade exists,” reads the report,  adding:“This suggests ‘layering’ a method sometimes used to hinder or prevent investigations in accurately tracing the source or destination of transactions and flow of funds.”

It reports that the use of bank cheques to move funds between related suppliers could be seen as an attempt to deliberately conceal the audit trail.

“Of even more concern is that we have gathered evidence which suggests that manipulated procurements have taken place as late as December 2015 and are therefore likely to be continuing,” says the report.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From Nyasatimes

More From the World

Sort by:   newest | oldest | most voted
thavite
Guest
thavite
2 months 16 days ago

Hahahahahahahaha kamba anga mwala. Inu m’malo moti anthu amangidwe mukutiwuza za nthawi? Chamba ndi umbanda weninweni!

zoona
Guest
zoona
2 months 17 days ago
Mr Kamphasa you are very stupid and uneducated. Every sensible Malawian knows that we lost more money to fraud between 2009 and 2012 and not JB. In the police alone billions were stolen. DPP deliberately instructed banks to honour all Govt cheques regardless of whether there were funds or not. Perks Ligoya wrote Bingu three memos alerting him to the massive fraud that was taking place and Bingu just wrote noted. You may also wish to refer to meetings that were chaired by Msaka to enable you understand the scale of theft that took place under Bingu. You dont need… Read more »
CRIER
Guest
CRIER
2 months 17 days ago

Chaponda wakuba. Kodi K61billion ya Bingu akudya ndi ndani? A Peter Muntharika tabwezani tikufa ndi njala. Muphatikize K577Billion anaba anzako a DPP, monga a Chapondawo.

Central
Guest
Central
2 months 17 days ago

Kamphasa, kindly give us the DPP names that constitute 10% and those from PP for the 90%. Seriously, Kamphasa seems to be among the cashgaters!!! Why is he reluctant to release the names?

Tikondane
Guest
Tikondane
2 months 17 days ago

Fake report! Even babies and toddlers know that DPP is behind this squander! Leave PP alone ndibodza lanu

Dr. Mindgrape
Guest
Dr. Mindgrape
2 months 16 days ago

You my freind are deluded. There will have been 3 audits by UK audit firms and PP itself that will confirm what the other 2 already say. That the BULK of theivery happed under your beloved PP’s watch.

Decieving yourself is no healthy.

Francis
Guest
2 months 17 days ago

Shocking.

STIMERA
Guest
STIMERA
2 months 17 days ago

This is stupid and nosense,every Malawian knows that 577 billion was dpp era,,why are you trying to shield them.No matter what.no matter how long it will take chilungamo chizadziwika

chief activist
Guest
2 months 17 days ago

from the radio i held that the looting is betwen 1JANUARY 2012 AND 2013 SEPTEMBER ……WHICH MEANS between january and april,,,,,DPP was still in power whose ministers were there as well ……….in fact ironically it implies that Dpp too took part in the looting ……and thus y the likes of HARRY AND kamlepo……are too quick to implicate the likes of chaponda henry musssa just to mention a afeew……..is it?…………………let the names come out

Achimidzimidzi
Guest
Achimidzimidzi
2 months 17 days ago

This is now the time to get arrested because of foul language. Uchitsiru wake umenewu ndizikutukwanina basi. You are making a big mistake to under rate some these issues.

All I want to know are names of people or companies involved in stealing the MK577b and you are telling me the period when cash gate took place..

Mr. Kamphasa you are very stupid, changa weniweni, ndiwe galu basi.

Maunisi
Guest
Maunisi
2 months 17 days ago

So the silence of the AG was to divert attention to believe that bit was PP and not DPP this is criminal Mr Kamphasa. It is impossible and does not make sense the truth shall prevail. This is not good for ythe country and this country shall never developed. Better that I was born in Tanzania where president Magufuli is doing all what he can to put his people at ease.

Wachimwa
Guest
2 months 17 days ago

Maunisi, Kamphasa is a coward.This NIB chief ( Dausi aka mwana) was seen at NAO offices on Tuesday morning . What was he doing there? Shame on u AG.

wpDiscuz