AG says Rummage matter outside cashgate –Malawi News

Attorney General Kalekeni Kaphale has clarified that the payments government made to  Rummage Pace topping the ‘cashgate’ external forensic audit report were dully cleared by his office and were included in the report on suspicion that they overcharged.

In the Baker Tilly report appendix, Rummage Pace (owned by Anil Lawlani/Raju Ralwani) reportedly were paid K12, 205,540,498, representing 50.2 percent of the loss on suspected overpayment.

Kaphale: It was matter of pricing not cashgate

Kaphale: It was matter of pricing not cashgate

The company offered services to the Malawi Defence Force and the Malawi Police Service.

Apart from above mentioned supplies. there was one separate deal, Rummage had supplied to Xelite and then Xelite further supplied to government.  One of the managers confirmed that there was one transaction , saying they have proper documentation on their supplies from Attorney General’s office and Ministry of Finance.

Xelite said they were “surprised” with the report, saying they were not interviewed by Baker Tilly as they would have presented their documents of the supplies.

But Attorney General told Malawi News on Saturday that the two companies were not accused of ‘cashgate – obtaining payments from government on services not supplied or rendered – but it’s a suspected case of overcharging.

“My reading of the report, which I have done several times shows that the main issue in the transactions involving the two companies was over pricing,” said Kaphale.

“Prices are agreed by two parties,” he adds.

The Attorney General pointed out those documents in his possession show that the payments were approved by his officer, certainly by his predecessor.

“Government normally does not buy from the source. It buys from middlemen. Middlemen usually quote their prices higher, “said Kaphale as quoted by Malawi News.

Nyasa Times understands that the supplies to the MDF and Police were done as a matter of exigency.

Attorney General said  Rummage Pace matter is “outside the modus operandi of cashgate.”

He said: “When you look at the report, you have people who didn’t supply anything, yet they got payment.”

The report further cites that chief cashgate suspect Oswald Lutepo is linked to at least 16 different businesses in Malawi including IPS which he registered on 12 July 2005 and O&G Construction Limited which was incorporated on 13 August 2010.

“Based on the evidence provided these are the only two businesses he owns that received ‘cashgate’ cheques. Transfers were however made from these two businesses to at least two other businesses that Osward Lutepo is linked to or owns being Chloride Batteries Limited and Woget Cotton Ginning Company.

IPS and O&G Construction received a total of MK 4,428,316,582 via 17 cheque payments from the Malawi government without supplying any goods, services or works in return, according to the report.

Some of the companies named on this appendix are Hurry Civil Engineering Construction (registered by Laura Savala), Pawooh Logistics (registered by Limumba Karim), Mahembe Civil Engineering (registered by Philbert Mkandawire), Image Investments (registered by Stafford Mpoola) and WEK Construction (registered by William Kachingwe).

The cashgate scam prompted foreign donors, who provide around 40 percent of Malawi’s budget, to pull the plug on aid of around $150 million last year.

It is the biggest financial scandal in Malawi’s history, and helped push former president Joyce Banda out of power in May elections, which were won by Peter Mutharika.

A number of government officials implicated in the fraud are facing criminal charges, and a first official was jailed last month for three years over the scandal.

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25 thoughts on “AG says Rummage matter outside cashgate –Malawi News”

  1. Zeze says:

    This learned AG is very, very, very, very confused man! Stealing comes in many forms, overpricing, getting payments for services not rendered etc. But our AG seems not to understand all this. All are cahgaters. APM please show him the way out of cabinet, he is a disgrace to your administration. No wonder all fingers point at him!

  2. Chindazi says:

    Kalekeni Kaphale!!!!!!! You have a big head which does not work……. Overpricing is stealing as well….

    My guess is the auditors compared the market price of the items at the time of audit and the actual that your stupid department cleared….. the market price was very much lower than what your stupid department cleared…..

    If the market price was MK200 and your stupid department cleared MK600…… MK400 was cashgate which your stupid department collected the money from the supplier after the cheque was cleared…..

    NONSENSE MAN……..

  3. Wa Nzeru Wa Kummawa says:

    It’s sad that even our attorney general does not have the basic understanding of HOW cashgate is done. To the extent that he even boldly says it was an issue of overpricing! If not overpricing or inflating figures, howelse does the AG think people steal??

  4. Jabulosi says:

    THIS IS CHILDISH!!!! ISN’T THERE ANYBODY IN THIS GOVT. WHO CAN PRESENT, TALK AND TAKE CHARGE OF SERIOUS GOVT. BUSINESS?? SINCE JUNE 2014 GOVT. HAS BEEN BEHAVING LIKE CHICKENS WITHOUT HEAD!!!! IS THERE LEADERSHIP?????? IS IT THAT THE LEADER IS VERY INCOMPETENT????? REMINDS ME OF UNIVERSITY SAGA!!!!

  5. salimu says:

    No 11 wake up British Civil Servants in 2010 stole £2.3 billion from their Govt. Secondly most senior govt officers like Attorney general solucitor general and many others in opc have had the report for more than 6 months. When UK sold arms to saudi arabia there was massive fraud and corruption but the uk high court stopped the case on national interest.

    1. Kenkkk says:

      And what are you trying to tell us? Furthermore, please go and recheck your story!!!

  6. Chemwali chimwene says:

    Kaphale wakhala pa phale. Anali defence lawyer wa ma cashgaters akudziwa bwino mmene ankabera koma poti anadya nawo, milanduyu sipita patali chifukwa nayenso ndi beneficiary wa cashgate. Amayesamasewera mmene ankalola udindowu.

  7. TRUCK says:

    In Malawi people are playing with the Government money that’s why the Donors stopped helping Malawi.

  8. Kenkkk says:

    The attorney general claims he read the report several times. When did he read the report when all of us were waiting for it and it only came out 1 or 2 days ago? Did he read it as they were doctoring or editing it?

    More shocking revelation, he claims that the govt doesn’t buy things from the Source but rather from Middlemen who tend to inflate prices!! How far can this govt’s incompetence go? This is an obvious loophole for collusions and corruption to flourish and plunder govt money.

    And he is telling without even butting an eyelid as if there is nothing wrong in what he is telling us!!!

  9. Kalulu says:

    The government knows very well that Cashgate is a killer – it killed PP when they played with it. It will kill those who commit it even if they are not mentioned anywhere – BP goes high every time they see or hear anything about cashgate. Sometimes they dream that they are in the cells because of cashgate – when they work up they are very sad. It has killed many poor due to lack of essential services. DPP can be killed by it if handled childlessly. They need to say enough is enough by doing the correct thing. Eliminating cashgates anywhere – in Government, NGOS, Banks, Businesses. Actually it can bring more money to government through penalties and trust that stakeholders will have for our country. Business will boom and Malawi will be a brighter nation when this cancer called cashgate is eliminated. Kill Cahsgate before it kills you now.

  10. Kenkkk says:

    The attorney has read the report several times as he tells us, when did he receive his copy? The report was officially unveiled 1 or 2 days ago. And why were we a waiting for this report for so many months. Was his reading part of the dpp doctoring or editing?

    Most surprising also is the admission that the govt doesn’t buy things from the source but rather from expensive middlemen!!! Why? How incompetent can our govt get into? That is where the collusion and corruption come in. These are the loop holes that have drained and plundered our coffers!!! And he speaks without butting an eyelid as if nothing is wrong in what he is saying!!!

  11. Chazama says:

    Abale za Cashgate zatibowa, cashgate,cashgate,cashgate,cashgate,cashgate, cashgate, until when? Nkhani zingakhale cashgate, aweruzeni anthuwo ndipo muwapase zilango zawo tiyiwaleko.

  12. dave says:

    Judges are also corrupt and hw can they give 3 year only to that jezebel? Indeed money killed our lord jesus!

  13. culthbert Morgan says:

    Its a shame that in Malawi there are alot of pple who have travelledd and seen how things are done in other countries like the West.
    I was once in UK for business purposes. I deposited a significant amount of money in my nephews account. When I used the card a few times online and they ended up blocking it. My nephew was also called by his bank to explain about the cash that was deposited. Also there was a limit i could withdraw frombthe account. This is in the 1st World. In Malawi ,developing Country one goes to cash a billion cheque. No wonder we are still living in stone age. Do we have CHAPS system in Malawi? Malawi needs Leadership not entangled with spirit of corruption.

  14. Mr.Bambo says:

    I thought an invoice is checked before being payment is effected by a number of financial officers?How come you say it was a matter of overpricing or over-charging whatever that is?Cashgate ndi imeneyoyo kaya.Arrest the fool who authorised that payment.

  15. Cash Gate says:

    This is getting more interesting. The govt knows that they cann be done for whatever info they said re: Rammage Pace and costing Malawi even more now they are out denying. As the Nation now wants to know about 92 bn, the dates 2005 and 2010 are being mentioned with fingures pointing @ Lutepo interesting. Soon the 92 bn query will shift to Lutepo Saga. We are watching.

  16. chiperoni2 says:

    Every person knows problems in in his house better than anybody else. I know all the secrets of my heart better than anybody else. It is insanity for me to expect somebody to tell me what my problems or secrets are for me to accept I have problems . So whether someone discerns my problems or not, the fact remains the same , I have them.

    Malawi knows money was stollen and who stole it. This theft affects us and yet we are waiting for Britain and Germany to come and tell us the people who stole the money. Why in the first place do we have auditors? What role are they playing in Malawi that we can lose such wealth without anybody noticing ? Where is our opposition? where is our parliament? The report was to be tabled in parliament yet there they were coming out without anything. Instead of recovering the money that is held somewhere, here comes the President urging starved Malawians to pay their taxes which they always do without any real benefit. He urges the donor community to give us more money for what? Are we sane? If German probe wont mention anyone then the 92 billion was not stolen? Is this how we should be thinking and reasoning? Who is suffering because because of this theft? Is it not Malawians. This proves that we are poor because we are poor, poor in the mind.

    1. silent cashgater says:

      amwene, nkhani izi tikasiyila amalawi tokha-tokha sizioneka mutu wake. too many people are connected.

      we are a nation of thieves basi. timayamba kuba at age two. the child steals from his brother, the brother amapisa mu handbag ya amake, mayi amagula dala ndiwo zochepa akapatsidwa ndalama ndi bambo cholinga abe change, bambowo amaba stationery ku ntchito kuti amwere kwa kamba, pa kambapo barman awabelanso change madalawo and thus continues the cycle.

      do you see here that we can’t audit ourselves because there are too many thieves in our sick society? imagine receiving 2 billion kwacha for doing absolutely nothing, kuyilandiladi without remorse while mitembo ikuvunda ku chipatala chifukwa chosowa coldroom, ana kumafa ndi malungo for lack of a simple bed net?

      is this normal human behaviour or the behaviour of very evil people? mulungu ali nafe ntchito ndithu.

  17. moya says:

    We know money was stolen no doubt and the courts will prove too but now we need to know how the sharing was being done, from the construction companies to the officers in government and who else was having a share of the money? what percentage? ask senzani was she cashing the Cheque and keeping all the cash? or was she sharing with other cashgaters ? who were they? how did she come to learn that it was possible to steal those huge amounts of money, who tipped her? first approached her about the possobility of cashing

  18. kume kume says:

    so if it was just over pricing wy including the whole 12 billion, wy not coming up with the excess charge which u think there is, indorse that not the whole 12 billion, zikuvutani zinthu zimezi.

  19. Kalanga says:

    Apa govt ikuyendera kuti uyu ndi wathu! They defend pple who r for the gvt!

  20. phunda says:

    Its the issue of girlfriends being not part of cash gate, now its this prima issue; which is which? I thought these were foreign forensic experts and why these shordy work? Am afraid if we will be able to recover our moneys given the history of our courts. Look at Senzani sentence yet we are told a lot of billions got lost. According to judicial gospel you are innocent even if you were paid billions without rendering any services to govt until you are proven guilty by the same gospel which does not look at facts but technicallities.

  21. Che Sinjinji says:

    Why don’t I trust anything this man Kamphale says? He certainly doesn’t inspire confidence in me ….. Cry My Beloved Country .

  22. roberto says:

    Zatheka bwanji Mayi wamandasi osapezekamo?

    Dat means maina onsewa atulusidwawa ngonama ndipo sakuyenela kuimbidwa mlandu.

    Mayi wamandasi anagulitsa ndege,tonse tudziwa ndiye lero mukati alibe mlandu forsake.

  23. Juss says:

    Guy is too smart and works smart too.

    He has all papers. Govt. bwino tu. Muyamba kumulipila ma billioni wachibuda yo

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