Former budget director Paul Mphwiyo has been formally charged with two counts of theft and money laundering of K2.1 billion.
Mphwiyo was arrested on Saturday with his wife in connection with the infamous cashgate scandal, which led to the suspension of foreign aid to the impoverished Malawi.
Lawyer for Anti-Corruption Bureau (ACB) Imlani Said in December last year, Mphwiyo laundered up to K2.1 billion through various businesses in Lilongwe and stole K2.1 billion worth of property of Malawi government in the same month.
Saidi pleaded with the Lilongwe Magistrate court not to release Mphwiyo as it he may interfere with investigations.
However, lawyer for Mphwiyo, Alemekezeke Mando argued that his client be granted bail because has a medical condition which worsened upon his arrest.
Magistrate Paul Chiotcha adjourned for Wednesday when he will rule on the bail application.
Top government officials siphoned billions of Malawi kwacha from the government Integrated Financial Management System (IFMIS) through payments to companies that did not supply goods and services to government departments and ministries.
Mphwiyo served as the budget director in former president Joyce Banda’s administration for one year before he was shot at his home in the capital Lilongwe.
The shooting incident on September 13 of last year opened a Pandora Box that led to revelations that civil servants were siphoning money through the IFMIS.
Following the shooting, Mphwiyo was moved by Banda’s administration to the Office of the President and Cabinet.
Last month, Mphwiyo testified in court against former Justice Minister Ralph Kasambala and others.
So far, the ACB has secured two convictions in the ongoing cashgate trials.
On Friday, a former accounts assistant in government Victor Sithole, 27, was found guilty of possessing stolen cash.
Early this month, a former tourism official Tresa Namathanga Senzani was sentenced to three years and nine months in prison in connection with the cashgate scandal.Follow and Subscribe Nyasa TV :