K557 cashgate probe to be held under heightened security, secrecy: Malawi’s commitment for credible audit impresses donors

Germany, United Kingdom, Norway, Ireland and The European (EU), who are backing the forensic audit into the K557 billion (about $883million) ‘cashgate’ between 2009 and 2013 want the investigations done under heightened ecurity and secrecy to prevent compromising investigations following the break in and theft of documents related to the probe at a house of a GIZ —Germany development arm— official in Lilongwe earlier this year.

Katrin Pfeiffer: We want confidentiality

Katrin Pfeiffer: We want confidentiality

Information of the probe will be released when the exercise is completed as Malawi government and the media has been urged by GIZ “not to make public any information about the audit team’s work and schedule.”

GIZ is providing technical support to the audit.

Katrin Pfeiffer, Deputy Head of Mission and Head of Development Cooperation at German Embassy in Lilongwe, said: “Confidentiality would serve a speedy, undisturbed and efficient review.”

According to quotes attributed to Pfeiffer in the press, “Upon completion, it will be for the Auditor General to decide how to take forward action on the audit’s findings, including communicating them to the public and Parliament in line with the Public Audit Act.”

Pfeifer said in the statement, the development partners that suspended aid to Malawi after a massive public sector graft scandal, were impressed by the commitment by Malawi Government to ensure a credible audit.

She explained that the audit was necessary following Price Waterhouse Coopers (PWC) ’s data analysis of Malawi’s financial management system from 2009-2014 which identified significant discrepancies between payments made from government bank accounts and the records held in Malawi’s public financial management system (Ifmis).

“It matched statements from government bank accounts with entries in Ifmis. The analysis showed that 43 percent of payments reflected in the government bank statements were not accounted for in Ifmis. These discrepancies suggest serious weaknesses in the implementation of the public financial management system, which require further investigation.

“The work undertaken by PWC on behalf of the NAO (National Audit Office) did not establish the exact amounts or causes of the discrepancies, nor whether any funds were misappropriated. As communicated by the NAO (press release), this data analysis is being followed up by a forensic audit. This is required to explain the discrepancies or establish if there was any theft of public funds,” she added.

According to Pfeifer , Malawi’s National Audit Office (NAO) remains the leading agency in the audit of the cashgate despite donors assisting .

In 2013, Malawi uncovered a corruption ring involving government officials, in which over K24 billion taxpayer funds was swindled from state coffers, according to an audit already done by British auditors Baker Tilly.

The scandal, dubbed “Cashgate”, prompted foreign donors – who provide around 40 percent of Malawi’s budget – to pull the plug on aid.

The pilfering of public funds is said to have taken place over just six months, from April to September 2013, during former president Joyce Banda’s term in office.

Banda  blamed on “loopholes” in the public payment system introduced by her predecessor Bingu wa Mutharika.

Pfeiffer said there were suggestions the looting actually took place over a longer period dating back to 2009 when Mutharika, who died suddenly in 2012, was in power.

The K577 billion audit will be conducted by PriceWaterhouseCoopers.

The Cashgate scheme is the biggest financial scandal in Malawi’s history and several people are facing trial while a number of convictions have been obtained.

 

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45 thoughts on “K557 cashgate probe to be held under heightened security, secrecy: Malawi’s commitment for credible audit impresses donors”

  1. Kenkkk says:

    Why the delay on the forensic audit if it is claimed by the current dpp govt that most of the 577bn was stolen during jb rule between 2012 and 2014? The delay doesn’t make sense if the dpp govt or its officials are innocent.

    Why break into the house of a german official to steal the 577bn information documents if there is nothing for dpp to fear? More likely these thieves are govt officials or closely connected to the dpp govt.

  2. paybackthemoney says:

    so far how much money has been recovered or are we just wasjting time. malawi can operate without borrowed money and achieve remarkable growth. mr mutharika please stop borrowing money now. stop emulating past examples. do not say: ‘kamuzu did it, bakili did it, bingu did it, joyce did it, i will also do it (cashgate)!’ stop wasting money on circumcision rather use it for food distribution. because we do not like those queues at admarc!!!!!!!!!!!!!!! we are watching u!!!!!!!!!!!!!!!!!

  3. Pwiya wa Pwiya says:

    So much of a waste of time by Malawians yet again. These white people are clever, they connive with the so called PWC to get employment while Malawians are waiting in anticipation for results and free donations from them. By doing so, we are spending precious time we could be working. U will see after this audit, they will bring another issue to protect themselves from yet direct budget funding. In fact we still have the gay issue which almost every Malawian is against.

  4. Benjones says:

    Let’s wait and see how serious are these pepo. We went to see real big sharks arrested not these small usipa. Prove it this time don’t make us fools. We mean business as we know the real culprits.

  5. Truck says:

    AZUNGU AKUFUNA KUKUTHANDIZANI KUTI ANTHU ANABA ABWEZE NDALAMA KU DZIKO LILANDIRE NDALAMA ZOBEDWA KUTI DZIKO LIYAMBE KUYENDA BWINO INU MUKUBAKIRA ANTHU WOKUBA A MALAWI KUPUSA KWABASI

  6. YAKI says:

    Stupid colonialists your intention is to rule Malawi and we waste time on this instead of development go to hello with your money.

  7. I have no respect with DPP they think they are smart K577 billion was stolen by them and they are busy playing some games of putting everything on JB it won’t change anything just tell us the truth about 577 billion Kwacha

  8. Mapwevupwevu says:

    No to secrecy. We want access to information now!

  9. Njobanunu says:

    No secrecy! we need an update at every stage. That is taxpayers money! Icho nde nchinyengocho, zachamba basi! ngati simukufuna ingusiyasni! zinazi mumawulula bwa!

  10. kambindingu "hard & low" says:

    Wina akomokatu ndi nkhaniyi. Mmimba kuti juuuu kongomva za 577 billion.

  11. Malunga says:

    No comment

  12. wawa says:

    Some pple don’t have things to do on this earth, osangozisiya bwanji instead u put strict measures for those who might steal now.

  13. Pamajiga says:

    Stupid colonialists. Why do you want to rule our Country from backoffice….? You can go to your respective countries.

  14. kukhala says:

    THIS IS ASSIGNMENT IS LONG OVERDUE. LOOKING FORWARD TO SEEING ITS CONCLUSION AT LAST.

  15. tywin lannister-phiri says:

    you are stupid. can malawians audit each other? the same people that meet everyday at kamba? the same people that owe each other 5pin? izi apange azungu obwera as well as cashgate lawyers and judges. mumadziwana udyo agalu inu….

  16. Mid January says:

    What is it? MK577 billion or MK557 billion?

  17. Enawa says:

    Zomangotukwana anthu ndiye zopusa uzinyoza akubanja kwako fuck u matanyula bamboo ako

  18. CHEWA FEDERAL FRONT says:

    A whole 43% unaccounted for? MW is a sick country and only radical reform will end this nonsense.
    In arguing his case for Federal Malawi at the Mzuzu ZBS-organized debate, one man insisted that cashgate would have been restricted to a particular state and not affect the whole country.
    I am looking forward to the day when MCP and fellow Chewas will join the Nyikans to campaign for a Federal Malawi. The Chewa should wake up from their slumber because Federalism would be of enormous benefit to them. Currently, we the Chewa produce all the tobacco, soy, corn, nuts, cotton,.. but it’s Mr Msamatchula who gains from our sweat. Federalism WILL change this.

  19. Gertu. says:

    Just FYI , the theft of documents was government orchestrated. I have evidence. It’s going to get real funky in 2016.

  20. Dwambazi says:

    Yes there should be no government interference in any shape or form, no intimidation!!! Mathanyula and his crew will pee in their pants. No donor AID till this audit is thoroughly done and the culprits held responsible.

  21. Someone will shoot his/ her foot

  22. HEHE YAAA says:

    DEAR PRICEWATERCOOPERS
    PLEASE DONT GIVE US HALF
    BAKED REPORTS AS YOU
    DID THE LAST TIME

    THANK YOU.

  23. Biti NAC says:

    Pitala ulibwanji

  24. Mlomwe says:

    Peter was the big fish during Bingu’s term.Watch out Malawi

  25. Ngalamayi says:

    What? We need an investigation carried out by foreigners?! Why isn’t Malawi capable of investigating, dealing with its own corruption, embezzlement of funds? Why is there such a long delay? Now these donors’ taxpayers have to pay for the investigation into how their donations were stolen. They are paying twice. Shame on Malawi!

  26. Tina says:

    Continue Probing, stop postponing of Courts,Do not favour the Rich, Bring back our money even 10 % discovery could save some lives definitely.

  27. levelheaded says:

    If the investigations are on going,why do we already have that figure of K577 billion? Who brought that figure? Which one would come first between the figure and the investigations?Why Joice Banda chose not to trace the culprits to this said plunder?

    Some things truly amaze me on this land called Malawi.

  28. guta says:

    Kani the money is not even $1billion. Messi and Ronaldo can even pay for this.

  29. Typical witch hunting by western governments. Anyone interested in this audit should just be honest and form a political party to contest the dpp government. Thats how democracies function. Donors should not hide behind investigations, they should just form a political party and contest the DPP. If they win, then they can fo the audit. IF they lose, they should keep quiet and trust the government

  30. so if you do this privately even the verdict would be privately so if it is bwampini involved then he would be cleared privately, shame on price water house

  31. Donors this Donors that I am really tired,
    What do they donate anyway? we don’t need Lesbian/ Gay fund to survive,its high time we chase all these whites back home
    `
    poverty don’t kill

  32. Maya says:

    I mean beautiful

  33. Maya says:

    Katrin is a beaty she will be my hopes.

  34. chiotha says:

    Very interesting .Germany UK and the rest of the donors pushed government to pass AIT bill yet the same donors are gagging the media

  35. Prof Peter says:

    K577 billion could really change the face of Malawi why us black people don’t need a change in our lives. I know any human races do steal but they invest in something which many people may find jobs. But to us Malawians is different we just steal and keep the money under the pillow and look fat so that the other people should respect us. Let us change our mindset I know corruption shall never be defeated, please use the money wisely for the better future of our nation invest within rather than buying mansions in the developed countries leaving your home dusty and dry.
    Let us love our beautiful Malawi and create jobs for all.

  36. zaipa says:

    K577 are you serious?

  37. FBI geniune. says:

    Mukamachita imeneyi ya 577 billion muphatikizemo 400million ya 2011 yomwe a police nawo anadya nawo.ACB Munangowamanga a police amenewa ku area 30 ndikungoti mulandu uyamba,mpakana lero bwanji.akutasa akuti chifukwa bwana wawo mukhito ali ku state house zowona.akungoti zibwenzi mbwe mtawunimu.wina wangoti chete ku mzuzu ali zili bwino.ma cashsale a kwa gumede hardware a 2011 akupwetekesa ku mzuzu.kusitha zina si udolo ,inatulukidwa kale imeneyi kuti umagwirisa ntchito zina la MUNTHALI.this is fbi chilungamo.

  38. Benson Chirwa says:

    Zivumbulutsa wa padzala izi

  39. kadamanja says:

    Big Kahuna’s turn now.

  40. We will be waiting to see the outcome of the whole story

  41. Bob says:

    Make it fast. We need results

  42. boba fett says:

    anthu abhibha, ena adwala, ena adzipha kumene ndipo ena sadzabwelelanso kwawo mu 2016. azungu ndiye ayifunadi money yawo. the cows have faced the cart.

  43. Joseph Banda says:

    Donors are confusionists. Why were you fighting for ATI bill?

  44. Truck says:

    THATS WHY DONORS PULLED OUT AID WHERE IS $833 MILLION OF CASHGATE GONE THE GOVERNMENT MUST CONFISCATE THAT MONEY AND PUT IT BACK IN GOVERNMENT TO RUN ITS AFFAIRS THEN DONORS AID CAN RESUME.

  45. DR.CASHGATE says:

    How true is this story , because I don’t believe in this DPP government , it’s full of crooks they say one thing today and do the exactly different thing tomorrow. Remember MSB sale , ITI Bill just to mention afew.

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