Malawi Parley wants central bank, cabinet bosses, AG to answer further on ‘cashgate’

The Public Accounts Committee (PAC) of the Malawi National Assembly will again summon three of the major players in the country’s Public Finance Management (PFM) system to answer further on issues related to the plunder of billions of kwachas from government coffers.

The probe into the financial plunder known as ‘cashgate’ already saw the Reserve Bank of Malawi (RBM) Governor Charles Chuka, the then Chief Secretary to the Government Hawa Ndilowe, and Accountant General appearing before the committee.

However, in its report the House body says it believes that the three officers knew more about Cashgate than they let out to the committee hence the need to summon them again. The committee says it is not satisfied with the responses given by the three officers in previous appearances.

Chuka: To face further probe

Chuka: To face further probe

The three were summoned to explain their laxity in allowing billions of public money to be stolen.

A forensic audit covering the period April to September 2013 has since found that K20.3 billion was stolen under the watch of its custodians, raising the figure from the previous suspected K13 billion to have been plundered.

The RBM and the Accountant General’s office handle and control 554 government accounts.

In its report on the review and analysis of the previous committee’s report, PAC states that it would summon the key stakeholders who appeared before this current and previous committees, especially the Accountant General and the Chief Secretary, to present progress reports on what has happened since the revelations of the theft.

Among several areas the committee said it wants the RBM Governor to explain on why his officials were clearing cheques whose signatures were different from the specimen signatures at RBM and to be informed on what the Governor had done with those negligent officers.

During the previous interviews, RBM officials reported that when the signature specimen did not match, officials from Accountant General’s office just told them to pass the cheques because they were too tired or not in a good mood.

The committee also want to find out what measures the RBM had put in place to prevent a recurrence of the Cashgate.

When he appeared before the committee earlier this year, RBM Governor Chuka told Parliament that banks were mandated to honour government cheques as per agreement between Treasury, RBM and the Accountant General.

It was only after Cashgate that a fresh memorandum of understanding (MoU) was signed between government and RBM removing such restrictions.

RBM spokesperson Mbane Ngwira said the Governor would be ready to appear before the committee when summoned.

The RBM came under microscope when last October, investigations by one of the local daily newspapers revealed new details showing that authorities instructed some commercial banks to honour all government cheques from any of their branches for any amount without any limit on behalf of the central bank.

This aspect of the plunder came as the nation grappled to understand how tens of billions of public funds could be cashed so easily and with such reckless abandon without RBM raising eyebrows during the transaction and as it was refunding overdrawn balances to commercial banks.

From the preliminary report of the Baker Tilly forensic audit, commercial banks were also found to be complicit in ‘Cashgate’ and the committee plans to summon again the president of the Bankers Association of Malawi (BAM).

It was also the commercial banks that allegedly cleared questionable cheques with large sums of money without any restrictions.

The final Baker Tilly report, which is said to contain names of all connected to the looting, has been submitted to Auditor General Stephenson Kamphasa who forwarded it to the Anti-Corruption Bureau (ACB), Director of Public Prosecutions (DPP) and Malawi Police Service (MPS) for action.

However, the report was not tabled before Parliament by Minister of Finance, Economic Planning and Development Goodall Gondwe during the just-ended meeting as earlier expected.

This means Malawians will have to wait a while longer to be appraised of the names of companies and individuals who siphoned billions of their taxes.

The ‘Cashgate’ involved a systematic plunder that involved public officers conniving with private sector firms and/or individuals.

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Yes RBM officials have to be questioned, sizingatheke mwana wako kusowa mnyumba momwemo iwe osadziwa, never!!! They know something about it anene bwinobwino amenewa!!!


They have to be questioned kumene, sizingatheke Mwana wako kusowa mnyumba momwemo iwe osadziwa kuti mwana wasowa, never!


Chabwino ”Cashgate” started with DPP, bt who was in president that time, was it Bingu or APM???? PP is the one to answer for the Cashgate scandal, Where did that money(92 billion) they found at Late Bingu’s residence went, what did they used it for? What about the money they sold the Jet, zinapita kut zonsezo???

zolilo mthetho

chop the balls of all the bosses of all the institutions involved in cashgate, dont spare anyone, chop them and chop them real hard, mr. president!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Wina wofunika kumufinya ndi Khumbo Kachali. Osatinamiza ngati umaba mabedi ndiye ungayisiye hard Cash? Iwe ndi amayi ako nonse ku ndende basi.

Uchitsiru Sasekana

In fact it would have been better for Malawians to dishonor this DPP led government lets form a caretaker government Prosecute all the people from all political parties as long as they have a hand in the infamous cashgate scandal I for one believe that even the members of opposition parties are heavily involved in all corruption taking place in the country no wonder they add little or no voice to the calls of the suffering Poor masses
Hot debate what do you think?


Bodza iwe. Zikungowonekeratu kuti unanyambita nawo za ku phiri. (capital hill)


Members of PAC simply want to earn allowances. Dont think they willcome out wiyh any more useful infotmation than wjat they already know. Greed ya cash basi


DPP is the architect of Cashgate. Peter shared with Mbava Bingu who swallowed all Kayerekera money built a billion house for his dead body & billions house. A Malawi ndale za pa mtundu zimalemeretsa anthu ochepa! Moti 100 kuchoka pa nyumba ya Bingu pa nyumba zamaudzu zomvesa chisoni!

Cashgate started with DPP!!! Because DPP introduced IFMIS from techno brain to central govt. They must have known that there we’re some loopholes, they shouldn’t just castigate JB, there is more to cashgate. Yes PP stole but so did DPP steal some 92 billion. Hence this makes sense. DPP should pluck out the log from their own eye before they pluck it out from PP. The medicine shortage started way before PP was in power.. And now that the cashgate report is out, what about the likes of Khumbo Kachali traitor!!!! He should also be arrested too because he knows… Read more »
Yesaya Dziko

Hehee!!!!,If cashgate had started with DPP. Why didn’t P.P. arrest the culprits when they were in government.The truth is this started with PP government check the ones accused and when were they were arrest and whose children are these Peter or JB. Hehee!!!! uisova.


nothing is happening i wonder why is cheating us like this they r sharing sweet outside but to us they acts they r doing something imagine someone hav been gvn back 65 cars i dont trust this Gvmnt onse akuwathulawa they meet and share sweets mmmmmm but God we praise is mighty time shall come to pass

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