Malawi to trace cashgate tainted assets, says Mutharika as German calls for recovery

Malawi President Peter Mutharika has promised the opposition leaders to recover the money embezzled by the  looting of public purse in what has been known as the “cash-gate” corruption scandal.

Western donors, who provide about 40 per cent of the country’s budget, stopped payments after the scandal erupted in September 2013.

Mutharika:  Will recover the money

Mutharika: Will recover the money

Mutharika said government will trace all the money embezzled and forfeit cashgate tainted properties through a due process of the law.

“I have appointed a new anti-corruption head,” Mutharika said. “I am sure he will do everything to trace this money and also try to recover and very soon you will see progress in the prosecution of Cashgate.”

One of the major development partners Germany has said it wants the full recovery of money that was stolen through cashgate to resume budgetary support to Malawi.

“We are much interested in the recovery of money and the arrest of the culprits,” German Ambassador to Malawi Peter Woeste told Capital Radio, a private broadcaster.

A Malawian court on Tuesday slapped a former senior official with a three-year-and-nine-month jail term, the first such sentence in the infamous cashgate scandal.

Treza Namathanga Senzani, a former principal secretary in the Tourism Ministry, was convicted of money laundering and theft.

Woeste described the verdict as “a victory for the rule of law.”

However, he on resuming aid to Malawi “we first of all have to see how the appeal goes because the process is an ongoing one, secondly we always said which is very important to all of us is the recovery of the stolen assets.”

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.

Germany envoy said Malawi government has to seal all loopholes first to warrant aid resumption.

“No one would put money into a bucket that has holes and is still leaking,” he told Capital Radio.

The drama began in September 2013  when Paul Mphwiyo, the then  budget director and the person former president Joyce Banda  had tasked to close the loopholes in the public purse, was shot three times in the head in Lilongwe. Miraculously, he survived the attack and is amongst state witness in his shooting case.

Ralph Kasambara, former minister of Justice, has been accused of orchestrating the assassination attempt of Mphwiyo and if facing charges related to that. He is also facing separate money laundering charges together with chief suspect Oswald Lutepo.

Some 60 cashgate cases are in the courts, and this week the justice minister Samuel Tembenu indicated in parliament that more people involved in the plunder will be arrested.

The Anti Corruption Bureau (ACB) says roughly K20 billion went missing Banda’s two year rule. They add that probably another K90 billion went missing over the eight years of the presidency of the late Bingu wa Mutharika, equal to roughly $500m at the exchange rate of the time.

In total about 30 per cent of the country’s budget could have been looted over a decade – almost as much as donors have provided Malawi over the same period.

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Someone is talking of old people as the ones stealing. But if you can look at the spectrum, the whole Cashgate list is of young men, the older one is Joyce mtilla Banda.

One thing we Malawians should know is that Anti corruption bureau boss is appointed by president and not independent person. so how do you think he can investigate the president and those surrounding him? Most of these ministers are related or friends of leaders. already those Cash Gators joined government and are declared null to Cash Gate. Gondwe and Kachale is free. Muluzi is hanging with the man whose brother insulted him and his son accepted ministerial post in order to protect his father. The only way to punish these thieves is donors stop giving them money to steal more… Read more »
Malawi is not a nation for Malawians but Asians and now Chinese who buy out their bribes to the presidents. Do you know that mansions are being build in Malawi by Asian? I can not buy a piece of land in my own nation because Asians are offering huge sum of money to greedy ministers. Malawi is sold. We Malawians are slaves in our nation.. It was better even during colonial. We had our land they ruled. Stupid Africans that is why we are poor. Look at the fund raising of Alomwes. Who was donating millions? Indians what does that… Read more »

my friend dont be selfish and stupid, u have failed yourself not others cos u are a envier



The sign of Cash Gate is seen in Bingu,s children who are living rich life as if they worked. I understand Dowa is living in Australia or Portugal where Bingu has mansions. 7 years in poor nation like Malawi someone can afford to have many mansions, impossible not even in US or Europe. Ask Bill Gates. Malawians can never force Cash Gators. Someone has to do it. It is donor. It is always about one family who steal money in Malawi. Malawians were talking to change but what did they do for a change? It will always be Bakilis, Bingus,… Read more »
I solute Germany and hope other donors will do the same. This stealing has to be stopped. No one or donor nation can continue pulling money in Malawi if Malawi and Malawians don’t want to stop this. The money which other nations give to Malawi is for development and help all Malawians. It is not for few to steal. 50 years has gone but Malawi is still the poorest. WHY? Look at the shameless fat people who thinks they enjoy but in the eyes of God they are punished. Peter knows that he is also included in this Cash Gate.… Read more »

You can appoint 2,000,000 Havard professors as ACB bosses you will never win the war because of collusion between public servants, politicians and the private sector. Remember that China executes the corrupt but corruption thrives. The solution is change of mindset. Will DPP get to the bottom of the MK400 million theft? Will the story behind MK92 billion be known? I doubt.


Ndata farm will be the Starting point. Tax payers money.


tiyambile za kundata; casablanca, nyumba za MHC ku Lcity


Zopusa eti…amangidwe akuba onse


Where gvt is smart, pursuing Cashgate Money is necessary. BUT,Where it is the opposite forgiveness is Important.

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