Mphwiyo not whistle blower but kingpin of cashgate, Malawi govt economist testifies

An economist who was working in the ministry of finance , treasury department and economic affairs division between the period of April and September 2013, Daniel Jenya has told the court that f Malawi Budget Director Paul Mphwiyo, whose shooting on 13 September 2013 led to the unravelling of the systematic looting of millions of government money dubbed ‘cashgate’,  was not a whistle blower as touted by former president.

Mphwiyo: Gun shot survivor in Malawi 'cashgate' is now called main architech

Mphwiyo: Gun shot survivor in Malawi ‘cashgate’ is now called main architech

Jenya who was testifying in High Court on Wednesday on the shooting case of Mphwiyo related to cashgate, Malawi’s worst financial scandal in its 50 years as an independent country.

He appeared as sixth witness of first accused person Macdonald Kumwembe.  Jenya told the court that he was the one who blew the whistle having noted the over expenditures from the month of July to August 2013

Jenya told the court that he was working at Macroeconomic Policy Unit where he was responsible for among other things, compilation, analysis fiscal tables.

Fiscal tables is a table which shows government revenue,  expenditures and financing (borrowing or repayment of debt arising from differences between revenues and expenditure).

He said his responsibility involved working with aggregate figures of the operations of the central government and that his immediate boss was Kettle Musukwa who was reporting to the Director of Economic Affairs Francis Zhuwao .

When he was quizzed by Kumwembe some of the notable things that happened in 2013 between the period of April and September 2013 , Jenya said it was the appointment of Mphwiyo to be Budget Director from Deputy Director of Economic Affairs in July 2013 and  that after Mphwiyo’s appointment he also noted the rise in expenditure figures in the month of July 2013.

Jenya told the court that on average all the items government expenditures could not be more than 40 billion Kwacha per month but in July the expenditures was around 55 billion Kwacha and in August it hit to 70 billion Kwacha he said observed using the fiscal table and cash management tables from the Reserve Bank of Malawi (RBM) that expenditures were almost double the monthly average for the 2012/2013 financial year

The economist said he reported the matter to his boss , Mr Zhuwao who asked Mphwiyo to explain why the expenditures were high for the month of July and August mainly when it almost doubled from average of 40 billion kwacha to 70 billion kwacha.

Mphwiyo started refuting the figures , claiming that if the figures were indeed high the country should have seen rising inflation.

He said then Mphwiyo called him on 7th September who asked him how he said the expenditures were shooting but there was no inflation rising and he explained to him that what Mphwiyo was asking was theory but practically that takes as long as four years to produce results as it is determined by how the expenditure was used whether locally or used to improve goods from abroad.

Mphwiyo then is said to have instructed Jenya to conduct an analysis to find the reasons why inflation was not rising if expenditures were high.

Jenya also disclosed that other notable activities between July and August 2013 was the fact that arrears which were supposed to be spent in the second quarter of the 2013/2014 financial year of K8 billion were all spent in the first quarter of the financial year with over K7 billion spent between July and September 2013

He also said it was surprising that the appointment of Mphwiyo as Budget director came with too much pomp than how it is done all the years as exhibited by the newspaper articles which read “Introducing Paul Mphwiyo”.

Reserve Bank meeting

When Kumwembe asked him to explain of the meeting which took place at reserve bank and what transpired there plus all those who attended the meeting

Jenya replied that the meeting was convened following further investigation into the high expenditures which failed to yield any positive answers , the meeting was convened on 9th September at Reserve Bank in the afternoon.

He said the meeting was aimed at asking the RBM to explain where the high figures came from as it was the Budget Division (Mphwiyo) and the Accountant General (Mr Auzius Kazombo) who did not seem to understand where the figures reported by the RBM came from.

The meeting according to Jenya was attended by  Zhuwao – Director of Economic Affairs; Mphwiyo – Budget Director;  Auzius Kazombo – Deputy Accountant General; Mercy Kumbatira – Acting Director of Banking and Currency ; Chimwemwe Magalasi – Manager in Research and Statistics  and Daniel Jenya – Economist, Macroeconomic Policy Analysis Unit.

He told the court that Mphwiyo and Kazombo asked the RBM  (Mrs Kumbatira) to explain their expenditure figures for August 2013  as according to the funding figures and expenditures in IFMIS, the expenditures could not have been that high.

Kumbatira started mentioning some of the notable expenditures for August 2013 to which Mphwiyo agreed.

Jenya said he could remember some of the expenditures mentioned were for the Malawi Defence Force for Peace keeping and Arms procurement , police for procurement of uniforms and externalised funds whose purpose was not mentioned but Mphwiyo expressed knowledge of it.

He said he was so surprised to note that the same person (Mphwiyo) who refused to explain the figures while in the treasury before going to RBM meeting started acknowledging some of them at the meeting.

In his testimony, Jenya said the meeting agreed that RBM would send the Treasury and Accountant general images of cheques above K50 million to that the accountant general would reconcile with their expenditures and the images were provided the following day of the meeting but despite reminders to the accountant general , such reconciliation was never done.

Jenya said using the images of cheques he noted that there were huge payments from Office of the President and Cabinet (OPC) to International Procurement Services and that in Malawi Defence Force there was several cheques printed on the same dates to the same supplier.

He said as they were continuing with the investigation of what really caused high expenditures was continuing he was provided with Funding table and IFMIS expenditures table by Philip Majiga who was working in the Budget Division.

Jenya told the court that using the tables , he observed that Ministry of Information , Tourism and Culture had spent more than K5 billion than it was allocated in the financial year as it had spend K5.3 billion between July and September 2013 compared to a funding figure of K307 million within that period

He said he reported the findings to his boss Director of Economic Affairs Zhuwao as it also raised questions.

Kumwembe also asked Jenya on who was the first person to defend Mphwiyo after his shooting in which Jenya replied that it was surprising to note that he was defended by the Head of State when government protocols demands that he be defended by his counterparts in the ministry’s department of information

Director of Public Prosecution Mary Kachale then asked the court not to use his evidence and statement in the case as it is part of the state witness in the ongoing K5.2 billion cashgate case that involves Mphwiyo, Kazombo and other 16 but presiding Judge Michael Mtambo asked her what will be the threat if the witness statement be used as part of witness of the case and if his objection was in line with the any law.

Kachale said she was only raising the issue and that it was up to court to decide on the issue and judge Mtambo over ruled her objection and marked the Jenya testimonies as part of the evidence by the defence witness.

The Director of Public Prosecution then urged the court to allow them cross examine the witness in camera due to the sensitivity of the facts at hand as it was to do with National security and Arms deals which are not discussed at public and the judge granted the application and state proceeded to cross examine the sixth witness without the public and the media.

 

Mphwiyo is linked as key player in the looting Mafioso and is also charged  on cashgate cases.

Forensic auditors from British audit firm, Baker Tilly, established that under the administration of Joyce Banda, about K24 billion was looted at Capital Hill between April and September 2013 through inflated invoices and payments for goods and services not provided to government.

In 2015, a financial analysis by PricewaterhouseCoopers (PwC) also established that about K577 billion in public funds could not be reconciliated between 2009 and December 2014 owing to abuse of the central payment system, Integrated Financial Management Information System .

Western donor nations and agencies, which provide 40% of Malawi’s budget, froze vital aid in reaction to the scandal.

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38 thoughts on “Mphwiyo not whistle blower but kingpin of cashgate, Malawi govt economist testifies”

  1. Former JB Supporter says:

    It makes me sad to read stories like these. Kasambara is amongst the few Malawians who has helped Malawians to realise our human rights and not to let the powerful trump upon our fundamental freedoms.

    He was the first to alert the nation about Bingu’s abuse of our rights and tax payers money. He also stood very firm when midnight 6 wanted to violate the constitution. Like many others of influence, like Mr. Mpinganjira, he too could have chosen to fold his hands and not to get involved.

    Yet instead of encouraging people like him, Malawi deliberately chose to twist and distort information to be against him, humiliating him, arresting him and punishing him for the ills we all knew very well were for others.

    Who on earth could believe that Kasambara was right on the crime scene in area 43 on that night when Mphwiyo was being shot?!

    Malawi is a very sad place on earth, only the brainless can be proud and patriotic to that country.

  2. Former JB Supporter says:

    First thanks to Nyasa Times for such a comprehensive report. Since my comment criticing your style of writing which was too brief for a mature audience, sometime last year, I have noticed a marked improvement of late. Please keep it up.

    Now I turn to all Kasambara haters who were in full swing posting your vile ridicule here. Can you see which direction this case is taking? Ana anjoka inu, kuzolowera kudana ndi chilungamo. That is the reason our country is remaining undeveloped.

    A JB ndinu mayi watsoka. Zoona kupachika munthu wosalakwa, komanso yemwe anakuthandizani kukukhazikani pampando midnight 6 itamenyetsa nkhwangwa pansi kuti betchi inu kutenga mpando wa Bingu?! Zoona?!!

  3. Daudi mj says:

    very sad. we have money in this country but it ends in few individual’s pockets. That is why electorates have decided to stay away from taking part in elections. They lost trust in our leaders. There is no sign of patriotism in handling of finances.

  4. Bob says:

    There is more to this than what has been revealed so far. Timva Zambia.

  5. NVM says:

    Jenyalisation.

  6. NVM says:

    Jenyalised

  7. benson says:

    let the law takes its course. there is a lot of corruption in govt departments. we are not developing because of this enemy. while blowers are being attacked in govt departments.

  8. eluby chikopa says:

    Ralph is surely involved and this contravenes with what Virgo is saying @20. Amayi said she knew who was behind Mphwiyo’s attempted murder. Ndiye Lafayelo wagundika.

  9. Observer says:

    Thumbs up to the Reporter, Mphatso and the Editor for this detailed report. I have of late noted some lazy reporting on Mphwiyo shooting case. Of late, there is only a paragraph or two relating to the heading and rest is a copy and paste piece of the background to the case.

    I have always believed that a story should be comprehensive enough to enable those who did not attend the trial to fully understand what happened. This is good example.

    If its an issue to do with other reporters not being good enough to report on court proceedings, then please allow this reporter take us to the end of this trial while others go for further training. The training could as well be in-house and am sure Mphatso can montor them.

    Once again thanks for a well elaborate story

  10. Gerald mapanga phiri says:

    Just one of the country bleeds thieves

  11. Kingman says:

    Awa sakukamba za shooting ayi

  12. Mwenejombo says:

    Bravo the reporter. You really did pass your exams, osati zija zama gay zija, asa.

  13. Afera says:

    This Mphwiyo man was spending millions in casinos on gambling machines without shame when your people and mine were lacking medical care in hospitals and health centres and dying of hunger in the villages. He should not be left scot free. Let him return all that loot before he is sent to prison to rot as Ngwazi Dr. HKB, (may his soul rest in peace) used to say

  14. virgo says:

    Crime thriller indeed. Here is my take as of now.
    1. Mary Kachale and Reyneck Matemba have a great plan. Lock up Kasambara and Kumwembe for attempting to murder Mphwiyo. Jenya’s evidence shows JB was told by Mphwiyo that Ministry of Finance people were suspicious. But these suspicions were a tipoff from Ralph to implicate JB and Mphwiyo bcoz cash wasnt being shared
    equally.
    2. Paul knows Ralph has nothing to do with the shooting. Ralph didnt need to as he had tipped off people about cashgate. But under JB’s guidance Paul mentions Ralph to drown with him.
    3. Once Kasambara survives this deluge, he is a free man. Paul will then have to explain himself. Who sent him to negotiate a Malawi Army contract? How does he explain the cheques cashed on the same day? Plus he has to deal with new evidence that will come with people like Jenya?
    3. Could it be a possibility that Paul tried to shoot himself to deflect attention from the increasing suspicions and then mistakenly aimed at the jaw and not where he initially intended? Or he asked his wife to do it and due to lack of experience she closed het eyes on pulling the trigger and accidentally blasted the jaw?

  15. kambwali says:

    mialandu iyi azikamba ndi mafumu iziyenda mwachangu ma court kuchedwa kwabasi

  16. How long are we going to sit here and hear this thieves stories blaming each other. They are free anyway. If JB had been in the government I am sure they could be Cases and reviewing of those who stole even if she was involved. I know as a woman she could have done. Mind you Mphwiyo and the groupe of Cash Gate were former UDF. The largest Cash Gate was during Bingu. These people they just continued not started during PP/JB. Malawians are tired of the game. Everyone is playing a game. DDP is playing. Not serious to tackle the Cash Gate. They could if they were not involved. But since donors them to take up from 2009 which was DDP/Bingu and APM time they fear the worse. Malawians want o go forward. They have enough of these thieves? My countrymen the day we will smoke them it will be the day they will feel it. People can be good and bad. We ar watching them. God have already condemed them. They
    Are not free men and women.

  17. Nganga says:

    Daniel Jenya is my man of the year!

  18. Akatswiri says:

    Let the courts handle the matters the way they want.

  19. mjiba says:

    Now this is good evidence for Mphwiyo’s case. Thanks Ralph and your fellow criminals for unearthing the scammer Paul. But where is Joster Njanji and the Presidential Plane case? Why is this idiot Mphwiyo still on bail? He is a flight risk, revoke his bail now!!!

  20. The Analyst says:

    O…………………………………………………………………………………………………………………………………………………………………………………………………………….O
    With all this unambiguous and ubiquitous evidence
    . . . Where is Mphwiyo as we speak or write now? If not Just as free as anybody else and arrogant as a bird in the sky on a mission to outfly its own wings?
    . . . Where is the one who appointed Mphwiyo as the Budget Director to steal coz evidently, that was all his mission? The answer is nobody seems interested in this topic!
    . . . Where is the Reserve Bank that seemed to know what was happening but cared little to do anything about it? Not even APM wants to hear this question coz at the helm of RBM is a tongue that APM understands. Sad!

    Malawi and its justice system are a joke! We people need to know that . . .

    “The only Thing necessary for evil to triumph is for good men to do nothing.” – Edmund Burke
    ………………………………………………………………………………………………………………………………………………………………………………………………………………….
    If you cared to listen to or read the the US’s Financial Crisis Inquiry Commission report on the causes of the 2007- 2008 global financial crisis, you would palpably see how lack of regulatory oversight is one of the major culprits hence the rise of regulatory arbitrage of Basel I and II by banks; and growth of the unregulated shadow-banking industry where excessive risk-taking in the the subprime market, mushroomed.

    The regulator was an accomplice or incompetent; and either way, he/she failed hence not deserve freedom.
    People like Mphwiyo do not even deserve bail; yet they now have freedom to eat, invest, hide and
    . . . to squander . . .
    . . . their plunder . . .
    . . . while our laws slumber . . .

    Are we surprised that people continue to plunder our public resources when those who steal, appoint agents and accomplices to steal, are just as free as anybody else? Am not surprised!
    O………………………………………………………………………………………………………………………………………………………………………………………………………………..O

    1. Nsonda says:

      Sure, you should not be surprised my fellow patriot. This is Malawi, the land of thieves and robbers. I bet you that over 90% of Malawians hate the most noble and wise questions you have raised above. This is Malawi, the land of monkeys. Me too, I am not surprised.

      1. The Analyst says:

        Very sad and disheartening

  21. Nganga says:

    Apa Nkhani ndiye yayambika.

    1. John the Economist says:

      Well narrated testimony by witness Daniel Jenya.Apandi nkhani yayambika. I would also like to thank Judge Mtambo for presiding this court sitting according to the law when he over ruled DPP objection and marked Jenya testimonies as part of the evidence by the defence witness.But my question to the Cash gate investigators why are RBM staff spared in this case. We know some guys from internal finance who worked closer with Mphwiyo on this looting. They used to be together drinking at the RBM club house.

  22. mopia says:

    ok 577 under who tell us

    1. Nsonda says:

      Under this period 2009-2014. Did you not see the period in the article? It even includes the K30billion of this period April 2013-September 2013. And according to PwC report, over 80% of K577 billion was misappropriated between last quarter of 2012 and first half of 2014 Hope this has sunk into your head.

  23. Truck says:

    TIME IS FLYING WE ARE TIRED OF LISTENING CASHGATE STORIES WE WANT TOUGH JUDGEMENT NOW

  24. zak says:

    Iam starting to question the all economist that UNIMA has produced since 1992 and working in
    government if all are thiefs. So you
    guys 8yrs you spent in primary school plus 4yrs at secondary then yrs at university you were being educated to become thiefs? This
    Mphwiyo is a real thief and this is
    a straight forward case don’t know
    why courts are taking long to send them to jail.

  25. josephine chiwengo says:

    The role of Attorney General then in the arms deal as the country cannot negotiate a country foreign transaction without Him for fear of lawsuits Ralph. Knows best.,.so former Acting President Joyce Banda
    was part of it..oh God she really killed Malawians more her fellow Women Mrs martha Kwataine and mrs dorothy ngoma did you know this or you were part of the game…so sad….

  26. Silent Observer says:

    Ndasangalala nawe Dani Jenya pa umboni umenewu, my Chi-Alpha brother at Chanco. Komanso umayimba bwino mu Praise Team pa nthawi imene ija. Moni kwa Esmie Chipala.

  27. Guantanamo says:

    This trial wants to prove if Kasambara intended to assassinate Mphwiyo. What has all this testimony got to do with the said fact?

  28. 2016 welcome says:

    That’s what make me hate JB much as I don’t trust DPP. JB defended Mphwiyo like a tigress cause he was her errand boy. There is glaring truth in what Mr Jenya has said.

  29. learnedmi says:

    this is the most interesting piece of evidence and kudos to jenya he is a brave man and honest. the cat is not out of the bag. DPP Kachale is a very intellegent woman. this is brilliant case and ralph agwadatu.

  30. kalikokha says:

    wabaya nyani ntche***.mphwiyo chonde ingoululilatu.nthawi ndiyomweyi .uwapulumusatu amAkutumao.

  31. overdraft says:

    Good reporting nyasatimes. but also indicate how enacting the access to information bill will help the country pursue cashgate suspects. Journalists would have been able to access the files Jenya is mentioning here and would have been able to pursue the truth outside the court which would make Kachale’s job easier. Access to Information now!!!! Excellent reporting Nyasatimes.

  32. Matinginyoli says:

    Had Ralph, Joyce, Mphwiyo and Lutepo known you were going to ruin their life they wiuld have put their differences aside and eliminated you. But God is good. He kept you aluve for purpose. May God bless you and keep protecting you and yours. May he bless those who gave you the education you have yo be able to see and ask questi

  33. Magengena says:

    This is an interesting read. I wonder what keot this guy alive when he started asking those questions abiut the anomalies he saw. Achina Ralph anali busy kupondana dollar zakuba ndi Mohwiyo osaona zoti kukuvumbulutsidwa chisa cha mavu

  34. Bololo says:

    Malawi full of graduate but less interigent pple, thats why we are poorlest pple in african, i cry wen i go to village to find aperson failing to buy k60 soap, but yet u stealing such money, God wil purnish U!!!!

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