PricewaterhouseCoopers to audit cashgate in Bingu’s era

PricewaterhouseCoopers (PwC), the world’s biggest accounting firm is expected to conduct comprehensive forensic audit of ministries and departments covering the period between 2005 and 2012.

Msowoya: PwC to carry the audit

Msowoya: PwC to carry the audit

The new forensic auditor according to treasury spokesperson, Nations Msowoya, would continue from where British auditor Baker Tilly, who uncovered traces of cashgate, left.

‘Cashgate’ denotes the systematic skimming of millions of dollars of money from the government payment system.

Germany, one of the countries that suspended aid to Malawi after a massive public sector graft scandal, has granted Malawi  $25-million  (K9.76 billion) to conduct the audit.

PwC were earlier on reported would conduct an audit into the fraud of government funds in a period between 2009
and 2012.

But Msowoya said the auditor’s scope of work would cover from 2005 to 2012, a period when Malawi was under late President Bingu wa Mutharika who died while in office due to cardiac arrest.

“Price Waterhouse Cooper International is the firm we have identified to conduct the forensic audit.  They will start from 2005 to where Baker Tilly left,” said Msowoya.

He said the new auditor would focus on budgetary allocations and expenditures to all government departments and ministries following reports of massive fraud.

British auditors, Baker Tilly, commissioned by former president Joyce Banda, showed that 13 billion Malawi Kwacha (about US $30 million) had been systematically skimmed from the government payment system in a period of six months last year.

But the Anti Corruption Bureau (ACB) says roughly K20 billion was stolen and it reported K90 billion also went missing over the eight years of late Mutharika’s presidency , 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.

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

A number of government officials implicated in the fraud are facing criminal charges and a first official Treza Namathanga Senzani was jailed last month for three years over the scandal and last week former Accounts Assistant in government Victor Sithole was also convicted.

More arrests of suspects will be carried, according to ACB and government.

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masiye
Guest

yes alike let malawians no the trueth .

Mbanangwa
Guest

Pricewaterhouse Cooper is great and there is no work to worry about. They do great audits, what is 94bn before them. It s a multinational firm. They have offices everywhere even Zimbabwe.Germany trust the firm, Germany will not cough such rage sum of money for cheap work. Germans are meticulous!

Kaya
Guest

Yoh yoh yooh!!!! So Malawian pipo…..

Chindazi
Guest

PWC Malawi should not be involved on this……. We want auditors who are real independent….. we Malawians we went to same school and we drink together and how do you expect to conduct a forensic audit that way………

MBWENUMBWENU
Guest

well you see mukathamangisa atumbuka mboma they will still come and audit you. muva kuwawa athu osatha kulemba ndiku welenganu. thick as thieves

Kabwiro
Guest

Why not giving the contract to Ernest and Young which said PP and JB Administration were managing government resources very well?

katangs
Guest

Theft at MDF during this period was very rampat because all finances were entrusted with a senior military officer who had no finance background.. Especially when there was no IFMIS and during the early stages of the IFMIS programme! Why r the investigations in bits and pieces?

mboma
Guest

and the result will show that 150 billion has been stolen from 2005 to 2012 under Bingu era, this country is not going anywhere, no development i tell u in this stupid country!!!! today paper says Malawi is the 8th poorest country in the world but it has never been to war ever since shame malawian politicians!!!!

frank
Guest

P W C fufunzani nkhani yandalama zimenezi 90 billion kwacha, tikufuna anthu amene anawononga ndalama zimenezi awonekere ndipo chilungamo chiwonekere padela.

JAYJAY
Guest

IYO NDE NKHANI ANTHU AKUBA AMENEWO.TIWONE NGATI PITALA NDI A CHAPONDA ,GOODAL GONDWE NDI ENA SIWAKHUZA.ZIMATCHONA ZOSAKONDA DZIKO LAWO.IFE MISONKHO YIMATIWAWA ZITSIRU ZA ANTHU ….VUTO NDI MAVOTEDWE.ANTHU OVOTA AMBIRI NDI ANTHU OSAZINDIKIRA.MU MALAWI.

chiperoni2
Guest

Voti ya corruption ingabereke chiyani?

wpDiscuz

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