Reserve Bank Governor Chuka risks arrest in Malawi cashgate crackdown

Reserve Bank of Malawi (RBM) Governor, Charles Chuka, risks arrest among other “big fishes” in the continued crackdown of the country’s worst corruption scandal known as Cashgate, Nyasa Times understands.

Chuka: Reserve Bank  of Malawi Governor

Chuka: Reserve Bank of Malawi Governor

Director of Public Prosecutions (DPP) Mary Kachale told High Court in Lilongwe that the Office of the President and Cabinet (OPC), Accountant  General, Financial Intelligence Unit (FIU), Reserve Bank of Malawi (RBM), Director of Public Procurement (ODPP) and Treasury are among the top government institutions that were closely involved in the cashgate scheme.

Kachale said following revelations of former chief tourism officer in the Ministry of Tourism, Leonard Kalonga, who pleaded guilty to three counts of money laundering and was concicted, there will be more new arrests.

“Law enforcement agencies will have to arrest new names that are coming up,” Kachale told the court.

Kachale said others named by Kalonga were already answering cashgate case and some have even been convicted.

Anti Corruption Bureau (ACB) already arrested  former Accountant General David Kandoje for allegedly  authorising payment of two cheques amounting to MK500m payable to Staddal Building Contractors without appropriate supporting documents.

Owner of Staddal, Stafford Mpoola is also answering cashgate charges.

Kandoje was Accountant General when Capital Hill was embroiled in a financial scandal christened as cashgate which saw public servants and private businesspersons siphoning money from public coffers without delivering goods and services.

The culprits took advantage of loopholes in the government’s electronic payment system, the Integrated Financial Management Information System (Ifmis).

Kachale said there are “two new names” to be quizzed on cashgate following Kalonga’s confession, saying she expects ACB to follow up with arrests.

“For us as the State, we are interested in knowing the Accountant General, Treasury and Financial Intelligence Unit people because they were the ones who are entrusted in guarding the money that should be public money, yet they are the ones behind this,” said Kachale describing the scheme as “grave injustice.”

She said the stolen money was meant to fund the then ruling People’s Party (PP).

Also marked for arrests are HTD Limited directors Anawar Mahomed Sidik and Abudul Haris Mahomed Sidik (Managing Director).

HTD Limited were beneficiaries of some cashgate cheques and that they externalised forex to UK where the company managers have the British citizenship.

On 20th August 2013 HTD received two payments from Ministry of Defence vote amounting to K 331,975,000 and K300,000,000 through cheque numbers 210600 and 210601, respectively.

This information is contained in a report extracted from Reserve Bank of Malawi by Baker Tilly Auditors.

In the wake of financial scandal, some of the country’s major donors suspended their budget support .

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nyavizwazwa
Guest

Its true Paulo akudziwa zambiri. And he is the one initiating all this. Ali ndi mayankho ameneyo. Koma kukhala Govt witness ndiye kuti asamangidwe. Aika akhaule akalongawo nso.

Pano tinena poor man ku mudzi akusowa LA weni eniyi

Akatswiri
Guest

SHaa, koma zvuta eti.

Mphangela
Guest

Paja ikatha imeneyi iyamba ya 577 billion ija???????? Koma. Eeeeee kwavutaaaaaaa mary kachale apane amenewa amayesa uzimva chisoni umafia wawavuta apa. Maka Kasambala wodzitama wodziwa malamuloyo akhaule naye asadzabenso.

Nachisale
Guest

Amayi abwereko basi anzanenepo mbali yawo. Zala zonse zikuwalozazi zolakwa kapena zimawada? Truly she knows something concerning cashgate akuoa chani amayi woyee

Zuze Chilombo Chammudzi
Guest
Zuze Chilombo Chammudzi

This is only Ministry of Tourism by the way. There other ministries too to come.

Chitipa
Guest

The Dpp we are very much happy in the way u are handling cases, however, would like to ask u to call for financial report in the following Districts . Chitipa , ntchisi , Dowa and Thyolo where money meant for local Developments were shared by the DPD and last term members of parliament and we know that others are in parliament today yet they used public money to win votes.

Jon Manda
Guest

I believe that Mr L. Kalonga who has been recently sentenced to prison would have been given another role of being a Government witness. I verily see to it that Mr. Kalonga does not deserve this imprisonment judgement at all. He pleaded guilty and the judge did not waiste time on him. I would therefore like to ask the court to reverse the sentence. ( ADZAKHALE MBONI YA BOM, IT SEEMS HE KNOWS MORE THAN ALIYENSE WHO HAVE ALREADY BEING SENTENCED)

Baxter Mkwapatira
Guest

The centre of cashgate is Paul Mphwiyo its time now to pin him hard after hearing what Mr kalonga has said as regards the role he played in this scandal called cashgate.
At this stage we can not rule out the involvement of JB because more fingers are pointing at her. But for now lets just wait for what Paul Mphwiyo will say about JB after all what Kalonga has said in court concernig cheques and those six buses in police custody at the moment.

kudzikonda
Guest

Odi uko! Amayi aduse,ali paulendo sadzabwereranso

Mzake weniweni
Guest

Asova

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