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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60 thoughts on “Reserve Bank Governor Chuka risks arrest in Malawi cashgate crackdown”

  1. nyavizwazwa says:

    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

  2. Akatswiri says:

    SHaa, koma zvuta eti.

  3. Mphangela says:

    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.

  4. Nachisale says:

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

  5. Zuze Chilombo Chammudzi says:

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

  6. Chitipa says:

    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.

  7. Jon Manda says:

    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)

  8. Baxter Mkwapatira says:

    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.

  9. kudzikonda says:

    Odi uko! Amayi aduse,ali paulendo sadzabwereranso

  10. Mzake weniweni says:

    Asova

  11. Mwini chithumba says:

    Huge sums of Govt. cheques going through the Reserve Bank without the knowledge of the Governor?Very strange?Arrest him so that we should also occupy the position.Munthu kukhala pa institution mpakana zaka 40 koma ana azapeza ma promotion?.Ma age ndioyambitsa ma company and should be employing youngsters.Taonani kukakamira pa bank mpaka mwakumana ndi ma cashgate.

  12. hugo k says:

    lest we forget these grave injustice stories

  13. malawiano says:

    Bava ngati izi ofunika zikafele Kundende basi ala chimuthu choipa ichi kwabasi life in prison

  14. Tengupenya says:

    How will the MWK react if, and if so, when what is said here actually happens?

  15. wakwithu says:

    iliyense nde amangidwa ndingovaya exile bas

  16. inayakeinayake says:

    The Plural for Fish is Fish and NOT fishes. Please use proper English, this online news website is accessed across the globe.

  17. Mulangizi wa APM pa za mthibulo says:

    @Mapiri: But if you have been following these events from their genesis, you will agree with me that the public tsunami of comments we saw here and everywhere else on the internet of hate and total condemnation of Kasambara, was like cashgate was his brain child and that him alone was solely responsible for this whole malfeasance.

    It was as if the Lutepos, Kalongas etc were more hollier than Kasambara.

    It is only now that a clear picture is emerging of what really happened. And that is why I still feel that only time will be his best judge. And time not me, will be able to sway public opinion on Kasambara.

  18. Tobias says:

    Guyz Dont bother Us Wth Ur Nonsense Stories Mukudziwana Pamenepanso Mukuononga Ma Pepala Komanso Nthaw Ya Boma Mmalo Mokambilana Zogwila Mtima Zipindulile Anthu Nkhan Izikhala Cashgate Aliense Amaba Bola Kusagwidwa Mukutibowa Nazo Zi Macashgate Zanuzo

  19. Mapiri says:

    Mulangizi, each person is saying what he knows or how is involved in. Kalonga is not mentioning Kasambara because he was not dealing with him directly. Remember, a lot of people were involved. So they can’t know each other. Kasambara’s involvement was already mentioned. Everyone is being mentioned according to the way they are linked to the case. Did Teresa or Zulu mention Kasambara? Don’t divert the attention of the public. Kasambara was 100% involved.

  20. Mwanafyale says:

    These pple r equivalent to devil and they deserve stiffer punishment once convicted coz their actions hav labelled Malawi one of d most corrupt countries in d world hence withdrawal of aid by donors

  21. Katombawima Ntchunga za nyeka says:

    All those involved in cashgate scandal are to blame for the untold misery low profile civil servants are now in.Tinkayesa zoona kuti Mw ndi osauka ,pamene sichoncho.Mizimu ya anthu mdaphetsa mzipatala siingakondwe.Timadabwa ife ife kulemera kwanu ,kani zinali zakuba?Mulungu akulangeni kotherathu,mwasaukitsa dziko lathu.Iwe Kachale ndi inu a ACB ,gwiritsani ntchito lamulo ,mangani munthu malinga ndi mlandu wake.regardless of who she/he was/is.These thieves should feel it.Mose mulikwiba pathako pinu.

  22. Brazilian wax says:

    This should have happened long time ago. I mean how could the huge sums of money reach a stage of cashing without the knowledge of the mentioned institutions herein?

  23. ma hope a stella gwengweya says:

    malonda a toilet paper ayenda bwino chaka chino bcoz anthu ambili ayamba kutseguka m’mimba

  24. Kawonga says:

    Amangeni basi, tatopa nazo ife

  25. Mulangizi wa APM pa za mthibulo says:

    But is it just me who is finding it strange that Kasambara’s name is not being mentioned as either the main beneficially or the ring leader in this government cash scandal.

    So why would he have to plot to kill the man who was about to bust this cashgate syndicate. It would appear that time will be the best judge for Kasambara in this case.

    And from this case can Malawi learn to respect suspects and hold them innocent till proven guilty. And by suspects I mean everyone: be it Kasambara or Dausi, APM or Bakili, Tchuka or JB.

  26. m'bingu thief says:

    thieves please arrest them before they disappear come on my tax

  27. george says:

    TAKE CARE OF THE RECOVERED MONEY AND PROPERTY

  28. Kadakwiza says:

    We are watching.

  29. Peter says:

    JB your time is closer just come home masten.
    Muzakwinjidwe

  30. achileche ambudye chehamisi chiladye says:

    amalawi pano tili pa kokela kwako koma anthu otelewa lamulo liwakunthe basi

  31. mdk says:

    Bash it’s not like she was stupid but she had nothing to go on.the only thing she could is lip service just like you are doing

  32. Devout Christian says:

    I have very strong objection to your calling the cashgate “christened ”
    This sad saga has nothing to do with Christianity . To CHRISTEN someone is to induct them into the Christian faith. select your vocabulary carefully

  33. Amangidwe basi adadya zathu

  34. Mulangizi wa APM pa jelekani za mthibulu says:

    Koma ndiye tsopano kwayamba kutulu nkhani zikuluzikulutu. Dzana tamva ya a Dausi yokaswa nyumba ya diplomat. Lero mbwalo mwalowa otchuka a Tchuka.

    Nyasa yayamba kukoma ndipo yabwereranso pakale paja. Sweet Malawi newspaper. Big up NyasaTimes.

  35. pacheco says:

    Commission of inquiry is necessary. JB, Chuka Petulo, Godall Gondwe, Lipenga, and all PSs now and then must testify. The truth shall set us free.

  36. chimwemwe says:

    Chuka should be fired we are tired of devaluation he has done nothing for the kwacha to stabilise

  37. Tengupenya says:

    The shadows and skeletons about the Cash gate saga will be dug out, even if the tool to dig these out can be a mere spade or a spoon. small axes are out to cut the BIG trees.

  38. truth says:

    Very interesting. Such arrests will lead us to ndata and the dpp. Don’t allow political influence. Do your job authentically.

  39. MAENDAENDA says:

    ONLY NOW ITS WHEN AM WITNESSING REAL ARRESTS!!! THESE ARE BIG PEOPLE…. YEAH! NAZONI!!

  40. Truck says:

    Chuka you earn more but you keep on stealing Government money its a shame .Mtima sukhutitsidwadi eti kiki! The result of this you end up in jail my dear.

  41. Bash Kamara says:

    The problem with the office of Director of Public Prosecution (DPP) is that it takes orders from appointing authority.From the benefit of past experience it will only be small fish that will be punished.All close to Bwampini it will be hands off including fellow politicians.It has already started.I disappointed that JB was very foolish not to pursue the DPP thieves on K92 billion now K577 billion.

  42. HKMathuwa says:

    Now I have the reason why some civil servants from grade J down have not been enjoying and still not enjoying in getting fat government loans as is the case above grade J.Instead are told that the money available is for grade A to I ,no money forloans from J down and encouraged to get loans from micro financing groups whose interest is so high.Suprisingly cashgate has revealed billions and billions of kwachas have been siphoned by the so called govt top officials ,politicians and busines tycoons without providing any service leaving us who provide service.Had it been that the money was on loan for all interested civil servants regardless of grade,where would this country be by today? Shame on you! Blessed be the hand that giveth than the one that taketh.

  43. moya says:

    Account number1, RBM there is more here. ACB mufaseko ku RBM and dig more mud

  44. vwapuvwapu says:

    Ncthito ilipo,

  45. Truck says:

    CATCH ALL THESE CASHGATE BIG FISH PUT THEM LIFE IN JAIL ITS WHERE THEY BELONG

  46. Sambaukwatiwe says:

    Just watching frm a distance

  47. mwene says:

    VERY DANGEROUS GAME ABOUT TO UNFOLD!!!! EVEN DPP BIG WIGS TO FALL!!!!!! ANOTHER CARDIAC ARREST AROUND THE CORNER!!!!! GOD FORBID!!!!!

  48. Mtchana yozitsata says:

    Ofunika onse omwe atamangidwe , asakhale ndende zakuno… Mapeto ake azikabaso nyemba za mu prison…”nyemba gate”

  49. mbanga says:

    so we pay high taxes and high interest for the money to be stolen?

  50. Kanyimbi says:

    Chonde akafika ku ndendeko anyapala nonse muyesetse kuwakwata. Osawasiya choncho ayi.

  51. mankhaule mlamu baaba says:

    eeeh mpakana ku reserv zafika,achakuulungwa amenewo akagwidwa zikhala za cashgate koma akakamba za JB nde mwati zandale,
    mmmmhh, koma kachali ukuidziwadi ntchito, woman of the year, tiye nazoni mbamvazo, zizingoulula zokha, ndikumatchulana nnali ndi uje, nnali ndi ujeee, zokha kkkkkkk ayayayayayayaya pa malawi pamenepo. Gwirani ntchito u pipo

  52. Malawiyano says:

    Chuka , you have all the evidence how money was being syphoned through the Reserve Bank of Malawi by Bingu Wa Munthalika by then there was Dr Ligoya as the Gorvener of the reserve bank. Just give the report to nation how Bingu banked the money which was public money to foreign banks. Don’t just accept these MWK577b be free and have your career be tereminated by Peter and yet he is a beneficial of Bingu’s cashgate. Do leave them this is between life and death.

    DPP needs those people called big fish to spill the beans how the MWK577b was syphoned and how they are trying all that they can to silence Yelemiya Chihana simply because he knows and has evidence of Bingu’s wealth which over half a trillion more more more more than the MWK150,000.00 which he officially decreared when he went into the public office.

    I also blame JB for not to have worked on the MKW92b the time she was in the office , today DPP is busy destroying evidences , hope is there that the so called big fish will come up will a MWK92b issue.

  53. wids says:

    If anybody has been fingered in this cashgate scheme let him/her exonorate him/herself in the courts not on political podiums or using party spokespeople to claim political victimisation. Kamuzu was alleged to have killed the Mwanza four but he never said anything on political podium but he allowed the due process of the law to exonorate him.

  54. Alufeyo says:

    Mary Kachale you are too excited for nothing. Joseph Mwanamvekha designed the whole scam by authorising banks to honour govt cheques regardless of whether there was money or not. Start by quizzing those who were in Treasury from 2009. From what i know Chukha and Kandoje were not involved. Mind you that the Malawi Police Service is being shielded when money was stolen from its accounts. I will, at an opptune time, explained what happened.

    1. Baba wa boy says:

      You are a very big fool.

      Kachale is talking about what Kalonga has told the DPP and she has to act on it. Is Kalonga talking about 2009?

      Uchitsilu wanuwu, that is why people are going to go free, you mix too many things.

  55. nam'binga says:

    Boma lotsogoleledwa ndi Muthalika lingogwa kuti atenge ena ndipo akhoza kuzitsata bwino bwino, koma kupitiliza kutsogolela muthalika ndikupitilizanso mavuto ku dziko la Malawi chifukwa _APM akukhudzidwa ndi zachnyengo komanso katangale kuyambila pomwe anakhala mulangiz wa bingu ndi nduna. Palibe chomwe chichitke mwina omwe atalangidwe nd a zipani zina

  56. Professor Bakili Muluzi says:

    Long over due arrest of Chuka

  57. Onse omwe adaba ndalama zaboma ayenera kudzengedwa milandu and ngati ali olakwa ayendera kenjati moyo wao onse, including those who stole public money during the reign of late Prof. Bingu wa Mutharika.

    Anthu amenewa asaukitsa dziko la Malawi kwambiri. Osawamvera chisoni ngakhale ena ali amyi like JB.

  58. I think they will have to form their own party in the prison. They are just too many and Malawians are suffering because of these selfish people. All these people are Malawians and had no reason to have a concern when their fellow Malawians were suffering and still suffering. I remember even the Kamuzu Central Hospital had an issue to do with Mortuary dead bodies were rotting in their presence with that kind of cash in their pockets. God, you loves us all but these people loved themselves too much. This is total killing and for God to have mercy on us all in this world, these people they are supposed to answer murder charges unfortunately, Lawyers are involved and they knew that they will not answer that kind of a charge if the syndicate comes out of their hands. God will still punish even if it means your law serves you. you will still suffer internally.

  59. MAFUMU says:

    MAINA A WANTHU AKULU AKULU OKUBA

    AONEKERE POYERA ABWEZERETSA CHITUKUKO MMBUYO.

    MMIZIMU NDI MZIPATALA MABVUTO WOKHA WOKHA

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