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.
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.
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