More arrests in K354m Reserve Bank of Malawi fraud

Malawi Police  have made more arrests  of  four  more Reserve Bank of Malawi (RBM) employees in connection with K354 million feared stolen at  the central bank.

Police earlier arrested RBM manager (fiscal operations) Charles Mchakulu, two other central bank’s employees as well as enterprenuer  Lucy Rachel Sukali trading as Ideal Stationery.

They cops have since picked for clerks at the central bank suspected to have played a part in the fraud.

Those arrested include Kondwani Banda, Davie Mkhumbwa, a Khonje and a Mbango.

National Police spokesperson James Kadadzera confirmed the arrests and said they earlier also arrested the other  bank’s employees identifies  as Olivia Phiri and Rabecca Chisenga.

He said those arrested  have been slapped with charges of conspiracy, theft and money laundering.

According to police, the figure involved has been revised from K340 million to K354 million as investigations continue.

RBM spokesperson Mbane Ngwira confirmed about the missing of the millions, saying the fraud was discovered through a system of surveillance of transactions in the banking system.

He said the suspected employees “ had been making unsupported transfers from a government ORT [other recurrent transactions] account to a stationery supplier, Ideal Stationery.”

On June 12 2019, Financial Intelligence Authority [FIA] obtained a freeze order with Mchakulu and Sukali, whose account was used as a conduit to siphon money from the bank, as respondents.

Through the court order, the FIA wants to freeze a bank account at National Bank of Malawi Victoria Avenue Service Centre in Blantyre which at the time the order was issued had a balance of K120 917  295.60.

The order in civil case number 432 of 2019 further restrains residential property at plot number Area 6/137 and residential property number Area12/460.

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