ACB still pursuing Malawi army probe on cashgate link

The Anti Corruption Bureau(ACB) has said it probing Malawi Defence Force (MDF) on its cashgate link, saying the investigations were stalled because they were denied access to Kamuzu Barracks in Lilongwe after MDF claimed they could not allow a public audit due to security reasons.

ACB deputy director  Reyneck Matemba told the Legal Affairs committee of Parliament on Tuesday  that ACB was still working on four files that forensic auditors Baker Tilly submitted to the institution to help in investigation and prosecution of those involved in the MDF cashgate.

Matemba said it is “quiet unfortunate” that the bureau’s investigator were  barred from investigating the MDF link to cashgate.

“We were sent back at the gate to Kamuzu Barracks and investigations only began in July 2014,” said Matemba when he appeared before the commit.

It is reported that the graft-busting body had been pressing the then Army Commander , General Henry Odillo to produce supporting documents for examination by ACB.

Odillo is reported to have declined to handover the documents  to ACB  on pretext that they were “ security and secret document”.

According to Matemba, the investigations at MDF were also “complicated in that we have to extend across the border.”

So far, ACB has arrested a former  Liuetenant Colonel Nelson Kauwa whose company, Thuso Group was linked to alleged dubious contracts at MDF.

According to Matemba, Thuso group had valid contracts with MDF prior to 2013 but the anti-graft busting body has found that there was no evidence of a K900 million contract to supply blank bullets to the army.

There were also valid contracts for Top Prima and Rummage Pace to supply goods to MDF amounting to $50 million (equivalent of K16 billion).

Odillo and his former army deputy commander Clement Kafuwa have also been implicated as they were signatories of several cheques including K3 billion to international procurement services (IPS) owned by businessperson Oswald Lutepo and K1.5 billion to Thuso Group owned by Alexander Banda and Kauwa

The former army chief was one of three signatories apart from Richard Chidzungu and Harry Chawinga, who signed for three cheques amounting to K1.5 billion going to Thuso group while Kafuwa also signed with Chidzungu and Chawinga for cheques worth K238 million,K339 million,K466 million,K180 million and K220 million going to IPS.