Audit reveals K35bn plunder: Malawi govt asked act on errant controlling officers
Malawi government has been asked to take “drastic action” against errant controlling officers at Capital Hill, for fear that public funds will continue going down the drain following revelations that K35 billion has not been accounted for and was probably stolen in ministries, departments and agencies (MDAs) in the 2018/19 fiscal year alone.
The National Audit Office (NAO) has produced an audit report of the Malawi Government accounts for the Year Ended 30th June 2019 submitted to the Office of the Speaker with a covering letter from Acting Auditor General Thomas Makiwa dated January 21 2020.
The K35 billion represents a whopping 1 066 percent increase from the unaccounted for K3 billion in the previous financial year.
In its extended coverage of the report which Minister of Finance, Economic Planning and Development Joseph Mwanamvekha, who formally presented the report in Parliament on February 19 202, Malawi’s leading daily newspaper, The Nation, used the editorial comment to state that “finance prudence demands action.”
The paper pointed out that the audit of the public finance management at Capital Hill “does not inspire an iota of confidence.”
Reads the comment in part:” Impunity and disregard for accountability in public finance management emanate from the laxity by authorities to bring to book controlling officers and their staff who give taxpayers a raw deal.”
The Public Finance Management Act and Public Audit Act impose punishments for errant controlling officers, but the paper noted that, since their enactment back in 2003, no controlling officer has been brought to book for overspending or non-accountability.
“Time to act is now,” the editorial comment said.
In an executive summary of the report, acting Auditor General Makiwa observes that the main findings from the audit, which account for 98 percent of the irregularities by value, include non-maintenance of non-current assets register, misallocations of public funds, fuel not recorded/not signed for in register/logbook, revenue spent at source, payment vouchers not provided for audit inspection, revenue not acknowledged by receipts and stores items paid for but not delivered.
Makiwa also reports suspicious long-outstanding pensioners, failure to maintain proper revenue accounting records, funds transfer for referral medical cases abroad not liquidated, stores items not traced to the ledger, under collection of revenue, unfinished construction works, lack of sustainable special budget for PhD scholarships, interbank transfers without supporting documentation, unsettled claims, payments made without adequate supporting documents, and delay in paying contractors.
The report has categorised the valued irregularities into three, notably major findings by value at K35 148 879 433.80, other significant irregularities by value at K652 649 865.85 and other isolated irregularities by value K148 347 622.47.
The document also notes that there are other areas of non-compliance, but not valued. These include works not done according to contract specifications, non-preparation of bank reconciliation statements, failure to implement construction projects, failure to prepare and maintain fixed asset register, failure to insure assets, failure to produce integrated financial management information system (Ifmis) cashbook and other reports as well as failure to prepare procurement plan.
In terms of value, the K35 billion it is enough to fund the forthcoming fresh presidential election the High Court of Malawi sitting as the Constitutional Court ordered within 150 days from February 3. In the Mid-Year Budget Review, Parliament approved a K29 billion funding for the fresh poll.
The missing funds are also enough to fund the entire Ministry of Gender, Children, Disability and Social Welfare (Vote 320) whose revised budget is pegged at K34.7 billion in the 2019/20 National Budget.
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DPP learnt about cashgate but never implemented the suggestions to stop this plunder. And can stand without shame saying they are fighting corruption. If the President was serious enough he would have made this as a priority. All what he does is to blame JB for exposing it but he does nothing to stop it.
Hospitals have run out of medicine. We have a President who is encouraging corruption and clinging to power.
APM must go if Malawi is develop. How can he talk about vision 2063 when he is plundering the country without mercy.
Shame on UDF and Atupele and the Father. This is what they want. They opened the tap and are happy for it to continue running.
Time will come.
moderator atthention
This party called DPP is full of thieves!Look at the wealth a house wife called Getrude Wamutharika has amassed. Nanga Roza Mbilizi?Nanga APM? Nanga a son to Getrude Wamutharika?Nanga Mervis Mangulenje? Nanga MR MALISECHE?
ABAKHA AMENEWA AZIPITA!
Bro. You don’t have proof. No need to falsely accuse anyone.
Kwa amzanga tagwirapo mboma we know pretty well stealing is a norm m’boma, regardless of political affiliations. There are no control systems or if available arent reinforced. That’s why civil servants own most of the plots in areas like 49, kaphiri etc. They get a salary of 220000 but stay in a rented house of 250000
Ever wondered how DPP gurus are able to acquire plots in cities, buy fleets of 22-wheeler trucks and tippers, build filling stations or town houses; able to donate churches etc, etc? This is the “Likaomba wotheratu” time.
The sooner this DPP regime goes, the better.
And here we are frustrating MCP/UTM Alliance.
Isn’t that a good thing? 🙂 I want to be rich too!
Thats why Atupele wants. Azikabela limodzi.
HRDC where are you, ifetu todalila kulimba mtima kwanu.
Vision 2063 in progress
Dpp members are thieves from top to bottom, Malawi shall never prosper as long as these thieves continue ruling.
Bro, We are all human beings. Whether DPP, UDF, UTM or MCP, we are all human beings. Anyone can make a mistake. Its important to forgive and look to the future.
A Bakha tsopano! Kuba ndiye mumathatu! Ndiye muziti JB ndiye wa Cashgate! Nthawi imene ijatu ankati inasowa ndi 23 Billion Kwacha! Inu pano ndiye muonadi nyekhwe!
Koma zaphweka ndithu with this DPP esh i am speechless
Too painful all under Dpp we need Chilima pa driving seat
The problem is not with controlling officers, rather the problem is with IFMIS which is managed or logged in only by junior officers. A controlling Officer (PS) only approves the Loose minute. What happens down the line, even Directors don’t know. It is accounts persons, procurement persons, internal auditors and store persons who run the show.
Just check the amount of wealth these juniors in accounts, procurement, stores and auditing offices have. Most of these are many times richer than Directors. So, please don’t blame Controlling Officers, rather blame the IFMIS which respects and recognises junior staff to handle transactions. Let us revert back to the good old days when a controlling officer was signing cheques and was able to follow any procurement.
If they don’t know then they shouldn’t be called Controlling Officers. It is their job to ensure there is no corruption and seal all the loopholes. Otherwise what are their in control of apart from allowances and their own bowel movements?
Nanga choncho, amalawi evidence yake ikhale yotani kuti mubvomereza Malawi needs change, good leaders who will hold the country with an iron fist like the likes of Magufuli, tawonani m’mene chuma chikusakazidwa and yet people are dying in hospitals, people are hungry, nothing working and u tell me nooooo u are happy with the current vice, eishhhhhhhhh……..! but all is not lost there’s still hope, vote wisely in the next couple of months
HRDC do something please. Let us march against this until action is done.
The President Must go
Let this DPP government go please
ApM should resign
Unless drastic measures are taken to deal with this problem, this plunder will continue even if another government comes in. There is need for a complete overhaul of the financial procedures within the ministries.The prevailing culture in the ministries has to be done away with. The first thing to do is do away with unqualified staff right away from the accountant general to individual ministries. For instance, how can an Accountant general be unqualified as it is with the current one and you think financial prudence will be observed? A qualified accountant these days is more ethical because is up to date with current affairs through CPDs and also receives training on ethical issues on a timely basis.
The ‘ndimomwe timapangira ku unduna kuno’ syndrome is what is promoting unethical tendencies and continual plundering of government resources. The whole director in the ministry pockets travelling allowances for a trip he did not go or creating bogus trips just to get money. The whole PS inflating prices for a specific contract and share the money with the vendor
Starting detecting corruption in an organization is simple. For instance, you start with lifestyles of specific individuals then go down to the papers and transaction in their offices. But this is the last thing to do after doing away with the prevailing culture in the ministries
Under the wise leadership of bububu
A report without action is nothing other doing pusi pusi to Malawians by now we could have been hearing that people are arrested for abuse of office not rhetoric Muthalika must fall. It is in at a wrong time of presidential elections come May 19 2020.
Unfortunately many people of our society would just do the same criminal acts if they could, or be in that position!
As long there are no consequences there will be no sanity!
Where are the investigators and prosecutors? Finally, where are our Christian values?
Surely we need to get rid of APM and his useless thieving cadets.
As long as awawa alipampando nkhani zake ndizomwezi basi.
100% agree but unfortunately some see no problem why coz akudya nao!