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.

Abuse of public funds continue

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
DPP
8 months ago

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… Read more »

Mod
Mod
8 months ago
Reply to  DPP

moderator atthention

Nyenkhwe
8 months ago

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!

Samson Chakwira
Samson Chakwira
8 months ago
Reply to  Nyenkhwe

Bro. You don’t have proof. No need to falsely accuse anyone.

Chiswa B
Chiswa B
8 months ago

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

Mtete
Mtete
8 months ago

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.

Eleanor Dickinson
Eleanor Dickinson
8 months ago
Reply to  Mtete

Isn’t that a good thing? 🙂 I want to be rich too!

Honestly
Honestly
8 months ago

Thats why Atupele wants. Azikabela limodzi.

Honestly
Honestly
8 months ago

HRDC where are you, ifetu todalila kulimba mtima kwanu.

Honestly
Honestly
8 months ago

Vision 2063 in progress

Kaiko
Kaiko
8 months ago

Dpp members are thieves from top to bottom, Malawi shall never prosper as long as these thieves continue ruling.

Brendan Phiri
Brendan Phiri
8 months ago
Reply to  Kaiko

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.

Pachalo
Pachalo
8 months ago

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!

Lego
8 months ago

Koma zaphweka ndithu with this DPP esh i am speechless

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