CDEDI Exposes Senior Government Officials in Forex Scandal, Vows to Launch Lifestyle Audits

The Centre for Democracy and Economic Development Initiatives (CDEDI) has exposed what it describes as a high-level forex scandal, alleging that senior government officials, Cabinet ministers, and ruling party elites are illegally profiting from the country’s forex crisis at the expense of struggling Malawians.

According to CDEDI Executive Director Sylvester Namiwa, investigations have uncovered a criminal syndicate operating within government and the financial sector, where powerful individuals are exploiting the forex shortage by diverting US dollars from the formal banking system to the black market.

“Cabinet ministers, top government officials, and their cronies have captured the economy and turned the forex crisis into a business empire,” Namiwa said. “They are siphoning forex meant for businesses and selling it at black market rates, leaving ordinary Malawians to suffer under skyrocketing prices of goods and services.”

One of the most shocking findings from CDEDI’s investigation involves a senior Cabinet minister and influential Malawi Congress Party (MCP) figure, who recently secured $450,000 (approximately K788 million at the official rate) from a commercial bank, claiming it was for government transactions. Instead, the minister allegedly sold the dollars at K4,200 per dollar, raking in K1.8 billion—an instant, tax-free profit of nearly K1 billion.

“Malawians need to know that at the height of this forex crisis, some of those in power are busy enriching themselves. A senior Cabinet minister is out here purchasing real estate in US dollars while the rest of the country struggles to buy essential goods,” Namiwa revealed.

CDEDI further alleges that the Reserve Bank of Malawi (RBM) is secretly supplying forex to politically connected individuals, who then offload it on the black market for personal enrichment. The consequences of this malpractice, Namiwa warns, are devastating.

“It is now clear why commercial banks have stopped selling US dollars. The accumulated forex is being grabbed by the ruling elite, who then sell it to desperate businesses at outrageous prices. This is economic sabotage of the highest order,” he said.

The economic effects of these forex rackets are already being felt across Malawi, with the cost of goods and services rising daily, making life unbearable for ordinary citizens.

“Unless something is done, the gap between the official and black market exchange rates will continue to widen, making it impossible for businesses to operate, and the forex crisis will only worsen,” Namiwa warned.

In response to the crisis, CDEDI has announced plans to launch an unprecedented citizen-driven campaign called ‘The People Power Forum,’ aimed at exposing corrupt officials through public lifestyle audits and naming-and-shaming.

The initiative, which will be managed by an international institution, will allow Malawians to nominate public officials whose wealth and property do not match their legitimate earnings.

“For too long, Malawians have watched helplessly as corrupt officials loot public resources. It’s time to fight back. We are giving power back to the people. Every Malawian will have a chance to call out those living lavishly on stolen money,” Namiwa declared.

A dedicated toll-free line will be set up where citizens can submit names anonymously. Nominations will be categorized into five groups: Cabinet ministers, political appointees, Members of Parliament, judiciary members, and civil servants.

“If you are honest, you have nothing to fear. But if your wealth is built on corruption, then you must explain yourself to Malawians,” Namiwa stated.

CDEDI has also challenged the Anti-Corruption Bureau (ACB) and the Financial Intelligence Authority (FIA) to take action, accusing them of being compromised and failing to hold powerful individuals accountable.

“Malawians may have information on who is involved in these forex scandals, but they have resigned to fate because they know the institutions meant to fight corruption have been captured by the same people looting this country,” Namiwa said.

With frustration growing over the government’s handling of the forex crisis, CDEDI is calling on Malawians—both at home and in the diaspora—to support the movement by providing technical and material assistance.

“If we do nothing, we will continue to be hostages of corruption and economic decay. It is time to reclaim our country from these thieves,” Namiwa declared.

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