Chikaonda calls for overhaul of govt cashleak system

Group Chief Executive Officer of conglomerate Press Corporation Limited, Matthews Chikaonda has tipped the Peter Mutharika government to conduct a complete overhaul of financial management systems in government.

Chikaonda, a former Malawi minister of Finance and Economic Planning and Development, speaking at the two day Association of Business Journalists (ABJ )Annual General Meeting held in Mulanje district at weekend, said government need to concentrate more on combating corruption through building economic management systems that can strongly prevent, detect and punish looters.

Cashgate started in 2005: Chikaonda is on record telling reporters
Cashgate started in 2005: Chikaonda is on record telling reporters

He said government should put much emphasis on “service delivery” and clmap down on corrupt practises.

Chikaonda said government should take stoke of policies and laws on what went wrong and focus on strengthening weaknesses that exists so that the nation should register remarkable progress.

He urged government to come up with innovative ideas and methodologies for development.

The renowned economist challenged the media to be inquisitive and interrogative enough on government policies so that national building is attained.

Chikaonda, who also served as governor of the Reserve Bank of Malawi, is on record saying that ‘cashgate’ corruption scandal in government, started when main expenditure ceilings were removed from expenditure control measures.

“What went wrong is that main expenditure ceilings were removed and there was an authorisation that all government cheques be honoured…and that was the turning point,” he said.

Chikaonda said before 2005, there was a spending limit for ministries and government departments which was put in their respective commercial banks beyond which the accounts were frozen.

He also faulted the way the Ifmis was operated since November 2005 when it was introduced.

“The operator was performing so many tasks and these are system operation, security, administration of the system and there was no audit trail. In a bank, a department that issues ATM [automated teller machine] cards is different from the department that issues pin code,” said Chikaonda.

Follow and Subscribe Nyasa TV :

Sharing is caring!

Follow us in Twitter
oldest most voted
Inline Feedbacks
View all comments
Read previous post:
Mutharika appoints Dausi head spy, Kachama deputy police chief: Bamusi now aide

President Peter Mutharika has made new appointments which has seen his Democratic Progressive Party (DPP) spokesman taking the post of...