The High Court in Lilongwe has found guilty and convicted contractor Godfrey Dzanjalimodzi in charged related to money laundering of K338 million (about $610 000) during the infamous 2013 “cashgate” corruption scandal period.
Dzanjalimodzi used his building company called WG Construction.
Judge Ivy Kamanga convicted Dzanjalimodzi of both charges of theft and money laundering, saying prosecution successfully proved their case beyond reasonable doubt.
She said all seven witnesses that the state paraded proved Dzanjalimodzi benefitted from the money skimmed from government funds even though he pleaded not guilty to all charges.
Businessmen and politicians are alleged to have colluded with civil servants to make payments for goods and services that were never delivered christened as Cashgate.
During the judgement, Dzanjalimodzi looked calm in the dock. He came without a lawyer as his attorney Davie Lameck was occupied with other matters.
The court heard during the trial from Mavuto Madimbo who was co-director of Dzanjalimodzi WG Construction Company. Madimbo testified that he became scared when Dzanjalimodzi informed him that a K91 million cheque was deposited into the company account but its source was unknown.
Madimbo said when he queried Dzanjalimodzi he was told there was nothing to discuss and that he (Madimbo) should leave things alone.
The co-director told the court that WG Construction had contracts to build schools in Kasungu, Chikwawa and Lilongwe districts, but the company sub-contracted because it lacked capacity to undertake the projects.
He said: “I was surprised when the subcontractor called me to query why we were not paying her when a K91 million cheque had just been deposited into our account.
“I was scared after I heard about the cheque and when I didn’t get an explanation from him [Dzanjalimodzi] I approached ACB [Anti-Corruption Bureau] who said my company was under watch over the suspicious transactions.”
The State also paraded as a witness National Construction Industry Council (NCIC) technical director Gerald Khonje who confirmed to the court that WG Construction was registered and flouted council regulations when it was named in the RSM (formerly Baker Tilly) forensic report among suspects to have fraudulently obtained money from the government.
He said NCIC suspended WG Construction and called the three directors to a hearing where they opted to remain silent.
Justice Kamanga has revoked bail of Dzanjalimodzi and remanded him to prison. She deferred her sentence to be delivered later.
Senior Assistant Chief State Advocate Dziko Malunda said “justice has been served.”
The arrest of Accounts assistant Victor Sithole in August 2013 – now serving jail after he was found guilty of stealing more than $66,000 in cash- kick-started what became known as the “cashgate” affair – the worst financial scandal in the country’s history.
It became public knowledge a month later following the shooting of the finance ministry’s then budget director Paul Mphwiyo.Follow and Subscribe Nyasa TV :