DPP fails to explain K91bn thieving: Stopped probe of cash leak in Malawi gov’t

Former ruling Democratic Progressive Party (DPP), now in opposition stopped the investigations into the K400 million cash leak at Capital Hill, the Public Affairs Committee of parliament confirmed.

This was revealed when PAC met chief secretary Hawa Ndilowe  and Auditor General on the investigation of the cash-gate scandal at Capital Hill.

PAC member Henry Mussa confirmed that the issues of K400 million under the rule of DPP,  cropped up during the meeting with Ndilowe  and Auditor General and that it was revealed from the there was directives to stop the probe during the Mutharika regime.

Government says it want the probe of the cash leak to start from 2005.

According to published report on Wednesday, DPP presided over the loss or mismanagement of over K90 billion  through the Integrated Financial Management and Information System (Ifmis) abuse between 2009 and 2012.

DPP leader Peter Mutharika:DPP has lost the moral high ground  to criticise the current govermment on cash-gate
DPP leader Peter Mutharika:DPP has lost the moral high ground to criticise the current govermment on cash-gate

Malawi’s flagship daily, The Nation quoted  an interim investigative audit report of the Ifmis that the National Audit Office (NAO) carried out between November 2011 and the first half of 2012, but was kept under wraps.

The interim report also details how the money was allegedly lost or mismanaged through seven irregularities involving specific financial transactions.

The seven irregularities are: (1) payments that NAO suspects were done “deliberately”—not for emergency reasons or technical faults as some officers claimed—outside Ifmis;  (2) those without vouchers; (3) those not supported with liquidation documents; (4) payments made to banks without details of beneficiaries; (5) payments for purchases without Internal Procurement Committee (IPC) authority; (6) payments to suppliers for goods without evidence of delivery and; (7) payments for fuel without evidence of delivery.

The newspaper report said the Ministry of Finance—through then budget director Dr Dalitso Kabambe—commissioned the audit after suspecting fraud in the central payment system (Ifmis), according to the background note in the report.

However, the DPP administration systematically discontinued the exercise before 14 more government departments/ministries were probed, suggesting that the plundered K90 billion—more than double the allocations to the Ministry of Health—could be small change compared to what may be the loss if the agencies that escaped the probe were factored in. This year’s budget for health is K42.4 billion.

Asked to comment on the matter DPP spokesman Nicholous Dausi swas evasive, saying the issue is “multifarious.”

Meanwhile, commentator Unandi Banda  said  DPP has lost the moral high ground to level what he called undue criticism on Joyce Banda and her People’s Party (PP) administration that has taken bold steps to deal with unfettered plunder that spilled over from DPP, the former ruling party that did nothing to stop the pilferage.

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