Dzanjalimodzi has case to answer in K338mil cashgate, court rules

The High Court in Lilongwe has ruled that State prosecutors have made a prima facie case of theft and  money laundering against contractor Godfrey Dzanjalimodzi over  K338 million (about $610 000) during the infamous 2013 Cashgate period and that it’s left for him now to defend himself.

Judge Ivy Kamanga ruled that the prosecution has established a prima facie case against Dzanjalimodzi, saying: “He may have a case to answer.”

Kamanga relied on the weight of testimonies in the trial.

During the trial, Mavuto Wellington Madimbo former  co-director in WG Construction, who is now working with Mkaka construction company as site supervisor,   told the court that they had contracts to build schools in Kasungu, Chikwawa and Lilongwe districts, but the company sub-contracted because it lacked capacity to undertake the projects.

According to Madimbo they subcontracted some works to Mphatso Metal Works from Zomba and hey gave Mphatso Metal Works owner Mr Poya Cheque book for NBS with seven leafs already signed so that he can cash his payments once there’s money deposited into the account.

Madimbo told the court that one morning  he received a call from Mr Poya asking him if he is aware that in their account there was money deposited amounting to K91 million and if he can cash his dues.

“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,” said Madimbo.

He said they were only expecting two payments from government one worth K7 million and K5 million.

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 Baker Tilly (now RSM) 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.

Dzanjalimodzi’s lawyer  Steve Kafuba said he will prepare defence of the case and asked for an adjournment.

He also asked the court that Dzanajilomdzi should continue to be on bail and hired State Prosecutor did not object to the application.

Justice Kamanga adjourned the matter to September 23, 2016.

In 2013, the shooting of former Ministry of Finance budget director Paul Mphwiyo outside the gate of his Area 43 residence in Lilongwe led to revelations of the plunder of public resources at Capital Hill called Cashgate.

Former president Joyce Banda ordered an audit which British forensic auditor, RMS ( formerly Baker Tilly), undertook between April and September 2013 and established that about K24 billion was siphoned from public coffers through dubious payments, inflated invoices and goods or services never rendered.

In May last year, a financial analysis report by audit and business advisory firm PricewaterhouseCoopers (PwC) also established that about K577 billion (now changed to K236 billion)  in public funds could not be reconciliated between 2009 and December 31 2014.

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