Anti-Corruption Bureau (ACB)are expected to take to court former Malawi Defence Force (MDF) commander general Henry Odillo (retired) and his then deputy Clement Kafuwa on Wednesday to enter plea for their charges following their arrests on Monday as they spend a second night in custody on Tuesday.
Odillo and Kafuwa are being held at Area 3 Police Station in Lilongwe.
They are being accused of arranging a contract to supply military equipment which was never delivered.
The two have been charged with three counts of abuse of public office contrary to Section 25(b)(1) of the Corrupt Practices Act; negligence by public officer in preserving money or any other property contrary to Section 284(1) of the Penal Code; and, money laundering contrary to Section(1)(d) of the Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act.
Neither Gen Odillo nor Col Kafuwa have commented on the allegations.
The arrest is the latest development in an investigation that began in 2013 under former President Joyce Banda.
Dubbed “cashgate,” the probe showed that dozens of civil servants had siphoned off about $60 million in government funds by colluding with business leaders to make payments for goods and services that never materialized.
International donors responded to the corruption scandal by freezing aid to the impoverished southern African nation. Nearly half of Malawi’s budget depends on donor aid.
According to the World Bank, more than half of Malawi’s 16 million people live below the poverty line.