Five firms cleared by ACB in K236bn Cashgate: Malawi auditors probe 37 more files

The Parliamentary Public Accounts Committee (PAC) has said  out of the 13 files of the K236 billion Cashgate implicated in the K230 billion Cashgate report, five companies have been cleared on any wrongdoing by Anti Corruption Bureau (ACB) due to lack of evidence.

The cleared companies according to PAC and confirmed by ACB are: Top Prima Limited, Rummage Pace, Chicago Suppliers, Malachite FZE and Xelite Stripe Ltd.

Both PAC chairperson Alekeni Menyani and is deputy Kamlepo Kalua confirmed that they had a meeting with Attorney General Kalekeni Kaphale, Auditor General Stephson Kamphasa and ACB director Lucas Kondowe on the progress of  releasing names of companies and businesspersons implicated in the ‘grand corruption’  report.

Menyani said: “The ACB has told PAC that there is no evidence that suggest that there was corruption in the way these companies dealt with the government.”

On his party Kalua said ACB informed that the five firms have been cleared of any wrong doing and that 10 files have been concluded but that the bureau did not release names of the suspects.

“But there are more files which are under investigations. The ACB told us the companies were cleared due to lack of evidence linking to Cashgate and we were satisfied with that,” said Kalua.

“There are now 37 more files that auditors are investigating. We will press on to know more details,” said Kalua.

ACB director Kondowe said they are waiting for the Auditor General to handover the 37 files which are being probed by a private forensic audit firm working with National Audit Office.

Attorney General confirmed the five companies transactions with security organisations – Malawi Defence Force and Malawi Police Services – were legitimate.

The Attorney General maintains that making the names under investigations public could have legal implications.

He said such disclosures could be costly to the government as suspects could sue for loss of business is deemed corrupt in the public eyes and later be cleared on any wrong doing.

.