K3.2bn looted at Capital Hill, audit shows

Malawi’s self-enriching government officials  continue to beat the system to  abuse public funds in government ministries, departments and agencies (MDAs), in re-emergence of Cashgate scandal -looting, theft and corruption at at Capital Hotel, a National Audit Office (NAO) audit has established.

Abuse of public funds continue

The results of the audit, covering the 2017/18 financial year, shows weak systems which gives a lee way to massive looting of government money.

The report shows MDAs failed to account for K3.2 billion with controlling officers failing to provide supporting documents for their expenditure.

Acting Auditor General Thomas Makiwa confirmed the authenticity of the report seen by Nyasa Times.

Payments continue to be made before rendering services or rather fraudulent payments to businesspersons for services that were not rendered – Cashgate style – the report establishes.

The report also notes irregularities which include creation of fake remittance advices, fuel expenditure not recorded in the fuel register and operating account used for unrelated activities.

It also establishes the abandonment of motor vehicles in garages, fraudulent payments to personal accounts and supporting documents not provided for audit inspection.

Makiwa in the report has recommended the need to strengthen audit committees in MDAs to facilitate speedy responses to audit reports.

Cashgate scandal was blamed on Integrated Financial Management Information Systems (IFMIS) – a technical solution to deter corruption in public finance management –   which was adopted in 2005 by the late Bingu wa Mutharika administration.

Former president Joyce Banda had suggested that the looting may have started as far back as 2010 following a directive by the former president Bingu that banks should honour all government cheques without asking questions.

Banda became president in 2012 following the sudden death of Bingu wa Mutharika; she had been vice-president although she had been fired from the then ruling party and had formed her own party.

In 2013, between April and September, about K24 billion was discovered to have been stolen from the public purse whereas between 2009 and 2014 about K236 billion could not be accounted for.

Malawi, one of the world’s poorest countries, is now being described as a kleptocracy in some circles, and international aid is drying up. The contrast between the lives of the majority of the population and elites caught with suitcases of stolen government money – not to mention those who successfully enriched themselves over years in power – are as clear to see as ever.

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PP phase 2
Guest
PP phase 2

Thank God Joyce Banda is out of the race, it was going to get worse

Ndatopa!
Guest
Ndatopa!

Joyce Banda failed to stop CASHGATE !

Lundu
Guest
Lundu

Who audits the National Audit Office? Atleast we know the police can arrest fellow police.

kendol
Guest
kendol

let’s bring chilima in this and end it basi without doing so nothing will change chakwela ndi mbusa as no cruel how the economy works muzingobwelesa antu opanda nchito mboma same problems will be preached here

Mavuto
Guest
Mavuto

Audit reports require technical skills to interpret correctly. If a transaction is not supported or indeed booked to incorrect budget code it doesn’t mean it is looted. Sometimes it’s just misfiled.

Atsotsi
Guest

It has now become the tradition in looting the public funds,starting from the one on sterling to tail,n nobody cares about this devilish system,and you wili see that the gvt through its spokesperson will be dumb on this but when somebody speaks negatively to their side with loud speakers they will go to all corners to clean that dirty.During this gvt 4 years lead we hv witinessed alot of looting n corrupt issues but nobody has been jailed.And it is very painfull that somebody who was not paying his taxes here for decades can just come and be the referee… Read more »

John mwelomba
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John mwelomba

The audit report is for 2013 and 2014 and was carried out in 2016

ndadabwa
Guest

peter ameneyo ndi dausi and mchacha. sangaleke kuba anthu amenewa. kodi bwanji Mulungu osangowapha

President Mkango Lion Manthakanjenjemereza
Guest
President Mkango Lion Manthakanjenjemereza

The amount mentioned at the National Audit Office may be more. This is due to two reasons poor funding and lack of National Audit Office autonomy. There is a need for more to be done to the National Audit Office itself.

President Mkango Lion Manthakanjenjemereza
Guest
President Mkango Lion Manthakanjenjemereza

Is National Audit Office independent? Is it well funded? Both answers is no. That means the amount is more than MK3 bn, but because you are not independent and under funded you have just cover few aspects. Please public we need more cover please.