K92bn cashgate report first, budget second – Malawi opposition

Opposition members of Parliament have vowed to block the passage of this year’s budget until a forensic audit report on the K92 billion (US$206.7 million) Cashgate which was reportedly mismanaged during the first Democratic Progressive Party (DPP) administration is table and debated in Parliament.

K92 billion went missing over the eight years of the presidency of the late Bingu wa Mutharika and the structure of that government is the same which incumbent Peter Mutharika is using.

Germany-funded financial investigation—conducted by PricewaterhouseCoopers (PwC) will expose ministries and departments behind the K92 billion heist between 2009 and 2012 as well as broader public finance malfeasance as it also covers the years up to 2014, according to sources close to the audit exercise.

There fevered speculations that the President may be implicated in the cashgate scandal and top ministers in his cabinet.

National Audit Office spokesperson Lawrence Chinkhunda said the report is expected to be formally submitted to the Minister of Finance Goodall Gondwe in accordance with the Public Audit Act, for onward tabling in Parliament.

He said the report covers a period of five years, which includes the period when the K92 billion issues occurred but pointed out that it is “not restricted to the K92 billion.”

Gondwe said the report has not yet been submitted to him.

But opposition lawmakers pressed government to release the audit report through the Speaker’s office to avoid the government tampering with its contents.

Addressing a news conference in the evening, President Mutharika said he would pursue convictions in all scandals, pledging that his administration will not spare anyone as far as cash-gate is concerned.

Germany funded forensic audit to the tune of K9.76 billion.