KPMG audit reveals K200mil ‘cashgate’ at Malawi National Audit Office

As Malawi is now becoming infamous as a nation of thieves in public offices, the giant private auditing firm KPMG has exposed that about K200 million of taxpayer money may have been mismanaged at the National Audit Office (NAO) through illegal allowances between 2011 and 2013.

According to a report in The Nation newspaper of Friday,  misclassification of transactions was at K3.5million and transactions not adequately supported was at K2 million while payment vouchers of up to K1.5 million were not provided.

In the plunder, purchase of stationery could be posted to motor vehicle running expenses while maintenance of motor vehicles could be posted on training.

During the period of review, KPMG noted that there was incomplete fixed assets register and non-existence of an internal procurement committee.

The report says in 2012 NAO could not account for K61 million of which K13.9  million was for misallocation expenditure for foreign travel, K13.9 million for misallocation expenditure for training, K6.1 million in payment not adequately supported, K15.9 million in payment vouchers not provided, K839 287 payment lacking supporting documents, K1.4 million in payments whose documents were not provided, K700,000 in misallocation costs and K29.7 million whose payment vouchers were non stamped ‘paid.’

The auditors also found that in 2011 NAO could not account for K23.5 million, K3.6milli ion in payment not adequately supported, K3.2 million in allowances not signed for and K3.6 million in misclassification of payments on foreign travel.

In the 2010/11 financial year, NAO reportedly squandered K36 million; K61 million I 2011/12 and K91 million o 2012/13 through various irregularities

According to the report, NAO management agreed with the finding of the KPMG auditors.