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.

Stephenson Kamphasa, the Auditor General: Hunter is hunted as KPGM audit reveals finanial scams at NAO

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.


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18 thoughts on “KPMG audit reveals K200mil ‘cashgate’ at Malawi National Audit Office”

  1. Mkhale says:

    These are internal control weaknessess not necessarily misappropriation.

    1. kondwani says:

      So we should understand this fellow country man??

  2. Ron says:

    Chaotic bookkeeping is necessary if you’re going to misappropriate funds.

    Malawi’s Civil Servants need to change their ways fast or this country is going to go bankrupt.

  3. Cash Gate says:

    koma abale ku malawi kuno , katangale kaya adzatha, mbali zonse kumangomveka zakatangale basi. Aaaaaaaaaaaa!!!!!!!!!!!!!!!, Malawi wanga ine.

  4. Zondiwe says:

    Mr Kamphasa was not at NAO during the period under review.

  5. phiri says:

    these are just audit queries as u can see the report. vouchers not stamped as an example. it seems its not a full report

  6. Mika Kumbire says:

    Akunjanu zibweraniko. Mukuoneka zikukuwawani kwambiri and yeti mukuti mukudya bwino kumeneko. There is no abuse of funds here. There is simply lack of follow up on procedures. Vouchers not stamped “PAID” with all necessary approvals does not tantamount to abuse. People misallocating stationery to Fixed Assets is not stealing just lack of proper accounting knowledge. What type of Auditors do we have at KPMG. All these issues can easily be cleared in the Management Letter and I am sure they were responded to. Explanations like lack of manpower or delays in recruitment of enough stuff should address these issues. Only a proper forensic audit by qualified auditors would reveal fraud!!

    This lack of understanding of some basic accounting and auditing rules and procedures is also a major embarrassment by our media colleagues.

  7. MIKEY says:

    Civil Service is a calling’ remark

  8. MM says:

    if its a calling job you can kuba that money otherwise start a business you cannot get rich in government – GOODALL BADALL GONDWE

  9. General Dubaku says:

    Thumbs up KPMG, am sure there are more rotten government departments and who ever is looking into their accounts should do so with a lot of skepticism. tavuka nawo wanthu wakulya ndalama zithu awa, we pay a lot of taxes and iwowo asamapange misuse our money..

  10. maya says:

    he went to school to have money thats y he is qualified as an auditor, so let him have money mwai ngat uwu ukazakupezani zapangeni zomwezo, mumati azidya ma principles ndi ma standards apange pension alibe kanthu

  11. Central says:

    Ndimadabwatuuuuuuuu ineeeeeeeeeeeeee! Shee! Shee! Shee! Shee! Indeed it’s a nation of thieves in public offices! No wonder Kamphasa has been giving a lukewarm attention to important matters! He was and is afraid of being hunted!

    A President ali pheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee! After he said it all, and was auible and clear: “Alibe problem”, and I now strongly believe he meant “he has no problem with stealing!”

    To all civil servants, amene salemela panopo, tili ndi boma la mu Lhomwe uyu, sadzalemelanso! Mind you, mulopwana khananalaaaaaa!! Thyithyooooooooooo!

  12. George says:

    Medical Gate Ku Central medical stores Billions of kwacha going in the drain from Contracts under Buy Malawi campaign, without tenders and overcharging of prices. Ma contract alipo Buy Malawi campaign koma katundu ama bwera chokera Kunja not made in Malawi

  13. Cash gate No. 3 says:

    OK it makes sense, ifetu kudabwa staff ya kwa Auditor General Kunjoya pa facebook kujambulitsa ali kunja, Ku nyika national park. kunyanja ndi tizibwenzi tawo. sangatengere za anzawo mmene akutendetsera phone ku UK kuno?
    amenewo afufuzidwe basi.
    boma zindere ili

  14. Silent Observer says:

    He he he! when the guard is caught napping on duty, the case of toothless and careless leadership in a Southern African country. Shame

  15. nyaka1 says:

    send a thief to catch a thief tit for tat hahahahahahahahahahahah

  16. nyaka 1 says:

    send a thief to catch a thief , tit for tat hahahahahahahahahahahhahahahh

  17. Chimanga says:

    hehehehe… who guards the guard? Koma malawi sadzatheka

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