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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These are internal control weaknessess not necessarily misappropriation.


So we should understand this fellow country man??


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.

Cash Gate

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


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


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

Mika Kumbire
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… Read more »

Civil Service is a calling’ remark


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

General Dubaku

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..


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

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