Malawi cashgate names exposed in drib and drabs

Names of suspects in what is known as Malawi’s Cashgate public finance scandal that rocked the country last year as contained in the British Forensic Auditors Baker Tilly report has started being revealed in dribs and drabs.

Government is yet to formally release details of the comprehensive audit report by the British auditing firm.

Malawians trashed the first audit report, which omitted names of individuals and companies said to be involved in the massive corruption scandal.

In the first batch of list seen by Nyasa Times,  there  is Clive Engineering Company  of   Dennis Mwezi Mhango which cashed MK20,800,078.61;   Covs Landscape Recreation and Nurseries of Omer Daudi Fane Chitipi collected  MK30,965,868.40 and Super Signs  of Alex Black Nyemba got MK600,000.00.

The report also mentions indicted Stafford Mpoola.  He was charged with money laundering and being found in possession of property suspected to have been stolen in a case involving about K1.6 billion.

Anti Corruption Bureau (ACB) arrested Mpoola in October 2013 after he was suspected to be involved in siphoning money amounting to K1, 113,397,413.31 from the Office of the President and Cabinet (OPC) through his company, Stadal Building Construction.

Mpoola was charged with money laundering and being found in possession of property suspected
to have been stolen in a case involving about K1.6 billion.

Anti Corruption Bureau (ACB) arrested Mpoola in October 2013 after he was suspected to be involved in siphoning money amounting to K1, 113,397,413.31 from the Office of the President and Cabinet (OPC) through his company, Stadal Building Construction.

Also mentioned in Kettie Chingoli Kamwangala of Explorations with a cheque payment of   MK16, 750,600.00. She was already charged with money laundering and theft of K28 million (about $70 000) from government and pleaded not guilty to both charges.

The list includes Kaneno Building Contractors with Thokas Satema, Zefaniya Satema and  Ndaona Satema collecting cheques of  MK 27,359,630.43;  MK60,142,560.00;  MK55,182,612.31 and – MK52,466,530.89

Whayo Panel Beating services of Ellard Whayo at Biwi Triangle in Lilongwe appear in the list with K91, 000.00.

Others suspected include Afro Oriental Investments of Jan Davidse, Barbara Ndhlozi, John Douglas Spenser Gray, Hanifa Thomas with payment of MK1, 816,000.00 12. Walusako General Dealers involving Irene Nhlane Zimukilre Mwenechanya and Julia Banda

The list also has Sky engineering of Steven Golden Mwenitete; Dan Civil engineering contractors of Daniel Ndembo, Ziuya construction of Mzipasi Moyo; Standard Freight Services of Patrick Chilalika and Faith Construction Company of Angella Katengeza.

Appearing in the cashgate list also are Megan Construction with MK15 million payment to Doreen Nyirenda and Khumbo Mkandawire; Hardline construction company of  Phyoka Oscar Kaunda – MK17,395,431.20 and Mk15 million to Makhausi constructions of  Fatch Chungano.

Other ‘cashgate’ names in the list are already facing the charges including Sibongile Chimphango, Caroline Savala and Laura Savala.

Businessperson Caroline Savala accused of obtaining about K84.9 million (about $213 000) from Malawi Government pleaded not guilty to the two charges of theft and money laundering.

Building contractor, Laura Savala, is accused of siphoning K160.6 million (about $401 500) through the Ministry of Tourism between July and September this year.

Sibongile Chimphango is accused of stealing K286 million (about $715 000) for payment of services not rendered to government.

Also prominent in the list is chief cashgate suspect Oswald Lutepo, another key suspect Pika Manondo and convicted cashgate prisoner Treza Namathanga Senzani.

The government of Malawi under Joyce Banda leadership hired a British company, Baker Tilly International, to audit its departments between April and September 2013.

The company’s report found the government lost about K13 billion during that period through fraud, theft and unethical actions. The Anti Corruption Bureau said the figure is about K20 billion.

That equates to more than one percent of GDP, in a one of the world’s poorest countries, where state services are poor and life expectancy is just 54 years.

The report says nearly half of the money went to 16 private companies for services they did not provide.

It says this was done by taking advantage of a loophole in the government’s financial management system.

Some 68 civil servants and businesspeople are already on trial charged with graft.

Ex-justice minister Ralph Kasambara and four others face trial for the attempted murder of a former treasury official Paul Mphwiyo who was on the verge of exposing the corruption ring. Mphwiyo himself has also been charged of money laundering and theft.

Foreign donors, who provide 40% of Malawi’s budget, froze vital aid worth around $150m in response.

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