Malawi loses US$3.1tn through illegal financial flows as MP Chilenga vows to expose fraud at MRA

Malawi has lost close to US$3.1 trillion through illicit financial flows over the past six decades, with the Malawi Revenue Authority (MRA) featuring among the institutions involved in diverting taxpayers’ money into personal accounts, Nyasa Times has gathered.

Chairperson of the newly established Parliamentary Committee on Tax Justice, Werani Chilenga, said these illicit financial flows date back to 1964 when Malawi got independence from Britain and has been sustained through the all governments until now.

Chilenga–We will reveal to Malawians how they are being scammed by MRA officials–Photo by Watipaso Mzungu, Nyasa Times

“Malawi has lost close to US$3.1 trillion through illicit financial deals. We have information with a lot of details, which we will later on reveal to Malawians to hear those shocking revelations that we have in as far as our revenue collection is concerned in this country,” said Chilenga.

The Chitipa South legislator and also Chairperson of the Parliamentary Committee on Natural Resources and Climate Change made the sentiments in Lilongwe on the sidelines of an orientation meeting for members of Parliament (MPs) on tax justice and illicit financial flows.

The Malawi Economic Justice Network (MEJN) organized the orientation meeting with financial support from Tax Justice Africa Network (TJAN).

“Some of these malpractices started happening as far way back as the UDF administration, they continued in Bingu wa Mutharika administration, up to now, they are still happening. Nothing has changed. And we will reveal to Malawians what is happening and they are going to hear what we are talking about,” he said.

Chilenga said his Committee will soon reveal names of the people championing illicit financial deals at the government revenue collector.

He vowed that as a Caucus, they will go carry out their oversight duty by, among others exposing institutions and individuals involved in these malpractices.

Phiri–MPs should lead the fight against illicit financial flows in Malawi–Photo by Watipaso Mzungu, Nyasa Times

“We will go flat out to expose these malpractices, particularly in the extractive and wildlife industries. We will also go after the revenue collectors. We feel that there is a lot of illicit financial flows at MRA. Malawians have lost billions of kwachas through illicit financial flows at MRA. We cannot talk about the figures. They are in billions. Billions indeed! There is money, which is being collected, but not being deposited into Account Number One, other bank accounts have been created and the money is going there. So, we will give out the details very soon once we finalize analyzing the information in our possession,” assured Chilenga.

MEJN executive director Bertha Phiri said the purpose of the meeting was to orient MPs on illicit financial flows that Malawi is experiencing and how best the legislators can respond to the vice.

Phiri disclosed that MEJN in collaboration with TJAN would want to come up with the National Parliamentary Caucus that can be championing issues of financial flows across Africa.

She said reports from African Union and Economic Commission of Africa reveal alarming figures that Malawians lose through organized cartels at institutions such as MRA.

“Malawi has been losing out huge resources through illicit financial flows such as tax evasion, tax holidays, mining licenses, among others. But also some system losses that have been there through the MRA. Statistics are so alarming that we are losing a lot through these illicit financial flows. That is why it’s necessary to have a Parliamentary Committee to oversee these issues and situation,” said Phiri.

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Patriot
Patriot
1 year ago

It will a big shame on those previous governments if these accusations prove to be correct. Those governments and their heads will be discredited beyond redemption. No wonder we have continued to be shamefully labelled as a poor country.

Nompumelelo
Nompumelelo
1 year ago

This chitipa legislator talks too much abeg i hope this talk talk is productive coz yeeyi

mzika
1 year ago

Good move our beloved Hon. Chilenga, we have seen that you’ve been speaking for Malawians.
Continue the good fight you’ve started,
If we had 4 people like you Bwana who speaks the truth without fear or favour Malawi could have been among middle income countries.
Please continue and leave a legacy👏👏👏👏👏👏

Njododa
Njododa
1 year ago

Reveal for what? Just jail the culprits and throw the keys in the deepest part of Lake Malawi. Close the loopholes and let’s move forward. Someone has been stealing from you since you were born and you only reveal to say that l will reveal how. This must be a joke of the century. I don’t see the one stealing stopping. It seems the one being stolen from has any idea of how to stop it. Bull crap!!!!

Erik P
Erik P
1 year ago

Parliamentary committee is another waste of money.. what’s needed is good leadership to prosecute and put in prison corrupt officials. But it never happens.. seems the processes are simply there to provide other jobs. Chakwera has to fight corruption, not just fight the DPP. Getting rid of corruption is not difficult, but it must come from the top. Too many people with power that should be hanging their heads in shame and begging forgiveness from God for the terrible things they are doing to the Malawi population and future of the country.

Jahsoldier
Jahsoldier
1 year ago

When someone says I will reveal later…….they are saying I will hold on for a bit till someone bribes me to shut up. If you love Malawi reveal the information

Chiphwisi
Chiphwisi
1 year ago

Chilenga is like a dog barking aimlessly. He and this Shadreck Namalomba as useless bafoons who just make useless and stupid noise. In Tonse government to steal is part of their arrangement which is in the alliance agreement and these people making noise will not yield anything.

Dausee
Dausee
1 year ago

Talk ,talk, talk and more talk! Useless.

Wamasokosi
Wamasokosi
1 year ago

This is useless and childish. Are we being taken for a ride? Why don’t you reveal the information you said you have? Do you really need to vow to give Malawians information they deserve? What’s the purpose of telling the nation you have information now, BUT WILL REVEAL later? When you have information to reveal, just reveal. We don’t need to hold our breath waiting for you. It’s either you keep quiet with your information and only open your mouth when ready to share. Please remember WE ARE YOUR BOSSES and we hired you to work for us and we… Read more »

Last edited 1 year ago by Wamasokosi
Drogbaaa
1 year ago
Reply to  Wamasokosi

It’s a money making strategy for themselves as well. They want those involved to feel intimidated, come behind and give them some cash so that they shut up. Why should they wait to reveal such pertinent information if they really have it? Shatapu

Whiplash
Whiplash
1 year ago
Reply to  Wamasokosi

It’s another money making scheme by chilenga! He obviously has the names but people and companies involved will know who they are so now they will approach chilenga and give him some cash to stay quiet. Won’t be surprised if he will be given a post at a diplomatic mission or a ministry to keep him shut

Drogba
1 year ago

Good move

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