It never rains but pours for former Ministry of Finance Budget Director Paul Mphwiyo who was Friday rearrested together with businessman Nelson Kauwa of South African-based Thuso Group.
Nyasa Times understands that the suspects have been arrested on tax issues.
Malawi Revenue Authority (MRA) deputy director responsible for corporate affairs, Steve Kapoloma, confirmed the arrests.
Kapoloma said MRA in the “joint operation” with graft-busting arrested the three in connection to “ tax evasion”.
“They have been arrested for tax evasion malpractices,” said Kapoloma.
“Investigations are on going,” he added.
Malawi Police Service (MPS) spokesperson Rhoda Manjoro confirmed Mphwiyo was in police custody but could not say if they will be released after questioning on Friday.
Financial Intelligence Unit (FIU) said with the help of the Reserve Bank of Malawi (RBM), they probed some companies who were defrauding government.
The South African-based Thuso Group, owned by Alexander Banda and Nelson Kauwa, is alleged to have received $4.8-million in the cashgate scandal.
This is the second arrest for Mphwiyo who is expected to appear in court to answer ‘cashgate’-related charges.
Mphwiyo was arrested on October 19, 2014 alongside his wife, Thandizo.
Anti Corruption Bureau pressed charges of theft, money laundering and defeating the course of justice
Mphwiyo, now 38, was shot on September 13 last year as he drove into his villa in the capital, Lilongwe. Soon after his shooting former president Joyce Banda declared she knew who shot Mphwiyo who she described as her anti-corruption crusader in government.
The unprecedented shooting unravelled ‘cashgate’, the systematic plunder of public resources where businessmen and politicians connived with civil servants to skim millions of dollars from the government payment system in payment for goods and services not rendered to government.
Mphwiyo had four bullets removed from his body and had his face reconstructed in South Africa.
Former Principal Secretary in the Ministry of Tourism, Theresa Senzani was first to be convicted in ‘cashgate’-related charges. She is now serving a three-year jail term.
An Accounts Assistant in the Ministry of Energy, Mining and Natural Resources, Victor Sithole, was also convicted in the ‘cashgate’-related charges and is serving a nine year jail term.Follow and Subscribe Nyasa TV :