Mphwiyo to face more cashgate charges: State ask judge to deny bail over ‘new evidence’

Paul Montfort Mphwiyo, the former budget director at the finance ministry, would obstruct justice if freed pending trial, prosecutors said at his bail hearing.

Mphwiyo remains in police custody since his arrest on Saturday as High Court is yet to rule whether he is going to be given bail or not following the state plea to the court not to give him bail.

His lawyer Shadreck Mhango applied for bail on Wednesday but the State prosecutors vehemently opposed his release.

Mhango asked the court to give Mphwiyo bail as he is already on other bail in a related cashgate offence and he is always fulfilling the requirements as such he can’t r jump bail in the latest case.

He also told the court that bail is one of his constitutional rights and he is innocent until proven guilty.

Objecting to the bail application, Deputy Director General for Anti Corruption Bureau  (ACB) Reyneck Matemba who was representing Director of Public Prosecution, Mary Kachale who was in Blantyre for another case, urged the court not to give Mphwiyo bail as the state is yet to finalise some investigation.

Matemba told the court that they had no issues against his bail but as the end of business on Monday they came across to new vital information which they need to investigate before Mphwiyo is given bail.

He asked the court to allow the State keep Mphwiyo in Police custody as the state needs maximum of two weeks for them to finish the investigation infamous cashgate scandal and the government is determined to recover every tambala stolen.

Kachale said on Wednesday the state has discovered more issues in connection with the plunder of public resources in the infamous cashgate scandal and the government is determined to recover every Tambala stolen.

“Malawians should not think we are harassing the suspects when they see us arresting and re-arresting them. We are seeking justice,” said Kachale.

The state had made a frantic plea to Judge Esmie Chombo not to release Mphwiyo and others including former Accountant General David Kandoje.

Mphwiyo once hailed as an anti-graft crusader has been charged along with 17 other officials in the country’s widening “Cashgate” scandal which originated in 2005.

The multi-million-dollar scandal prompted foreign donors – who provide around 40% of impoverished Malawi’s budget – to pull the plug on aid worth around $150m.

Mphwiyo two years ago was shot outside his house and badly injured when he was reported to be about to expose a network of corrupt officials.

He was previously credited with overhauling the public finance system to close loopholes that allowed fraud, and for cancelling dubious government contracts.

An audit by British experts ordered by then president Joyce Banda found that $30 million had been looted in a period of less than six months in 2013 while Mphwiyo was in the powerful position of budget director.

Oswald Lutepo, the chief suspect in the fraud, was sentenced to 11 years in jail.

Judge Esmie Chombo is set to pass her verdict .