Reserve Bank of Malawi (RBM) head of Internal Audit Department clement Chinkono has been sent on forced leave while the forensic audit is underway at the financial institution including the probe on K340 million feared to have been stolen by one of the central bank’s managers.
Chimkono confirmed he has been sent on forced leave.
“I can confirm I was asked to proceed on leave,” he said.
Sources at the RBM said embezzlement and fraud have hit the central bank in recent years, pointing to worsening of the vice.
RBM fiscal operations manager Charles Mchakulu has been under investigation over the missing of K340 million.
The fraud was discovered through a system of surveillance of transactions in the banking system.
The suspected employee had been making unsupported transfers from a government ORT [other recurrent transactions] account to a stationery supplier, Ideal Stationery.
And RBM is now reviewing several operational and administrative policies as the Office of President and Cabinet (OPC) and the financial institution are tussling with former RBM governor Dalitso Kabambe over K1 billion claim as terminal benefits and breach of contract following his removal by President Lazarus Chakwera in July 2020.
Kabambe, who was appointed to head the central bank by former president Peter Mutharika in April 2017, filed a K1 billion claim as terminal benefits and breach of contract. He had nine months and 16 days remaining on his RBM contract at the time he was replaced with Wilson Banda.
Attorney General (AG)Chikosa Silungwe, whose office provided a legal opinion on the matter to the OPC, said government will reject the claim and if it goes to court, “the lawsuit will be defended.”
Government argues that Kabambe was appointed RBM governor on secondment from mainstream civil service where he worked at OPC; hence, he is not entitled to the payout.
The government contends that Kabambe will have to resume his civil service career following desecondment from RBM.
But Kabambe, who was last week inducted into frontline politics as a member of the former governing Democratic Progressive Party (DPP), said in a television interview with privately-owned Zodiak Broadcasting Station last week that he would not go back to the OPC, hinting the move was political.Follow and Subscribe Nyasa TV :