State drops charges against 4 suspected Reserve Bank of Malawi fraud

The State has dropped criminal charges against four central bankers  suspected to have connived with former Reserve Bank of Malawi (RBM) manager, Charles Ezra July Mchakulu and three others, to steal K340 million from the central bank.

RBM spokesperson Mbane Ngwira: The fraud was discovered through a system of surveillance of transactions in the banking system

Mchakulu, together with Lucy Rachel Sukali, Rebecca Martha Chisenga, Olivia Misozi Phiri, Neddie Khonje, Kondwani Cuthbert Banda, Elluby Mhango and Davie Mkhumbwa, were arrested on suspicion that they stole K340 million from the central bank last year.

The suspected fraud prompted RBM to team up with other government agencies, including the Financial Intelligence Authority (FIA) and the Fiscal Police, in an investigation into the missing bucks.

RBM spokesperson Mbane Ngwira said at the time that 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,” Ngwira said at the time.

The suspected fraud prompted FIA sources to obtain a freeze order with Mchakulu and Lucy Rachel Sukali trading as Ideal Stationery, whose account was used as a conduit to siphon money from the bank, as respondents.

Through the court order, which was obtained on June 12, 2019, FIA wanted to freeze a bank account at National Bank of Malawi Victoria Avenue Service Centre in Blantyre, which at the time the order was issued had a balance of K120 917  295.60 at the time.

The order, in civil case number 432 of 2019, further restrained residential property at plot number Area 6/137 and residential property number Area12/460.

RBM Governor Dalitso Kabambe indicated that the fraud was uncovered following an audit.

“We did an audit, we have concluded an audit and the results of that audit are what informed the developments,” said Kabambe.

But in a twist of events, the State has written the Resident Magistrate Court in Lilongwe, instructing it to withdraw the charges against Khonje, Banda, Mhango and Mkhumbwa.

“Having heard the State and having received a Certificate of Withdrawal, issued by the State Prosecutor, under Section 81 of the Criminal Procedure and Evidence Code; it is hereby ordered as follows: 1. That charges against Neddie Khonje, Kondwani Banda, Elluby Mhango and Davie Mkhumbwa has been withdrawn,” reads the order on withdrawal in part.

However, the order, which was made on Wednesday this week, emphasizes that this does not necessarily bar the State from recommencing or bringing new charges against the four on the same account of the same facts.

The case  against Mchakulu, Lucy Sukali, Rabecca Chisenga and Olivia Phiri will continue.

In recent years, corruption, embezzlement and fraud have hit many government ministries, departments and agencies (MDAs) in the country with various audit reports, newspaper and criminal investigations pointing to worsening of the vice.

Since the 2013 revelations of Cashgate, the plunder of public resources at Capital Hill through inflated invoices and payment for goods and services not rendered that drained K24 billion from public coffers over a randomly-chosen six-month period, financial scandals continue to be reported bordering on procurement, invoicing, contracting, allowance claims and kickbacks.

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Shamwari
Shamwari
1 year ago

From this time on these guys akumaba ndalama zabomawa akufunika kumawamanga man handle . Chifukwa court la Malawi linali corruption malandu ya anthu osasamba nde chilungamo chimaoneka amene ulibe bale kapena ndalama in judicial system ya Malawi nde mulanduwako kukambidwa mwasanga and kuthanso change. Onse amene akhala akubandalama ndikupezeka osalakwa koma ndalama zitasowa azindikile kuti alibe nthawi yaitali soon we will sort them out. They managed to escape makhothi anthu achinyengowa komakhothi la mwana wamuthu sadutsa unpunished

Kondwani Chisale
Kondwani Chisale
1 year ago

This is Malawi and under Corrupt Minsters and Govt Officis thats what is going to happen in Malawi

The Common Person in the Street in Towns and Villages are going
To Suffer as the Funds Received as AID or GRANT / DONATION will be used to cover up the Frauds

Gegan
Gegan
1 year ago

Dziko ndi masala ukalamba ,nzuru zokalamba eti ndie president .anyamata mukugona kutsanka munthu mukuziwa kuti ,he can’t rem all and have skills to avoid kuba ndalama ,xinthu za Boma…soon I will for president.malawi is a small country with educated people ,why poorest because if this thief’s… Malawians workup .

Bwana Wa Ulesi
Bwana Wa Ulesi
1 year ago

Hm zoona of all the money zinasowa basi without a trace? This world is really not ouRS

Mulopwana
1 year ago

Ohoooo!!!

Uyo
Uyo
1 year ago

Kodi a mpwhiyo basi zatha basi. Ma billion onsewaja?

Banda
Banda
1 year ago
Reply to  Uyo

Kasambara is still walking around despite having stolen billions and attempted to kill Mphwiyo

Bilito
Bilito
1 year ago

Waaaa aaaa!

nafundo zalo
nafundo zalo
1 year ago

nit unusual.
kwatuluka ma bizness azibale from these missing millions.
t

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