World Bank demands K400mil refund from Malawi over procurement scam

The World Bank has demanded a K400 million from Malawi government to be paid back over procurement scam.

The funds abused are under the World Bank funded financial reporting and oversight improvement project managed by Treasury.

Laura Kullenberg, World Bank Country Manager for Malawi, confirmed that the request for a refund was made for computers ad a printer that the bank submitted to Malawi government under financial reporting and oversight improvement project totalled  $519, 142 32 (about K400 million).

Kullenberg said World Bank takes procurement issues “seriously” for countries to receive value for money from their funded projects.

She said when World Bank’s “due diligence” establishes that a project expense is ineligible, they normally request a refund from government from those expenses.

Treasury spokesman Nations Msowoya described the request for a refund by World Banda as  “unfortunate.”

Msowoya said Treasury “ has to look for money to pay back.”

Under the Treasury managed project, a printer and computers were bought to improve accountability, oversight and reporting of government finances.