Tag Archives: cashgate in Malawi

Malawi

The looting continues: Mzimba District Council rehabilitates two nonexistent schools with MK10 million

Henry Chizimba
Reyneck Matemba: ACB is not aware of Mzimba District Council’s alleged MK10 million expenditure

The cashgate-style looting of Malawi’s public coffers continues as now there emerges a new incident of such looting in Mzimba district where the District Council spent MK10 million of Development Fund rehabilitating schools that do not exist, Malawi news reported on Saturday, 29th April 2017.

According to the publication, the Mbelwa District Council carried various school rehabilitation projects at, among others, Sadzu CDSS, Wateleka CDSS, Mtangatanga CDSS, Chasato CDSS, and St Joseph school where it spent MK10 million.

The financial records on how the MK10 million was spent shows that half the amount was for transportation and the other half was used to buy materials.

But the area’s councilor, Andrew Tembo, was quick to fault the district council accusing the council of looting public funds saying that Wateleka CDSS and Kamwazeka schools do not exist.

Tembo said: “The truth of the matter is that there is no school at Kamwazeka, I know this because I come from Pelekezi Ward where the alleged schools are said to exist.”

Tembo said that he reported the council’s suspicious expenditure to Anti-Corruption Bureau (ACB).

Speaking to the publication, ACB’s Deputy Director General Reyneck Matemba said that all he knows is that Mzimba District Council is under investigations for allegedly misappropriating LDF funds and knows nothing about the alleged MK10 million expenditures as at the time.

“We do not have information regarding that issue right now, what I know is that the bureau is investigating Mzimba District Council over alleged misappropriation of LDF funds,” said Matemba.

It is alleged that Mr Thomas Chirwa—the district’s District Commissioner—and the Member of Parliament for Mzimba Solola, Hon. Jacob Hara, are behind the suspicious expenditures.

This is not the first time that suspected corruption activities have been reported in a council. Not long ago, ACB arrested Mwanza District Commissioner Jack Ngulube and Lunchenza Municipality councillors for suspected corruption activities.

Malawi

Mangochi councillors blocked from sealing DC’s office over MK200 million cashgate

Maravi Post correspondent

Police in Mangochi, the lakeshore district in the eastern region of Malawi, on Tuesday blocked the district’s councillors from shutting down the District Commissioner’s (DC) office over MK200 million cashgate.

Etta Mhango: she benefited from LDF…will others benefit from the LDF like her given the abuse of the funds at the DCs’ office?

The irate Mangochi councillors agreed to seal the DC’s office in relation to the missing of over 200 million Malawi kwacha at the council which was meant for development in the district.

According to the district chairperson Omar Magombo, the police warned them not to close the DC’s office unless they obtained a court order.

“We were ready to shut down the DC’s office because of the missing of over K200 million at the council, however, the police blocked us saying it will be a crime if we do it without a court order,” said Magombo.

Magombo however said as councillors they are much concerned with how the money meant for the development was misused by some individuals at the council.

According to him, the said money were that of the Local Development Fund (LDF) and Constituency Development Fund (CDF).

The councillors are also accusing their Members of Parliament (MPs) for being in forefront in conniving with the officials at the DC’s office to abuse the CDF fund.

Maravi Post understands that the councillors referred the issue to ACB.

Meanwhile, Magombo said they plan to sit down with the community to discuss the way forward on the matter.

Malawi

Malawi Parliament reconvenes for mid-year budget review early amidst pressure to pass Financial Crime Bill

Maravi Post correspondent

LILONGWE-(MaraviPost)-The country’s national assembly mid-year budget review deliberations have been slated for February 6 to March 2, 2017 with financial crime bill featuring highly on the agenda, Maravi Post can reveal.

Malawi Parliament reconvenes Feb 6, 2017 for mid-year budget review

In a press statement released early this week, The Speaker Richard Msowoya is summoning all cabinet ministers with their deputies and members of Parliament (MPs) to attend the meeting in the capital Lilongwe.

Parliament is in haste to host budget review proceedings amidst panic to pass the financial bill whose deadline is February 15 that failure to do so the country risks being blacklisted on the international financial market.

Maravi Post understands that some financial institutions in the country will be affected negatively if the bill doesn’t meet its passing deadline.

If the bill is not passed by the deadline, financial firms will not be able to transact businesses internationally.

The bill aims at repealing the Money Laundering, Proceeds of Serious Crime and Terrorist Financing Act currently being used to prosecute cashgate cases in court which is weak as it only attracts maximum 10 years imprisonment.

This legal framework seeks to create an independent Financial Intelligence Authority (FIA) replacing the Financial Intelligence Unit (FIU).

The bill also introduces enhanced penalties for offences including money laundering, terrorism financing and financing proliferation of weapons of mass destruction with a penalty of life imprisonment and a fine of MK500 million, and revocation of business licence for a legal person.

In December 2016, Finance Minister Goodall Gondwe tabled the bill in Parliament but members referred it to the house’s committees on legal affairs and Budget and Finance for further scrutiny before it is passed into law.

The committees which have already started consultation with officials from FIU, Malawi Law Commission and Bankers Association of Malawi will also meet Reserve Bank of Malawi (RBM) and Economics Association of Malawi (Ecama) before the August house reconvenes next week.