Cashgate convict turns State witness
Convicted former civil servant James Bandula Chirwa has turned on his fellow contractors, testifying in court that they were aware that part of the K513 million ($871,443) deposited in their bank accounts was money stolen from government.
Chirwa was convicted on his own plea of guilty to charges of theft and conspiracy to defraud government of K513 million ($871,443). He was also convicted on money laundering which attracts a maximum penalty of 10 years imprisonment.
His lawyer, Powell Nkhutabasa, is this Thursday expected to make submissions in mitigation where he might plead for leniency after cooperating with the prosecution.
However, contractors Muzipasi Moyo, Steven Mwenitete and Denis Mhango have pleaded not guilty to charges of lending a certificate for personation contrary to Section 392 of the Penal Code and money laundering.
Director of Public Prosecutions (DPP) Mary Kachale on Wednesday called Chirwa as her first witness to prove the case of conspiracy to defraud government between Chirwa and his friends—Moyo of Ziuya Construction, Mwenitete of Sky Civil Engineering and Mhango of Clive Engineering.
Said Kachale: “The accused persons have put it to the State to prove that they knew or ought to have known that the cheques they were accepting were fraudulent or proceeds of crime. They deny that they knew, but the State will call witnesses to prove that they [the accused persons] knew.”
In his testimony, Chirwa admitted being approached by people within the government system, who he said were working for the then governing People’s Party (PP), to recruit contractors.
He told the court that while working as a quantity surveyor in the civil service, he was introduced to one Maria Chigona who told him of the plan after which he recruited the three contractors.
“I have known Mwenitete for over 15 years. I met him at the Polytechnic [a constituent college of the University of Malawi] and we have been friends since then. He is a quantity surveyor as well,” Chirwa said.
He said Mwenitete and Mhango did not question him thoroughly when he told them about the scheme.
During the court hearing, Chirwa identified several cheque images which he said he gave to the three contractors and they deposited into their accounts.
On all occasions, according to Chirwa, his friends retained 10 percent of the money for “running around”.
In 2013, the shooting of former Ministry of Finance budget director Paul Mphwiyo, who himself is facing money laundering and fraud charges, led to revelations of the plunder of public resources at Capital Hill later called Cashgate.
Former president Joyce Banda ordered an audit which British forensic auditor, Baker Tilly, undertook between April and September 2013 and established that about K24 billion ($40,769,200) was siphoned from public coffers through dubious payments, inflated invoices and goods or services never rendered.
In May this year, a financial analysis report by audit and business advisory firm PricewaterhouseCoopers (PwC) also established that about K577 billion ($980,161,000) in public funds could not be reconciliated between 2009 and December 31 2014. n
