CASHGATE LOOT UP TO K20BN — ACB

Investigators of the country’s biggest public finance fraud dubbed Cashgate have revised the total amount of taxpayer money siphoned through dubious deals to K20.3 billion from the initial K13 billion, the Anti-Corruption Bureau (ACB) has confirmed.

This was the amount that was siphoned in six months from April 1 to 30 September 2013 during the Joyce Banda administration.

Weekend Nation can further reveal that investigating agencies, including the ACB, Director of Public Prosecutions (DPP) and Police, are now in possession of the report which contains names and details of the suspected fraudulent transactions from British auditing firm Baker Tilly which carried the forensic investigation into the scandal.

The new estimates from ACB investigators come after government recently ordered fresh audits at Malawi Defence Force (MDF), State Residences and police.

ACB deputy director Reyneck Matemba said in an interview this week that the new figure includes K4.8 billion transactions auditors suspect were part in overpayments and payments made without supporting evidence.

“We have received the long-awaited Report from Baker Tilly. We received the Report yesterday [Monday] from the Office of the Auditor General. Let me also confirm that the Report is very detailed and it contains names of companies and the owners of those companies as well as individuals that are suspected to have taken part or were connected to the massive plunder of Government finances dubbed ‘Cashgate,’” wrote the deputy director in an email response to our questionnaire.

“The ACB is analysing the Report which, undoubtedly, contains very crucial information which will prove very vital to our ongoing investigations,” said Matemba.

But he declined to give specific details about the report including the names implicated, saying the bureau’s priority was to protect the integrity of the prosecutions.

“Without giving details for investigating, evidential and other legal reasons, the total loss suffered by the Government of Malawi has increased from K13.6 billion to K15.5 billion kwacha,” said Matemba.

Matemba added in an email response: “Having said that, the figure which we are interested in and will focus our investigations on hovers around K20.3 billion. This figure includes K4.8 billion at risk of overpayments and at risk of no supporting evidence being provided.”

While describing the report as “detailed and crucial”, Matemba could not say whether prominent arrests and prosecutions were imminent.

In an e-mail response on behalf of DPP Mary Kachale, Ministry of Justice spokesperson Apoche Itimu claimed the office has not yet received the Baker Tilly report.

“The office of the DPP has not received the report as yet. Once it does, will also need time to study the report before making any comments on the same,” said Itimu.

Former president Joyce Banda ordered the forensic audit following pressure from the public and irate donors who suspended budgetary support and withheld several crucial grants in 2013.

Drawing global attention, some civil servants were caught with millions of cash stashed in their vehicles and at private homes before the near fatal shooting of former budget director Paul Mphwiyo in October last year underlined the deep-rootedness of the problem and shocked the nation.

Several businesspersons, among them Osward Lutepo, who previously doubled as a high-ranking politician in the former ruling People’s Party (PP), plus senior and junior government officials are also on trial for various charges, including theft, corruption and money laundering, connected to the Cashgate.