UDF speaks on cashgate

The United Democratic Front (UDF) has asked Malawi President Joyce Banda to devise “a clear action plan” vetted by Malawians to address the Capital Hill cashgate with both politicians and technocrats.

Addressing a press conference in Blantyre on Monday, UDF president Atupele Muluzi described action plans taken by Banda’s administration in dealing with the cashgate as mere cover-up since the President and her Cabinet have not taken responsibility of the crisis.

He said: “How can one withdraw, say K2.5 billion, from the public pulse without the knowledge of the President or the Minister of Finance? If they did not know, then it signals failure by the current government to manage public funds.”

The crisis, which came into the light after the shooting of then Ministry of Finance budget director Paul Mphwiyo on September 13 this year, has seen government losing $150 million (about K60 billion) in budget support from donors under the Common Approach to Budget Support (Cabs).

But Atupele hinted that the decision to arrest junior civil servants who were found with cash in their homes and vehicle boots in the looting of public funds was not enough to ascertain that the President is serious about bringing to book suspects, but rather mere cover-up on the whole scam.

While admitting that the UDF was not consultedon the yet-to-be-presented revised budget following donor aid suspension, Atupele demanded a public-friendly revised budget that reflects expenditure cuts, savings and measures.

“We have heard of the revised budget through the press. However, our concern is on how the government will cushion ordinary people from effects of budget-re-alignments as a result of a decline in revenue base,” he said.

The Ministry of Finance last week briefed the Budget and Finance Committee of Parliament on the revised budget.

In October this year, the President announced several measures to tackle the Capital Hill cashgate, including formation of a crime prevention unit within the Malawi Police Service (MPS) to deal with such besides arrests of suspects in the looting.

The other measure, which has sparked debate, included the travel ban on local and international trips for the President, Cabinet and top government officials.

Minister of Information and Civic Education Brown Mpinganjira on Monday has trashed UDF’s calls for the President and her Cabinet to take responsibility.

He said government consulted widely with civil society organisations (CSOs), development partners, business community and faith groups on the action plan aimed at dealing with looting and looters of public funds.

On the revised budget calls, he said all stakeholders were consulted.