By Linda Kwanjana
A newly released Deloitte audit report has put recent past ruling Democratic Progressive Party (DPP) and its leadership on a tight corner following the plunder of money few months before they were booted out from Government
According to the report, between January 1, 2019 and June 30, 2020, illicit and dubious transactions were made at the Reserve Bank of Malawi through the hands and command of Reserve Bank Governor Dalitso Kabambe.
The audit found that K2.2 billion went out for “building maintenance, rentals, school fees allowances, recall of diplomats” but there are no supporting documents for these transactions. In short, this amount was stolen and Kabambe made a barefooted claim of these expenses.
According to the document, K4.1 billion was paid to the Pensions and Gratuity Account without an approved funding instruction from government using FDH Bank while K6.5 billion went to FDH Bank in December 2018 and December 2020, which auditors found suspicious.
The audit further revealed that K3.9 billion costs payable to FDH Bank were not disclosed to the board for approval while USD$769 million was disproportionally channelled through FDH Bank.
The report has further revealed that K2.8 billion was paid to various law firms, but auditors did not trace any supporting documents while K27 billion was paid to retiring top managers, who in turn provided K7 billion to the then governing DPP in whose interest Kabambe has, at the material times, always worked.
The audit has found that Mulli Brothers Limited (MBL) was irregularly issued with letters of credit to supply fertilizer to the Government.
According to the audit , one company, Mitra, was awarded two contracts of K1 billion and K757 million contrary to RBM policy. Mitra was also irregularly paid 60% upfront.
According to the report K9.7 billion was siphoned in January 2020 through dubious purchase of overpriced materials for the Prisons Department worth US$18 million from the United Arab Emirates (UAE).
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