Malawi Arrests Ex-Budget Director Over Cashgate Scandal

Malawian authorities on Saturday arrested a former budget director and his wife in connection with the infamous cashgate scandal, which led to the suspension of foreign aid to the south-east African country.



Former budget director Paul Mphwiyo and his wife Thandie were detained by the Anti-Corruption Bureau (ACB) on charges of money-laundering, theft and conspiracy to pervert the course of justice.



"We indeed had a warrant of arrest and search warrant for the two," ACB deputy director Reyneck Matemba told Anadolu Agency.



The two were taken to the Lilongwe Police Station at Area 3 in the capital for questioning.



An ACB source told AA that more former government officials are expected to be arrested in connection with the scandal.



"Our officers are still in the field and we will be making more arrests over the weekend," the source said.



Top government officials siphoned billions of Malawi kwacha from the government Integrated Financial Management System (IFMIS) through payments to companies that did not supply goods and services to government departments and ministries.



The scandal has prompted donors, who fund about 40 percent of Malawi's budget, to suspend about $150 million aid earmarked for budgetary support.



Earlier this month, Malawian President Peter Mutharika vowed to recover most of the money stolen by former government officials.



"I have appointed a new Anti-Corruption head, I am sure he will do everything to trace this money and also try to recover and very soon you will see progress in the prosecution of cashgate," he said.



Mphwiyo, the ACB director, served as the budget director in former president Joyce Banda's administration for one year before he was shot at his home in the capital Lilongwe.



The shooting incident on September 13 of last year opened a Pandora Box that led to revelations that civil servants were syphoning money through the IFMIS.



Following the shooting, Mphwiyo was moved by Banda's administration to the Office of the President and Cabinet.



Last month, Mphwiyo testified in court against former Justice Minister Ralph Kasambala and others.



So far, the ACB has secured two convictions in the ongoing cashgate trials.



On Friday, a former accounts assistant in government Victor Sithole, 27, was found guilty of possessing stolen cash.



Early this month, a former tourism official was sentenced to three years and nine months in prison in connection with the cashgate scandal.



By Moses Michael-Phir



englishnews@aa.com.tr



www.aa.com.tr/en - Lilongwe