Government has claimed that the private security team it hired to guard the K690 million residence forfeited from Cashgate suspect Paul Mphwiyo failed in its duty, allowing vandals to strip the Area 43, Lilongwe property of doors, windows, wiring and appliances.
Several guards have since been arrested in connection with the looting.
Our sister newspaper, The Nation, revealed that the once-lavish mansion now stands missing exterior doors and window frames, stripped of electrical fittings, plumbing fixtures and home appliances while the surroundings are overgrown with weeds and showing signs of structural neglect
Director of Public Prosecutions Masauko Chamkakala confirmed that the Anti-Corruption Bureau (ACB) deployed the security firm immediately after the High Court ordered the property’s forfeiture in March 2024.
“Unfortunately, the security company did not do a professional job to protect the property. Some of the guards have since been arrested,” Chamkakala said.
He assured the public that new security arrangements are now in place to safeguard the estate against further damage.
The house was forfeited to the State after Mphwiyo, a former budget director at the Ministry of Finance and a key suspect in the 2013 Cashgate scandal, jumped bail.
The Malawi Supreme Court of Appeal upheld the forfeiture in December last year after Mphwiyo’s wife, Thandi, challenged it.
Chamkakala also explained delays in disposing of the property, a process he said is now underway and includes other forfeited assets.
He said: “Delays came in because of the multiple institutions which had to participate in the process. The disposal was by public auction. There are other properties which will be transferred to other public institutions. We have so far transferred some vehicles to various police formations.”
Lawyer Jai Banda said the vandalism points to administrative and systemic failures in managing recovered assets.
“The vandalism of Paul Mphwiyo’s forfeited property… highlights significant challenges in managing recovered assets in Malawi. While it’s difficult to pinpoint a single cause, the issue seems to stem from a combination of administrative and systemic failures,” said Banda.
He pointed to a lack of clear guidelines and inadequate security as key factors that left the property vulnerable.
On the legal framework, Banda noted that the country lacks specific legislation that imposes penalties on State agencies for failing to preserve forfeited assets.
“It appears we do not have specific legislation which deals with State agencies which fail to preserve forfeited assets,” he said.
To prevent a repeat, Banda proposed establishment of a robust and centralised asset management system, with clear guidelines, real-time tracking and adequate security measures.
He also outlined broader measures needed for Malawi to better preserve forfeited assets, including developing specific regulations, improving asset tracking and ensuring transparency in the disposal process.
The incident echoes a similar failure in the past, when six Scania Marcopolo buses forfeited from a Cashgate suspect were left to rot at the National Police Headquarters in Lilongwe, significantly losing value before they were finally disposed of.
Chamkakala also mentioned that the Confiscation Fund Regulations, which are crucial for managing recovered assets, are in place and were awaiting the passing of the Financial Crimes Act, which was recently assented to by President Lazarus Chakwera.
“Once the new Parliament comes in, these rules will be processed accordingly,” he said.
