ACB in financial crisis

The Anti-Corruption Bureau (ACB) has admitted it is facing financial problems that have led to its failure to meet some of its obligations, including payment of lawyers it sub-contracted. A Blantyre-based legal firm, MC and Company, has since sued the graft busting body for failing to pay legal services amounting to over K4 million (US$9 732.4) “Despite numerous reminders, ACB has neglected to settle some bills issued and there is K4 356 000 outstanding,” stated the firm in the writ of summons filed with the High Court in Blantyre on Tuesday. The money is fees for three cases the firm handled on behalf of the bureau. Records show that on March 18 2013, the firm handled a case, Criminal Appeal No 7 of 2012, Republic versus Mzondi Mvula. The cost was K2 664 000. ACB arrested Mvula, a former Blantyre principal resident magistrate, for allegedly soliciting a K5 million bribe from businessman Ramesh Patel. The High Court acquitted him. On April 9 2013, the firm handled the same case and the cost was K414 000. But on May 28 2013, MC and Company handled Criminal Case number 1 of 2009 between the Republic and former president Bakili Muluzi and his secretary Lynes Violet Whisky. The cost was K1 278 000. Muluzi was accused of diverting donor money amounting to K1.7 billion into his personal account, a charge he has denied. The firm is claiming compound interest from the due date to the date of payment, at 3 percent above current banking rates. “Since it has had to commence legal action to get its money, the plaintiff claims collection charges per prescribed legal practitioner’s minimum charges,” says the firm. It also wants the ACB to pay for the court of action. In an interview yesterday after the ACB signed a memorandum of understanding with Staff Development Institute (SDI) in Blantyre, ACB director Justice Rezine Mzikamanda admitted that the institution is facing financial problems. “Funding [problems] have affected ACB operations and we had to scale down on a number of activities. The Cashgate [where billions of kwacha of public resources was stolen] has worsened the situation as more resources were channelled there,” said Mzikamanda. He added that the situation has resulted into delays in concluding cases in courts. Asked to explain how much was requested and how much was given, the director said ACB has no real budget, but is only funded on monthly basis.