ACB turns to banks on cash-gate scandal

The Anti-Corruption Bureau (ACB) has  taken its investigations to commercial banks where they are studying bank  accounts of companies connected to the Capital Hill cash-gate  scandal.

Sources close to the investigations into  the Capital Hill cash-gate scandal, told Weekend Nation that the bureau  has engaged commercial banks to probe bank accounts of some companies linked to  the matter.

The sources said some bank accounts  belonging to companies owned by people with government links have questionable  financial transactions that have raised eyebrows of the anti-graft body,  especially in the wake of looting of public funds.

Said one source: “For example, at one of  the commercial banks, they are probing accounts of 14 companies which have had  very questionable financial transactions. Some of them had a lot of money coming  in within a short time, also have huge withdraws.”

ACB spokesperson Egritta Ndala while  declining to mention the names of the companies being probed, confirmed in a  questionnaire response in the week that the bureau was getting good cooperation  from the banks, including the Reserve Bank of Malawi.

Said Ndala: “The Anti-Corruption Bureau  is still conducting investigations into the alleged corruption in the processing  of public funds. The bureau cannot give more information pertaining to the  specifics of that investigation as that may prejudice its investigations.”

“Suffice to say that the bureau is  getting cooperation from different stakeholders in the matter including the  Reserve Bank of Malawi. The purpose of our investigations are to establish  whether or not corrupt practices were involved in any of the dealings on those  bank accounts. As for the companies involved, we will make them public at an  appropriate stage in our investigations,” she said.

Ministry of Finance spokesperson Nations  Msowoya said in a questionnaire response that it would be premature to know the  extent of the problem, especially on how much money might have been lost through  such deals.

“The investigations are being championed  by various specialised government institutions. The police is doing their part,  the ACB is doing its part and the Financial Intelligence Unit is doing its part.  At this stage, it would be premature on our part to gauge how far the problem  is. I would rather we wait for these bodies to conclude their investigations,”  said Msowoya.

Ndala said investigations into reports  that an officer from the Accountant General’s office was found with K120 million  (about $300 000) in August 2013 led to the establishment that over K1 billion  (about $2.5m) payment to a company called International Procurement Services was  approved by officers in the Office of the President and Cabinet  (OPC).

She said the bureau established that  there was no contract between government and International Procurement Services,  which according to the company’s Certificate of Registration is owned by  People’s Party deputy director for social services Osward Lutepo.

Malawi President Joyce Banda on  Wednesday dismissed suggestions to have top government officials that presided  over the cash-gate scandal to resign or be removed, to pave way for independent  investigations, arguing the relevant State organs are still probing the  matter.