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.