Cashgate Started in 2005 – Chikaonda
Chikaonda, who also served as governor of the Reserve Bank of Malawi, said the plunder, popularly known as Capital Hill cashgate, started when main expenditure ceilings were removed from expenditure control measures.
“What went wrong is that main expenditure ceilings were removed and there was an authorisation that all government cheques be honoured…and that was the turning point,” said Chikaonda who is currently group chief executive officer for conglomerate Press Corporation Limited (PCL).
He was speaking at Kamuzu Palace in Lilongwe on behalf of other private sector players after a two-hour consultative meeting with President Joyce Banda on the issue of cashgate.
Chikaonda said before 2005, there was a spending limit for ministries and government departments which was put in their respective commercial banks beyond which the accounts were frozen.
He also faulted the way the Integrated Financial Management Information Systems (Ifmis) was operated since November 2005 when it was introduced.
“The operator was performing so many tasks and these are system operation, security, administration of the system and there was no audit trail. In a bank, a department that issues ATM [automated teller machine] cards is different from the department that issues pin codes,” he added.
He, however, informed journalists that government has re-introduced some control measures that were removed in 2005 including the setting of K500 000 (about $1 250) as a limit for government cheque encashment and that the issuing of cheques has to be confirmed by other key parties.
Chikaonda said the private sector is now convinced that adequate measures have been put in place by government to address cashgate and assured that the private sector will be monitoring the measures in place.
Upon returning from Brussels on Sunday, Minister of Finance Maxwell Mkwezalamba told journalists at the Kamuzu International Airport that some of Malawi’s development partners such as Germany and the European Union (EU) are pleased with the measures that government has put in place in view of cashgate.
He cited the formation of a ministerial committee on cashgate, the introduction of expenditure control measures such as the cutting of both internal and external travel by civil servants as some positive strides that donors are happy with.
Malawi’s major donors under the Common Approach to Budget Support
(Cabs) continue to withhold budget support amounting to $150 million (over K60 billion) citing the recent revelation of public funds looting at Capital Hill as the reason.
The International Monetary Fund (IMF), whose board is scheduled to meet on Malawi in January next month, is also withholding $20 million under its Extended Credit Facility (ECF) programme for Malawi.
I will be happy if u can be the vice president of Atupele Muluzi and be minister of finance,for this cashgate disease can be cured if we can put new faces in gvmnt than these pple in the likes of jb who was involved in admarc scandles, peter another thief stilling under his degrees.
whether it atarted whichever year what is evident now is that this time around cash gate is occurring closer to the state house that why its worrisome and has been so massive. look at how maney presidential programms being ran at the presidents OPC – small little projects that are affectiing funding of the private sector, have very little developmental in the longterm. the president can not distinguis government and running an NGO. OPC is full of numerous NGOs. where do you think money to finance these things are comming from and yet we are tald that – personal resources! Hand outs are the other reason for this problem. the president has set people to siphone money from GVT so that she should splashing around like father chrismas at our expense. Malawi is bleeding!!! !
What do expect from somebody who speaks from the State House? Who invited him there? Do you think he could say that it started with Joyce Banda? We are not kids to buy this nonsense from Matthews Chikaonda. We know Lutepo as a PP operative and he transferred the money he stole to PP gurus/ He was being used as a conduit through his businesses. Joyce Banda proposed this scheme of looting to fund her campaign through cows and constructing useless houses for the elderly. Do not forget that she established her parallel fertilizer subsidy programme and was at one time buying soya. She brough back Mr Njanji fro retirement to be PS Finance in OPC. It was Njanji who brought Frank Mwaza to OPC and in the end Mwanza was caught up in cash-gate. We are being fooled but this is the truth. We will know more from Pika and Ralp Kasambara.
WHAT IS THE POINT BEHIND THIS STALE INFORMATION. CHOLERA ALSO STARTED SOMETIME BACK BUT IT IS CURRENT CASES WE ARE TREATING. WITH A LOT OF CASHGATE MONEY FLOATING AROUND THERE IS NO LIMIT AS TO WHO CAN BE BOUGHT
Chikaonda wakhuta kuche-kuche ndiye osamumvera. He is the same person who mis-managed the malawi economy during muluzi’s reign. He has done the same by completely milking the resources at press and to day he wants to show that he is patriotic just because he finds himself rubbing shoulders with the chief thief in malawi (osadzipatsa ulema malume bwanji?) advice za ma economist apa Nyasaland imeneyi, choncho tingatukuke bwanji?
Why is the NationNewspaper not investigating Malawi College of Accountancy story.Lecturers are running up to Three months unpaid.There is rumuours of Cashgate which is been tried to be covered.Funds meant for Salaries were swindled.If this things are happening to an institution that teaches Ethical standards whatelse do you expect from Civil servants and others.The rule is Pakapezeka Pakula (PP)
Chikaonda, you plundered and ruined the Malawi economy! You led UDF to steal openly. You have no credibility.
The problem we got is about the way this lady called Joyce is running this accident government . She never knew that running a government is different she control her house. My fellow Malawians let’s take a look on how she had been running this nation since she find herself on the hot seat. Why she refuse to dicreare her assets? Where she get the money she’s buying cows? Why PP cars are legistard in her name, and where she get this money? Can you tell me that Joyce she’s not involved in this scandal? When Phwiyo was shot Joyce said she know who did it, and it was true that she knew everything cause they are together. Today you can see how many old politicians are flocking to PP, can you tell me the reason why? The reason is that they know that the door is quite open and everybody can take as much as s/he want. Hahaha Mr Chikaonda what would you like to say? Go and ask Bj, Mbuya, Change goal and many, the reason why they change political parties like underwares. Truly womens are weak and what do you expected. I don’t see any future in this Joyce. Hahahahaha I see that there is alot of educated fools and one of them is mr Chikaonda. Malawi where are these people are taking you to. Oh my a**
if there is one name I hate to ear is chikaonda. I cant forget the time he was finance minister he put tight mesures that made Malawians suffer a lot, and giving chance to the ruling clan to steal and enrich themselves. chikaonda era was katapira era, akale akudziwa zomwe ndikunena
if there is one name I hate to hear is chikaonda. I cant forget the time he was finance minister he put tight mesures that made Malawians suffer a lot, and giving chance to the ruling clan to steal and enrich themselves. chikaonda era was katapira era, akale akudziwa zomwe ndikunena
Dont listen to this liquidator! Under his watch Press Corporation has shut down Press Bakeries, PG Industries, Hardware & General Dealers, Tambala Food Products, a lot of PTC outlets and some companies I might not be aware of.
JOYCE BANDA IS BETTER OFF THAN THIS PRETENDER!
Dr Mathews Chikaonda could have said something better than this, so he was given a duty of pushing blame away from PP and yet at the end he was paid the same money of cashgate. System alone cannot be perfect it should be people running it to be perfect. Malawi is crying alot of money from tax payers have gone to few indiduals, mungotitsitsilako payee basi chi 30% chimatipweteka chifukwa ndi half half imeneyi ndi boma.
Ngati kuti economist wa theory ndiye ndi Chikaonda. Look how he has completely destroyed Press Corporation.