Forensic probe at state firm

The Malawi Gaming Board and Lotteries Authority (Magla) has instituted investigations into how, without board approval, the firm’s management opened and operated a bank account in which transactions totaling over K420 million were made.

Magla board chairperson Bernard Ndau confirmed in an interview on Thursday that the authority launched the forensic audit. But he declined to divulge further details for “fear of prejudicing the investigations”.

Magla is a merger between the Malawi Gaming Board (MGB) and the National Lotteries Board (NLB). The coming together was necessitated by the similarities of the gaming and lottery industries.

Said Ndau: “I can confirm that there is a forensic audit going on at the institution and, because the investigations are ongoing, it will be prejudicial for me to start divulging information on the matter.”

But documentation Weekend Nation has seen show that some senior managers at the institution opened and operated an account at FDH Bank where funds amounting to over K593 million were being deposited and withdrawn.

For instance, the document shows that between September 18 2019 and January 31 2020, a sum of K120 092 185 was transferred from NLB account domiciled at National Bank of Malawi (NBM) to the FDH Bank account.

Then, on February 19 2020, there was a transfer of K100 million from  the FDH Bank account to a fixed deposit account before other transfers followed on December 30 2020 and February 17 2021 of K40 million and K100 million, respectively.

An analysis of the financial transactions indicates that between September 18 2019 and June 22 2020, the officers made eight transfers of K20 million each from the NLB account to the FDH Bank account.

The highest amount of transfer made from the NLB account to the FDH Bank account was K100 million made on February 17 2021 while the lowest was K10 million transacted on November 23 2021.

The highest amount withdrawn from the account was K24 763 485 made on July 22 2020 through cheque number 0000017. A pattern was observed in the suspected account, whereby a bank transfer could be made from the NLB account only to be followed by cheque withdrawals by individuals from Magla.

Except for three deposit transactions from a fixed deposit account and MGB account, the rest of the deposits into the FDH Bank account were from NLB account at NBM.

Most of the withdrawals were allegedly done through cheques by director of finance, administration and human resources Henri Bakuwa and former chief executive officer Foster Mulumbe.

The analysis shows a sum of K25 490 000 was cashed through cheques with reference numbers 0000018, 0000022, 0000026, 0000027 and 0000041, whose beneficiaries could not immediately be established. The same applies to the K43 363 485 drawn by cheques to FDH Bank.

These were cheques numbered 0000017, 0000030, 0000031 and 00000377. In general, the amounts moved from NLB through an account of MGB at FDH Bank then to the beneficiaries. It was further observed that the amounts to the individuals were paid even when there were travel restrictions due to the Covid-19 pandemic.

Meanwhile, Magla board of directors has sent on suspension Bakuwa and director of legal services/company secretary Ofwa Alide.

However, when asked on Thursday about the development Magla chief executive officer Rachel Mijiga referred Weekend Nation to the board chairperson, who could neither deny nor confirm taking the action.

But a source privy to the matter said the two were suspended two weeks ago after the board received information about the mysterious bank account benefits they were giving themselves.

“They were suspended some two weeks ago. Mr Bakuwa was suspended in relation to the transactions in the FDH Bank account while Mrs Alide’s issue relates to housing allowance,” said our source.

When Weekend Nation contacted Mulumbe for his reaction, he demanded an e-mailed questionnaire, which he had not responded to as we went to press.

“I have got no comment to make… It’s not the right time for me to talk to you,” Bakuwa said before cutting the line while Alide also declined to say anything.

“I am sorry, I am not in a position to comment, thank you so much,” she said immediately after the reporter introduced himself, but had not even stated the purpose of his call.

Magla, which is under the Ministry of Tourism, Culture and Wildlife, was established to ensure that the country has a dynamic, vibrant and well regulated gaming and lottery industry.

Its activities include issuing gaming and lottery licences, carrying out inspections of gaming machines and games to ensure fair play, monitoring lottery draws to ensure fairness, ensuring that all winnings are paid as specified and without delay.