Fresh ‘Cashgate’ uncovered at Agriculture

There are fresh allegations of Cashgate at Ministry of Agriculture, Irrigation and Water Development where K47 million in taxpayers’ money has allegedly been siphoned by officials through payments to ghost workers.

The revelations come against a background of government’s ongoing efforts to  seal loopholes to Cashgate, the plunder of public resources at Capital Hill that drained about K24 billion from Capital Hill between April and September 2013 according to a forensic audit by British firm Baker Tilly.

In the current case, there are five accounts assistants involved, three of them working at the ministry headquarters and two in agriculture development divisions (ADDs).

The ministry headquarters-based trio—Cosmas Chafulumira, Chimwemwe Kampanje and Mwaiwawo Chipatso—was allegedly conniving with their colleagues at ADDs, notably Bertha Chakwera and Mabvuto Chilimba, according to information The Nation has seen and corroborated by a police officer.

Sources said the officials were then giving each other exaggerated salaries of up to K600 000, almost triple their monthly salaries.

The sources said the officers also created a chain of ghost workers who would then withdraw the money on their behalf and later on share. The stolen money so far is estimated at K47 million.

The ministry’s principal secretary Erica Maganga confirmed the embezzlement of funds, but declined to comment further saying the police were better placed to give details as investigations at the ministry are underway.

National Police deputy spokesperson Mable Msefula said the five will be appearing in court after investigations are completed.

She said: “The five who are currently [out] on bail have been charged with conspiracy and theft by public servant. The arrests began in November last year. There is an audit report underway and we believe the figure will likely go up.”

The Ministry of Finance, Economic Planning and Development has since instituted a pay-roll audit at the Ministry of Agriculture, Irrigation and Water Development to verify the number of employees and the monthly wage bill.

Ministry of Finance spokesperson Nations Msowoya said they have received a report on the alleged malpractices at the Ministry of Agriculture involving salaries officers creating ghost workers with the intention of defrauding government.

In 2013, revelations of the plunder of public funds at Capital Hill dubbed Cashgate led to major donors suspending budgetary support to Malawi until government seals the loopholes. Currently, the Ministry of Finance is working on upgrading its electronic payment system, the integrated financial management information system (Ifmis).

So far, six people have been convicted and jailed in connection with Cashgate.