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K145m fraud scam can destabilise economy—Ecama

Graft allegations contained in the leaked Anti-Corruption Bureau (ACB) document are a cause for concern as they have potential to destabilise the country’s fragile economy, Economics Association of Malawi (Ecama) has warned.

The sentiments  by Ecama follows an ACB investigation report which reveals that in April this year, businessperson Zameer Karim, owner of Pioneer Investments, deposited K145 million into the ruling Democratic Progressive Party (DPP) Standard Bank account whose sole signatory is President Peter Mutharika.

Kalilombe (R): Handle it transparently

The report names Mutharika as a beneficiary of what could be proceeds of fraud in a K2.7 billion Malawi Police Service and Pioneer Investments food ration contract.

In an interview on Wednesday, Ecama president Chikumbutso Kalilombe cautioned government that if not well handled the scandal can result in donors, foreign investors and the investing public losing confidence in the country.

He said: “We do not want history to repeat itself as was case with the 2013 public mismanagement of funds popularly known as Cashgate. We cannot afford to lose the little aid that we are getting right now.

“The concerns and suggestions raised by the various interest groups, therefore, need not be taken lightly. In fact, the matter should be handled expeditiously and transparently.”

The Ecama president said his institution has always highlighted that corruption is one of the many evils holding back the country.

“Corruption results into a situation where resources that could have been used in productive and economically sensible enterprises ending up being wasted or retained by just a few,” said Kalilombe.

Dausi: Matter is being investigated

The sentiments by Ecama are echoed by various civil society organisations (CSOs), who have been appealing to government to push DPP to return the money to the State.

However, government spokesperson Nicolas Dausi has said the ruling party cannot come out clear on what they will do regarding the allegations as the matter is being investigated by relevant authorities.

He said in future the party will have measures in place to vet donations.

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