Malawi advised to change finance management software

A fraud and risk management consultant has advised Malawi Government to change the Integrated Management Financial Systems (IFMS) which operates on a software known as epical, saying it is outdated can led government to lose billions of kwacha.

The consultant, Elwin Chiwembu Sichiola, who is also managing director of AMA Associates an organisation formed to help fight corruption, said if left unchecked, abuse of public funds can impoverish the nation.

On Tuesday, new Auditor General Stevenson Kamphasa told the media that the financial system that government is currently using is prone to abuse and has led to governmental resources being plundered.

He has since recommended to government that the K72 billion (about $180m) payment arrears it owes various organisations and individuals be fully audited before being released because the system alone cannot be trusted.

But in an interview on Wednesday, Sichiola said apart from replacing the outdated epical software there is need to emphasise issues of integrity and ethics among government officers to ensure that taxpayers’ money is safeguarded.

“It is interesting that the Auditor General has admitted that the payment system is outdated and needs to be revamped. My simple advice is that there is need to emphasise discipline, integrity, honesty and openness among those who will be entrusted to run the new software,” he said.

Sichiola, whose body recently visited colleges to teach students on the dangers of corruption and theft of public funds, argued that the country cannot develop if more money goes down the drain through outdated system.

“Corruption and theft of public funds is an evil and the sooner the situation is arrested the better because this leads to the rich being richer and the poor being poorer,” said Sichiola.

Accountant General David Kandoje while agreeing with Sichiola on the need for software operators to maintain integrity.

“Any system is not 100 percent foolproof and can be misused in one way or the other, but there is need to emphasise issues of honesty by those operating the system if cases of pilfering are to be stopped,” said Kandoje.

Minister of Finance Ken Lipenga is also on record to have conceded that the IFMS has loopholes and there is need to find a lasting solution to solve the problem.

“There are a number of issues which must be addressed. We at the Ministry of Finance are very determined to address the weaknesses that are there,” said Lipenga.