Former Malawi budget director Paul Mphwiyo has blamed the massive plunder of tax payers’ money at Capital Hill on poor government systems.
Speaking publicly for the first time on the matter when he appeared before the Public Accounts Committee of Parliament this morning, Mphwiyo said lack of coordination between the Accountant General, Reserve Bank of Malawi and Ministry of Finance made it difficult for government to detect fraud.
“There is nothing to hide, all payment authorisation happened with Secretary to Treasury approval. [But] I noticed persistent differences in what RBM reported as expenditures and what the Ministry of Finance approved for spending.
“I noted anomalies in arrears government owed. When I came into office, I cross-checked and stopped payments pending further analysis,” he told the committee.
Mphwiyo said this action resulted in some suppliers to government putting pressure on him to make payments, some even showing up at his office.
He said fraud in government did not start with the discovery of K120 million in an accounts assistant’s bank account, saying: “Fraud has always been there.”
Quizzed on his alleged vast wealth, the shooting surviver said ACB queried him about his wealth and he fully disclosed his assets.
“Malawi is a country where success is not a common phenomenon, full of jealousy and envy. It’s possible for a young man like me to accumulate wealth,” said Mphwiyo, adding that at 37 he was capable of accumulating wealth through hard work.
Mphwiyo was quick to challenge PAC to access this information from ACB. He also advised PAC to ensure that all public servants declare assets.
Mphwiyo also dismissed allegations that he supplied President Joyce Banda with stashes of cash, describing the allegations as nonsense.
The former budget director has since refused to comment on whether his shooting was directly linked to the looting of public funds, saying he will only comment on the matter in court. He denied the assertions that his shooting was as a result of a deal that went sour.
For more in-depth analysis and reporting of Mphwiyo/PAC Hearing look out for THE NATION tomorrow.
