Governance and anti-corruption advocates want the Confiscation Fund currently holding K3 billion to be ring-fenced to compensate individuals who have borne the brunt of financial crimes.
Speaking in separate interviews, the advocates say doing so would align the use of the funds with the Financial Crimes Act of 2017 which was amended this year.
For years, Malawi’s anti-corruption strategy has focused on prosecuting culprits and recovering stolen assets, and so, very little has been done to meaningfully recognize and repair the harm suffered by the victims of corruption.
But implementation of the amended Act (Financial Crimes (Amendment) Bill No. 7 of 2025) awaits President Lazarus Chakwera to assent to it.
The amended law now allows recovered funds to be used not just to cover administrative costs or support anti-corruption programmes, but also compensate individuals who have borne the brunt of financial crimes.
In an interview, governance and policy expert Mavuto Bamusi also suggested that the fund should be kept separate from the Consolidated Fund which is a general pool of government funds called Accounts Number One at the Reserve Bank of Malawi (RBM).
Said Bamusi: “The fund should be professionally managed so that it is not looted. It will be a sad thing for the fund to be used for sponsoring projects procured through corruption. The fund is an anti-corruption initiative, and should not be corrupted.”
He advised that the actual restoration and compensation projects should be clearly listed so that they are agreed upon by the victims of corruption.
“These may include construction of school blocks, drilling of boreholes, procurement of ambulances, and medicines for health centres. This fund is a symbol for restorative justice and helps to empower communities into believing the positive effects of anti-corruption initiatives.
“The fund is a developmental tool as it helps to bring back the development opportunities lost to corruption,” explained Bamusi, who is spokesperson of the Political Science Association (PSA).
The issue of compensation is contained is Section 48 of the Financial Crimes Act of 2017 which states that the court may order compensation of the victims of the crime by the convicted person.
Just like Bamusi, National Anti-Corruption Alliance (Naca) national chairperson Michael Kaiyatsa also called on authorities to ensure that strong safeguards are in place for the funds.
He also said there was need for clear rules on who qualifies for compensation and how the money would be distributed, so that decisions are based on facts, not personal connections.
“Fighting corruption is not just about punishing thieves; it is also about repairing the lives of those who paid the real price.
“Corruption steals from ordinary people, so justice must go beyond arrests but it must also include compensation to repair the damage done.
“So the fund should be managed by an independent body, not politicians, with oversight that includes civil society, the private sector, and the Auditor General,” he said.
Kaiyatsa also said it is critical to have regular public reports to track whether the funds are truly reaching victims.
Another anti-corruption campaigner Elia Kamphinda Banda said by using recovered assets to compensate victims, the justice system can now not only close the loop, but also help rebuild the lives they have damaged.
“Corruption has impoverished many Malawians unknowingly. The Anti-Corruption Bureau [ACB] must wake up and Malawi can do better in the fight against corruption. Government can also do better by ensuring that all losses through corruption are recovered and given back to Malawians,” said Kamphinda Banda who is former secretary general of the Civil Servants Trade Union and executive director of Corruption and Human rights Watch.
He also suggested that for transparency and accountability, the fund should be overseen by the Finance Committee of Parliament.
Minister of Finance and Economic Affairs Simplex Chithyola Banda said in April this year when he presented the Financial Crimes (Amendment) Bill No. 7 of 2025 in Parliament that the new legislation, among others, would improve the use of the fund by expanding its application to include compensating direct victims of financial crimes and financing initiatives that enhance the investigation and prosecution of financial crimes and asset recovery.
Other anti-corruption advocates believe the Confiscation Fund, generally viewed as an idle instrument for bureaucratic accounting, could now become a potential national symbol of restitution.
“When used well, it can serve not only as a financial mechanism but also as a narrative tool, a visible sign that corruption has a cost, and that cost will be repaid to the people.
“For that promise to be fulfilled, however, the law must be operationalised.
