Subsidy ‘ghosts’ uncovered in Malawi

Malawi Government says it has uncovered a scam in which fictitious villages and individuals have been registered to benefit from the K40 billion (about $160 million) 2012/13 Farm Input Subsidy Programme (Fisp).

The extent of the scam has not been established, but police on Wednesday said they have since instituted investigations into the matter.

Minister of Information and Civic Education Moses Kunkuyu, who is also the official government spokesperson, said on Tuesday that according to information obtained so far, among the districts involved in the fraudulent practice include Mulanje, Phalombe, Thyolo, Chiradzulu, Chikhwawa and Blantyre—all in the Southern Region.

He said when government announced an increase in the number of beneficiaries from 1.4 million to 1.5 million, it intended to reach out to all Malawians, but not to encourage dishonesty.

Kunkuyu said government got the information of such fraudulent registration process through various informants.

National Police spokesperson Davie Chingwalu, in an interview on Wednesday, said several cases of such fake villages and individuals have been presented to police.

“At the moment, our investigations are at advanced stage, but we have not yet arrested anyone,” he said.