Cashgate resurrects: Malawi government in fresh trouble!

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Hunger, economic crisis, and a staggering economy aside, the Malawi government is into fresh problems with the donor community over abuse of World Bank funds, Malawi24 can confirm.

Goodall Gondwe and Peter Mutharika

‘We are in trouble’ Finance Minister Goodall Gondwe seems as saying to President Peter Mutharika. (Library).

The World Bank had in the previous years provided funds amounting to $519, 142 32 (about K400 million) to the Malawi government meant for a financial reporting and oversight improvement project.

But reports have resurfaced that the funds were abused by the treasury.

This has not gone well with the World Bank which has since asked the Malawi government to pay a whooping MK 400 Million for failure to run the project and use the funds properly.

According to World Bank Country Manager for Malawi, Laura Kullenberg, the funds were not used as the project required.

Laura Kullenberg

Laura Kullenberg says the World Bank follows up on its funds.

She is quoted by local media as having said that the World Bank stands strong in following up on how its funds are used and that every penny it lets out need s to be ‘used in the rightful way’.

Meanwhile, government has through the Ministry of Finance indicated it is ‘in search of the funds to pay back’ as asked by the world bank.

Treasury spokesman Nations Msowoya while saying this is a blow to an economy that is already in need said government is searching for the said funds to meet World Bank’s call.

Donors in recent past years withdrew their support to Malawi amid similar revelations – this time led by civil servants where billions of kwachas went uncounted for in a scandal better known as Cashgate.

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