Cashgate Returns: Malawi’s financial management system remains rotten


…Parliament failed to account for over K11million used on prepaid airtime units

An audit report by the Malawi Auditor General on the government accounts offers a chilling account of the financial management system that has led to a misty cloud over K2.4 billion of public funds being misallocated and paid out without unsupported documents.

However, the audit documented what the Auditor General, Stephenson Kamphasa, has regarded as an improvement in the misallocation of funds, payments without unsupported documents and missing payment vouchers. The report reveals that MK428 million was misallocated, representing an improvement of 91% of K4.86 billion which was misallocated in 2015. Likewise, the audit makes note of an improvement, albeit huge, sitting at K517 million from K16.4 billion of payments without unsupported that were documented the year before.

Saulos Chilima, Peter Mutharika

Overseeing the return of Cashgate

Ministry of Lands leads with over K126.4 million of payments without adequate supporting documents, a common practice among all the ministries followed by the Ministry of Agriculture where “payments amounting to K106.5 million were not adequately supported by third party documentation”.

“In the absence of the supporting documents it was difficult to ascertain whether the payments were a proper charge to public funds” stated the Auditor General.

Among other payments made without records are the K11 million of prepaid airtime units at the National Assembly that the audit team was unable to ascertain its accountability.

Overlooked observance of well-established procurement systems and procedures resulted in accumulation of arrears, with over K1.3 billion yet to be verified. K26.7 billion were initial accumulation of areas.

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