The Anti-Corruption Bureau (ACB) has cleared President Peter Mutharika of wrongdoing in the 2.7 billion Police fraud.
The ACB has told the local media that Mutharika did nothing wrong since the K145 million was not for personal use.
An ACB investigation report showed that businessman Zameer Karim sent K145 million to a Democratic Progressive Party (DPP) account whose sole signatory is Mutharika.
The president later withdrew K65 million from the account.
Karim sent the money after receiving 2.7 billion for supplying rations to Malawi Police and defrauding government of K466 milllion.
But ACB boss Reyneck Matemba told the local media that Mutharika did not personally benefit from the money.
“Bank documents and other documents that we have, some of which were provided to us by the State President himself, clearly show that the ultimate beneficiary of the K145 million was the Democratic Progressive Party and not the State President,” he said.
The statement has irked rights activists who have accused the ACB of contradicting its own investigation report.
Activist Gift Trapence said the ACB should just investigate the issue and take the involved persons to court.
“We are worried that ACB is acting as the court clearing individuals when they should just investigate. Malawians will no longer trust the ACB to do its work independently,” he said.
The DPP recently said it will return the money to Karim.