Kabambe charged with abuse of office, money laundering

…bail ruling tomorrow

Former Reserve Bank of Malawi Governor Dalitso Kabambe has been charged with four counts   including abuse of office and  laundering of about K8.3 billion.

Kabambe and three other accused persons appeared before the court today following their arrest over the weekend. The other suspects are former Deputy RBM Governor Henry Mathanga, retired Director Rodrick Wiyo and one of the current Managers at Reserve Bank Leya Ndonga.

The four have been charged with abuse of office as the state argues that between October 2019 and June 2020, they allegedly  paid a compensation of K4.3 billion to FDH Bank without prior approval.

DPP Supporters showing support for Kabambe who is a member of the party

Another case of abuse of office involves provision of credit to Mulli Brothers and other firms without prior approval of the board.

They are also accused of neglect of official duty and money laundering with the state arguing that they acquired K8.3 billion while knowing that the said sum represented proceeds of abuse of public office.

According to the state, the cases have emanated from the findings of a forensic audit at RBM which exposed criminal activities at the Central Bank.

The state asked the court remand the four suspects in custody for a further 14 days, saying a team from the police and other investigation agencies will use the period to conclude investigations on the matter.

However, defense lawyers said the suspects should be released on bail since investigations are carried out before arrests are made.

Chief Resident Magistrate Patrick Chirwa has since reserved his ruling on the bail application to tomorrow at 2 pm.

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