Minister of Information Gospel Kazako has expressed concern over theft of K300 million at Higher Education Students’ Loans and Grants Board during the Democratic Progressive Party (DPP) administration, saying many students were denied access to loans due to the theft.
Speaking at a press briefing in Lilongwe today, Kazako said it is disheartening that many Malawians struggling to pay fees were not given loans by the board yet money meant for loans was there and was being stolen.
“Some people stole money and bought vehicles, constructed houses when people who were required to benefit from the funds were not able to access the money,” said Kazako.
The money was stolen from the loans board between 2018 and 2019 by employees who were at the board at the time but the theft has been revealed following an audit whose report has been released this month.
According to Kazako, the funds were siphoned through a private institution of higher learning called of African University Guidance, Counselling and Youth Development.
The University was reportedly struggling financially and failing to pay rent and the Loans Board, whose mandate is to provide loans to students in institutions of higher learning, advised the University to appeal for funds from the board.
The University made a proposal for a donation of K10 million but the board sent K300 million. The board then asked the University to return the additional money but to various accounts belonging to employees at Loans Board.
“So when returning the funds, the University would send say K40 million to one employee’s account and K10 million to another. It also seems that some of the money remained at the University,” said Kazako.
He added that the current Loans Board management reported the issue to Ministry of Education and office of the Attorney General and Government has evidence of the transactions.
“We have evidence of cheques bearing names of recipients, the names of banks which were used to steal the money and the amounts stolen,” said Kazako.
Director of Public Prosecutions (DPP) Steven Kayuni told the local media over the weekend that his office is looking into the matter in coordination with the Office of the Inspector General and criminal proceedings will be instituted against those involved.
