Loans Board ex-employees  granted bail in K300m misappropriation case


Two former employees of Higher Education Students’ Loans and Grants Board (HESLGB) have been granted bail today following their arrest on allegations that they stole about K300 million meant for students’ loans.

The two are former Loans and Grants Manager Chimwemwe Kaphagawani and former Communications Manager Success Sikwese.

Lilongwe Chief Resident Magistrate Madalitso Chimwaza has granted bail to the suspects on condition that they pay K500,000 cash each and present two sureties each tied to a K5 million non-cash bond

The suspects are also expected to be reporting to Police every fortnight and they have been ordered to surrender their travel documents and not to interfere with state witnesses.

Sikwese and Kaphagawani were arrested on June 29 for failure to account for the money which was in their custody.

On Tuesday, they appeared before court where they were charged with theft by a person employed in the public service and money laundering. The two denied the charges.

State prosecutor Cecilia Zangazanga asked that the suspects should be remanded for a further five days but their lawyer  William Chiwaya objected saying the suspects cannot interfere with investigations since they are no longer Loans Board employees.

Today, Magistrate Chimwaza has dismissed the state’s application.


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