Massive thefts and fraud at the Office of President and Cabinet has cost the taxpayers a whooping K154 million, the audit report released by Auditor General covering the fiscal year 2005/6 has revealed.According to the report presented in Malawi National Assembly by the newly appointed Finance Minister Ken Kandodo (pictured) , K77 million was lost due to fraudulent payments in the period of July 2004 to June 2006 for the relief programme.
According to information obtained from the Malawi Police Service (department of Fiscal Police), the Internal Audit Unit of the Standard Bank, it is alleged that the bank uncovered dubious payments from the programs accounts and the deposits of the same into a private account belonging to Wesam general dealers. The matter involved collusion between bank tellers and some accounts officers of the department, reads the investigative report.
The colluding senior accounts assistants included: Mr. D.N. Malumba (Assistant Accountant and cheque signatory), Mr E. Koko (deceased), Mr B.M. Mbendera, Mr A.W. Bango, and Mrs S.D. Kalomba.
Main beneficiaries in the fraud were Wesam General Dealers owned by Mr N. Maganga which accounted for more than K72 Million; Mrs S.D Kalomba benefited K1.2 Million, Mr Koko pocketed K596, 800, Mr Bango got K683, 880 and K1 million withdrawals without any trace at the bank.
Secretary to the President and Cabinet, Bright Msaka is said to have failed to respond to the audit management letter on K75 million which could not be accounted for in his department.
The amount comprises of K33 million of payments made in the cashbook and K41 million debits on the bank account.
Auditor General Renford Kampanje said: It was suspected that most of the accounting recording including the paid cheques might have been destroyed by the suspects in order to conceal the fraud.
The OPC also wasted taxpayers money amounting to K1.6 million to salary and benefits to Rev. Jimu who was Chairman of the Poverty Alleviation Fund against the stipulated regulation which required the Chairman to honorarium and sitting allowances only.
A total of K1, 660,568.62 was noted to have been paid to Rev. Jimu for fuel, personal house security guard, and residential telephone and cell phone expenses. These payments were not consistent with the terms and conditions for members of the Trust Fund, reads the report.
The culprits are yet to be prosecuted and taxpayers money to be recovered.
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