Police pounce on Mwanamveka, Phiri, Kabambe

Former Minister of Finance Joseph Mwanamveka and former Reserve Bank of Malawi Governor Dalitso Kabambe have been arrested on allegations that they abused their offices which is contrary to section 95 (1) of the penal code.

Confirming the arrests, 1 Police Public Relations Officer James Kadadzera said the two top Democratic Progressive Party (DPP) top officials procured the commission of an offense of Fraudulent false accounting which is contrary to section 335 (A) of the Penal Code.   

According to Kadadzera, Mwanamvekha, and Kabambe’s acts resulted in Inter1 Monetary Fund (IMF) suspending Extended Credit Facility.

Abused his Office - Kabambe

“The two, while serving as Minister of Finance and Reserve Bank of Malawi Governor respectively procured and masterminded the falsification of Gross Liability and Net Reserve Base returns with intent to make IMF believe that the Government of Malawi was meeting conditions connected to the Extended Credit Facility. As a result of the scheme, IMF suspended the said Extended Credit Facility to the prejudice of innocent ordinary Malawians,” said Kadadzera.

Kadadzera also revealed that Mwanamvekha and other people are also connected with fraudulent sale of Malawi Savings Bank (MSB) in 2015.

Mwanamveka was involved in fraudulent sale of MSB in 2015

“Mwanamvekha and other persons yet to be arrested will also be questioned in connection with fraudulent sale of Malawi Savings Bank in the year 2015,” said Kadadzera.     

In a related development, Thyolo Central Member of Parliament Ben Phiri has also been arrested on allegations that he is a registered owner of Beata Investment which was involved in procurement fraud and corruption at the Ministry of Gender between 2018 and 2020.

Phiri and Kabambe handed themselves to the Police while Mwanmvekha was arrested Tuesday evening.

Handed himself to Police - Phiri

It is also reported that the law enforcers are in process of issuing a warrant of arrest of Former Minister of Finance Goodall Gondwe in connection to the fraudulent sale of MSB to FDH Holdings in 2015.

Meanwhile, Government Spokesperson Gospel Kazako said the arrests are not political.    

On Monday, Information Minister Gospel Kazako and Attorney General Thabo Nyirenda warned Government will investigate the sale of Malawi Savings Bank (MSB) which was sold for a song in 2015.

The bank was sold in 2015 for K9.6 billion during the Peter Mutharika administration.

In the same year, government repaid about K6 billion in toxic loans on behalf of MSB defaulters including Mulli Brothers, with the belief that the borrowers will repay the money to government.