Cashgate refunds not yet at Treasury


Malawians have not yet started benefitting from money recovered from the infamous plunder of resources at Capital Hill, popularly known as Cashgate.

Recently government disclosed that it had recovered K300 million out of the K24 billion of the money stolen from its coffers from 2012.

Reports indicate that most government services and operations, including the critical medical services, were almost paralysed due to lack of funding after donors pulled out budgetary support because of Cashgate.


Ministry of Finance, Economic Planning and Development spokesperson, Nations Msowoya, said the recovered money was on government books.

“However, the funds are not immediately available for use. We are still waiting for the Judiciary to formally communicate to the Treasury that they have successfully disposed the particular cases,” Msowoya said.

He said a team from the Treasury Revenue Policy Division was working with the Judiciary to start transferring the Funds into the government’s account Number 1, where it can be used to finance various government activities.


“So currently these funds are sitting in a Deposit Revenue Account which is used by the Judiciary to collect other fees from the courts. The money is not part of the 2015/16 budget. But will be included as soon as this process reconciliation takes place,” Msowoya said.

He said the money was deposited in an interest earning account at normal bank rate.

The ministry explains that Cashgate refund money is treated as departmental receipts (otherwise classified as non-tax revenue).

However, given the nature of the court processes, the money cannot immediately be transferred to the Treasury without the advice of the Judiciary.

“As for the properties, the Judiciary will be making a ruling on how they are to be disposed, either through public auction or they could be reassigned to another public office. Treasury will respect that decision.”

Cashgate prosecutions are still on-going and so far 10 people have been convicted and some of them have refunded the stolen money.

A week ago, Anti-Corruption Bureau (ACB) told our sister paper The Daily Times that it had recovered K300 million out of the K24 billion that was stolen.

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