By Wezzie Gausi:
Former Reserve Bank of Malawi (RBM) governor Dalitso Kabambe and three others have failed in their bid to stop their criminal trial over alleged financial crimes involving $350 million.
This follows a High Court ruling of Monday, April 7, 2025, which dismissed applications for immunity based on the RBM Code of Conduct.
Kabambe—together with Henry Mathanga, Cliff Kenneth Chiunda and Joseph Mwanamvekha—is accused of conspiracy to commit financial crimes, making misleading statements to the International Monetary Fund (IMF) and money laundering.
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The offences were allegedly committed between 2018 and 2020 while they held top positions at RBM and the Ministry of Finance.
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In their applications, Kabambe and Mathanga claimed that Paragraph 4 of the RBM Code of Conduct protected them from prosecution for actions carried out in good faith during the course of their duties.
They sought a permanent stay of proceedings based on this provision.
However, presiding Judge Redson Kapindu ruled that the Code of Conduct, as contained in the First Schedule of the RBM Act, was subsidiary legislation and could not override the principal Act or other financial laws.
He stated that Section 23(3) of the RBM Act clearly provides that any staff member or director whose actions amount to a criminal offence is subject to prosecution.
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“The court finds the proviso to Section 23(3) of the RBM Act to be a legally binding, direct and clear legislative signpost,” Kapindu said, adding that no ministerial rule or regulation could displace the statutory position.
The judge further clarified that even if the Code of Conduct appeared to grant immunity, it would be considered ultra vires (beyond legal authority) and therefore invalid, as it contradicts the parent legislation.
As such, he said the question of whether the accused acted in good faith did not arise.
The ruling also dismissed an attempt by the defence to consolidate similar applications before other judges who are handling related cases, citing lack of legal provision for such consolidation in criminal proceedings.
Kapindu said, as such, the criminal process must proceed.
The matter is being prosecuted by the Financial Crimes Division of the High Court, with State lawyers including Dzikondianthu Malunda and Chikondi Liwimbi being on the prosecution side.
The trial continues.
