Financial Intelligence Authority (FIA), which is the custodian of the Confiscation Fund, where money recovered from financial crimes is stored, has disclosed that funds recovered from convicts cannot be put to use due to lack of a management policy.
Officials say processes are underway to formulate a management policy that would help in the use of the funds.
This means money in the account, whose value is not yet known, is idle and gradually losing value due to factors such as devaluation and depreciation of the local unit, the Kwacha.
Some of the properties, which include houses and vehicles, were confiscated about nine years ago.
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This was disclosed in Mzuzu on Friday during a panel discussion on the role of asset recovery in ongoing efforts to combat corruption.
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One of the managers in the Department of Monitoring and Analysis at FIA, Chikondi Lipato Sikwese, said, without having a management policy in place, the money that was recovered cannot be used.
“Currently, there are processes that need to be put in place on the management of the Confiscation Fund and the funds that are in there. As you know, asset recovery issues and the legal framework are constantly being looked at. It [the policy] is being developed.
“In the same manner, policies and regulations that are going [to be used] to manage the Asset Confiscation and Recovery Fund ought to be improved from time to time,” she said.
Lipato Sikwese added that, considering reports that FIA is receiving from institutions such as banks, insurance companies and others, there are indications that financial crimes are still widespread in Malawi.
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Meanwhile, Anti-Corruption Bureau Director General Martha Chizuma has said they have recovered over K700 million worth of property from Cashgate-related cases whose proceeds are kept in the Confiscation Fund.
Chizuma said they hired a private estate manager who is managing properties spread across the country.
“Most of these properties— there are about K700 million-worth of properties [the amount in question relates] just [to] the properties [such as houses] — and, then, we have cars and everything. So, most of these properties were confiscated back to the government after a complete trial; these are Cashgate cases.
“As such, the administration part of it is that we hired a private estate manager who is managing these properties where, in some buildings, we have tenants whose money is channelled into the Confiscation Fund,” she said.
FIA was established under the Section 3(1) of Financial Crimes Act as the principal national agency responsible for preventing and combating financial crimes.
Functions of the authority include requesting, receiving and analysing reports submitted by institutions such as banks, insurance companies.
The information analysed is then shared with agencies such as ACB, Malawi Revenue Authority among others.
