Site icon The Times Group Malawi

Malawi losing 16% of GDP to fraud

The UN resident coordinator and UNDP resident representative in Malawi Mia Seppo says Malawi is losing nearly 16 percent of its Gross Domestic Product in illicit financial fraud annually.

Seppo said this would be addressed if accountants in the country become more aggressive in attempts to address the vice.

Speaking at the Institute of Chartered Accountants in Malawi (ICAM) annual dinner and dance in Blantyre on Friday, seppo said resources lost through fraud and corruption could bail the country out of its poverty trap.

“We cannot talk about financing without talking about corruption. Corruption does not only defraud Malawi’s hundreds of millions of kwacha, it’s an inconvenience to the public and it makes life unbearable for the poor,” she said.

She said these are significant resources that if tracked and mobilised accordingly would reduce the country’s dependency on aid.

Seppo further said the available resources must be used for the desired agenda and that illicit fraud is an equivalent of robbing the country its hard earned financial resources.

She said better use of those resources through better data, better management and better analysis would help curb different financial flaws Malawi is facing.

“Here the experts of Icam can play a critical role given their knowledge of the financial management.

“Accountants have a role to play in curbing corruption. I trust Icam would play its role,” said Seppo.

ICAM president Chiwemi Chihana pledged that the institute’s membership continue fighting hard in attempts to close the existing financial management gaps in both the public and private sectors.

“We are already engaging with various players in issues of public resource management. That is our role to ensure finances are safeguarded,” said Chihana.

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