ACB Hiding K4 Billion Cashgate Document In Kalonga Case From DPP Office

Mary Kachale; DPP

The office of Director of Public Prosecution (DPP) has asked court to compel sister institution, the Anti Corruption Bureau (ACB) to release document belonging to former Chief of Tourism Leonard Kalonga, that details the distribution of K4 billion among Cashgate beneficiaries.

Kalonga was convicted following his guilty plea on conspiracy to defraud government using forged documents and paid the money to bogus suppliers. Charges includes money laundering of K520 million where he facilitated, a baited and aided acquisition of 6 Marcopolo Scania buses of Paul Mphwiyo and Money laundering which were proceeds of serious crime between April and September 2013 with other persons to a tune of K3, 252, 225 billion.

On Monday, DPP, Mary Kachale informed court that ACB investigators are keeping the document which details distribution of K4 billion among cashgate beneficiaries which Kalonga had provided during 22nd October 2013 interrogation.

Kachale said attempts by her office to get the document from ACB yielded nothing for almost a year now.

Speaking in an interview, Kachale said since her office does not have powers to compel ACB to produce any document to her office, the court would be an appropriate institution at this time to force ACB release that document to her office.

She said her office is very keen to see the document and therefore could not wait and be silent any longer when several attempts to ask ACB to produce the document internally yielded nothing.

“If a document was found with Leonard Kalonga that had distribution of K4 billion, we are interested to know what did that document say, and to whom…”

She emphasized that her decision to ask the court to intervene was not to turn on her sister institution, but “this is justice” and they “just need the truth” 

While emphasizing that she waited long enough and could not remain silent as Director of Public Prosecution, Kachale also did admit that the defense has been asking the State why it never disclosed that document to court.

“When Kalonga was pleading guilty his lawyers did ask why the state never disclosed the document that was found in the office and the House of their client. We committed we are going to investigate and find out but those investigations have yielded nothing, that’s why I brought it up in court to say the court should assist” she said 

Kachale has also put to question the the failure of the ACB Investigators to disclose such an important document to DPP office. She further raised her perplex questions on whether if or not there is need for powers of her office on ACB investigations.

   

“You have noticed that we work very well with the prosecutors in ACB. There is power that the Director of Public Prosecution has a say in what prosecutors in the ACB do under the consent, but Investigators in the ACB are not answerable in any way to the Director of Public Prosecution. So, may be this calls into question that I always ask; who watches the watchmen, who polices the investigators?

Should the office of the Director of Public Prosecution, may be have some powers also in terms of evidence? ….It’s a difficult question I am raising now I know am raising it deliberately because it has taken us one year and there about to try to get that document but we are not getting it.”

CashGate Case: State, Defense Differs On Kalonga Sentencing Submissions Facts: Court Reserves Ruling To Wednesday

The High Court in Lilongwe has reserved its ruling to Wednesday on differences on the facts relating to sentence submissions between the State and Defense in the cashgate case of former Chief of Tourism, Leonard Kalonga.

Kalonga was convicted following his own guilty plea for defrauding government money more than K3 billion between April and September 2013.

In their submission, the defense claims that the convict had wanted to plead guilty at an earlier stage but the state (both DPP office and Anti Corruption Bureau ACB) had prevented him from doing so. But state is fighting back saying the claim is not true.

If the accused person at a very early stage pleads guilty, indicates other more offenses that were committed than were charged and cooperates with investigations, can have a lesser sentence unlike when someone plead guilty after the state has done all the work to prove someone guilty.

Now, the court has adjourned the case to Wednesday to deliver its determination whether or not the dispute is substantive enough to hear the witnesses. This followed State application of Newton Hearing for it to respond to the claims by defense as well as enable the court to have a clear factual basis for sentence.

Kachale

According to Director of Public Prosecution (DPP) Mary Kachale said at this stage, if the Judge decides to hear the facts in dispute which are essential for sentencing after Kalonga plea of guilty, means there would be ‘Newton Hearing’ whereby court will hear witnesses on facts that parties are disagreeing on.

Defense lawyer Emmanuel Theu told court that the Newton hearing application was unnecessary.

But Kachale said the state is prepared to have witnesses from ACB and DPP office to prove that the defense claims are not true. 

“If indeed it would transpire that it is true then let the court be the one to determine that, but we cannot allow such an allegation to just go without making attempts to dispute them.” Said Kachale

“We have been hearing too many allegations of perverting the course of justice. Now what we are saying and what I am saying as Director of Public Prosecution is that the submissions made by the defense seems to imply as if the office of the Director of Public Prosecution or the ACB were perverting the course of justice in preventing Leonard Kalonga from pleading guilty at an early stage. That’s too serious allegation to leave without disputing. 

If indeed Mr. Kalonga has the good course to do that then let Malawians know the truth through the court.”

Kabwila, Chakhwantha Bail Bond Extended: Fears Treason Case

Malawi Police have left two Malawi Congress Party (MCP) legislatures, Jessie Kabwila and Peter Chakhwantha in panic after informing them on Friday that their bail bond has been extended to 18th March 2016.

As a condition to their bail, Salima North-west legislature Kabwila and Lilongwe South-West legislature, Chakhwantha on Friday appeared at Area 30 Police Headquarters and were left gob-smacked to hear that their bail has been extended and should appear again to Police on 18th March. 

MCP supporters on Monday evening following
Kabwira arrest

Kabwila, spokesperson for MCP and Chairperson for Women Caucus in Parliament was arrested on Monday on her way to Germany Embassy to seek asylum while Chakhwantha, Chairperson of Legal Affairs Committee of Parliament surrendered himself to Police on Tuesday and were both charged with treason over Whatsapp conversation. However, Inspector General of Police Lexten Kachama on Wednesday clarified that the two were only called for cautioning and were never charged with any offense.

The two legislatures said they are surprised that Director of Criminal Investigation Department (CID) has contradicted Police IG’s earlier statement regarding the arrests by extending their bail.

“We waited there for an hour then we were ushered into the office of the Director of the CID, it is where we got the shock of our lives where they told us that they are going to extend our bail bond to 18th March the very same day this House (National Assembly Meeting) will be rising.” Explains Chakhwantha

Chakhwantha reacted that the extension of this bail is a confirmation that Police would like to pursue Treason case against them

“This is something very strange because we understand that the IG had told the nation that we were never arrested and we are not on any charge so far, so by way of extending the bail bond we take it that legally what he said is has been contradicted by his own junior officers. 

By the extension of this bail bond we deem that we are indeed were formally charged and we are under arrest and as we are, we are suspects” said Chakhwantha waiting to hear what would be the next step by Police on 18th March

On her part, Kabwila expressed concern that these charges are preventing them from attending to important matters in National Assembly citing Friday as an example whereby as they were at Area 30, the House was listening to Minister of Finance presenting Midyear budget statement.

“You hear Police IG stating that there is no case and hear Area 30 Police saying we are extending your bail, so we don’t understand as who is telling the truth.” Reacted Kabwila

Kabwila said the bail extension is Government plan to keep them off from talking about the hunger in this country.

“To tell the truth what this is all about is trying to keep Malawi Congress Party quite because people know that what Malawi Congress Party has been saying that this Government has not handled the hunger that we kept on saying is looming for so long. And it is not by accident that we had to go and do this bail on the day that Minister of Finance was presenting his estimates and we missed that.” She said

The Case will cost public money 

Kabwila warned that their arrests will costs Malawians tax because at the end the ruling Democratic Progressive Party (DPP) will compensate them just like it is planning to do with the ‘July 20 victim’ families. 

“DPP Government seems to be bent on misusing taxpayer’s money because they are paying people for mistakes they did and now look at what they are doing to us. This is also another self inflicted pain on the state. We don’t have resources, why should we have a Government that is so good at making mistakes and costing the public money, now they are even costing public its legislatures.” Said Kabwila who described DPP government as clueless and the charges are ridiculous 

The two MP's also said their appearance at Area 30 Police Headquarters was violation of assurance of Legislatures immunity and privileges as made in the National Assembly by Leader of House Francis Kasaila that Police will follow procedures that are established as to how they can deal with members of Parliament once found on the other side of the law.

“What is happening now is that, apart from that commitment, the IG also came in the open and said there are no charges. And today behind the back of the speaker, they call his children to Area 30 and extend the bail bonds. This is where we are saying something very fishy is being cooked up and we are saying this Government does not even care whether there would be consequences in terms of monetary compensations at the end of the day as they have already demonstrated that they are now currently paying the 20 July victims with Millions of money’s. So what will happen to us?” asked Chakhwantha 

But Kabwila said their arrests means police are getting orders from politicians and that DPP Government does not believe in independence of institutions

New Amendment Oblige Banks To Send Credit Information To Credit Reference Bureau

The National Assembly has passes an amendment bill that oblige by the law, all Persons lending and financial institutions like banks and to provide to the Credit Reference Bureau with repayment history and current debt profiles of Persons and Companies.

On Tuesday evening the House passed Credit Reference Bureau Amendment bill with overwhelming support from main opposition parties of Malawi Congress Party (MCP) and People’s Party (PP).  

Credit Reference Bureau is a company that allows users to exchange information on their clients repayment history and current debt profiles which compiles a data base that collects, stores, consolidates and process information related to credit history of a person.

However, the Bureau has been failing to get credit information of individuals and companies information from banks. This has been making it difficult for the Bureau to disseminate such credit information among users for their businesses.

Minister of Finance, Goodall Gondwe when presenting the bill in the House, said when the bill was passed in 2010 “We forgot to obligate banks” to send information to the bureau of the profile of individuals and companies on their credit history and profile.

According to the Credit Reference Bureau Act of 2010, (Part II- Operations of the bureau [13 (3 A)] the Bureau may collect credit information from financial institutions and any other institution as may be prescribed by the Minister upon recommendations by the Registrar and consult public sources of information for data in official records.

“In order to obligate them (financial and credit institutions) we have to say that it is mandatory by law for them to send that information” said Gondwe 

The Act provides that the Bureau stores the credit data for a period of 7 years.

Malata, Cement Subsidies Form Of Dependency

Lazarus Chakwera

Leader of Opposition in Parliament attacks Malata and Cement Subsidy programme pursued by Democratic Progressive Party (DPP) Government as unsound plan which make citizens dependent to Government.

The Malawi Congress Party (MCP) president said Malawians do not deserve better housing, but there is a better way to increase access to such amenities. 

Chakwera mentioned that his Malawi Congress Party (MCP) believe that the best way to improve living standards and conditions is to increase the capacity of Malawians through private sector jobs and businesses that generate enough income for them to build their own houses. 

He said current subsidy is one way of encouraging citizens overdependence on Government which encourages consumption capacity instead of building productive capacity to generate adequate revenues in future.

"Mr. Speaker Sir, instead of building productive capacity to generate adequate revenues in future, the Executive is busy building consumption capacity – continuing with its expansion of such consumption avenues as the Malata and Cement Subsidy.” He said

“Who in their right mind increases consumption when productivity is shrinking? Besides, when are we going to open our eyes to see that knee-jerk subsidy programs are the most vulnerable to abuse?" Said Chakwera in his response to the State of the National Address 

He went on; "No President can say in one breath that the Government needs to move away from dependency on donors and at the same time sink Malawians deeper into dependency on Government subsidies. Malawi does not need a President who invents new ways to spend Malawians‟ money, but one who creates new ways for Malawians to create wealth which they can spend as they see fit. How can this president administer a cure for our economic ills if he is unable to see that dependency on subsidies is part of the sickness? How can Malawians be engaged in activities that grow the economy when he is busy deepening their sense of dependency?"

Chakera also questions criteria of selecting 80 beneficiaries in the programme per constituency, parameters used among others.

"Mr Speaker Sir, the President said that 80 beneficiaries in the Malata and Cement Subsidy have been identified per constituency in all the 193 constituencies. Many questions arise: What were the criteria for selecting the beneficiaries? What parameters did they use? Who selected those beneficiaries? Hindsight teaches us that these kinds of programs are ill advised, ill-devised, and ill-executed."

    

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ARET, Chitedze Research De-linked From LUANAR

The National Assembly passes the bill detaching Agriculture Research Trust (ARET) and Chitedze Research Station from the Lilongwe University oAgriculture and Natural Resources (LUANAR).

The two delinked institutions and the two colleges of Bunda College of Agriculture and Natural Resources College were joined during Bingu Wa Mutharika administration forming Lilongwe University of Agriculture and Natural Resources (LUANAR).

Minister of Agriculture Irrigation and Water Development, Allan Chiyembekeza said during the Second Reading of the Bill 'Lilongwe University of Agriculture and Natural Resources (Amendment)', that excluding the two institutions from forming LUANAR the country stands to benefit more.  

"Despite delinking of Chitedze and ARET from LUANAR, there will be strong collaboration between these two institutions and LUANAR on research technology, dissemination as well as teaching.

Staff from these institutions should be allowed to teach at LUANAR, conduct research and supervising research but with agreed time allocations and associated rewards while retaining their core functions over bride research to address national agricultural research problems." Said Chiyembekeza

He further told the house that the amended legislation apart from enabling ARET and Chitedze Research Station maintain their identities and core functions, said ARET will return its mandate of promoting tobacco production and remain as a centre of excellence for tobacco and no loss of jobs at both institutions;

"Government control of the National Agriculture Research Agenda will be maintained, the cost of relocating Regulatory and Technical the functions from Chitedze Research Station and ARET and Re-orientation of the other research stations will be avoided and the future of the international Agriculture Research Centres that are based at Chitedze Research Station will also be ensured." he added

The minister mentioned that integrating Chitedze Research Station into LUANAR would have brought more negative implications which includes: loss of Government control of the National Agriculture Research Agenda; High cost of relocating Regulatory, Technical and the Advisory functions from Chitedze; 

“Shifting priority for Agriculture Research, re-orientation of the rest of the research stations in the ministry, uncertainty over the livestock of research and infrastructure and uncertainty over the future on the international agriculture research centres that are housed at Chitedze Research centre." He said

The minister also noted that Government created ARET as the model for Public Private Partnership which the country needs to learn from and replicate to continue championing in the production of tobacco in this country.

Responding to the bill, the Malawi Congress Party (MCP) spokesperson on Agriculture, Felix Jumbe made no objection to the provisions in the bill.

However, Jumbe said; "Including Chitedze in LUANAR it was a quite an anomaly. We would rather wish Chitedze become a Commission and excluded from Ministry of Agriculture"

Similarly, People's Party (PP) shadow Minister of Agriculture, Dr. James Munthali supported the bill but taunted the Democratic Progressive Party (DPP) Government for making a u-turn over the decision it made some years ago.

ARET was established in 1995 through a Trust deed with the ministry of Agriculture, Irrigation and Water Development and Tobacco Association of Malawi (TAMA) as donors and trustees. TAMA and some stakeholders in the tobacco industry resisted the integration of ARET into LUANAR.

Negotiations May Bring Back Donors- PP

Uladi Mussa

The opposition Peoples Party (PP) says Donors may resume direct budgetary aid if the current administration swallows its pride and begin to negotiate with donors and accept their demands.

Leader of PP in Parliament Uladi Mussa was speaking in the National Assembly on Monday evening when responding to State of National Address by President Peter Mutharika delivered on Friday.

Mussa said the main reason donors are reluctant to come back is because the Democratic Progressive Party (DPP) is failing to effectively negotiate with them and listen to their demands.

Donors suspended their direct budgetary aid to Malawi following revelations of massive looting of public money at the Capital Hill dubbed Cashgate.

The Democratic Progressive Party (DPP) administration of Peter Mutharika says Malawians should move away from donor dependency and start to focus on ways to outsource resources locally and bringing in investors.

However, PP says “does not agree” that Malawi cannot negotiate further with our donors “donor age should not end abruptly because this is not first time happening in the country.”

Uladi Mussa said all President Peter Mutharika’s predecessors came in when donors had left but they managed to bring them back.

“When Dr. Hastings Kamuzu Banda got voted out of the office in 1994 the Paris Club had left. But Dr. Bakili Muluzi came in they negotiated and donors came back. Ten years later, when Bingu Wa Mutharika came in donors had also left due to bad governance and corruption. But did the same. He went to New York in September of 2004 to give his maiden speech” said Mussa.

He noted that similar development happened in 2012 when Joyce Banda came to power. Also donors had left because the incumbent was off-track with IMF policy but made negotiations until donors came back.

“So we are greatly surprised that DPP is telling people that we must suffer, no aid will be coming to Malawi. No!” he said “The aid can come to Malawi if there is a political will to negotiate with donors.” He added

Mussa then alleged that he is sure that Mutharika administration has failed to convince donors to come back because of the known problems and reasons.

He mentioned failure to honor donor demands and instructions on fiscal audit on K92 billion cashgate scam which took place from 2009 to 2012 during the time of Bingu Wa Mutharika and calls for an investigation into the murder of Issa Njauju one of the top Officials at the Anti Corruption Bureau (ACB) and many other things are the main reasons why DPP won’t go for negotiations with donors. 

“So to avoid these conditions this government is saying No donor aid. But I strongly believe if there is political will donors can come back to assist the poorest of the poor in this country.” He added

However he made it clear that PP does appreciates the need for Malawi to be self-sufficient, but believes that Malawi should develop a plan to gradually wean itself from donor aid.

Mussa also in his response rubbishes President Mutharika State of National Address as empty statement which does not give hope but full of lamentations with no proposal about how the country will come out of current mess.

He in several times called for Mutharika resignation.

The PP leader also bemoaned over new procedure in the identification of Farm Input Subsidy beneficies and its price by saying that at the moment, the programme will benefit the rich and not the poor of the poorest.

He further bemoaned with the state of Governance and Human rights issues that includes; Conflicts between branches of government, on tackling corruption and protection of the officers involved in investigation of corruption cases, interference by the Attorney General in Parliamentary Affairs, denying former President Joyce Banda to entitlements (official salary, security, vehicles and residence) and failure to commit to amend the Electoral Laws.

Contractor Mis-Procurement for the Upgrade of Machinga, Chingale-Lilangwe Road Leading to More Sufferings: CCJP Urges Current Regime Not To Repeat Similar Decision

• Dr. Joyce Banda Govt misprocured contractor for the road

• Continued deaths enroute to hospital are among challenges

Catholic Commission for Justice and Peace (CCJP) of Zomba Diocese says government choice to mis-procure contractor to upgrade the Machinga, Chingale-Lirangwe road to tarmac has not solved any long and increasingly sufferings of people from districts of Machinga, Zomba and Blantyre, rather another journey of misery.

The construction works for the road was stalled immediately when Peoples Party (PP) led Administration launched the upgrade of the road in March 2014, as Kuwait Fund withheld its resources after observing that Malawi government had flouted procedure by hiring a European contractor ‘Mota-Engil to do the upgrade works, tangent of the Loan agreement that ‘the contractor should be sourced from Arab country.’ 

The withheld money was a bill passed by the National Assembly in 2013 ‘Kuwait Fund Loan Authorisation’ valued at $10.2 million for the upgrading and rehabilitation of approximately 62.3km Machinga, Chingale-Lirangwe road to a tarmac by 2014 and then Deputy Minister of Finance hon Cornelius Mwalwanda signed the Loan agreement on 19 November, 2013.

Director for Zomba CCJP office Raphael Yusufu, says the stall, is continuously leading to frequent death among patients on their way to referral hospitals of; Zomba Central Hospital, Mlambe Hospital and Queen Elizabeth Central Hospital in Blantyre. 

Yusufu, further said Public as well as private servants are shunning away from working in the area; lack of viable markets even though the area is the food basket for Zomba, Machinga and Lunzu towns; and people are experiencing untimely delivery of materials such as school materials, agricultural commodities and FISP inputs when it rains because the road becomes impassable. 

While expressing disapproval of the decision made by then government and caution current government to refrain from committing such unjust procedure any time in future he said “Times for politicking is over and let us develop our nation by making sure that we respect all the due process required as stipulated in contracts signed with the cooperating partners.” 

“We have seen leaving of Mota-Engil from their designated camping site in Chipini without any explanation to the community. In addition, the road was to commence as soon as it was launched in March, 2014, however nothing has materialized on the ground.” observed Yusufu

Others who spoke to this reporter from Chingale Constituency, explained that in 2014, they had to cough in extra money to hire for a vehicle to carry their FISP inputs after the truck which was meant to deliver the same got stuck in Lirangwe and Pregnant women are still delivering along the way and patients dying on their way to referral hospitals. 

But in a recent interview, Minister of Transport and Public Works hon. Francis Kasaila acknowledged the problem but was quick to mention that current administration is in talks with Kuwait and that it has already removed Mota-Engil on the road site so that new procurement of Arab world contractor begins as per agreement of the loan. 

He said officials from Arab bank of Kuwait would be in Malawi by the end of March to finalize deal negotiations and within 90 days the Ministry would have all due processes finalized and by July latest the contractor could be on the ground.

“We are meeting with Kuwait Fund on how we move forward because they need to give us a go ahead, a no objection to procure another contractor. That process will definitely start as soon as we meet and agree on the way forward."

Kasaila equally expressed grief over the decision made by then government "It was a costly decision we have lost time, we had our relationship to save between us and the donors, because when you do mis-procurement you are putting yourself in bad light with donors as a country" 

The Minister, then said "Our colleagues in Lirangwe, Chingale and Machinga they have been expecting this construction works to start long time ago but nothing is on the ground”

“We should endeavor not to do that because it becomes sad, if that happens it is the country that loses resources, we have lost time as well. Therefore it is something that as government we have learned and we hope we will not repeat in the future." He assured

However, Zomba CCJP Director further reminds Democratic Progressive Party (DPP) government to live up to its promise of upgrading the road “Machinga-Chingale-Lirangwe is one of the priority roads promised in the DPP Manifesto and is high time they rise to the occasion by fulfilling their promises through ensuring that the socioeconomic rights of people living along this road is respected by giving them a tarmac road.”

Concerned people from areas along the road have gone to the extent of warning that if their road is not upgraded into tarmac by this regime, then they will campaign against voting for DPP and its candidates come 2019 elections.