Cashgate Case: Savala Gets 7 Year Jail Term

A 34 year old cashgate convict, Caroline Savala has been sentenced to seven years imprisonment for her involvement in systematic looting of Government money (Cashgate) amounting to K84 thousand in 2013.

When passing the sentence, Lilongwe High Court judge, Fiona Mwale described Savala as "trickster" 

Savala was found guilty and convicted of theft and money laundering after full trial. 

Cashgate Case: Katengeza Gets 5 Year Jail Sentence, Tells Judge 'Just Kill Me'

Relatives shielding her from Journalists 

Angela Katengeza les but all that ended when Justice Fiona Mwale punished her with 5 year jail sentence.

In protest of the judges’ custodial sentence immediately after hearing the judgment, Katengeza reacted by shouting "Just kill me, just kill me” and continued “God of Joseph, God of Isaac, what have I done!" and began to cry uncontrollably.

Arrival at the court where she was allowing
Journalists to take her pictures 

On 14th March 2016, Katengeza was convicted and found guilty of Money Laundering contrary to Section 35 (1)(c) of Money Laundering, Proceeds of Serious Crime and Terrorism Financing Act. She was originally charged alongside with her son Gordon Hamdani who was acquitted after the state discontinued case against him and Leonard Kalonga who was discharged after he separately pleaded guilty to various offensesrom the case, after state had paraded four witnesses.

Katengeza was answering to money laundering of K105 million a crime that was committed in 2013 when she had lend out her Faith Construction company certificate to another cashgate convict Leonard Kalonga former Deputy Director for then, Ministry of Tourism.

According to Katengeza, that time Kalonga wanted to use her company certificate with bank accounts to bid construction tenders that were available at the Ministry but could not use his own certificates because of employment policies.   

After giving the certificate to Kalonga, her bank account began to receive payments from Government which accumulated to a total of K105 million and Katengeza admitted that she in separate occasions began to withdraw the money and hand delivered to Kalonga. 

In all these dealings, however, Katengeza disclosed that she only received K3 million covering renewal fee of her company certificate and costs of transport and airtime during the process of withdrawing and handing over the money to Kalonga. 

She was promised 10 percent commission at the end of the deal but that did not happen because the cashgate scandal investigations began much earlier before the deal was over.

Katengenza has throughout the trial maintained no guilty plea citing that Kalonga used her to defraud Government and that she was not part of the Government officers who masterminded the cashgate.

Family members crying outside court

 

Money Laundering attracts maximum sentence of 10 years imprisonment and fine of K2 million.

Announcing the verdict, Justice Fiona Mwale indicated that six years of imprisonment matches actual level of her benefit and margin of her mitigating factor in the commission of the offense.

But said; “I do however recognize her age and her heart condition and I deduct one year from that sentence.” then continued “The convict is therefore to serve 5 years imprisonment in the offense of money laundering” 

Immediately, Katengeza shouted; “Just kill me, I don’t have to bear such hard life again”, as she continued to shout the judge also continued to deliver the judgment of which is allowing the convict the right to lodge an appeal.

Family members also joined in with cries followed by loud murmuring in the public gallery side showing their disapproval of such a lengthy sentence. The murmuring were so loud in the courtroom making the end part of the judgment that the Justice Mwale was still presenting to be inaudible.

Earlier, the judge said suspended sentence was not suitable in this particular case considering various reasons she highlighted in her verdict that includes the negative economic impact cashgate brought to the country.

Justice Mwale in her verdict refused to take into consideration some of mitigating factors that were presented by defense during sentencing submissions. Among the factors include; cooperation, good character, length of the trial which has taken three years, on remorse since she refused to admit her responsibility of theft by maintaining no guilty plea, failure to make restitution and on the K3 million amount that she benefited out of K105 million.

But on K3 million benefits, the judge argued that although Katengeza got K3 million from K105 million she benefited from the proceeds and that she never made restitution. Justice Mwale futher mentioned that still the convicts actions of lending out her company certificate to Leonard Kalonga helped to facilitate the laundering of Government money that “could have been utilized at material time towards realization of the national budget.”

“What is relevant at this time is that she facilitated the theft of K105 million… I find that as a serious crime.” insisted the Judge adding “K3 million is still substantial amount of money” 

“The sum laundered is however, one that is quite high, as I alluded earlier and I keep reiterating that K105 million nine hundred and eighty three thousand is quite high.” She said and further counter argued defense position by saying “In money laundering charges, it is the sum that has been laundered” matters most

The judge also noted with concern failure by state to highlight impact of cashgate during their sentencing submissions.

Outside the court, Katengeza was crying and continued to shout "I don't deserve this life anymore!" 

Katengeza arrival 

Now 55 year old Katengeza was a theological college student and Area 47 block leader when the theft was happening and was consecrated as Eleventh Hour church pastor in 2014 upon completion of her first degree in theology. 

Defense submitted that Katengeza who is a first offender and a person of good character was a very active person in church ministry and her arrest came when she was about to open a church branch in Mtsiriza.

Her Faith Construction operated for a period of 5 years and it was common among construction companies to borrow from each others company certificate.

Cashgate Case: Katengeza For Suspended Sentence As Judgement Coming Week's Time

Katengeza has heart problem 

Convict in the infamous Cash-gate scandal, Angela Katengeza has prayed for a suspended sentence citing her health problems.

Through lawyer, Gilbert Khonyongwa, told Judge Fiona Mwale on Thursday that Katengeza has heart problem and Hypertension, therefore custodial sentence will lead to deterioration of her health given poor condition in Malawi prisons.

Katengeza is answering theft and money laundering amounting to K105 million after the Baker Tilly forensic audit report revealed her Faith Construction Company was one of the companies that were dubiously paid by Government in 2013 without rendering any service.

The case resumed on Thursday at Lilongwe High Court for oral submissions on sentencing where the State objected the defense application by requesting court to apply custodial sentence because medical arrangements will be made while she is in prison. It also acknowledged to have taken note of the medical report on heart problem and not hypertension.

“We do not believe that that should compel the court to give her non-custodial sentence” observed state prosecutor, Reyneck Matemba while acknowledging that her health condition may have advantage to her when it comes to sentencing

The state application underlined that the court must “be cautious” on setting precedence to would be offenders who may in future use health condition as a tool to escape punishments like custodial sentence.

Matemba added that money laundering is a very serious offence and Katengeza should face custodial sentence just like other convicts who committed same cashgate offence and are now serving custodial sentences.

Katengeza who told court last year that she is a pastor maintains her no guilty plea saying she unknowingly got herself into the scam after Leonard Kalonga former Deputy Director at then Ministry of Tourism borrowed her company certificate. According to her, she innocently lent out her company certificate to  Mr. Kalonga who wanted to use her company name in getting 'construction projects that were available at his office' but due to working conditions he could not have used his own company certificate. Katengeza said was promised to receive a percentage for lending out her certificate and she did not know that he could use it to defraud Government.

Court found her guilty and was convicted for theft and money laundering.

During submissions on Thursday, State, conceded defense application for leniency on the fact that Katengeza got only K3 million from the K105 million deal since the arrangement was to pay her for lending out her company certificate.

As well state acknowledged and conceded defense submission on cooperation shown by Katengeza throughout the case. On this, State said the convict played a very significant role of giving new information to State which lead to self guilty plea of Leonard Kalonga, of which Kalonga was identified as a person who recruited 17 companies that were involved in the scam.

Matemba said “if it were not for Angela Katengeza decision to testify” by giving information on how she got herself into the scam “Mr. Leonard Kalonga would have not changed” from no guilty to plea of guilty.

“Her decision to tell her story totally changed trial of Leonard Kalonga” said Matemba adding that this may work to her advantage on sentencing 

But, the state disagreed with the defense that her cooperation was a sign of remorse. State indicated that it believes that Katengeza has never shown sign of remorse by maintaining plea of not guilty and distancing herself to the criminal activity which she participated knowingly. 

The state also asked court not to consider Katengeza as a responsible person for her family, a person with good character, and that has lost her business following the case.

“She doesn’t have good character as both pastor and block leader” ruled out Matemba adding a responsible person would have realised that it was a criminal activity and she was supposed not to take part

Matemba also said her conduct does not show that she is "honesty” person that her honesty ended the moment she accepted to participate in a crime of defrauding Government.

Further, responding to defense complaint about the lengthy period of the trial, Matemba said “none of us have control over that and it is a natural consequence of indulging in criminal activity.”

In their submission, the defense have among other things said Katengeza is a first time offender who had no intention to participate in the scam as she had no plans at all  to steal from Government and that she was exploited and used by being dragged in the criminal activity.

"She did not know for example that lending company certificate to fellow contractor was unlawful." Added counsel Khonyongwa in the submission.

Court has adjourned and will set new date in two weeks time for judgment

Judicial Complex, New Structures To End Courtroom Problems In Lilongwe

new court structure

The Malawi Judiciary says it is working against clock to ensure that Judges and Magistrates in the capital city, Lilongwe have enough courtrooms and Judge Chambers.

The assurance comes amid continued outcry by some of High Court Judges in Lilongwe who are presiding cashgate cases.

Recently Justice Fiona Mwale noted with concern of lack of enough courtrooms as a main reason which delayed sitting of  Leonard Kalonga and Angela Katengeza cashgate cases.

some buildings built at High Court premises 

Speaking to Spokesperson for Judiciary, Mlenga Mvula says the Judiciary is electrifying the problem of court spaces in Lilongwe by building new facility at the High Court premises which will house number of Judges and that there are plans to have a Judicial Complex to ease the current problem.

 “It is true that our Judges in the central region have the problem of infrastructure in terms of chambers and court rooms but government is working hand in hand with the judiciary to ease that challenge.” He said

“We are constructing a new structure that would take on board judges in Lilongwe. The building will accommodate only four to five chambers, but this means that after completion of this structure it will at least ease down the challenge we are facing at the moment.” He said while indicating that the structure after completion will have modern facilities that will enable Judges to work even during late hours.

Mvula further noted that the problem has even extended to the Commercial Court currently operating in City Centre due to insufficient space at the court premises and that Chief Residence Magistrates are also operating in a very poor environment whereby it is congested and poor infrastructure.

He then said this problem will be tackled in the plans for the construction of Judicial Complex in the City Centre.

“But we know that Government is planning to build a Judicial Complex in City Centre in Lilongwe that will take on board all the court rooms, chambers for both Magistrates as well as Judges. So we hope that if this is taken into account by the end of completion the problem might be eased. It may not be not completely ended but almost 50% to 70% of the current problem will be eased.” said Mvula

Cashgate Case: Savala Looking For Kasambara Replacement

Savala hunting for Kasambara replacement

The cashgate convict Caroline Savala has been left with no option but to look for a lawyer who can take up her case currently on mitigation stage.

This follows bail revocation to her Lawyer Raphael Kasambara by Lilongwe High Court on Wednesday morning. Kasambara found with case to answer on conspiracy in the attempted murder of former Budget Director Paul Mphwiyo has had his bail revoked after the High Court noted that he was not cooperative and has been breaching bail conditions.

During Wednesday sitting before Justice Fiona Mwale court, Savala who was vonvicted after full trial for money laundering to a tune of K84 million, has been asked to find another Lawyer who will represent her on 21st of October 2015 since her lawyer has now been taken into custody.

Kamudoni  Nyasulu

“What remains is if she finds a lawyer then they will close their plea mitigation, then the court will pass sentence” explains Kamudoni Nyasulu who is prosecuting the case

Caroline Savala is expected to parade two character witnesses; convict Leonard Kalonga and a Pastor

However Nyasulu did not hide to express his disappointment over delays in the case “This trial has taken a long time, we started in February 2014 and Prosecution closed its case in April 2014 but we are still struggling to finish.” He said

The court sat in the afternoon after morning adjournment as the defense lawyer, Raphael Kasambara was at that time not present for he was also attending to his trial in the court of Justice Michael Mtambo.

Last sitting of the present case, Savala was represented by emissary lawyer (agent) Tisilira Kaphamtengo as Kasambara was reportedly ill, suffering from high blood pressure. During that day, the agent lawyer did not cross examined Savala by admitting that he knows nothing about the case and applied that the convict be allowed to remain silent to questions that may incriminate herself.

Cashgate Case: Savala Chose Silence to Prosecution Evidence

Caroline Savala out of court 

Caroline Savala has spoken nothing relating to evidence brought by prosecution that she was aware that she was stealing immediately after her company certificate was borrowed by Leonard Kalonga.

The case was back in court this Friday where prosecution was trying to prove that Savala was aware that she was stealing public by lending her company certificate to Mr.  Kalonga, former deputy director of tourism.

Caroline: looked in good spirit 

Savala accused for siphoning K84 million, appeared before Justice Fiona Mwale looking in good spirit unlike last sitting of court when she cried as she was explaining how her company certificate was used to siphon government money and consequent revocation of her bail.

Caroline: leaving court for Maula prison 

During last sitting, Savala request court to be lenient to her guilty plea on grounds that she was not aware that Kalonga would use it to steal government money. In her testimony, Savala denied to have taken part in the cashgate but admitted that she found herself in because Kalonga had used her.  

Savala said nothing to presented evidence
Against her

But this Friday, the state brought evidence documents to prove that it could not have been just Mr. Kalonga using her since her own certificate were used yet she had responsibility under that certificate. 

Questions posed to her by State Counsel, Kamudoni Nyasulu during cross examination centred on finding out from Savala if she carried out her responsibilities and obligations as a certified contractor. However, she chose not to say anything.

“I choose not to say anything” Savala maintained such reply when asked of documents and matters related to her knowledge of some individuals that includes Leonard Kalonga who she has been naming as one who dragged her into the scam.

Savala: I choose not to say anything 

From such reply, She chose to be silent for example on: whether National Construction Industry Council legislations allowed her to lend someone her company certificates; if she had relevant equipment to do the work of construction; whether she knew if Kalonga had certificates or any equipments for construction; and even if she had any knowledge of sites where Leonard Kalonga was going to do the alleged construction works from tenders which he allegedly told her that he won from government. 

Meanwhile the case has been adjourned to a later date where defense is expected to bring two character witnesses; Leonard Kalonga and a church pastor.

Tisilila Kaphamtengo: I read nothing
for this case

Savala was being represented by lawyer, Tisilila Kaphamtengo who acted as agent of lawyer Raphael Kasambara who is reportedly sick, suffering from high blood pressure.

The agent lawyer did not re-examine Savala saying he knows nothing in this case.

In an interview, he described Savala silence as good position to prevent self incrimination.

Kaphamtengo: She was right for being
silent

He therefore justified defense application that Savala be allowed not to answer any questions where she would be incriminating herself.

Kaphamtengo explained that some of the questions would have lead to new more offenses other than present case which includes possibly offense of offending National Construction Industry Council legislations.

Cashgate: Katengeza Maintains Innocent Plea... Cried In Court

Katengeza hiding her face

Angela Katengeza on Tuesday, maintains she was dragged in the Cashgate scam unknowingly by convict Leonard Kalonga as the court also learn she was studying to become a Pastor when her company certificates was used to defraud government.

Katengeza owner of Faith Construction, was involved in looting of public money dubbed cashgate after her bank account had received two cheques in separate occasions without rendering any service to government.

In self confession, Leonard Kalonga said he recruited 17 contractors among them Katengeza company which brought new contractor in the scam. And that everyone was explained and aware of the scam.

However, Katengeza categorically denies any awareness of the scam and recruiter role. 

She insists, Kalonga never explained to her that he would use her company certificate to defraud government. But explained that she lend Leonard Kalonga her company certificate after he claimed that there was an emergency tender at his office which requires a construction company to place a bid but he could not use his company certificates since he was a civil servant there.

Angela Katengeza troed hard to hide
Her face

Katengeza said in his approach, Kalonga also disclosed that the work was to be done in Mangochi district where “Amayi” (Dr. Joyce Banda, Malawi’s former president) was expected to open as part of her campaign.

Katengeza who at first was serene in the court dock standing before Justice Fiona Mwale, was then shedding tears as she was responding to questions from state prosecutor, Reyneck Matemba.

Katengeza also denied claim by Kalonga statement that she brought a contractor in the scam.

“Kalonga, asked me to get him other contractors but I advised him not to do so because some contractors are untrustworthy, they can runaway with the money. But he insisted on his wish. 

Then I called my brother who always help me whenever am in trouble. I explained that there was this job which he rebuffed but Kalonga kept pressure that I should try to convince him to accept the deal. Later, he (Kalonga) continued to demand names and contact numbers for my brother’s company which I shared him so that he can just contact himself” Katengeza narrates

“If I was aware of this scam, definitely I would not have loved to put my brother in trouble. But I was cheated and used to do this work. But this was a scam by government officers and not us. Even my name including of companies implicated in this scam were never mentioned in Kalonga statement that we were present in their secret meetings. This proves that we were dragged in the scam unknowingly” said Katengeza who was sobbing as she tried to prove her innocence

It was said in the court by the state prosecutor, Reyneck Matemba that the suspect got first cheque amounting to K36 million which she deposited into her account at FDH Bank in City Centre in Lilongwe then she withdrew the money to Kalonga and a month later she did the same for second cheque amounting to K69 million.

But Katengeza told the court that from all the cheques, she only got K3 million commission which also covered costs for use of her company certificates, bank account overdraft, fuel and airtime.

She also contradicted herself during cross examination when mentioning that she used to withdraw the money in phases due to bank restrictions which permitted her to withdraw money not exceeding K20 million or sometimes K20 million. But later changed after being quizzed by the state after noting that she has changed the tune. She then went to her earlier statement that the money was withdrawn upon demand and per amount needed by Leonard Kalonga when said he needed to buy materials for the project. She also indicated that some times it was difficult to withdraw the large amount of money because ot was difficult to carry them. 

After examination in chief the suspect Katengeza looked too fatigue that she needed a court personnel to help her walk to the other side of the court dock.

Meanwhile the case has been adjourned to a later date for Judgment which would either see her being convicted or acquitted. The defense is expected to make written submissions by 7th of October 2015 while the prosecution will be expected to respond by 28th of October 2015.

Cashgate Case: Kalonga Bail Revoked

Lilongwe High Court 

The Lilongwe High Court has revoked bail of a cashgate convict Leonard Kalonga and has since been sent to Maula prison pending his sentence.

Kalonga, accused of defrauding government money amounting to K3 billion between April and September 2013, has on Wednesday pleaded guilty and got convicted before Justice Fiona Mwale to three counts of money laundering.

Kalonga was arrested on cashgate following his acquisition of 6 Scania Marcopolo buses using government money. However his second charge indicates that the buses belong to Paul Mphwiyo. The charge states,  Kalonga facilitated, a baited and aided laundering of K520 million, between July and September 2013, the proceeds which were used in acquisition of the 6 buses for Paul Mphwiyo. 

Other charges includes conspiring to defraud government using forged documents money not less than K1 billion which was paid to bogus suppliers and that he was involved in Money laundering of K3, 252, 225 billion, proceeds of serious crime between April and September 2013.

Kalonga pleaded guilty and convicted of all three counts. 

Meanwhile the case has been adjourned to a later date and possibly next week for sentence hearing.

However, his caution statement has made revelations of genesis of Cashgate and named some of the key figures in government including other government officers from various ministries and departments who became defrauders after being recruited by the ruling party then.

Key names includes: former President Dr. Joyce Banda, former Budget Director Paul Mphwiyo, former Accountant General Bill Kandoje, chief accountant George Banda, Clemence Madzi including some officers from Financial Intelligence Unit (FIU).

17 Civil Engineering and Building companies have also been implicated as bogus service providers that were paid huge sums of money without rendering any service to government.

Mary Kachale: Kalonga was recruiting fellow
workers

In both State narration of facts to the present case and Caution Statement of Mr. Kalonga indicates that former President Joyce Banda was at the control of such calculated theft of public coffers for the purpose of funding her Peoples Party during the 2014 general election campaign.

Kalonga says at one point Oswald Lutepo spoke to the former president on telephone and that their conversation was put on a loudspeaker. He said Lutepo was assuring her of the availability of funds that was defrauded by the conspiracy team.

He also said apart from being assured by Paul Mphwiyo that nothing will happen to them as people were placed in every strategic areas in all government ministries and departments, officers involved in the scam received a word of assurance of their protection by the former president Joyce Banda through Treasa Senzani. 

In his self confession statement, Kalonga is claiming that he was introduced to Paul Mphwiyo by a man from Accountant General’s office and that later, Mphwiyo placed him as recruiter of fellow civil servants from Ministry of Tourism as well as bogus contractors.

Later, Kalonga said he used to collect money from bogus companies after they withdrawn their cheques. Then 60% of the money was for the Peoples Party while the rest was shared among the companies and officers involved. But he said Paul Mphwiyo was the one collecting the money for the party and was delivering the money to state house. 

Leonard Kalonga also indicated that most of their meetings were taking place at his house in area 18 and in rare occasions, the meetings happened in other places. 

However, he also mentioned that the defrauding group had at one point suspected nontransparent acts from Paul Mphwiyo due to unfair shares.

The former Assistant Director of Tourism in the Ministry of Tourism, Leonard Karonga began working civil servant in 1992.

Cashgate Case: Former President Joyce Banda Named In Kalonga Case

Lilongwe High Court 

Leonard Kalonga pleads Guilty to K3. 2 billion case. 

Kalonga was arrested on cashgate following his acquisition of 6 Scania Marcopolo buses using government money. 

Now, case involves more other persons already answering cashgate cases and other new other names. The case also includes 17 Civil Engineering Constructions 

Kalonga has since pleaded guilty. 

Shocking revelation of the case 

Immediately Kalonga pleaded guilty, Director of Public Prosecution (DPP) Mary Kachale made narration of facts of the case which claim involvement of former President Dr. Joyce Banda and Paul Mphwiyo as key coordinator of the fraud way before he become budget director.

Mary Kachale: Proceeds
of theft were going to
Peaples Party 

The statement claims, Kalonga was a recruiter of government officers that were involved in cashgate, companies involved including collecting and distribution of cash, even including collecting and distribution of cheques. 

DPP stated that the defrauded money was delivered to State House and were meant for 2014 campaign by Joyce Banda administration 

The facts also claim that Dr. Joyce Banda assured protection of all involved in the scam. 

The DPP also in her narration included names of Oswald Lutepo, George Banda, Treasa Senzani (who joined the fraud later than others)

Kalonga equivocally agreed to the facts presented by DPP

Case was under Justice Fiona Mwale who has since convicted Kalonga of three charges 

The first charge indicates that Kalonga in 2013 conspired with other persons to defraud government using forged documents to a tune of not less than K1 billion paid to bogus suppliers. 

His second count states that between July and September 2013 Leonard Kalonga facilitated, a baited and aided acquisition of 6 Marcopolo Scania buses with Paul Mphwiyo and others money laundering to a tune of K520 million while the third count Kalonga was involved in Money laundering which were proceeds of serious crime between April and September 2013 with other persons to a tune of K3, 252, 225 billion.

Visit again for more updates as the case is still in progress

Cashgate Convict Savala At Maula Prison Pending Sentence

Savala taken out of court for Maula prison

Cashgate convict, Caroline Savala to spend some days at Maula prison, pending sentencing in a date to be communicated by the High Court.

Savala answering charges of looting public money amounting to K84 million in 2013, has been walking freely since her conviction recently by Lilongwe High Court.

Her hearing before sentencing has been adjourned on Friday to unspecified date after court had failed to get the certificates for Savala construction company, which the state counsel want to use so that Savala should make some few clarifications.

When Justice Fiona Mwale began to make announcement of adjournment of the case to a later date all anticipation turned out to be different making rude awakening to the convict and family. 

Even before halfway of the announcement, Justice Mwale said since Savala is a convict, she lost “Right to Liberty” and needs to be incarcerated. Then she adjourned the case to a later date.

Caroline Savala and her parents were in tears upon hearing the announced immediate detention. Even when she left the court for the police vehicle, Savala made loud cry’s while condemning state counsel Kamdoni Nyasulu, that he must be excited now that she is going to suffer more following the detention at Maula.   

When convicted, Savala walked home freely without court bail a development which raised a lot of debate.

Appearing before Justice Fiona Mwale on Friday afternoon for hearing before sentencing, Savala also made recount of how her construction business account got million of Kwachas from the deal she had with Mr. Leonard Kalonga a former Ministry of Tourism official also answering another Cashgate case.

However, Savala in her tell it all, said she did not know that Kalonga was siphoning public money.