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

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.