The Malawi police service (MPS), has confirmed the arrest of three top officials of the former ruling Democratic Progressive Party (DPP).
According to a statement signed by the national police spokesperson, James Kadadzera, the three are former Finance Minister Joseph Mwanamveka, former Reserve Bank Governor Dr. Patrick Kabambe and Thyolo central lawmaker Ben Phiri.
The statement said Mwanamveka and Kabambe have been arrested on suspicion that they committed an offence of abuse of office contrary to section 95 (1) and procured the commission of an offence of fraudulent false accounting contrary to section 335 (A) of the Penal Code.
Reads part of the statement: “The two whilst serving as Minister of Finance and Reserve Bank Governor respectively procured and masterminded the falsification of Gross Liability and Net Reserve Base returns with intent to make International Monetary Fund (IMF) believe that the government of Malawi was meeting conditions connected to the Extended Credit Facility (ECF).”
According to the statement, as a result of this scheme, IMF suspended the said ECF to the prejudice of innocent ordinary Malawians.
Mwanamveka, and other persons yet to be arrested, are also expected to be questioned in connection with the fraudulent sale of Malawi Savings Bank (MSB) in 2015.
On the arrest of Ben Phiri, the statement said the lawmaker, in his capacity as the registered owner of Beata Investments has been detained in relation to some procurement fraud and corruption at the Ministry of Gender between 2018 and 2030.
