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Thursday, July 18, 2024

BREAKING: Cashgate suspects Rex, Laura Savala pay back K248 million to Malawi Govt, Case to be Withdrawn

Two Cashgate suspects, Rex and Laura Savala, have paid back to government K248 million they allegedly stole, prompting the Director of Public Prosecutions (DPP) Masauko Chamkakala to start the process of withdrawing their case.

The suspects have restituted the amount, initially around K90 million, with interest, and consequently, the case will be withdrawn.

Masauko Chamkakala to start the process of withdrawing their case.

In April this year, the DPP Chamber moved the High Court in Lilongwe to start prosecuting the case after the suspects had failed to pay back the money, which was a condition for the restitution.

The matter was later on April 3, 2024, transferred to the Criminal Division of the High Court to allow the prosecution process begin, but the suspects have moved in to meet the restitution condition by paying back.

The State entered into negotiations with the two to pay back the money after the 2013 infamous financial scandal that hit Capital Hill, but only K2 million was paid then, according to Director of Criminal Litigation in the DPP Chamber, Dzikondianthu Malunda.

The Cashgate was exposed by an audit report by British Forensic Auditors Baker Tilly.

Since its exposure, the State has secured a number of convictions and they include businesspersons and civil servants, with others out of jail after they have done their time.

According to the Baker Tilly audit report, the plunder of the public purse through fraud, theft and unethical actions, which happened under the administration of Dr. Joyce Banda, was done by taking advantage of a loophole in the government’s financial management system.

Nearly half the money, according to the report, went to 16 private companies for services they did not provide to government.

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