Cashgate continues, JB blows 411 percent of State Residence budget before year ends

Malawi State Residencies have overspent their allocation by over 411 per cent months before the beginning of a new fiscal year, a development that is likely to irk taxpayers who are already blaming government for the plundering of government money at Capital Hill – now locally and internationally known as cashgate.

Investigations show that State Residencies were allocated K3,675,142,640 in the current budget but by end of January 2014, President Banda and her entourage had already spent K14.8 billion.

An Expenditure Review Report (REF/AGD/ST-TFT6 30-01-14) , co-signed by State Residencies Chief Accoutant, a Mr. Mulwafu, Accountant General, Thomas Makiwa addressed to Treasury Secretary and copied to the Auditor General, which the media has seen, has laid bare the figures.

The development has prompted the Accountant General to issue an ‘EXCEPTION REPORT’ due to the criminal extent of the massive over- expenditures.

The over-expenditure comes at a time when Government scaled down its operations to cut down expenditure as controlling measure following pulling out of some donor countries due stealing of public funds at Capitol Hill under cashgate.

Government Ministries and Departments have been receiving an average of 20 percent of their required funding since August, 2013 leading to hot-button issues like lack of drugs in hospitals, delayed payments of civil servants salaries among others.