The last time checking was done, Dalitso Kabambe, a former Reserve Bank Governor who was appointed as such during the DPP regime, was answering criminal charges involving corruption and fraud among others. The crimes were revealed by a forensic audit that was conducted by Delloit and a report was released in 2021.
Quick preview of Delloit audit report narrates the following:
Kabambe gave himself a monthly salary of K30,243,023.16 (over K30 million). Apparently, he was the first RBM Governor to receive such amounts and after him, no Governor has been reported to receive such amount as salary. Nobody else from the entire Government machinery has ever received such an amount for salary. Where did this come from? Was it even legal? You may deduct answers to these crucial questions from the chronicle highlighted below.
While Kabambe was given an opportunity to serve the country at the highest level of financial and economic management institution of this country, it appears that he was working even harder to illegally stabilize his very own pockets and those of his political masters through abusing and looting public funds at the RBM. While this had long been suspected by many, the Delloite report simply and finally confirmed the nefarious and clandestine activities that were thriving under his command.
The 2021 Delloite report reveals, among others, that between 1st January, 2019 and 30th June, 2020, the following illicit and dubious transactions were made at the Reserve Bank of Malawi through the hands and command of Kabambe:
K2.2 billion went out for “building maintenance, rentals, school fees allowances, recall of diplomats” but there are no supporting documents for these transactions. In short, this amount was stolen and Kabambe made a barefooted claim of these expenses.
K4.1 billion paid to the Pensions and Gratuity Account without an approved funding instruction from government.
K6.5 billion went to FDH Bank in December 2018 and December 2020, which auditors found suspicious.
K3.9 billion costs payable to FDH Bank that were not disclosed to the board for approval.
USD$769 million was disproportionally channeled through FDH Bank.
K27 billion was paid to top managers who were retiring, who in turn provided K7 billion to the then governing Democratic Progressive Party (DPP) in whose interest it appears Kabambe has, at the material times, always worked.
K2.8 billion paid to various law firms, but auditors did not trace any supporting documents.
Mulli Brothers Limited (MBL) was irregularly issued with letters of credit to supply fertilizer to the Government.
A company called MITRA was awarded two contracts of K1 billion and K757 million contrary to RBM policy. Mitra was also irregularly paid 60% upfront.
K9.7 billion was siphoned in January 2020 through dubious purchase of overpriced materials for the Prisons Department worth US$18 million from the United Arab Emirates (UAE).
All these highlights and others not highlighted here were done in clear violation of the Reserve Bank of Malawi Act, therefore constituting criminal offences for which Kabambe and his fellow players in the syndicate stand accused.
This affair, which, encapsulates the tragedy of our time created a sinkhole in our economic landscape such that Malawi became so broke (do you remember what Mutharika once said? He literally said Malawi is broke). In order to continue receiving funds (for further stealing) from bilateral and multilateral institutions such as the IMF and World Bank, misreporting became their chosen weapon of use.
Now, when you consider all these factors in their totality, that is to say his role in siphoning government funds to sustain the then ruling clique, you get to understand why Kabambe had a larger-than-life character at RBM, particularly his K30 million monthly salary that once raised eyebrows. Such a salary could only be awarded to an individual who is equally servicing those responsible with the approvals.
In a nation that has long grappled with the corrosive effects of graft and mis-governance, the revelations surrounding the actions of Dalitso Kabambe during his tenure at the helm of the Reserve Bank of Malawi collapse the very foundations of his integrity. Kabambe’s alleged involvement in such a web of fraud, brazen misappropriation of public funds, and blatant disregard for the rule of law should serve as a stark warning to all Malawians: this is a man unfit to hold any position of public trust, let alone the highest office in the land.
The damning Deloitte audit report lays bare the staggering scale of corruption that thrived under his watch. From the suspicious channeling of billions of kwacha through FDH Bank to the outrageous “salaries” he reportedly awarded himself, the evidence paints a disturbing portrait of a man who saw his position of public trust as a personal fiefdom, a means to enrich himself and his political cronies, rather than serve the best interests of the Malawian people.
The sheer magnitude of the financial mismanagement and outright theft uncovered by the audit is nothing short of breathtaking. They constitute hallmarks of a systemic and organized plunder of public resources, a betrayal of the public’s trust on an unprecedented scale.
Since the report’s findings suggest that Kabambe actively channeled funds to the DPP, which was a ruling party then, using his position at the RBM as a personal ATM to prop up the political interests of his associates, this brazen abuse of power for partisan gain is a betrayal of the public trust that should never be tolerated in a functioning democracy, and it calls into question the very integrity of his soul (assuming he has one).
The implications of Kabambe’s alleged actions go far beyond the financial realm. By engaging in such blatant corruption, he has undermined the very institutions that are meant to safeguard our economic stability and prosperity as a country.
It is precisely this type of behavior that erodes public confidence in the government and fuels the disillusionment that became all too common in during the DPP era. How can the Malawian people trust a man who has so thoroughly betrayed their trust and abused his position of power for personal gain?
His track record at the RBM stands as a stark reminder of the dangers of prioritizing self-interest over the public good, the embodiment of which he is.
Malawi deserves leaders of the highest integrity, who are committed to serving the people, not their own pockets. Dalitso Kabambe’s alleged actions have disqualified him from any such role, and no Malawian of good intentions to this country can tolerate his bid or ambitions for any public office.
The cost of allowing such individuals to wield power is simply too high, and the consequences too dire to ignore. Our nation’s future, and the wellbeing of generations to come, depends on our collective resolve to root out corruption and restore trust in our institutions. It begins with blasting Kabambe and relegating him to corners far away from public office.
Honestly, to say that what happened at RBM is immoral is a great understatement, it is a crime against the nation of Malawi. And to have the man who orchestrated, coordinated and benefited from this vulgar plunder say that he would one day like to lead this nation, he is in effect requesting the country to give him permission to steal even our private parts in future.
