Dalitso Kabambe, the former Governot of the Reserve Bank of Malawi and now new leader of the United Transformation Movement (UTM), has been blacklisted by the International Monetary Fund (IMF), the world’s largest creditor.
Reports suggest that the IMF had demanded his arrest as a condition for Malawi to secure a new Extended Credit Facility (ECF). In December 2021, Kabambe, along with former Finance Minister Joseph Mwanamvekha, was arrested for allegedly presenting false economic figures to the IMF.
They were charged with abuse of office and fraudulent false accounting, specifically for falsifying Gross Liability and Net Reserve Base Returns to deceive the IMF into believing that Malawi was meeting ECF conditions.
The source claims that the IMF accused Kabambe of gross deceit and financial mismanagement during his time in government. The repercussions of this fraudulent activity were significant, with the IMF suspending its program, adversely affecting ordinary Malawians.
“It’s a tragic story that most Malawians are unaware of because it was a covert operation designed to siphon public funds. Trillions of Kwacha were stolen,” the source revealed.
Delving into the details, the source explained, “Kabambe, during his tenure as the Governor of the Reserve Bank of Malawi (RBM), would release, for instance, 100 million dollars from the bank and sell it to a commercial bank at a rate of 30 Kwacha per dollar. The very next morning, the commercial bank would sell the same 100 million dollars back to the RBM at 40 Kwacha per dollar.
This massive 10 Kwacha difference, when calculated against 100 million dollars, illustrates a fraudulent scheme involving Kabambe, the Democratic Progressive Party (DPP), and the commercial bank, all profiting from the arrangement.”
The source, who chose to remain anonymous noted that Kabambe has been adamant that these matters should not be discussed in the media. They emphasized, “This fraudulent selling and buying of dollars occurred over two weeks, which resulted in a staggering accumulation of 800 million dollars in foreign debt that the current government is now struggling with.”
According to the source, the IMF discovered these dubious transactions, leading to an independent audit that unveiled the serious mismanagement of funds. They added that the dollars sold and bought by Kabambe’s team originated from a loan from Afreximbank, which the Malawi government is still repaying—around 400 million dollars remains outstanding, contributing to the forex instability currently plaguing the nation.
On the current status of the IMF’s relationship with Kabambe, the source stated, “The IMF has blacklisted Kabambe. They have taken note of his Presidential ambitions and have declared that if he wins the 2025 elections, Malawi will no longer have an IMF-supported program until Kabambe is out of office.”
In addition to these recent allegations, the source recalled another serious financial scam during Kabambe’s tenure as a Director at the Treasury, involving an illegal domestic borrowing of K79 billion from Standard Bank.
The claim suggests that Kabambe misled the public by falsely reporting over-performance by the Malawi Revenue Authority (MRA), circumventing the procedures mandated by the Public Finance Management Act.
Further scandals attributed to Kabambe include a drastic raise in his salary as the Central Bank Governor and the discontinuation of a Pension Scheme for RBM Directors, enabling them to withdraw billions of Kwacha before instituting a new retirement scheme for themselves.
“There is no trust in Kabambe for the Presidency. His past with public funds is too tarnished to overlook. For an organization like the IMF to blacklist you speaks volumes,” the source concluded, emphasizing that the choice ultimately lies with the Malawian voters regarding Kabambe’s candidacy.
Kabambe currently leads a fragmented UTM after his controversial election as President during a party meeting, but he faces significant challenges, with many party members regarding him as a DPP insider. Notably, he is a close relative of DPP President Peter Mutharika, who appointed him as RBM Governor, an alleged tactic to embezzle public resources from the central bank.
