The former governor of the Reserve Bank of Malawi (RBM), Dalitso Kabambe, and three other former senior central bank officials are facing four charges of financial impropriety, including money laundering.

Under Kabambe's leadership, the central bank allegedly issued letters of credit (L/Cs) to companies without due diligence, procured contracts against procurement laws and paid FDH Bank huge sums of money.

Political implications

A forensic audit indicates that in 2019 and 2020 - under the stewardship of Kabambe who left office in December 2020 - the central bank irregularly issued L/Cs to Mulli Brothers Limited (MBL) to supply fertiliser to the government of Malawi. This left RBM financially exposed the auditors say.

The audit alleges many more non-compliant activities at the central bank, including several irregular payments to companies linked to the former ruling Democratic Progressive Party (DPP). Kabambe is now running for the DPP leadership and is a presidential hopeful for Malawi's 2025 general elections.

Other former officials

Former RBM deputy governor Henry Mathanga - who is currently in the midst of a legal challenge against the central bank for constructive dismissal - has also been charged.

Retired director, Rodrick Wiyo and senior dealer and manager, Leah Donga, also face charges.

Donga is also named in the forensic audit of RBM in connection with the abuse of Covid-19 funds.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.