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| Malawi prepares for $100m 'cashgate' corruption trial | Malawi prepares for $100m 'cashgate' corruption trial |
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| Malawi is braced for the mass trial of 100 civil servants, politicians and businesspeople involved in the alleged looting of more than $100m (£60m) from government coffers. | Malawi is braced for the mass trial of 100 civil servants, politicians and businesspeople involved in the alleged looting of more than $100m (£60m) from government coffers. |
| The "cashgate" trial, a case that has become a litmus test for foreign donors backing the government of Joyce Banda, is scheduled to start on Wednesday. | The "cashgate" trial, a case that has become a litmus test for foreign donors backing the government of Joyce Banda, is scheduled to start on Wednesday. |
| The donors, who bankroll 40% of the government's budget, have said they will withhold some aid until it is clear it is not being misused. | The donors, who bankroll 40% of the government's budget, have said they will withhold some aid until it is clear it is not being misused. |
| "We are under extreme pressure [to prosecute]," said Bruno Kalemba, the director of public prosecutions. "There are lots of files on my desk that need to be dealt with. There are warrants of arrest and a lot of follow-ups. This has become an emotional issue." | "We are under extreme pressure [to prosecute]," said Bruno Kalemba, the director of public prosecutions. "There are lots of files on my desk that need to be dealt with. There are warrants of arrest and a lot of follow-ups. This has become an emotional issue." |
| Donors have suspended pledged aid worth $150m until Banda, who came to power in 2012 following the sudden death of president Bingu wa Mutharika, "cleans up the mess" of corruption and speedily prosecutes all suspects. | Donors have suspended pledged aid worth $150m until Banda, who came to power in 2012 following the sudden death of president Bingu wa Mutharika, "cleans up the mess" of corruption and speedily prosecutes all suspects. |
| Sarah Sanyahumbi, a British diplomat, heads the donor grouping, which includes the European Union and World Bank. She said: "We will not be able to resume support through government systems until we have a clear assurance, independently verified, that our resources are all being used for their intended purpose." | Sarah Sanyahumbi, a British diplomat, heads the donor grouping, which includes the European Union and World Bank. She said: "We will not be able to resume support through government systems until we have a clear assurance, independently verified, that our resources are all being used for their intended purpose." |
| The UK has withheld £17m of budget funds. The British high commissioner to Malawi, Michael Nevin, said withholding the aid was not about punishing the country: "We want [the] government to put its house in order by implementing systems that will not allow pilferage of public funds." | |
| The case comes four months before elections in Malawi. | The case comes four months before elections in Malawi. |
| Some political pundits hope some of the suspects will be bold enough to link the president to the public looting. Speculation about her involvement has been rife since the scandal was revealed following the shooting of budget director Paul Mphwiyo in September. | Some political pundits hope some of the suspects will be bold enough to link the president to the public looting. Speculation about her involvement has been rife since the scandal was revealed following the shooting of budget director Paul Mphwiyo in September. |
| Mphwiyo is reported to have been on the verge of exposing a corruption ring when unknown gunmen shot him outside his home on 3 September. He survived and had specialist treatment in South Africa. Mphwiyo will be the number one state witness in the trials. | |
| Billy Banda, director of rights group Malawi Watch, said: "What Malawians can conclude is that the president's hands are not clean in this issue ... … somewhere and somehow the president's hands are there in this scandal." | Billy Banda, director of rights group Malawi Watch, said: "What Malawians can conclude is that the president's hands are not clean in this issue ... … somewhere and somehow the president's hands are there in this scandal." |
| He said Malawians would be interested to know how much the president knew about the looting, which her government has blamed on loopholes in the payment system. "There are so many questions that need to be answered." | He said Malawians would be interested to know how much the president knew about the looting, which her government has blamed on loopholes in the payment system. "There are so many questions that need to be answered." |
| A Catholic rights group has accused Banda of being "part and parcel" of the fraud scandal. Peter Chinoko, head of the Catholic Commission for Justice and Peace in the Lilongwe archdiocese, said: "We have concrete evidence about the president's involvement." | A Catholic rights group has accused Banda of being "part and parcel" of the fraud scandal. Peter Chinoko, head of the Catholic Commission for Justice and Peace in the Lilongwe archdiocese, said: "We have concrete evidence about the president's involvement." |
| Chinoko said the looting was aimed at sponsoring the campaign of Banda's ruling People's party – formed a year ago with no national grassroots support – before the 20 May local, national and presidential elections. | Chinoko said the looting was aimed at sponsoring the campaign of Banda's ruling People's party – formed a year ago with no national grassroots support – before the 20 May local, national and presidential elections. |
| The information minister, Brown Mpinganjira, a key backer of Banda policies, has dismissed the claims by Chinoko, saying it was a "plan to blackmail the president so that she stops the investigations currently under way". | The information minister, Brown Mpinganjira, a key backer of Banda policies, has dismissed the claims by Chinoko, saying it was a "plan to blackmail the president so that she stops the investigations currently under way". |
| "The president is being threatened to embarrass and frustrate her efforts to fight corruption," Mpinganjira, a veteran politician, said. "This is a well-planned and calculated strategy by those that are trying to run away from the full force of the law to try and smear as many individuals as possible." | "The president is being threatened to embarrass and frustrate her efforts to fight corruption," Mpinganjira, a veteran politician, said. "This is a well-planned and calculated strategy by those that are trying to run away from the full force of the law to try and smear as many individuals as possible." |
| Joyce Banda has said she took a "political risk" to launch a fight against corruption five months before the elections. She said the fight against corruption "must come first, winning elections comes second to me". | Joyce Banda has said she took a "political risk" to launch a fight against corruption five months before the elections. She said the fight against corruption "must come first, winning elections comes second to me". |
| One prominent figure on trial is businessman Oswald Lutepo, a senior official in Banda's party, who is accused of theft and money laundering and is alleged to have pocketed more than $6m from government coffers through ghost companies that did not provide any services to the state. | One prominent figure on trial is businessman Oswald Lutepo, a senior official in Banda's party, who is accused of theft and money laundering and is alleged to have pocketed more than $6m from government coffers through ghost companies that did not provide any services to the state. |
| Lutepo is said to have donated 22 vehicles to Banda's party and paid a record bail bond of $100,000. | Lutepo is said to have donated 22 vehicles to Banda's party and paid a record bail bond of $100,000. |
| Malawians will also follow with keen interest the evidence of former justice minister Ralph Kasambara, who has been charged with the attempted murder of Mphwiyo, although police have yet to establish the link between the shooting incident and the scandal. | Malawians will also follow with keen interest the evidence of former justice minister Ralph Kasambara, who has been charged with the attempted murder of Mphwiyo, although police have yet to establish the link between the shooting incident and the scandal. |
| The president has publicly claimed that Mphwiyo's shooting was "a planned and targeted attack aimed at silencing him and the government in the fight against high levels of corruption and fraud". | The president has publicly claimed that Mphwiyo's shooting was "a planned and targeted attack aimed at silencing him and the government in the fight against high levels of corruption and fraud". |
| She has insisted Mphwiyo will give the correct version of events leading to his shooting. She has conceded that corruption is deeply entrenched in Malawi, but said that it predates her tenure by years. | She has insisted Mphwiyo will give the correct version of events leading to his shooting. She has conceded that corruption is deeply entrenched in Malawi, but said that it predates her tenure by years. |
| Nonetheless, the case represents a threat to her hopes of winning the presidency in May. Billy Mayaya, director of the National League for Democracy and Development, said the scandal meant her chances of winning were "very slim". "Malawians are angry at the massive looting of government resources and want answers as to who is really behind this rot," he said. | Nonetheless, the case represents a threat to her hopes of winning the presidency in May. Billy Mayaya, director of the National League for Democracy and Development, said the scandal meant her chances of winning were "very slim". "Malawians are angry at the massive looting of government resources and want answers as to who is really behind this rot," he said. |
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