Rédaction Africa Links 24 with Rebecca Chimjeka
Published on 2024-04-12 07:11:32
The Ministry of Finance has recently completed the review of regulations that will enable the operationalization of the Forfeiture, or Confiscation, fund, according to The Daily Times. These regulations are crucial in allowing the government to utilize the K1.5 billion that was confiscated from proceeds of corruption and money laundering. Previously, the government was unable to access these funds due to the absence of guiding principles.
Secretary to the Treasury (ST) Betchani Tchereni confirmed that the review of the regulations has been finalized. He emphasized the significance of having these regulations in place to ensure the proper management and utilization of the confiscated funds. Tchereni mentioned that a meeting is scheduled to take place in mid-May to discuss the next steps, with the exact date to be communicated by the Financial Intelligence Authority (FIA) secretariat.
FIA spokesperson Masautso Ebere informed that the target timeline for completing the process is June 2024. The FIA is currently focused on conducting necessary activities to achieve the desired outcome, which involves the issuance and implementation of the regulations.
Director of Public Prosecutions Masauko Chamkakala also confirmed that guidelines on how to use the confiscated K1.5 billion, which is currently held in the Confiscation Fund after being recovered from corruption suspects, are prepared. Chamkakala mentioned that the technical committee has worked on the Draft Regulations of the Fund and forwarded them to the Secretary to the Treasury. The National Committee is awaiting the call for a meeting to further discuss the regulations.
The funds, totaling more than K1.5 billion, along with other assets in the Confiscation Fund, were seized from corruption and Cashgate suspects. The Human Rights Defenders Coalition, represented by chairperson Gift Trapence, expressed frustration over the delay in utilizing these funds and urged for the swift implementation of the regulations.
In 2022, the government enlisted the services of United Kingdom-based asset recovery specialist Carolyn Lamptey to aid in anti-corruption efforts and asset recovery. Section 48(2) of the Financial Crimes Act of 2017 allows courts to order the forfeiture of tainted property, further strengthening the government’s ability to combat financial crimes.
Trapence highlighted the example of Angola, where the government channels funds and assets seized from citizens, including fugitives hiding abroad, back into the country. This strategy not only helps in recovering ill-gotten gains but also serves as a deterrent to potential offenders.
Overall, the finalization of the regulations governing the Confiscation Fund marks a significant step towards combatting corruption and money laundering in Malawi. With the proper guidelines in place, the government can now effectively utilize the confiscated funds for the benefit of the country and its citizens.
Read the original article on The Times
