Malawi Cables
Malawi’s Finance Minister, Simplex Chithyola Banda, has been implicated in an alleged illegal foreign exchange operation, leveraging his position to siphon forex from the country’s banking system into the black market.
According to sources, the scheme involves a network spanning Capital Hill, the Reserve Bank of Malawi (RBM), commercial banks, and illicit forex traders operating at Game Complex in Lilongwe and Ziboliboli in Blantyre.
With access to large sums of foreign currency through official channels—including the RBM and Financial Intelligence Authority (FIA)—Chithyola Banda is accused of diverting forex intended for the national reserves to the black market, where it is sold at inflated rates for personal gain.
This practice allegedly contributes to the country’s ongoing forex shortages, exacerbating economic instability.
Financial intelligence officials reportedly raised concerns with outgoing President Lazarus Chakwera, only to be dismissed and left powerless to act. This has fueled speculation that the President himself may be a key beneficiary of the operation.
While law enforcement is actively pursuing illegal forex traders, critics argue that authorities should instead investigate the Finance Minister’s dealings and even the State House, where substantial amounts of forex are allegedly being hoarded.
President Chakwera’s administration has faced multiple corruption allegations, with several high-ranking officials implicated in financial scandals yet managing to evade justice. This latest revelation raises further concerns about the government’s commitment to tackling corruption at the highest levels.
