The report is covering period between January 2019 and June 30 2020. The audit shows that some government ministries, departments and agencies (MDAs) and local commercial banks were involved.

The report includes details of how RBM officials bypassed own rules and regulations to authorize several suspicious payments, issue letters of credit to companies without due diligence, procured contracts against procurement laws and paid a local; bank suspicious sums of money.

In their key findings, the auditors state that RBM did not follow necessary risk mitigation procedures in issuing letters of credit for supply of fertilizer to the Government of Malawi through the Smallholder farmers Fertilizer Revolving Fund of Malawi (SFFRFM), a development that left the central bank financially exposed.

Through an email dated October 22 2014, a senior  RBM official appeared to have invited and guided Mulli brothers Limited (MBL) to access the facility for the 2014/ Farm Input Subsidy Programme (Fisp) while the immediate-past deputy governor Henry Mathanga overruled RBM directors who advised against issuing the said letters of credit.

Kabambe, a presidential hopefull  in the the opposition Democratic Progressive Party (DPP) has since spent a night at Lumbadzi Police station in Lilongwe.

“Police will give more details later including the day and time the suspect is expected to appear before court,” police spokesperson James Kadadzera said in a statement on Monday.

On Sunday, police arrested former Deputy Governor Henry Mathanga, retired Director Rodrick Wiyo and one of the current Managers at Reserve Bank Leya Ndonga over the issue.

Kabambe served as RBM Governor during the Peter Mutharika administration.