The Center for Democracy and Economic Development Initiatives (CDEDI) has made explosive allegations implicating cabinet ministers, government officials, and banks in fueling black market forex trading, but has failed to provide any tangible evidence to support the claims.
Speaking at a press briefing in Lilongwe, CDEDI Executive Director Sylvester Namiwa accused unnamed individuals of obtaining foreign currency from banks that he claims have “captured the economy” and redirecting it to the parallel market.
“According to our findings, this trend is contributing to the further weakening of the local currency against the US dollar, as the latter is being traded without any backing,” Namiwa stated.
He went on to allege that his organization has names of those involved in the illicit trade. As an example, he claimed that a certain minister applied for $450,000 from a commercial bank but instead sold the money to a Malawian businessperson of Asian origin at an inflated rate of K4,200 per dollar.
Despite these strong accusations, Namiwa refused to disclose the identities of those allegedly involved, raising questions about the credibility of his claims. His reluctance to present concrete proof further casts doubt on the legitimacy of his accusations, leaving the public to speculate rather than engage in informed discourse.
These allegations come at a time when Malawi is grappling with a forex crisis that has seen the local currency continue to depreciate, affecting prices of essential goods and services. The banking sector, already under scrutiny for alleged corruption and inefficiencies, is now being pulled into yet another controversy.
While the claims have drawn public attention, the absence of verifiable proof makes it difficult to gauge the seriousness of the issue. Without transparency, the allegations risk being dismissed as mere sensationalism rather than a legitimate call for accountability.
The government and banking sector are yet to respond to Namiwa’s statements. However, in the absence of solid evidence, the burden remains on CDEDI to substantiate its claims if they expect action to be taken against the alleged culprits.
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