Malawi's second largest donors, the United States, is demanding a review in the procurement Act following what has been commonly dubbed 'policegat'e which President Peter Mutharika may have benefitting K145 million from the government loot.

The American embassy public affairs office Edward Monster said the US is concerned of the continued abuse of public money in the country.

"The only way to deal with this matter is review the public procurement Act. The present Act has loopholes and people are taking advantage of that," he said.

Pioneer Investments clinched a dubious deal with the Malawi police to provide ration food to the police worth K1.4 billion but just six days after signing the deal, the money was increased to K1.7 billion.

Just days after the payment, Zameer Karim, owner of Pioneer Investments deposited K145 million into the account of the ruling Democratic Progressive Party (DPP) whose signatory is president Mutharika.

Monster said it was disheartening that public money continue to be plundered.

Mutharika has denied any wrong doing.