The report claims a businessman deposited 145m kwacha into an account belonging to the ruling Democratic Progressive Party (DPP), of which the president is the sole signatory.
The president's spokesperson said the claims were unfounded and that Mutharika had done nothing wrong. Civil rights organizations have nonetheless given him 14 days to resign, or say they will take to the streets.
The political standoff began after a report by the Anti-Corruption Bureau (ACB) leaked onto the internet in the last week of June.
The body has been investigating a Malawi police food supply contract, worth around 2.8bn kwacha that was awarded to a firm owned by businessman Zameer Karim, called Pioneer Investments.
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