3 suspected of externalising K1.3bn

At a time when Malawi is struggling with the worst forex shortage ever, Fiscal Police in the commercial city, Blantyre, are investigating three businesspeople suspected of externalising about K1.28 billion ($7.7 million).

National Police spokesperson Davie Chingwalu has identified the three suspects as Karamat Ullah Chaudhry and Naeem Lakhu who are Malawians of Asian origin and an indigenous businessperson Shiraz Fereira.

Chingwalu said police recently acted on a tip-off from the public that some business-people had opened a fake account with one of the local commercial banks which they were using to send the money abroad.

According to Chingwalu, the three used the bank account to syphon money in the form of forex to countries such as the United Kingdom and China, among other places, where they operate businesses under the same name SF International.

Said Chingwalu: “So far, it has been established that money amounting to K1.28 billion has been externalised and [the three] were arrested early this month and given court bail.”

He said when the three appeared before Blantyre chief resident magistrate Nyakwawa Usiwa-Usiwa, they were charged with forgery, uttering false document, theft, illegal externalisation of foreign currency and money laundering.

“At the moment, investigations are still underway. The suspects were taken to court to be informed of the offences they were arrested for and the matter will come for hearing after the investigations are over,” said Chingwalu.

He said apart from surrendering their travel documents as part of the bail conditions, the three were ordered by the court to pay K150 000 ($898) each and provide surety of K1 million (not cash) each.

Chingwalu could not say for how long the three suspects have been externalising the forex.

President Bingu wa Mutharika has on several occasions blamed some unscrupulous businesspeople of Asian origin as the ones causing the forex shortage in the country.