Lawyers to tussle in ‘Bankgate’ October

The High Court’s Commercial Division in Blantyre has set October to hear arguments from all sides involved in the K20.9 billion ‘Bankgate’ case, in which a Pakistani national, currently at large, allegedly defrauded local banks.

Court records show that all parties would be required to present their arguments before the presiding judge Michael Mtambo determines whether to grant Cotton Ginners Africa Limited their application to declare the company bankrupt.

Said to be in Pakistan: Rehman

he banks Standard Bank Limited, Ecobank Malawi Limited, CDH Investment Bank, National Bank of Malawi and Reserve Bank of Malawi’s Export Development Fund are objecting the application to have the company declared bankrupt, opting to go after the assets the company gave as securities when obtaining the loans.

But Abdul Kader Patel, one of the directors of Cotton Ginners Africa Limited, proposes cooperation of all the banks and appointment of an administrator to manage the company under supervision of the court.

Patel filed the application after one of the company’s directors, Abdul Rehman, obtained the loans in the name of the company and remitted about K3.6 billion in foreign accounts and fled with his family.

Rehman, the court documents disclose, stayed in Malawi for over 15 years and held both Malawi and Pakistan passports.

According to an audit report by Audit Consult Advisory Services, which was engaged by Cotton Ginners Africa Limited, and is part of the court record, Rehman’s family including inlaws, had booked to leave the country from April 7, according to their travel itinerary.

“All tickets were return and the time has since passed. The tickets have not been changed by the airline on the return dates.

“It is concluded that Abdul [Rehman] planned to leave the country with his family to Pakistan through Dubai. As from our search, he left Malawi on Malawi passport and entered Pakistan using a different passport,” the audit report reads. It emphasises that Rehman is in Pakistan “as he was recently attending a wedding of one of his children”.

The auditors describe Rehman as a man with strong negotiating skills and a person who knows exactly what he is doing, explaining that as for Cotton Ginners, he ensured that all relevant documentation or registrations were in order with relevant institutions or authorities.

The company, Cotton Ginners Africa Limited, was incorporated under the Malawi Companies Act. The court record reads that Rehman was made managing director and company secretary, in charge of day-to-day running and management of the company.

The major victim of the alleged ‘Bankgate’ is Standard Bank Limited, K8 585 177 082, followed by Export Development Fund, K4 092 547 425, Ecobank Malawi Limited, K3 499 481 627, CDH Investment Bank, K4 476 302 691 and National Bank of Malawi K250 000 000.

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  • Mbonga Matoga

    Looks like its not only a Bankgate issue we have here but also a Passportgate.
    How was this Pakistani terrorist allowed to have a Malawian passport and also his country of origin passport? Who issued the Malawian passport to him and under what circumstances?
    Malawi has just become another banana republic where foreign nationals can come and enjoy VIP status, enjoy the very same privileges that ordinary Malawians are not allowed to….
    For instance, foreigners can buy land in the country so easily than a Malawian would. Many Malawians have been swindled money within the Ministry of Lands and MHC offices under the pretext that they will get a plot to build a house on. We have criminals operating in these offices who are also on the govt pay roll and everybody knows about it but seems hopeless to do anything about it.
    Why does our govt trust foreigners more than ordinary Malawians?
    Please put this Pakistani terrorist on Interpol wanted list and also that Kenyan IT specialist who ripped our stupid govt of $20M……for the services that he never delivered.
    This is why many govts around the world have spy agencies to deal with such criminals wherever they run to…….. unfortunately our spy agency the NIB, was created to deal with the opposition parties….and yes, burn electoral commission ware houses to hide rigging evidence, create fake stories about which opposition political leader is fucking whose wife etc ……….what a shame..
    Wherever I go around the world I feel ashamed to be Malawian if am honest……..