Fiscal and Fraud Section of Malawi Police Service (MPS) in Blantyre is handling a case of a Dubai-based company, which claims that a local Malawian company defrauded it by not paying for hardware supplies made on credit.
The Dubai-based firm in the United Arad Emirates (UAE), Team Metallic Limited, claims, through their Malawian lawyers, that it supplied the local firm, Memon Investments, with hardware goods.
Team Metallic lawyers, Phokoso & Company, claims in their letter dated April 29 2021 that $37 000 000 (over K38 billion at the current exchange rate) was paid, leaving a balance of $101 455 (over K105 million at the current exchange rate).
The Dubai-based firm further reported the Blantyre-based Memon Investments to the Malawi Revenue Authority (MRA) for allegedly evading duty on the goods supplied, claiming Memon Investments played around with invoices to hoodwink the tax-collector.
The demand letter to Memon Investments from Team Metallic, which was also copied to Reserve Bank of Malawi (RBM) and Financial Intelligence Authority (FIA), led to the arrest of Memon Investments director, Abdul Hamid Kasimani.
Deputy national police spokesperson Harry Namwaza confirmed in a response to a questionnaire that Team Metallic lodged a complaint that led to the recent arrest of Kasmani, aged 54.
Kasmani, currently on bail, declined to comment on issues surrounding his arrest when contacted on Thursday, arguing it is a long story dating back to 2019 and that the matters is in court.
But Namwaza said Fiscal and Fraud Section, upon receipt of the complaint and conducting investigations into the matter, arrested Kasmani.
He said: “He [Kasmani] was charged with three counts of forgery, altering a false document and attempting to externalise forex.
“He appeared before court where he was granted bail on conditions that; (1) he pays a bond of K150 000 cash (2) reports to police every two weeks on Mondays (3) not to leave the country without permission and (4) to provide two sureties at a bond of K1 million each.”
He said the case would be coming in court soon.
In the demand letter signed by lawyer Kuleza Richard Phokoso, they informed Memon Investments that Team Metallic discovered that they declared false goods to MRA and not the ones supplied.
“You inflated import invoices to externalise and do money laundering of forex in Malawi. You swapped goods in the containers that were impounded by MRA at the bonded warehouse, and forged invoices for the goods they supplied to you,” reads the letter from Phokoso, which forms part of the court record.