The Directorate of Public Prosections (DPP) has stated its intention to conclude prosecuting the K23 billion bank fraud case by parading at least five more witnesses.
The case, widely known as Bankgate, started in 2017 and involves Cotton Ginners Africa Limited (CGAL) which is accused of fraudulently obtaining loans from local commercial banks.
Private practice lawyer Pempho Likongwe, who is prosecuting the case on behalf of the DPP, told the High Court of Malawi Commercial Division in Blantyre yesterday that five witnesses, including a bank official and police investigator, will be paraded. He said this means five more days for hearing.
He said: “We have five more witnesses remaining. So, if we are to be given five more days to parade these witnesses, the matter would be concluded.
session yesterday. | Jonathan Pasungwi
“This case started in 2017 and it has indeed taken too long. So we want to conclude this case.”
Likongwe is prosecuting the case alongside State advocates Pirirani Masanjala and Andrew Salamba.
While agreeing with the State’s observation that the case has taken too long, presiding judge Anneline Kanthambi sought an assurance from Likongwe that the five days will be enough to conclude prosecuting the matter.
In response, Likongwe said: “Certainly yes. We can even have three complete days and a half day because the other witness will not take long like the one we have paraded today [yesterday].”
Kanthambi then set May 28, 29 and 30 to continue hearing the case where the State will be expected to continue parading its witnesses.
In the case, some local commercial banks are accusing CGAL to have defrauded them of K23 billion through dubious loan facilities.
Earlier yesterday, the State paraded former CGAL regional manager Grace Mtunthama as its ninth witness.
In her testimony, she told the court that in 2016 when the alleged crime was committed, she received K382.75 million to purchase cotton seeds.
Mtunthama further told the court that out of the amount for Mangochi region, she purchased 990 0680 kilogramme (kg) of cotton seeds at K375 per kg and that she returned about K10 million to the company’s general account.
In 2022, the same court dismissed an application by CGAL to have Export Development Fund (EDF) struck off from the list of the parties in the case.
In an application, first accused person Abdul Rehman Abdullah and his wife Rizwana, who is second accused, through their lawyer Fostino Maele argued that EDF had no legal mandate to lend money in 2016 because it had no licence at the time it extended the company. The two were directors at CGAL.
