As the accusations continue to gather momentum of “double standards” by law enforcing agencies in not pursuing Malawians of Asian origin doing business in the country involved in financial scams in government, Nyasa Times has a dossier of material objective evidence of some who are on the list of suspects by being shielded because of their close to the corridors power, starting with HTD Limited.
According to the dossier, HTD Limited were beneficiaries of some cashgate cheques and that they externalised forex to UK where the company managers have the British citizenship.
On 20th August 2013 HTD received two payments from Ministry of Defence vote amounting to K 331,975,000 and K300,000,000 through cheque numbers 210600 and 210601, respectively.
This information is contained in a report extracted from Reserve Bank of Malawi by Baker Tilly Auditors.
HTD registered owners are: Anawar Mahomed Sidik and Abudul Haris Mahomed Sidik (Managing Director), both British Passport holders. Sidik indicates his home village in Malawi is Mulanje.
In HTD’s First Merchant Bank Account number 0730011006, an anlysis to it shows this account was done from September 2012 to June 2014 there were mainly inter account transactions. Transaction worth noting is a payment of ZAR 369,774 on 26th October 2012 to Saint Gobain Construction Products of South Africa.
They hold bank accounts at 5 different commercial banks. Two of the Banks are frequently suspected of being used for forex externalization mostly to Iveco Company (RSA) Vehicle delivery Services (RSA) KIA Motors Corporation (South Korea) Red Sea Trading (Hong Kong), Guava International (UK), Reinder (Hong Kong) and Mobis Parts Middle East.
An NBS bank account number 0025317539021 which was opened on 13th June 2005, was mainly used for forex externalization.
From 25 January 2013 to 21 March 2014 there were a total of K 241,894,722.84 large deposits in this account with a total of K 376,216,924.46 withdrawals. Included in the withdrawals figure is a total of K 295,591,265.63, which was externalized. The major beneficiaries (outside Malawi) from this account were
- Iveco Company ZAR 3,033,174.88 MWK 107,050,684.96
- Vehicle delivery Services ZAR 1,242,542.88 MWK 47,191,773.79
- KIA Motors Corporation USD 103,000.00 MWK 34,390,000.00
- Red Sea Trading USD 66,111.00 MWK 24,064,404.00
- Golden Rewards Limpopo ZAR 103,500.00 MWK 3,622,500.00
- Brown International ZAR 167,995.56 MWK 5,879,844.67
Only Iveco and KIA are the suppliers of the vehicles. Vehicle Delivery Services, a division of Onelogix (Pty) Ltd is a major operator in the auto-logistics arena, both within the borders of South Africa and throughout the Southern African region. These are the likely transporters of the vehicles from South Africa to Malawi.
However, invoices from KIA and Guava International are CIF inclusive to Blantyre.
The FDH Bank account number 8500000084729 was done from December 2012 to September 2014 and in that period there were a total of K 187,500,000 in withdrawals and K 118,144,080.32 in large deposits. There was no foreign currency transaction in this account during the period under review.
Malawi Savinsg Bank account number 1022615789001 was opened on 25 January 200, and there was a total of K 930,841,951.94 in large deposits and K 895,454,573 in large withdrawals.
Audit noted that in some case, the invoice was from Limpopo Electrical and Refrigeration but payment went to Golden Rewards.
“A quick search on open source of information reveals different Golden Rewards companies with no connection to the stated one. Limpopo Electrical and Refrigeration does not have a Company website and yet the quotes they gave were of high value. For instance, on 7th March 2014 a payment of ZAR 306,022 was requested just for installation and commissioning of Air conditioners at HTD in Blantyre.
“Payment to Guava International is for Vehicles and spare parts. Guava International Parts is based at Astota Business Park, Peasmarsh, Guildford, Surrey GU3 1NE. The Company is supplier of Range Rovers to HTD Ltd. Invoices from Guava International have CIF to Blantyre via Durban and therefore no need for HTD to pay a transporter,” reads an audit query in Nyasa Times possession/
“Red Sea Trading payments are for different items. On a particular invoice they were charging for Transporting 2 Range Rovers while at another point it was just described as furniture. Their Website indicates several things that they sell, however Cars are not there. However, on one invoice dated 30 June 2014, Red Sea charged USD 11,225 for shipping one vehicle from South Korea to Durban. Red Sea Trading further quoted HTD Limited about USD 103,367.38 for furniture for its offices.
“Despite paying KIA Motors for vehicles, they seem to be also paying Reindeer Associates, based in Hong Kong, for vehicles. Reindeer Associates search is not producing any result related to car sales. Invoices from Reindeer Associates have CIF to Blantyre via Durban and therefore no need for HTD to pay a transporter.”
“ZZK Limited is based at OADBY, Leicester, UK. However payments were made to Habib bank in Zurich, Switzerland. A quick search on open source of information has not produced a result for this company in UK. They paid this company between 23 June 2011 and 26 July 2011 only
HTD is a franchise holder of KIA & Range Rover vehicles and Iveco Trucks. As a result they are supposed to order vehicles from the parent corporations. In this case for Range Rovers they need to order from Guava International, KIA vehicles from KIA Motors Corporation and Iveco Trucks from Iveco South Africa.
Analysis of invoices shows that they have at times ordered from these companies.
Red Sea Trading is the major recipient of foreign currency from HTD. Some of the invoices from Red Sea Trading are for other goods, some for vehicle shipping and some for actual purchase of KIA vehicles. Red Sea received above USD 1 million from June 2012 to September 2014. Interesting observations include:
- Charging USD 11,225 for shipment of one car
- Charging USD 103,367.38 for furniture for its offices
- Charging freight for cars when invoices from KIA are cost, insurance and freight inclusive
- Use of Red Sea Trading in purchasing vehicles raises suspicion for illegal transfer of forex. This is substantiated by the questionable charges of freight.
- Swift copies from Banks indicate possible duplicate payments on one invoice
Reindeer Associates, like Red Sea, are based in Hongkong. Interesting observations include:
- Again they are buying Cars, Range Rovers, for HTD and yet HTD pays direct to Guava International for cars.
- Invoices from Reinder are CIF inclusive so no need for HTD to pay another transporter from South Africa.
- Use of Reindeer in purchasing vehicles raises suspicion for illegal transfer of forex.
Malawi engaged Financial Intelligence Units of South Africa and Hong Kong to check if money is moving from suppliers’ accounts to the Directors of HTD and their immediate families.
Auditors recommended that Malawi Revenue Authority should consider assessing tax obligations for HTD and that Reserve Bank should investigate the illegal transfer of fore
Anti Corruption Bureau was also advised to prove the payments from Ministry of Defence as to whether goods were supplied and that Fiscal Fraud Unit should investigate the invoices that are used to clear vehicles if they are different from the ones sent to Banks for forex application
However, investigations are said to have stalled due to ties of HTD to the power-that-be.
The Baker Tilly’s cashgate report in 201 on an estimated K20 billion ($38.2 million) looting in government for goods not delivered and services not rendered for a six-month period between April and September 2013, some companies are owned by Malawians of Asian origins, none of them has been interrogated or mentioned as witness in a court of law.
The ‘K577 billion’ reconstruction of cashbook carried out by PricewaterhouseCoopers also reveals a number of companies of Malawians of Asian origins .
The graft-busting body’s spokesperson Egrita Ndala insists the bureau was still investigating Cashgate and that the bureau cannot comment on” specific issues which are operational in nature”, saying that it may “ jeopardise the operations” .
HTD Limited managers who have British passports, are feared to be stashing their suspected “dodgy cash” in UK.
British Prime Minister David Cameron promises to act against corrupt foreigners who buy up luxury properties in the UK using secretive holding companies to hide their “dirty money”.
Cameron vows that UK must not become a safe haven for plundered or laundered cash.
Nyasa Times has posted some of the images in the dossier of material objective evidence.Follow and Subscribe Nyasa TV :