Malawi forex crunch: Police shut down money bureau, Indian nabbed
Malawi security forces on Monday embarked on a campaign to close down foreign exchange bureau in the country following the continued scarcity of forex.
Armed-to-teeth police officers accompanied by Reserve Bank of Malawi officers shut down bureau in the capital Lilongwe including at the Kamuzu International Airport.
Nyasa Times understands that police were following orders by President Bingu wa Mutharika who recently accused unscrupulous business of causing forex shortage and vowed action against “enemies of the state.”
Reserve Bank of Malawi secretary Samuel Malitoni could not immediately comment.
President Mutharika last month said the forex crunch was being caused by the business community.
“These are enemies of the state. I will take action against you. This is dishonesty, I want you to know I am angry,” Mutharika said.
He claimed that “investors” collect local currency and turn it into US dollars and other currencies and “ship it back outside Malawi.”
“I know these things and the people who are doing this. These are enemies of the state,” he said.
Meanwhile, Lilongwe Police are keeping in custody another businessman of Asian origin for allegedly trading in foreign currency illegally and forging government documents.
The law enforcers arrested Pacific Hotels’ Projects Consultant Officer and shareholder Fahook Ahmed after a tip from some whistle blowers.
Central Region Police Publicist John Namalenga said police arrested the suspect in conjunction with the Reserve Bank of Malawi (RBM) officials.
“We have been following the suspect after a tip from the public that he was dealing in foreign currency,” he said.
Upon searching his office, police say, the 35-year-old Indian national was found with US$30 205, 30 pounds and R40 and some forged government documents like the Temporary Employment Permit (TEP) issued by the Immigration Department.
in addition, the youthful business mogul was also reportedly found in possession of six passports for Pakistan nationals and upon questioning him he failed to give an account of the documents.
“All the documents were seized and investigations are still underway before we take the suspect to court,” he said.
Last month, President Bingu wa Mutharika declared that he would not allow a devaluation of the Malawi Kwacha because forex traders were deliberately hording the foreign currencies to influence the devaluation by creating an artificial shortage of the cash.
Immediately after his declaration Fiscal Police arrested nine forex dealers in Lilongwe alone and charged them with illegal possession of foreign currency contrary to Section 25 (a) of Exchange Control and Regulation Act. Four of them have since been convicted.
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