Zain-Malawi in MK4.7 million tax evasion scam as MRA recovers lost revenue
Malawi leading mobile service provider Zain’s wonderful world came crumbling recently when the mobile company duped the Malawi Revenue Authority (MRA) and sought official clearance to import goods that did not qualify for a duty free status, only Nyasa Times has established.
Nyasa Times investigations reveal that Zain obtain official clearance from the revenue collector to import a consignment of switching equipment and tower accessories valued at MK6.2 million.
However, an audit by MRA’s Internal Clearance Branch (ICB) in the department of Inspectorate and Excise division detected anomalies after it was established that the mobile company lied on the goods it was importing.
The audit information sourced at the MRA headquarters in Blantyre further revealed that instead of importing the approved consignment, Zain made a change of heart and knowingly imported goods duty free that were not cleared by the revenue collector.
“Instead the mobile company imported 24 sets of air conditioners with accessories that did not enjoy duty free status….after the matter was raised with Zain officials they agreed that there was breach of taxation procedures and the company agreed to pay MRA MK4.7 million for the goods,” said an inside source at MRA’s Keza office who spoke on condition of strict anonymity.
The source said the anomaly was traced quickly because Zain’s importations are noticed through what he called the blue lane, a high tech selectivity module in MRA’s clearance system and is only applied to importers that have demonstrated certain levels of compliance over a period of time and are exempted from the normal physical examination.
Efforts to talk to publicists of both MRA and Zain were unsuccessful. Zain’s publicist Edith Tsilizani could not pick up her phone and after several attempts it was out of reach while her MRA’s Steve Kapoloma was reported to be in meeting according to a female assistant who answered the phone.
This could just be a tip on what other companies are doing in arrangements some MRA staffs. On this one I strongly doubt if it was Zain alone which decided to do so. I think an MRA member was behind this scam, that is how they enrich themselves. Kungoti yimeneyi yaphulika koma wina ku MRA ayenera kuti wadyapo ndithu zawulele pamenepa.
Employees in Malawi are heavily taxed just to make other people get rich. I was in Malawi just a few months ago and I observed that an employee who gets about K100,000.00 as basic salary pay 1/3 (one third = K33,000.00) of this amount to MRA through PAYE system. Is this not burdening employees (poor Malawians)and yet we expect them to develop in their lives? As this is not enough, there is 16.5% VAT on what they want to buy other than common food items on top of already high prices of items in shops. Fuel in Malawi is almost 60% high if you compare with South Africa (R7.5 per litter petrol while in Malawi it is K215 per litter petrol). At the end of the day, all this is being covered by a poor local man and someone says, ” You can’t develop because of your expenditure habits”, too bad. I hope my dear president (Bingu)is working on such things now if we need Malawians to progress in life.
These companies which envad tax take advantage of corruption with the system. I pray that Zain should not only pay K4.7 million but extra as penality for the envansion. Then others will learn a reason. BUT CONSIDER THE ISSUE OF FUEL AND PAYE, MALAWIANS ARE BEING VICTIMISED ON THESE ONES AND PLEASE HELP THEM.
on fuel,i request my dear friend to du some currency equivalent calculations and consider the shipment difference for malawi and south africa. if he has abit knowlrgde on accounting hemay see that malawi is cheepiiii
I appreciate your concern but I talked about this because it is being put as if our fuel prices are much cheaper in the SADIC region.
As regards to your worry on currency equivalent calculations, I have covered such topics on different levels up to postgraduate levels. But the major point here was to remove the impression of having much cheaper fuel. I hope you get me now.
These guys are taking our systems for granted! How I wish they realised that money goes to critical areas of government. Doesnt it?
You’re right chemwali.
Thanks.
Alice
This is just another example of how MRA has transformed its operations.
With the amount of support they have shown towards the ruling party, this might now have happened only 6 years ago.
I hate how Zain wastes resources on company cars, massive advertisement (they even decorated toilets) , outrageous bonuses considering that its we, poor Malawians that pay for all that through units. They have now retrenched many staff and are now engaging in fraud. Poor management and planning at its best. They survive because they have no real competition.
Hey Mustapha, zeni is one of the best companies on the Malawi market. The yearly bonus part was good as it awarded employees beating all expectations – ma milioni bwee, infact all yearly profits was retained in Malawi. No other company has ever paid handsome bonus across the organization the way zeni did.
Staff have not been retrenched per se but a managed services model had been adopted that has seen employees being transferred to out source partners.
Advertisement is part of the game, and is an area where zeni contributes as a contributes as a corporate citizen through support other smaller companies.
If TNM and MTL cannot do it, blame it on themselves but for zeni, it is doing all its best to satisfy customer wants and needs.
bamudala
Montreal, Canada
Mungotaya nthawi Celtel (Zain ndi boma) Zain ndi DPP ndi khethekhethe and the MRA boss is the husband to Bingus secretary in fact the man is also from Phalombe. So?????????????? Keep quite and find something better to debate on. This Zain issue is closed.
Thats why zain is becoming blue, check with 50cents air time.
MRA deal with them. They are milking us………….
Ine ndikufuna ma Bonus Minutes anga …
Zoona!Anthuwa baba akutibera.Zain is stealing from it’s costomers.Just imagine,each and everyday i receive a call from my beloved relative in RSA.We often talk for 20-30 minutes.And he always tell me that all these minutes can only cost someone R10-R15 which is equivalent to K200-K250.Can you note the diffence.Anzanga Amalawi muti bwanji ndi nkhaniyi?A Zain kumati namiza ndituma bonus.Mbava inu!
Amenewo akukunamizani, when I am in RSA I make calls and the time mentioned here cannot cost less than R50. Infact, calls in RSA to Malawi cost R2 or so per minute.
The network problems still exist. I would like to ask Nyasatimes to follow up on the equipment issue kuti ibwera liti mwina communication may improve. Zikakhala zakubazo izo ndiye tazolowera.
Athamangiseni azipita kwawo.
UH1 UH! a Chipi, phuma bwanji?
Stop arguing guys, this will take us no where. Whether someone is from Phalombe or not all that matters is delivering. We are all Malawians. Why are we not commenting much on the Indians who are using our brothers and sisters blood for rituals?
Zain a wonderful world! It was just few selfish individuals who wanted to tarnish the good image of our beloved network.