ACB pounces on CEO of CDH Investment Bank for financial crimes over Zameer Karim loan

The Anti-Corruption Bureau (ACB) on Tuesday said it  pounced on Chief Executive Officer (CEO) of CDH Investment Bank, Misheck Esau,  in relation to  a case  of suspected dubious transactions in the K2.7 billion Malawi Police Service (MPS) food rations deal involving businessperson Zameer Karim  of Pioneer Investments.

CDH Investment Bamk chief executive officer Misheck Esau; Facing charges on financial crimes

The case follows a leaked ACB investigations dossier which established that a police  undertaking and commitment to CDH Investment Bank to facilitate a loan to Pioneer Investments that MPS would pay for the businessperson was fraudulent.

ACB spokesperson Egritta Ndala said in a statement seen by Nyasa Times that  Esau has been arrested  for “omitting to conduct due diligence and monitor the business relationship and the transactions of Pioneer Investments with CDH Investment Bank.”

According to the ACB statement the bank boss is likely to be charged with “consipiracy” which is contrary to Section 35 as read with Section 25B of the Corrupt Practices Act.

Esau will also face a charge of “influencing the  use of public office for advantage” which is contrary to Section  25B (2) of the Corrupt Practises Act and “money laundering” contrary to Section 42 (1) (c) of the Financial Crimes Act.

ACB already arrested and charged Karim and  police commissioner Innocent Bottoman and senior superintendent Grant Kachingwe in  relation to the case.

Karim of Pioneer Investments is facing three counts of theft of K466 million contrary to Section 278 of the Penal Code, uttering a false document presented to CDH Investment Bank to access a loan contrary to sections 356 and 360 of the Penal Code and acquiring proceeds of crime (K466 million) contrary to Section 42 (1) of the Financial Crimes Act.

On the other hand, Bottoman is accused of uttering false documents which the magistrate said he presented to CDH Investment Bank to enable Karim’s firm, Pioneer Investments, to access a loan.

Bottoman is also accused of abuse of office contrary to Section 25 (b)(1) of the Corrupt Practices Act (CPA) while serving as director of finance at MPS headquarters.

He is alleged to have unilaterally made an undertaking and commitment to CDH Investment Bank to facilitate a loan to Pioneer Investments and that MPS would pay for the businessperson. He is also accused of acquiring proceeds of crime amounting to K466 million.

Kachingwe’s charge is one of forging a document which allowed Karim to access the said loan.

ACB investigations dossier  established that the signature of a co-signatory on Bottoman’s letter to CDH Investment Bank, Bottoman’s deputy Tadius Samveka, was forged.

The investigation showed that on July 16 2015, Bottoman and Karim made an additional undertaking to the bank that MPS would remit over K2.1 billion to the bank, as a guarantee for Karim to borrow a similar amount from the bank.

Bottoman made both guarantees to Karim before the contract was awarded on August 4 2015, contrary to Malawi’s procurement laws.

The investigation report also showed that after getting his payment on April 12 2016, the following day, Karim deposited K145 million into a Democratic Progressive Party (DPP) account at Standard Bank whose sole signatory is President Peter Mutharika.

But ACB cleared Mutharika, saying he did not personally benefit from the transaction. DPP later pledged to refund the money to Pioneer Investments.

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Jane MArk
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Jane MArk

HOW I GOT A LOAN WITHOUT PAYING ANY UPFRONT Hello all, I want to quickly say a big thanks to Access Quick Loan who resuscitated my business by giving me a loan without requesting me to pay any upfront unlike other loan companies who demands for upfront. It happened that my business crumbled because my husband was so sick and I used my business capital to save his life so I was left with no dine. I contacted so many loan firms and they demanded upfront money from me which I don’t have until I found someone on the internet… Read more »

Mr what what
Guest
Mr what what

Angonena kuti ndalama zo sizimapindulira iye basi, all the changes will be cleared. Anthu akumatero ndipo zikumatha

kalulu wadwala
Guest
kalulu wadwala

Chejumo

kalulu wadwala
Guest
kalulu wadwala

Small fish

Ebo
Guest
Ebo

Zabodza tu izi…. or cover up¿ i believe these were orders from above….fake ACB

hope
Guest

ACB Kwasala munthu modzi, akaziliza ntchit0 yake may 21, nthawi yomweyo ku khoti, mwamva a ACB

nyalugwe
Guest
nyalugwe

or was it K145 million only?

nyalugwe
Guest
nyalugwe

Why bother Esau, did he personally benefit from this? Just like in the case of HE Peter Mutharika who did not personally benefit from the K145000 million,
Esau should not be tormented for nothing

Solitaire
Guest
Solitaire

Misheck Esau, mere victim of circumstances. If all these cases were investigated thoroughly and our own intuition applied as a guiding principle without bias, I don’t think many people would have been in the cooler by now but, since we just follow what the current operating procedures are saying, and without looking at what sort of people were drafting those procedures in the beginning, the period (environment, political etc.) they were writing those procedures and what their motives were, that’s why majority are always found in the wrong. Am not blaming anybody here for doing their job but lets put… Read more »

Dodolido
Guest
Dodolido

Politicians will always use professionals to maneuver their goals. You will never, I repeat, you will never see a politician arrested in this case. Yet in this case the main beneficially is a politician.