CDH Bank CEO released on court bail : Facing charges on financial crimes related to Zameer Karim

The Lilongwe Magistrate Court in Lilongwe has granted bail to CDH Investiment Bank chief executive officer (CEO) Misheck Esau who was arrested on Tuesday by the Anti-Corruption Bureau (ACB).

Esau released on court bail

The CDH boss is alleged to have failed to conduct due diligence and monitor business relationship and the transactions of Pioneer Investments of controversial businessman Zameer Karim with the financial institution.

Blantyre-based Esau was arrested in Lilongwe and spent a night in the police cell after being quizzed by the ACB.

Esau has been slapped with charges  of  conspiracy contrary to Section 35 as read with Section 25 B of the Corrupt Practices Act (CPA); Failure to conduct due diligence and monitoring contrary to Section 29 of the Financial Crimes Act; influencing the use of public office for advantage contrary to Section 25B (2) of the CPA and money laundering contrary to Section 42 (1) (c) of the Financial Crimes Act.

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 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.

Follow and Subscribe Nyasa TV :
newest oldest most voted
Notify of
mtete
Guest
mtete

Sacrificial Lamb. No money matters involving government cannot escape Gondwe’s eye and, by extension, APM. These matchona are addicted to huge government contracts.

Mwine
Guest
Mwine

Banks have got loan approval systems and standing Committees. CDH is one thorough bank in terms of due diligence and has the most difficult Credit Committee. I dont believe the charges laid for Esau are genuine. Bank CEOs take responsibility as the overall heads. Why didn’t you arrest the RBM Governor or Bank CEOs in the cashgate cases? Lutepo et al were cashing large sums of money on the counter beyond what a commercial bank can do on a day to a single customer with RBM explicit approval. Today Lutepo is languishing in jail while no Commercial Bank or RBM… Read more »

Phonela
Guest
Phonela

Nanga mmwenye uja ngati mwini wa mulandu bwanji sanamugoneke Ku cell? A Malawi kupusa!!!!

Make Malawi Great
Guest
Make Malawi Great

How do these big fish get bail so quick then their case takes forever to conclude while petty thieves struggle with bail and are quickly convicted to rotten in jail.

Iantana
Guest
Iantana

My Tax.. kenako anthuwa azatipange sue, tizawabwezera zochuluka!

Graham
Guest
Graham

Karim yu ofunika angophedwa

Thyolo Thava boy
Guest

Application of justice selectively….. When will the ACB summon the recepient of MK145m from the same Pionner Investment? Mr. Matemba I plead with you sir, be proffessional. We are watching you. Remember the regime is changing in two months time.

Central
Guest
Central

APM had a conflict of interest in this case. The conflict of interest arose because his duty of loyalty to Malawians or the government was compromised. This was true because he exercised influence through favors. By getting the money into his own account APM represented his own interest rather than the interests of DPP and or Malawians. In other words he acted in his own interests at the expense of both DPP and Malawians. Was the account he used a DPP account? Do we have evidence to that effect? A conflict of interest further emerged when he failed to appropriately… Read more »

Bwande
Guest
Bwande

Very unfair and discriminatory…..WHAT ABOUT THOSE BANK MANAGERS AND RESERVE BANK GOVERNOR/DIRECTORS/MANAGER WHO AUTHORISED ENCASHMENT OF CASHGATE CHEQUES???? People cashed Hundreds of Millions of fraudulent cheques and both Commercial and Reservebank Governor and Managers authorised the fraud, thieves cashed the cheques…..YET THEY WENT UNPUNISHED……Really, Banana Republic…. today why Esaau, and the charges dont make any prosecution sense. Yes, charge all CEOs of banks which cashed cashgate cheques ansd Reserve Bank Governor/Directors who authorised the cashgate cheques….THEY ARE MORE EVIL THAN ESSAU

Kambuku
Guest
Kambuku

Unfortunately there was already a standing order by the Late former president to allow for all government cheques to be cleared. It would then be a fair assertion to say those that were directly linked ” first persons” approving the cheques and beneficiary should be taken to task. In all. Everything rises and fall on leadership bwana Bwande. Evil is evil. its not about who has a lesser evil.

Gulukunyinda
Guest
Gulukunyinda

The justice system in Malawi. APM and Karim are free men!!