Cotton Ginners Limited swindle Malawi banks K17 billion

Cotton Ginners Limited (CGL) has swindled Malawian banks of $20 million (approximately K17 billion) in loans and its Chief Executive Officer Abdul Yasin Reiman is reported to have fled the country to Pakistan.

At large: Abdul Yasin Reiman

Insiders confided in Nyasa Times that Reiman got various US dollar dominated loans from various banks in the country including a government supported lending arm, the Export Development Fund (EDF), which is supposed to support Malawian business people in accessing loans for export business.

Ironically, after getting the loans from the bank, CGL offices in Limbe were gutted by fire about a week ago which insiders believe is meant to destroy some evidence connected to the loans.

We can reveal that the government entity, Export Development Fund loaned CGL a whooping $5 million (approx K3.7 billion) while Standard Bank Malawi, Ecobank Malawi each loaned the cotton company $5 million each.

CDH Bank parted with $3 million while National Bank of Malawi loaned out the least amount of $1 million.

“All this money is gone, Reiman fled the country and the banks are wondering how they can recover this money, it’s a lot of money to be lost by these major banks at once,” said the source.

Insiders said the banks and EDF have just realized that the companies abroad which were supposed to buy the cotton from CGL already paid for the cotton to CGL but the money was diverted, probably to Pakistani where Reiman is said to have fled to.

Chairman of CGL Farook Ibrahim is said to have feigned ignorance of the loans as this was being done by Abdul Reiman on his own.

However, we can reveal that Ibrahim was well aware of the scam after Reiman sent a whatsapp messages to the Indian community in Blantyre where he revealed that Ibrahim was aware of the loans.

“Of course Ibrahim was aware of these transactions, one cannot get all these kind of loans without the blessing of the board let alone the Chairman of the board, he knows what is happening probably he knows where the money is,” said an insider privy to the investigation by the banks.

Representatives of the affected banks and EDF met two weeks ago in Blantyre to discuss of a common approach to recover the money or the next course of action.

Insiders say the banks are yet to come up with a concrete strategy of recovering the money.

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58 thoughts on “Cotton Ginners Limited swindle Malawi banks K17 billion”

  1. Kenkkk says:

    This stupid. Where was he banking all this money when the banks loaned him? Surely it was a Malawi bank account. So how did he externalise such huge sums of money without RBM knowing?

    Something is very wrong here.

    He could only do so with the collusion from the same selfish corrupt and greedy Malawians.

  2. Maphunziro says:

    Love For money is the source of Ali evil. People steal as a result of loving too much. What is yours is what you have eaten. Do not straggle having slot of money, which will be used by other people after your death.

  3. Zulu says:

    Y not arresting chairman and recovery from chairman property

  4. Dear our Leaders,
    Are your eyes open to see that the largest part of the economy is in the hands of Indians who do not respect Malawians!? When will Malawi realize that all is not well in the economy. We need to take the approach of Mugabe now. Malawians should own the land and the Economy. Let us be poor but let the Amwenye go back to their grave yards in India!!! they stink big time!!! Long live Bob Mugabe!!!! Looking forward to energetic and focused Member of Parliament who will rise in the Private Member Bill and denounce the rate at which the Economy is getting into the Hands of ill will Indians!!!!!

    1. As says:

      Hey……. the guy is a Pakistani and not an Indian….. N u shd realize how Indians are helping the country…..!

  5. atate says:

    This guy may as well be an Alqaeda operative who came to fundraise. Malawi should seriously review its laws

  6. findu fiki says:

    This is a lesson to the banks. Just a few weeks ago I was denied a loan by a certain bank and yet I have been their customer for so many years. How can Malawians grow their businesses with limited capital? Banks should not put all Malawians in one basket (defaulters). This song has been sung for decades (that indigenous Malawians are also capable) so long as they can have access to viable capital. Some of our children have become drunkards not out of their own making but because they have nowhere to start from because of lack of capital. This is a wake up call even to our govt – trusting foreigners more than your fellow Malawians is a death trap. Mwaonatu a ma bank

  7. Tchutchutchu says:

    Aaaaa bodza agawanaa ndalamazo , Popereka ngongole no matter what pamakhala chain of pole , ma Bank managers anadya nawoso .Anena akafinyidwa vuto ndiloti okafinyawoso akadyaso ndalama !! APA ma bank aluza basi.

  8. winston msowoya says:

    We all look embiciles just because of a few corrupt clique in power most of them being less educated and are in those positions because of alarming nepotism at the top.I have for several occasions,condemned the government of Muthalika to be so linient with Pakistans.Indians and Chinese but,it seems the Muthalika government is being controlled by these evil people.These monsters,are placed in strategic positions which were to be controlled by Malawian competent personnel other than Lomwes.These three nationalities,have completely subdued our so-called leaders and there is no way to stop these Asians plundering our economies and afterall,Muthalika does not care what happens because he is a jerry-walker,he has big finances abroad that will take him until his last breath on earth and this is why him and his vicious thief brother Bingu came into our country.The way how our nation’s resources are being mishandled by the Muthalika regime,we can as well,forget about progressive economy in our country for another decade.You elected him and let him enjoy,but next time you go to the polls,remember that politics of tribalism,will never ever take you anywhere and instead of voting a Tumbuka or a Ngoni,you can aswell,vote for an Arab Muslim and you will see how your Malawi,will go through and if you will take that line,we have another 53 years to develop our country.

  9. Sharp says:

    Apa ndiye awakhaulitsa. M’malawi kuti akabweleke ndalama sikuvuta kwake. Waitha mwenye pokhapa

  10. Make mwana says:

    Zandikomela izi….well said Mapwiya. Malawi banks r so selfish

  11. Javier says:

    surprisingly FMB or FNB is not amongst the swindled banks….. kaya chifukwa choti ndi mabanki a amwenye anzawo kaya

  12. Jolinjo says:

    You were warned.
    Many times.
    Pakistani operatives are doing this across Africa.
    There are Indians in Malawi whose grandparents were born here.
    They will all now be tarred with the same brush.
    So they should. They have been non participant in helping the government to prevent this. Some have even said they are afraid to do so.
    Your country….you should have the courage to spill the beans on wokuba.

  13. Angoni says:

    I have enjoyed this story. Go mmwenye go

  14. uttar pradesh says:

    ziko wanu..khobili wathu…nose kuku chabechabe..

  15. benjones says:

    This one was a planned game. Banks must squeeze the Chairman and he will reveal. The Chairman enriched himself with this dirty games and this is also part of it.

  16. Dr Tonde says:

    Malawian businessmen are not trustworthy. Don’t complain you Malawian thieves masquerading as businessmen. FDH bank lent money to Kawonga of Maranatha what has FDH Bank received in return?. This same Kaonga guy has an outstanding loan with MSB bank. Don’t glorify theft. That money which has been stolen in banks is your own money if not recovered you will suffer losses.

    1. Wizs says:

      Banks are the ones which are at fault even in the issue of FDH and Maranatha u can’t blame because the bank was unproffetional, it seams some guys wanted the school .bank are stupit pano they are to pay through nose in billions to the academy

    2. Jab says:

      Banks are pro Indians and politicians osamvera chisoni agalu amenewa Ku FDH amanjoya ndi a ndale kudyedya ndalama za boma kumene kuja Malawian taxes uyu Mpinganjira ndi rubber stamp chabe iwe Chakwela take note of this .tipeze njira basi

  17. P Sharma says:

    Which banks would disburse such funds without security? Unless one banker has a part in it. Only in Malawi

  18. ndondwa says:

    That’s the beauty of sidiling your fellow Malawians in terms of accessing loans that have hidden punitive charges, kuti munthu akupatse MK 500,000.00 koma kuvuta kwakeko mpaka kufuna kuti usitike last born wako kkkkk akuchitani bwino.

  19. mulimi says:

    congrats mwenye

  20. Sisyphus says:

    The banks favour Indians?

    I can’t see where this is coming from.

    Just a few stories back, on this same site you will see the story of K 6.1 billion in unrecovered loans of MSB.

    K4.9 billion of that was to Mulli Brothers.

    Is Mr. Mulli an Indian?

    This is just one bank.

    Many other loans to politically connected companies never come to light.

    NBS, National Bank; they are all corrupt.

    We in Malawi are far too rascist.

    It deters people from investing in our country.

    And, let’s be honest, we need it.

    Being a thief (or a good person) doesn’t depend on skin colour.

    ” … Why beholdest thou the mote that is in thy brother’s eye, but considerest not the beam that is in thine own eye?”

  21. Che Shaibu says:

    If the American Government (The richest in the world) took more than 10 Years to find Osama Bin laden in Pakistan, How long will it take for Malawi government which is the poorest in the world take to find him? The chance of probability is zero!

  22. Patriot weniweni says:

    You have never empowered your fellow malawians economically by starting small businesses and yet the unknown paki was given billions to start some non working ginnery. And now you are telling us that he has fled back to Lahore. Follow him if u r not going to come in pieces from some strapped bombs he is wearing.That money will be for funding some terrorist organisation to blow up some innocent people. Ma bank achimalawi kupusa kwabasi. We have youths loafing around and yet you can’t give them small loans to start their own businesses.Musatinamizepo apa mwabwana aku bank ayenera kuti anakatamukapo apa…Umbava walowelera ponseponse.

  23. Bob Bway says:

    Congratulations to the CEO on the run, *You are the man* I don’t feel sorry for these greedy banks, they can’t trust us Malawians with a little Kwachas for business start-ups even if we have viable business plans, let alone an already existing small business.

    But they trust some Boko Haram from Pakistan, Iraq, and other middle east countries, just because they come here in Malawi with few dollars, after bombing some European countries….while Malawians we can’t get a small loan without collateral.

    #Go in peace CEO
    #You are the man
    #F*cling greedy banks

  24. Generation of Vipers says:

    Zikamateretere iyayi zikamatere tere zosowa lero limenelo lero lero limenelo lero. Ife kwathu ndikungothokoza mwenye ameneyu. Words alone are not enough to express kusangalara kwathu.

    Any idea to what will happen kwa amene analandira ma commission chifukwa chopeza client wotenga ngongole?????

    1. mbanga says:

      Kkkk. Akanakhala Malawi ndikanadabwa kuti bank ingampatse zonsezi. Tiyeni nazoni. We need more of these boko harams.

  25. Germac says:

    I like Abdul he used to say i will get rich here in your soil.. Lero he made it f**k o you bank administrator helping strangers lero mudandaulire mnasi????
    Zanubee 😂😂😂😂😂😂😂

  26. Tom says:

    These guys have 2 cotton ginneries , sell those are try to recover what u can Malawian banks.

  27. Nadzimbiri says:

    Ma Bank ndi amene mostly amakhala akuberedwa ndalama zochuluka kwambiri kungoti nthawi zambiri samaulula kuopa kuluza confidence from customers. Am not sympathising with the banks though, the banks steal from us thru exorbitant lending rates.

  28. Hlabezulu Ngonoonda says:

    This should be a wake up call to the Department of Immigration. It has the habit of issuing Temporary Resident Permits to Pakistanis, Indians, Turkish etc without knowing that these nationals have not renounced their original citizenship. They flock to Malawi to do businesses. Yet beneath their minds are acts of illegally siphoning huge sums of money out of Malawi to the countries. If such huge sums of money were loaned to indigenous Malawians, I am sure, such things would not have happened. Banks would have devised ways of recovering the money. For now engage INTERPOL, FBI, SFO and FISCAL police. After all their chairman is around. Grab him and interrogate him. This was an inside dealing.

  29. Kabiniko says:

    Koma mu India uyo akanakhala pafupi nkanamugwira zanja…A Malawi tikamafuna kubwereka mumati security nanga mu India yayo security sanawonese…katengeni security too nanga ..ngati mwayiwala strategy take ndiyomweyo….galu into..

    1. me says:

      am with you ama

  30. lemson says:

    Congratulations to all banks. Akuchitani bwino……kukonda kuthandiza amwenye ife eni dziko nde mafunso tutuwili, ma surety mkati. Fotseki. Move on amwenye!

  31. pastor jk says:

    this bank gate cannot be compared to tge cashgate our indegineous compatriots have done.
    you cant beat a our own african in stealing.
    tge pakistani stole bank money,
    our own elected politicians stole the governments money-our money!!!
    AND WE WANT TO BLAME THESE MWENYES?????
    LETS FIX OUR OWN HOUSE FIRST.
    ROB A BANK BUT DONT ROB TGE PEOPLE OF MALAWI.

  32. DPP Mbava says:

    Chuma cha dziko lino chilii ndi amwenye. Mabank alila coz they trust Indians only akuti amalawi kusauka kwambiri samanyema zambiri.

  33. Elube says:

    Akuchitani bwino. You deny such loans to indegenous Malawians opting for Asians, most of who externise forex. The same applies to procurement officers, they give big chunk of business to Asians who in turn invest in Europe and Asia. Sick country

  34. Finyani Finyani Jr says:

    Once I read the heading I was happy. Reading the whole story I’m extremely happy. We talked about this at crossroads Malawian banks if you remember, about 4 months ago. And with confidence you said you rather give “these” people loans than “we” indigenous business men. You gave your own reasons; they’ve records, they’re trustworthy etc, I hope you trace them since they’ve records else they’ll bring back themselves since they’re trustworthy. We keep our money with you but you choose to loan Indians, Pakistanis, Chinese whatsoever. Anyway! we’ll still do business and succeed. In fact we’re doing.

    1. Ineyo says:

      Eish say that again. Kuti akupatse ka 2 million kenikenika ayitu zofuna mbwee kukukhomelera yet we keep our money with them.
      Awachangamutsa

  35. Hhahhhaha says:

    I’m very happy this has happened. Had this guy been a Malawian wouldn’t have been loaned that money

  36. Ntchona says:

    Can’t lend money to your people now what

  37. Kachama says:

    Wow thats alot of money , how was that possible?

  38. Sudesh says:

    Interpol can assist Malawi to bring him back as he may b linked to terrorist organization involve British n American governments if he is caught we will know who who is involved

  39. Mapwiya says:

    I am on top of the moon the Malawian Banks frustrated The Malawian owned Cotton Ginners like Lutepo and Iponga took away their Ginneries we lost jobs and i believe this frustrated Lutepo leading to his being tempted into cash gate and Iponga is seriously sick ma frustration. Now you were getting bribes from foreign companies like great lakes cotton and CGL to give cotton buying loans to them and frustrate local Ginner’s who would have been better Lutepo and Iponga or This Pakistan guy you can’t even trace. Apa a Lutepo bwezi mukukawapeza Ku Ndende Iponga Ku nyumba kwake. Ife lero tikufa ndi umphawi we are jobless because Lutepo closed his company because you idiot banks frustrated this hard working young boy and now you are Merry making Ife tikugona ndi njala mulungu akuyendeleni koma mupeza tsoka. Ife kumagona ndi njala zoona. A Lutepo may God do something mudzatilembenso ntchito

  40. Pwagu says:

    Amwenye ndi anthu akuba. They are ruining our economy mbava zimenezi. Look what they’re doing!

  41. Bob says:

    It’s not impossible to catch him he is in the same planet where we are!!!!! Send your top investigators with Interpol to Pakistan and bring the culprit here and should rot in the jail until he reveals where’s the money this pakies are spoiling the names of Indian origin malawi…we have been staying here over 60 years and paying tax accordingly…guys wake up please this Indians and pakies have been here for last 15 years they f*** the country up so Malawi immigration WAKE UP CALL!!!!!!!!!

  42. Mipando says:

    Kikikikiki, stupid banks. How do you trust Indians before Malawians?. When Malawians come to ask for loans at your respective banks you cheat them. You ask for bribes. That one is an alquedal guy. Go to Pakistan you will see red. He will shoot you. Shupit banks.

  43. sazilala mbuno says:

    utsilu amaona kuti mmwenye ndoozolowerana nao kjamba amawafumbatitsa. mwanyatu. siuja mmati amwenye akufuna kwabwino .wakuonetsanitu kufudyumala kwanuko. ma savage koma zimimba uko muli kugwila ncito. wacita bwino akalemere kwao.hheeeeeedeeeeeeeeeeeeeeeee onyooooooooooooooo

  44. KUKHALA says:

    GET HOLD OF THE CHAIRMAN, SINCE HE IS PART OF THE COMPANY.

  45. Lyolyolyo says:

    Tulo basi…… Ati ndiwoyera khungu uyu wachilungamo mmmmmmmm koma kupusaku. Wake up and you have to jaka up please you people of capitalism. Akuyamwani mmwenye kkkkkkkk……

  46. kagame says:

    We don’t embrace the local citizens and help them grow their business. Asking for big collateral from SMEs that you know for sure they don’t have instead trusting a foreigner with lots of money without any collateral. Mwayaluka kwambiri

  47. mtete says:

    Serves you right, Malawi Banks. You are a useless lot. It’s amazing the way you are very hard with locals, demanding impossibilities for collateral. Mark my word you would not have lost out so badly had you lent such huge amounts to locals.

    Are you ashamed the way you seize houses from defaulters who are unable to repay loans because your interest rates are too exorbitant.

    You have met your match. It will take years to recover your money, if at all.

  48. ada mhonee says:

    those banks prefer lending money to these guys while denying Malawians access to loans .well done to this Pakistan guy for giving these banks what they deserve

  49. Sadyeka says:

    Congratulations to this Indian or Pakistani. It’s high time Malawian banks should learn to embrace and support the efforts indegenous​ businesses are doing to support the economy of this country. Let this be a lesson to all financial institutions. Akanakhala waku Balaka kapena ku Borero bwezi titapita kukamusaka koma nanga ku middle east muyambira pati???kkkkkkk

    1. rob says:

      Inenso wandisangalasa mwenye ameneyu, a bank amawakhulupirira kwambiri agalu anzawowa uwona ka teller mmene anjenjemerere pakafika mwenye pa counter mpaka kumuuza kuti asakhale pa mzere mxie ngati asapezeke ndalama zimenezo mutazinye kwani?

    2. Zihlalere says:

      That mentality of entrusting foreigners is institutionalized in all institutions not just banks!

      By any means our institutions will not render support to a Malawian but a foreigner.

      The worst is yet to come; we will one day wake up and realise all the land is owned by foreigners, just watch!

  50. jog says:

    Malawian banks still sleeping.

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