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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Kenkkk
Guest

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.

Maphunziro
Guest

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.

Zulu
Guest

Y not arresting chairman and recovery from chairman property

Chakuwamba Kumanda
Guest
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… Read more »
As
Guest

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

atate
Guest

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

findu fiki
Guest
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.… Read more »
Tchutchutchu
Guest

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.

winston msowoya
Guest
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… Read more »
Sharp
Guest

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

Make mwana
Guest

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

wpDiscuz

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