Court orders Zameer to pay back Malawi govt K2.3billion

High Court of Malawi – Commercial Division has ordered businessperson Zameer Karim of Pioneer Investments  to pay the Malawi government about K2.3 billion in connection with the infamous Malawi Police Service food rations contract.

The office  of the Attorney General had sued Karim and his company to claim a refund of the money government paid CDH Investment Bank  Limited. He obtained K700 million  loan to the bank on an agreement of assignment of proceeds of the contract  to the bank.

But the court learnt that when payment was made, it was paid directly to Karim and defaulted servicing the  loan facility with CDH Investment Bank limited.

In 2017, the Attorney General’s office was sued by CDH Investment Bank and the Malawi government was made to pay about K2.3 billion which included the loan Karim obtained from the bank, interest and some collection fees.

“We had sued Karim to pay back the money and the court has awarded us our claim,” said Ministry of Justice spokesperson Pilirani Masanjala.

Judge Anabel Mtalimanja in her judgement dated November 13, 2020 has also slapped Karim to pay legal costs incurred in the case.

Lawyer for Karim, Nuru Alide, said he could not immediately comment.

The judgement comes after Karim was arrested last week Thursday with intent to defraud Ecobank Malawi K850 million by allegedly fraudulently obtaining a loan purportedly guaranteed by Malawi Police Service.

Fiscal Police Department arrested the businessperson in Blantyre on Thursday last week before taking him to Lilongwe alongside an employee of the bank, Victoria Chanza, who was arrested on Friday and was granted police bail in Lilongwe on Saturday.

Karim and Chanza pleaded not guilty to three counts of forgery contrary to Section 358 of the Penal Code, uttering a false document contrary to Section360 of Penal Code and fraud other than false pretences contrary to Section319 (A) of the Penal Code.

The two are accused of presenting a Notice of Assignment of Proceeds purporting to have been signed by Malawi Police director of finance and his deputy, undertaking to directly pay Ecobank K850 million as proceeds of a contract between police and Karim.

Lilongwe principal resident magistrate Viva Nyimba  granted bail to Karim and validate the police bail for Chanza.

The court has set December 16, 2020 as the date to commence trial.