Malawi ‘Guptas’ Pioneer Investment faces prosecution: ACB report details corruption scam, K145M donation to DPP

A leaked “secret” Anti-Corruption Bureau (ACB) Investigations Report into company owned by filthy rich Asians, Pioneer Investment, which is now at the  heart of a lucrative forged documents of senior government officials on supplier deals  recommends prosecution of its director Zameer Karim who donated  a total amount of MK145 million to ruling Democratic Progressive Party (DPP) from this corrupt deal.

Nyasa Times has written series of reports about Pioneer Investment over some documents of contracts forged to enable them supply and get payments from government and christened them as ‘Gusptas’ of Malawi.

According to the report which Nyasa Times has a copy and is widely circulating on social media, ACB received a complaint alleging that in 2015 Malawi Police Service fraudulently awarded a contract to Pioneer investment to supply nation packs at a contract sum of 2.3. Billion.

“On 22nd November 2017, the Director of Anti-Corruption Bureau (ACB) authorised investigations in accordance with Section 11(1) (a) of the Corrupt Practices Act. The following people helped in the investigations by providing information: Dr. Lexton Kachama, Inspector General of Malawi Police Service, Duncan Mwapatsa, Deputy Inspector General of Malawi Police Service (MPS), Tadius Samveka, Deputy Director of Finance, MPS…” reads part of the Report.

The report reveals that on 2nd June 2015 Internal Procurement Committee (IPC) at Malawi Police Service (MPS) held a meeting to procure ration packs for Malawi Police Service (MPS) and the meeting agreed to procure 500, 000 packs of ration which contained corned beef, tinned fish, energy biscuit and energy drink.

“On 3rd June 2015 IPC wrote Office of Director of Public Procurement (ODPP) seeking no objection to use restricted tender method for the procurement of ration packs. The following companies were shortlisted: ZS investments; Magic Wholesalers; Pioneer Investment; Lilongwe General Dealers; and Star Traders. On 10th June 2015 ODPP gave no objection to Malawi Police Service (MPS) to use restricted tendering in procurement of ration packs”, reads part of the Report.

However, the ACB report states that on 24th July 2015 Malawi Police Service Internal Procurement Committee wrote ODPP seeking no objection to award a contract to Pioneer Investment to supply 500 000 ration packs at the contract sum of MK 2, 327, 087, 500.00. Each ration pack was charged MK3, 995. 00.

“On 31st July 2015 the ODPP gave NO OBJECTION to award a contract to Pioneer Investment. Mr. Zameer Karim owns Pioneer Investment. The company was registered in 2008 and its registration number is 107247”, reads the report.

The findings of the ACB investigations further reveals that in April 2017 Mr. Innocent G. Bottoman and Zameer Karim defrauded Malawi government a sum of MK 466, 000, 000.00 when the latter was paid MK 2, 793, 087, 500.00 instead of actual contract price of MK 2, 327, 087, 500.00.

“From 2015 to 2017, Mr. G.I. Bottoman and Zameer Karim defrauded CDH investments Bank a total sum of MK 1, 514, 756, 318. 88. In 2015, Mr G.I. Bottoman and Zameer Karim forged and uttered false documents and forged Mr. T. Samveka’s signature to obtain loan form CDH Investment Bank. In 2017, Zameer Karim attempted to defraud Malawi Government a total sum of MK 567, 866, 013.38 by unlawfully claiming interest in ration packs contract.  Mr. G,I, Bottoman and Zameer Karim (aundered a total sum of MK 1,436, 284,000.00 which they knew or had reasons to believe that the said money represented in whole or part of money illegaily obtained.

“Besides, illegally claiming interest on Pioneer Investment Contract, Mr. Zameer Karim also claimed interest on contract by Farm- Chem of MK163, 036, 787.44 and Astro Chem of MK 137, 168, 129.08.” reveals the ACB Report, Form ACB 10

The gist of the report is on page 9 where it is revealed that Karim donated a total amount of Mk 145, 000, 000. 00 to DPP account at Standard Bank.

The ACB report recommends that Bottoman and Zameer Karim should be prosecuted.