Zameer Karim charged with money laundering, theft

Zameer Karim Pioneer Investment Corruption Fraud Malawi

Businessperson Zameer Karim and a police officer identified as Grant Kachingwe have been charged over the K2.7 billion food rations contract which Malawi Police awarded to Karim.

The two appeared before the High Court in Lilongwe this morning where they were charged with with conspiracy to use a public office for one’s advantage, money laundering, theft and forgery. The suspects pleaded not guilty to the charges.

The Anti-Corruption Bureau which is prosecuting the case has since parading witnesses in the case. One of the witnesses is former Inspector General of Police Lexten Kachama who told the court that Karim was awarded the contract in June 2015 but submitted bid documents in July 2015.

Karim’s Pioneer Investments was hired by Malawi Police to supply 500,000 food ration packs in a K2.7 billion contract and it is suspected that corruption was involved in the awarding of the contract.

It is also alleged that Karim did not have sufficient funds so he borrowed K700 million from CDH Bank using government guarantee.

However, the proceeds of the contract were paid directly to Karim and he did not repay the loan to CHD Bank.

The bank in 2017 sued Malawi Government for K2.3 billion. The amount, which government paid, included the loan Karim obtained from the bank, interest and some collection fees.

Malawi Government then dragged Karim to court where Karim was ordered to pay the K2.3 billion plus K3.824 billion as interest.

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