The Chief Resident Magistrate’s Court in Lilongwe has acquitted the directors of Paramount Holdings Limited and the company itself of all criminal charges, while also barring the state from pursuing the matter any further.
Directors Prakash Virji Ghedia, Arvindkumar Atit Patel, and Suresh Khimji Jagatiya were cleared of three charges, including conspiracy to commit a felony and allegedly using forged documents to win a government-linked motorcycle supply tender. Paramount Holdings was also acquitted of all wrongdoing.
“The accused persons are hereby acquitted of criminal charges,” reads the court’s ruling in Criminal Case No. 868 of 2023. “The court hereby bars the state from bringing any charges against the accused persons on the same grounds.”
The legal battle began in 2021 following a complaint by Hendrix Laher, director of Luthando Holdings Limited, a business competitor. Laher had alleged that Paramount used a fake Yamaha dealership certificate to win a tender from JHPIEGO, an international NGO, in 2020.
Both companies had submitted bids to supply Yamaha motorcycles to public institutions, including the Ministry of Education, the Ministry of Health, the Ministry of Local Government, Kamuzu University of Health Sciences, and the tender was awarded to Paramount on July 7, 2020.
The case began to fall apart when the complainant failed to appear in court on multiple occasions. With no credible evidence provided, the Director of Public Prosecutions (DPP), initially under Dr. Steven Kayuni and later under Masauko Edwin Chamkakala, discontinued the case through a certificate issued on March 19, 2024.
After the six-month statutory waiting period, the court formally acquitted the accused and blocked any future prosecutions on the same matter.
The ruling provides Paramount Holdings with full legal clearance, ensuring its continued eligibility for public and donor-funded tenders. In 2022, Yamaha Motor Corporation Japan confirmed Paramount as its sole authorised distributor in Malawi.
Lawyers for Paramount Holdings, Marshal Chilenga and Gift Katundu, have welcomed the court’s decision, describing it as a just outcome that restores their clients’ full right to operate without legal hindrance. “We are pleased that the court has not only acquitted our clients but has also barred any future prosecution on the same matter,” said Chilenga.
In a related civil case, Luthando Holdings and other companies are challenging Yamaha Japan’s exclusive dealership agreement with Paramount Holdings. These firms are alleged to have bid for government tenders using documentation from Yamaha agents based in South Africa, raising questions about the legitimacy of such practices under Malawi’s procurement laws.
