Details have emerged about how fraud and corruption suspect Abdul Karim Batatawala is allegedly evading the law to secure contracts with the Malawi Government.
According to inside sources, Batatawala has established a network of companies allegedly registered through proxies to continue winning government tenders despite legal restrictions against him.
Batatawala’s scheme was first exposed during an intense family field with his son-in-law, Shabir Jussab.
This dispute revealed that the controversial magnate had intended to exploit Shabir Jussab’s companies for government deals, just as he had done with other proxy firms in the past.
However, Jussab’s decision to turn down Batatawala’s request landed him in trouble as the Malawi Police quickly moved in with a warrant of arrest for the British national.
“Prioritising assistance to alleged fraudsters and corrupt officials detracts from our duties of protecting the public and ensuring that public funds are put into good use,” a concerned Malawi Police official privy to the whole issue had told Malawi24 on condition of anonymity when the story first broke.
Details of the police officers or prosecutors who obtained the warrant of arrest for Jussab were not revealed by the South West Region Division of the Malawi Police. Malawi24 can also independently verify that Interpol has not issued any Red Notice for Shabir Jussab despite police and media reports.
The Red Notice would require an approval from the Minister of Homeland and knowledge of President Lazarus Chakwera which in turn could pin the two officials into the scandal.
The warrant issued by the Limbe senior resident magistrate’s court in Blantyre was controversially obtained by the Malawi Police allegedly as way of the ‘law enforcers’ protecting its own interests, considering that Batatawala’s current fraud and corruption charges relate to deals he signed with the Malawi Police.
Malawi24 can also independently verify that the government is aware of these arrangements where deals were being facilitated through proxies on behalf of Batatawala.
Among the companies alleged to be utilised by Batatawala is “Tradeview,” registered under the name of Manish Kubavat. Kubavat was previously employed by Batatawala under Pamodzi as a construction supervisor.
Sources indicate that Batatawala registered the company under Manish’s name while he was still working for him, and subsequently dismissed him and sent him back to India immediately after the company’s registration. This proxy arrangement was intended to allow Batatawala to disown any ownership of the company should there be independent investigations by the Anti-Corruption Bureau (ACB) into pontential fraudulent dealings with between the proxies and the government.
Tradeview has allegedly already been contracted by the Malawi Prisons. Malawi24 could not independently verify these allegations.
“Confirmed orders from Malawi Prisons to TRADEVIEW have been established. This company is situated within Pamodzi Park Building, adjacent to Giraffe Media. Jamie Da Silva, an employee of Batatawala, oversees operations at this company”, one source told Malawi24.
The second entity, “BEMBEKE Trading,” is registered under Batatawala’s current Lido employee. The company operates under the name of Batatawala’s truck driver, Austin Rajab.
BEMBEKE Trading has been supplying goods to numerous government parastatals. The third company, “Minolta,” is registered under Batatawala’s brother-in-law, Hussein Jussab.
In addition to these three companies, Malawi24 has also learned of several other proxy firms that source claims Batatawala has been employing to secure government contracts. These companies are all registered under the names of Batatawala’s employees or close associates, and they are all used allegedly to obscure Batatawala’s involvement in government contracts.
However, Jamie Da Silva and Hussein Jussab all denied connections with Batatawala; saying their business are independent of the business tycoon. “It’s nonsense, who told you this? Can you say the name of the person who told you this”, da Silva demanded when asked about the allegations that his business is used as a proxy by the tycoon.
Like Jamie Da Silva, Jussab Hussein also blushed off the allegations. “We don’t do business with anyone else, we do business on our own”. Asked if his company has any contracts with any government department, Hussein said: “I don’t deal with the government”, responded Jussab Hussein.
Austin Rajab confessed to owning Bembeke Trading but when asked about being connected to Batatawala and Bembeke being used as a proxy, he asked Malawi24 to “speak with Karim [Batatawala]” instead.
When Malawi24 insisted on getting the information from him since the company alleged to being used as a proxy was his, he said he needed more time to respond and asked us to call him back “tomorrow” (Tuesday, 15 August). When contacted on the said date, Rajab did not pick up.
This is just the latest in a long line of allegations of fraud and corruption against Batatawala. He has been accused of embezzling millions of dollars from government projects, and he is currently facing multiple criminal charges.
In December 2021, Batatawala was arrested by the Anti-Corruption Bureau (ACB) on suspicion of fraud and money laundering. He is accused of defrauding the Malawi government of about K1.5 billion (about US$1.5 million) and laundering K2.5 billion (about US$2.5 million) involving Malawi’s Defense Force (MDF), Malawi Police, and the Malawi Immigration Department.
In 2021, Abdul Karim Batatawala’s Reliance Trading Company was allegedly implicated in a K167.8 million scam involving questionable Central Medical Stores Trust (CMST) contract.
In 2022, the ACB restricted Batatawala and his alleged fraud accomplices Fletcher Nyirenda and Limbani Chawinga from disposing of assets. Our sources revealed that details of other companies have been shared with credible investigators.
Batatawala maintains his innocence and has denied all fraud and corruption charges against him. He pleaded not guilty when he was taken to court and has sworn to clear his name.
Regarding the accusations that he is now employing proxies to continue doing business with the Malawi government, he bashed the accusations as baseless.
“I am not using those companies and the companies are not in my name. If you have any evidence please bring it forward,” he said before threatening Malawi24 reporters with an arrest, saying he has reported Malawi24 to Area 30 Police over the article we had previously published.
“I have told Area 30 Police to issue an arrest warrant for you [Malawi24]”, revealed Batatawala who lives at Namiwawa in Blantyre.
