BLANTYRE-(MaraviPost)-Controversial Blantyre businessman Mahmood Azhar Chaudhry might have stunned the High Court when he openly admitted in a sworn statement that he paid part of the purchase price for a locally sold vehicle in British pounds in London.
The admission, made in case number 21 of 2022 at the Commercial Division in Blantyre, amounts to clear externalisation of foreign currency, an offence under Malawi’s Exchange Control Act.
Chaudhry dragged Speedy’s Limited owner Riaz Jakhura to court after a soured deal involving a Mercedes Benz saloon.
In his statement, Chaudhry revealed he bypassed Reserve Bank of Malawi systems by paying Jakhura in London, thereby breaking the law.
Economic and taxation expert Moses Benderson described the admission as reckless.
“This is illegal because funds that should remain within Malawi’s financial system were transferred abroad without Reserve Bank approval, draining foreign exchange reserves,” he said.
Benderson stressed that Malawi’s Exchange Control Regulations require all foreign payments to be processed through licensed banks with proper documentation.
He warned that externalisation attracts fines, imprisonment, and seizure of assets.
Chaudhry’s statement detailed that he handed Jakhura £10,000 in September 2019 in London, acknowledged in a CM 1 document prepared by Jakhura himself.
He further claimed to have given £7,000 for Jakhura’s son Rayyan’s fees and pocket money.
He said additional payments in Malawi brought the total to K46.6 million by May 2021 and K59.9 million (pleaded as K61.3 million) by December 23, 2021.
Yet, later, Chaudhry received a WhatsApp message from Jakhura’s accountant claiming a balance of K3.7 million.
Despite this, Jakhura has counterclaimed K26.4 million as an alleged outstanding balance, deepening the dispute.
