Tag Archives: Abdul Karim Batatawala

Lifestyle, Opinion, Politics

Abdul Karim Batatawala, Azhar Chaudhry Mahmood threat to new Malawi’s progress

Maravi Post Author

By John Masiye

Most businessmen of Asian origin in Malawi are dishonest and corrupt. However, there are a few who are the real ‘bad apples’. President Lazarus Chakwera has emphasized that the insatiable appetite to steal state resources by Asian businesspersons and a few corrupt and unprofessional government officials has come to an abrupt end. Corruption, fraud and utter theft are evils that take away resources from development to the pockets of a few people.

Abdul Karim Batatawala is one of the filthy rich Asian businessmen in Malawi. To climb up that high, he infiltrated the judiciary, police, Malawi Revenue Authority (MRA) and the Anti-Corruption Bureau (ACB), and other strategic government agencies.

Abdul Karim Batatawala is a controversial business mogul who has always been in the news for bad reasons. His money is dirty, obtained through illegal means, including corruption, fraud and tax evasion, among others. He has also been involved in money laundering for many years.

In one instance, an MRA investigation revealed that Batatawala had not been submitting income tax returns to the MRA for many years since the year 2010.

He also occasionally submitted Value Added Tax (VAT) returns to the Malawi Revenue Authority Appellant during this period. The investigation further revealed that Abdul Karim Batatawala had under-remitted Pay As You Earn (PAYE). The money involved is in billions of Malawi Kwacha.

Sources close to the flamboyant billionaire businessman reveal that he worked as a salesman at Comet Limited, a hardware company in Limbe owned by Kassam Okhai in the 1990s. Today, Abdul Karim Batatawala is a multi-billionaire whose net wealth is MK50 billion.

Abdul Karim Batatawala owns almost half of real property in Malawi’s commercial capital, Blantyre. He owns several companies in Malawi and abroad. He owns real property in South Africa, India, the United Kingdom and Dubai.

Abdul Karim Batawalala is the main shareholder in one of Malawi’s premier healthcare facilities, Sheffer Clinic, in Blantyre. Under his ‘Pamodzi Settlement Trust’, Abdul Karim Batawalala today owns 54 luxury and fully furnished apartments in Sunnyside, Namiwawa, Mandala, Nyambadwe, Moneymen, Mpingwe, Mudi, Stewards & Lloyds, opposite Mwaiwathu Hospital, a luxury Lakeshore Cottage in Mangochi (next to Sun ‘N’ Sand). He also owns 5000 square metre warehouses in Makata industrial area and Ginnery Corner, 10 shops and 45-room office complex at Ginnery Corner.

According to sources close to his involvement in state procurement deals, state enterprises such as Escom, Malawi Posts Corporation (formerly MPTC), Malawi Housing Corporation (MHC), Malawi Police Service, the Malawi Defence Forces and the Department of Immigration have been victims of Abdul Karim Batawalala shady business deals. At some point, MHC went bankrupt owing to fraudulent businesses it transacted with Abdul Karim Batatawala.

Through his various companies such as L & G Tools, Novatech Engineering, KASCO Enterprises, Gratolite, SS Express Agency, Africa Commercial Agency, Lido Electricals, Reliance Trading, Africa Amateur Agency and Pamodzi Settlement Trust, Abdul Karim Batawalala set up a system that ensured that he secures multi-million Kwacha businesses with the said state-owned companies and departments to supply various goods and services.

Abdul Karim Batatawala takes advantage of ‘restricted tendering’ in some state companies, including the Army, Police and Department of Immigration, where all competing companies belong to him but registered in other people’s names including his wife. So, he gets the business under any circumstances.

Restricted tendering is a procurement method that limits the request for tenders to a select number of suppliers, contractors or service providers. This method of procurement is also called ‘Limited Bidding and Selective Tendering’. Competition is limited to only firms shortlisted or invited by the procuring entity.

When he gets the business contracts, he connives with concerned officers and inflates the prices of the goods and services, making a huge killing in the process, which he shares with his accomplices.

In some cases, Abdul Karim Batatawala does not supply the goods and services as agreed in the business contract agreement but he will demand payment for the same, which he gets, somehow. If anyone within the system tries to raise eyebrows, Abdul Karim Batatawala rushes to the courts, which he also controls. He is usually loitering around the High Court complex at Chichiri.

Abdul Karim Batatawala is no stranger to arrests. He has been arrested several times but his cases do not see the light of the day in the courts of Malawi. He is simply a Godfather that no-one dares touch.

He recently demanded that the Immigration Department pays him MK53 billion for the supplies of officers’ uniforms, five (5) times the agreed amount. He has met resistance from the government and he has moved the courts to intervene.

He also recently sought a court injunction restraining the Immigration and Citizenship Department from awarding a contract to introduce E-passport services and upgrade the Passport Issuance System (IPS) to the winning bid. Abdul Karim Batatawala’s company, IRIS, failed during the preliminary assessment as it did not meet some basic requirements.

It is very important for President Chakwera’s government to stop dealing with Abdul Karim Batatawala’s companies because he a danger to the economic growth of the country.

Azhar Chaudhry Mahmood

Another ‘bad apple’ among the dishonest and corrupt businessmen of Asian origin is Azhar Chaudhry Mahmood. This is a cunning businessman who has always wanted to endear himself with the leadership of that time in order to win himself huge government contracts.

Azhar Chaudhry Mahmood is the Chairman of the Pakistani Welfare Association in Malawi. Besides, he is the self-acclaimed Pakistani Consular in Malawi and through his ‘Consulate’, he engages in various illicit dealings, including fraudulent visa applications which result in human trafficking.

He is also involved in various land disputes, including the famous Kanengo Northgate Project, where he is named as having acquired land fraudulently through a company called GM Properties Limited that it owns land in Kuliyani, Mwambakanthu and Kwindanguwo Villages where the stalled Project sits.

Azhar Chaudhry Mahmood and Norman Chisale, former security aide to former President Peter Mutharika, are currently under investigations following revelations they dubiously acquired the over 100 hectares of land.

Azhar Chaudhry Mahmood used to own Sana Cash ‘N’ Carry chain of stores. He sold it but the business is constantly under the MRA and ACB radar for suspected tax evasion, money laundering and other illicit dealings when it was under him.

Conclusion

President Chakwera is determined to stamp out corruption, which undermines development efforts by diverting resources away from the basic public services that are necessary for creating prerequisite conditions for shared prosperity.

The Tonse leadership realizes that it is impossible to attain shared prosperity if the culture of rule of law does not prevail in society. People like Azhar Chaudhry Mahmood and Abdul Karim Batatawala have no place in the New Malawi President Chakwera is building.

Disclaimer: The views expressed in the article are those of the author not necessarily of the Maravi Post or Editor

Lifestyle, Politics, Top News

Chakwera’s state capture! Messrs Latif, Abdul Karim Batatawala feast over AG Silungwe sacking

Maravi Post Reporter
This image has an empty alt attribute; its file name is immigration-780x405.jpg

By Nenenji Mlangeni

BLANTYRE-(MaraviPost)-This is pure state capture on President Lazarus Chakwera’s Tonse administration that nothing serious on ending corruption in Malawi as two suspected corrupt Asian businessmen Messrs Latif, Abdul Karim Batatawala were feasting over Attorney General (AG) Chikosa Silungwe firing on Wednesday, July 21, 2021.

Reliable sources told this publication that soon after news that Chakwera fired Silungwe at Messrs Latif and Abdul Karim’s houses were huge, happy, feasts.

Chakwera fires Attorney General Chikosa Silungwe

They ate lots of biryani, laughed out loud and danced to their hearts’ content.It was a double celebration; Eid-ul-Adha and–importantly to them–the fall of Chikosa Silungwe, the man who was dead set against paying out billions of taxpayers’ money for irregularly awarded contracts and inflated deals.

The disagreement that Silungwe has been booted out for has to do with the Batatawala Case not opposition Democratic Progressive Party (DPP) 2020 election nullification case.

AG Silungwe comes barely days after the High Court sitting in Lilongwe dismissed an application by him (Attorney General (AG) Chikosa Silungwe) for the court to recommence proceedings in the MK53 billion Department of Immigration and Citizenship Services case where two firms have dragged the AG to court.

Two companies owned by businessman Abdul Karim Batatawala— Africa Commercial Agency and Reliance Trading Company— dragged the AG to court on behalf of the Department of Immigration and Citizenship Services, after they signed a MK9 billion deal with to supply uniforms to the department.

However, the department failed to pay the agreed amount, citing the firm’s delays in supplying the uniforms and other accessories which resulted in the companies demanding MK53 billion.

The AG asked the court to recommence proceedings so that former chief immigration officer Elvis Thodi, other immigration officers as well as officers from Public Procurement and Disposal of Assets Authority— who were added as third party— could get a chance to hear the claimants’ testimony.

By the time these people were being added to the case, the claimants had already concluded their case and the defence had started its defence.

In his latest ruling, Judge Kenani Manda said the AG’s suggestion was untenable because the case was at an advanced stage.

“This matter is at such an advanced stage for me to recommence the trial; so, the suggestion being made by the Attorney General’s chambers is untenable. The above observation is made because third party proceedings are a separate legal action and the same is deemed to have been commenced on the date that it was filed.“

“Following the observations above, it is the direction of this court that this action should be concluded by the defendant either calling additional witnesses and closing their case. Should the defendant be found liable, then they can proceed with the third-party action against the added parties,” the ruling reads.

Batatawala’s lawyers Nampota and Company objected to the application, describing it as abuse of the court process.

“Parties will have to go back to scheduling conference where they will have to indicate how many witnesses each is to call and within which period they will serve those statements,” the skeleton arguments read.

The powers that he wanted him to stop pursuing that case in court and do an out of court settlement whereby Government would still pay Batatawala something.

The dispute being in billions the something would still be significant. It seems that this was a done deal between Batatawala and the powers that be. Money already changed hands.

Silungwe on the other hand believed he had enough evidence and facts and legal arguments to win that case and protect taxpayers funds.

It sort of reached a point where he refused a directive hence hence the firing.

Keep your eyes on how swiftly the next AG shall pay out the billions to the usual suspects via “amicable, out-of-court settlements”.

corruption, Law and order, Lifestyle, Politics

Former Malawi Attorney Kaphale disowns Abdul Karim Batatawala’s claim on MK53bn immigration saga

Maravi Post Reporter
Kalekeni Kaphale; Batatawala is lying

BLANTYRE-(MaraviPost)-Former attorney general (AG) Kalekeni Kaphale has distanced himself from businessman Abdul Karim Batatawala’s assertion that his MK53 billion claim in the Department of Immigration and Citizenship Services uniforms’ supplies case was ever considered for an out-of-court settlement during his tenure of office.

Two companies owned by Batatawala, namely Africa Commercial Agency and Reliance Trading Company, are claiming K53 billion payment for an initial K9 billion contract to supply uniforms to the department.

However, current AG Chikosa Silungwe describes the claim as “dubious” and has invited Anti-Corruption Bureau officials to reinstitute investigations into the matter.

Batatawala has since asked the AG’s office for an out-of-court settlement of the claim, saying discussions were already underway when Silungwe was taking over the office.

Former Malawi President Mutharika, DPP distance themselves from Batatawala company’s suspected fraud

A letter by Batatawala’s lawyers Nampota and Company, asking for an out-of-court settlement of the matter, says the matter was already considered for an out-of-court settlement before it somehow proceeded to trial.

“We would like to inform you that this matter was already in the process of an out-of-court negotiated settlement to avoid costs before it proceeded to trial,” the letter reads.

But Kaphale—who was AG at that time—said the MK53 billion claim was never, at any point, discussed or considered for an out-of-court settlement.

“Companies connected to this gentleman had many business deals with government and they were always claiming payments. I remember two cases which were concluded and payment was due but not on the MK53 billion claim.

“This claim was not being contested at the time I left government. There was no way that it could be settled out of court because it was a complex matter involving procurement issues,” Kaphale said.

Batatawala’s lawyers wrote AG Silungwe’s office on the issue of out-of-court settlement on June 7 2021.

However, Silungwe has stood his ground, saying, while it was true that he had received the letter, his office is ready to defend the claim in court.

Malawi’s MK53 billion Immigration saga: AG Silungwe must take Batawalala’s firm head on

Early this month, former Malawi President Arthur Peter Mutharika (APM) also distanced his government from words going around that his government had cleared one Abdul Karim Batatawala from matters related to corruption and money laundering.

Speaking through his spokesperson Linda Salanjira said that the matter came on his desk but advised the Anti Corruption Bureau (ACB), Fiscal Police, Malawi Revenue Authority (MRA) and Immigration to desist from toying around with the idea of clear the business man and his companies African Commercial Agencies and Reliance Trading Company.

Karim is said reportedly summoned by the then Attorney General Kaphale and the Director General of ACB then Lucas Kondowe to go through the files of the two companies and the many cases involving the owner Batatawala.

Law and order, Lifestyle, Politics

Malawi’s MK53 billion Immigration saga: AG Silungwe must take Batawalala’s firm head on

Maravi Post Reporter 1 Comment

BLANTYRE-(MaraviPost)-Without shame, two companies owned by businessman Abdul Karim Batatawala have written the office of the Attorney General (AG) asking to settle out of court a matter in which the firms are demanding MK53 billion from the Department of Immigration and Citizenship Services.

But AG Chikosa Silungwe, in an interview on Monday, said he would defend the case, rejecting the out of court settlement option.

Other law experts and social commentators have commended AG Silungwe for not allowing the case to be sorted out side the court.

They have argued as to why Batawalala has resolved this path when his company robbed Malawians heavily.

The two firms—Reliance Trading Company and Africa Commercial Agency—dragged the Immigration Department to court, demanding over K53 billion payments for items they claim to have supplied to the government in 2009, 2010 and 2012.

In letters to the AG dated June 7 2021, through Nampota and Company, the two firms indicate that they want to settle the matter out of court to save taxpayers’ money while ending a protracted standoff that benefits no one.

“We wish to advise that our client has instructed us to approach you, on a without-prejudice-basis, with a view to exploring possibilities of discussing this matter out of court amicably,” the letters read.

The communication says the matter was already in the process of an out of court negotiated settlement to avoid costs before it proceeds to trial.

“It is our client’s view that if we proceed with the negotiated amicable out-of-court discussions, we will achieve a speedy and less costly result as opposed to the manner in which we are proceeding now. Please advise us whether our client’s proposal is acceptable to you and indicate to us when you are available for such negotiations,” the letter reads.

In the letter, one of Nampota and Company’s lawyers, Alexius Nampota, indicates that settling the matter out-of-court would lead to a speedy conclusion and “avoid costs before it proceeds to trial”.

“It is our clients’ view that if we proceed with the negotiated amicable out of court discussions, we will achieve a speedy and less costly result as opposed to the manner in which we are proceeding now,” Nampota says in the letter.

In a separate interview, Silungwe confirmed receiving the letter but said the government would not settle the matter out of court.

Former Malawi President Mutharika, DPP distance themselves from Batatawala company’s suspected fraud

“We are not settling the matter out of court. We are defending the claim in court to the end,” he said.

Former AG Kalekeni Kaphale last year indicated that the government was willing to negotiate with the two suppliers.

The Anti-Corruption Bureau, Public Procurement and Disposal Assets Authority (PPDA) and Fiscal Police have in the past failed to establish any wrongdoing in the award of the uniforms’ contracts at the Immigration Department, indicating that the firms followed all bidding processes that the department had put in place.

However, in his letter to ACB last month, asking it to investigate the Immigration Department’s uniforms’ deal, Silungwe accused people at ACB, Fiscal Police and PPDA of being compromised.

In a dramatic turn of events the former Malawi President Arthur Peter Mutharika (APM) this distanced his government from words going around that his government had cleared one Abdul Karim Batatawala from matters related to corruption and money laundering.

Speaking through his spokesperson Linda Salanjira said that the matter came on his desk but advised the Anti Corruption Bureau (ACB), Fiscal Police, Malawi Revenue Authority (MRA) and Immigration to desist from toying around with the idea of clear the business man and his companies African Commercial Agencies and Reliance Trading Company.

Karim is said reportedly summoned by the then Attorney General Kalekeni Kaphale and the Director General of ACB then Lucas Kondowe to go through the files of the two companies and the many cases involving the owner Batawalala.

corruption, Lifestyle

Former Malawi President Mutharika, DPP distance themselves from Batatawala company’s suspected fraud

Maravi Post Reporter 2 Comments

BLANTYRE-(MaraviPost)-In a dramatic turn of events the former Malawi President Arthur Peter Mutharika (APM) this distanced his government from words going around that his government had cleared one Abdul Karim Batatawala from matters related to corruption and money laundering.

Speaking through his spokesperson Linda Salanjira said that the matter came on his desk but advised the Anti Corruption Bureau (ACB), Fiscal Police, Malawi Revenue Authority (MRA) and Immigration to desist from toying around with the idea of clear the business man and his companies African Commercial Agencies and Reliance Trading Company.

Karim is said reportedly summoned by the then Attorney General Kalekeni Kaphale and the Director General of ACB then Lucas Kondowe to go through the files of the two companies and the many cases involving the owner Batawalala.

He went further that his issues were enshrined in the hand over notes of former president Dr Bakili Muluzi when handing over power to late Dr Bingu wa Mutharika.

From then on-wards his cases were never cleared nor attended to because there was a lot of mess which hinged on criminality.

Salanjira told disclosed further that the former president does not want his name to be marred with corruption cases.

She added that Mutharika is even ready to take the matter to court to clear his name.

“We are not ready to be thrown into the mud by a business person who have such cases,” said Linda Salanjira.

On his part Elvis Thodi the former immigration boss said that no such clearance was issued and would not like to get involved in corruption matters.

Batatawala Lido Karim is now under investigations after the current Attorney General Dr Chikosa Sulungwe three weeks ago directed ACB, MRA and fiscal Police to thoroughly investigate the activities bordering on corruption and money laundering. In the meantime, the Investigations are at a very advanced stage.

On his part the DPP spokesperson Brown James Mpingajira said that the party does not want to be associated with corrupt deeds and issues involving Batatawala have been there from the days of UDF.

According to a letter sent to ACB, Silungwe says the contracts were not duly approved by the Secretary to the Treasury and that officers at the department over-committed the government to huge sums of money which was not appropriated by the National Assembly.

“We note that all the said contracts bear the same contract number with a mere ‘No objection’ from PPDA [Public Procurement and Disposal of Assets Authority] masquerading as an authority to enter into such contracts… We find these transactions to be very suspicious,” the letter reads.

However, court records in case number 16 of 2017 between Africa Commercial Agency and Reliance Trading Company and the AG, the witness statement of a Malawi Police Service Fiscal and Fraud Section officer, among others, confirmed that there was a contract and that the items were supplied to the Immigration Department’s warehouse.

Law and order, Malawi

ACB, Fiscal police clear Batatawala’s company on MK53bn Immigration Uniform supply contract

Maravi Post Reporter
Immigration department

BLANTYRE-(MaraviPost)-The country’s Anti-Corruption Bureau (ACB) and Fiscal Police have cleared businessman Abdul Karim Batatawala—trading as Africa Commercial Agency and Reliance Trading Company from any wrongdoing ongoing Immigration Uniform supply contract

The development comes as Batatawala’s firms are in court, where they dragged the Immigration Department and are demanding over MK53 billion payments for items that the businessman supplied to the government in 2009, 2010 and 2012.

According to Court documents this publication has seen, the Anti-Corruption Bureau (ACB) and Fiscal Police had cleared the company of any wrongdoing or allegations of fraud.

This is happening at a time Attorney General (AG) Chikosa Silungwe has asked the ACB to investigate the contracts— which he describes as dubious— between the Department of Immigration and Batatawala’s firms.

According to a letter sent to ACB, Silungwe says the contracts were not duly approved by the Secretary to the Treasury and that officers at the department overcommitted the government to huge sums of money which was not appropriated by the National Assembly.

“We note that all the said contracts bear the same contract number with a mere ‘No objection’ from PPDA [Public Procurement and Disposal of Assets Authority] masquerading as an authority to enter into such contracts… We find these transactions to be very suspicious,” the letter reads.

However, court records in case number 16 of 2017 between Africa Commercial Agency and Reliance Trading Company and the AG, the witness statement of a Malawi Police Service Fiscal and Fraud Section officer, among others, confirmed that there was a contract and that the items were supplied to the Immigration Department’s warehouse.

Based on this, the then AG Kalekeni Kaphale, on March 4 2020, wrote Batatawala’s lawyers Nampota opting for negotiations to reduce the amount.

“…in the circumstances, you may wish to pend further action on the case until the negotiations are conducted and finalised,” the letter reads.

The records show that both the ACB and Fiscal Police cleared Batatawala and his companies, having found no evidence of wrongdoing on the part of the suppliers.

For all the contracts, the Office of the Director of Public Procurement, which is now called PPDA, carried out due diligence and issued ‘No Objections’.

For each contract, the Immigration Department would issue a request to submit bids, to which Africa Commercial Agency and Reliance Trading Company would respond.

For instance  in a letter dated March 8 2009, the then Chief Immigration Officer Elvis Thodi wrote Africa Commercial Agency, advising the company that it had been nominated to participate in the procurement of uniforms and other items by the Immigration Department, which also provided bidding documents to the firm.

On March 20 2009, Africa Commercial Agency sent its quotation to the Department of Immigration and Citizenship Services’ Internal Procurement Committee, which evaluated the offers and awarded the contract on April 24 2009.

This was the standard for all the contracts that the department had processed pertaining to the supply of uniforms and accessories in 2010 and 2012.

According to the agreed terms of delivery and payments, delivery and payments would be gradual and spread over several years based on the department’s uniform needs.

According to documents we have seen—including written communications between the suppliers and the Immigration Department—the firms delivered the goods and the department acknowledged receipt and was able to make part payments.

As it is now Mr Karim Batatawala and his affiliated business interests have no case, as everything was done in an orderly manner and by the book.

All major relevant governing bodies have found him NOT GUILTY.