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5 arrested over K6.8 billion EDF fraud

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Police have arrested five officials from Transglobe Produce Limited and Export Development Fund (EDF) over an alleged theft of K6.8 billion at EDF.

The arrests follow the decision by the High Court to dismiss an application by Transglobe officials restraining law enforcement agencies from effecting the arrests on individuals involved in the matter.

National Police spokesperson Peter Kalaya confirmed the arrest of the six in an interview Monday.

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He said the arrested officials are Farvez Tayub, Rashid Tayub, Hamuza Tayub and Nasser Sattar from Transglobe and Chifuniro Kaimapanjira from EDF.

According to Kalaya, the Transglobe officials would answer charges of fraud and money laundering while the EDF officials would answer charges of negligence by public officers.

He said there will be more arrests in the next few coming days.

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The six suspects are currently being kept at Lilongwe Police Station.

In May this year, the office of the Director of Public Prosecutions (DPP) instructed the Malawi Police Service to commence criminal proceedings against officers and companies that were involved in abuse of funds at EDF.

In July this year, High Court Judge Kenyatta Nyirenda dismissed an injunction and an application for judicial review that Transglobe Limited obtained blocking the police from instituting criminal investigations against the company’s officials.

A forensic audit report by Fletcher and Evance last year alleged criminal activities.

The audit exposed acts of negligence and abuse of office by EDF management which made the organisation lose K12.8 billion through suspicious deals between the period 2017 and 2019.

EDF lost the money through its Commodity Market Making Initiative which its management had allegedly been administering without adhering to laid down procedures.

The fund introduced the initiative to assist local enterprises that had the potential to secure export supply contracts, but could not access loans from commercial banks and other lending institutions due to lack of collateral.

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