Director of Public Prosecutions (DPP) Steve Kayuni has asked the Inspector General (IG) of the Malawi Police Service (MPS) George Kainja to institute criminal proceedings on Thom Frank Mpinganjira Trust (TFMT).
Kainja confirmed the development.
“We have received the letter [from the DPP] and I have instructed Fiscal Police to investigate the matter,” Kainja said.
The DPP move comes after High Court Judge Dorothy DeGabriele ordered that TFMT be investigated when she was presiding over the May 21 2019 presidential election judge bribery case.
In a letter which The Daily Times has seen dated October 8, 2021, Kayuni asks law enforcers to commence criminal investigations into the trust.
“Judge DeGabriele made an order regarding criminal investigations on TFM Trust. On page 37, paragraph 44 (c), the Judge noted that the accused person Mr Thom Frank Mpinganjira acted illegally in the way he lent money to the Democratic Progressive Party (DPP) because TFM trust is not a registered lending institution and the same [runs] contrary to political party funding [regulations],” the letter reads.
Kayuni further says, in accordance with the law, the directorate reiterates the opinion of the High Court and advises that criminal investigations be instituted against TFM Trust and its trustees on illegal money lending, contrary to money lending laws as stipulated in the Financial Crimes Act, further pointing out that the action was against political party funding laws.
Kayuni observed that, in accordance with the law, his office is advising MPS to start criminal investigations into the trust itself and its trustees, including Mpinganjira, on illegal money lending.
Meanwhile Mpinganjira might lose ownership of FDH Bank as Financial Market law prohibits a convict from owning a bank.
Reserve Bank Governor, Wilson Banda, told local media that the central bank had a meeting with the board of the bank and expects them to issue a statement soon in that respect.