Police have arrested a Pakistan national, Abdul Rehman, who is suspected to have defrauded banks money amounting to K20.9 billion in loan facilities.
Rehman, who was one of the directors of Cotton Ginners Africa Limited, fled the country in April this year but arrived yesterday through Chileka International Airport on Ethiopian Airlines at 13:37pm and was whisked away through the cargo area in a taxi by Criminal Investigation Department officers.
According to reports, banks that were hard hit by the fraud are Standard Bank Limited, which is owed K8, 585, 177, 08 2, Export Development Fund which is owed K4, 092, 547,425, Eco Bank which granted a loan of K3, 499, 481, 627, CDH Investment Bank which is owed K4, 476, 302, 691 while National Bank of Malawi is yet to recover K250, 000, 000.
National Police spokesperson, James Kadadzera, confirmed the development, saying the matter is under investigations but could not disclose which police station Rehman was taken to.
“Give me a bit of time to find out but what I can say is that, he is in our custody under investigations in connection with fraud,” he said.
Before fleeing the country in April, Rehman is said to have remitted only $5 million (about K3.6 billion).
The remaining directors of Cotton Ginners Africa Limited applied for bankruptcy at the commercial court in Blantyre, an application which the banks are challenging.
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