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The Director of Public Prosecution Dr. Steve Kayuni has asked FDH bank to refund K10.4 Billion the bank received from the Reserve Bank of Malawi, suspected to be proceeds of a financial crime.
According to a demand letter signed by Kayuni addressed to the Executive Director of FDH Bank the transaction appeared in the May 2021 Deloitte Forensic audit report on the payment operations of the Reserve Bank of Malawi between 1 January 2019 and 10 June 2021.
It adds that this was a credit facility offered by the bank between 1 January 2018 and 30 June 2020.
The letter says the criminal and financial investigations have revealed that there were unwarranted and unjust payments to the bank between December 2018 and December 2020 concerning the nature, purpose, and cost of the Treasury Note Programme.
“A total amount of MWK 10.4 Billion was paid to yourself without any justification, without following duly laid down procedures and amounts to suspected money laundering”.the demand letter says
It further says the state believes that the K10 .4 Billion unjust wealth is proceeds of a crime and for the enrichment of the FDH bank.
Meanwhile, the DPP has said in pursuant to the Financial Crimes Act, the state intends to commence forfeiture proceedings against FDH bank for dealing with property that is connected to a financial crime.
Furthermore, the DPP says as a result of the state analysis and subsequent investigations, it is the state’s strong belief that the bank’s board members and senior management personnel may answer financial crime charges in the near future.
“Please note that unless the sum of K10.4 Billion with interest at commercial rate is repaid to the state and evidence of the same is provided to us or you indicate to us how you intend to pay the said sum within 14days hereof, we shall take necessary steps to pursue these proceeds of a crime and recover the same in accordance with the law”.
