Malawi: ACB Probes 'Zameer's Business Partner' Nurmahomed Over Escom K3bn Bulbs Deal, Sable Farming

The Anti-Corruption Bureau (ACB) is launching investigating against Asian businessman Ahmed Osman Nurmahomed over reports that Electricity Supply Corporation of Malawi (Escom) spent $3,288,750.00 which is about K2, 450,118,750.00 purchasing Light Emitting Diode (Led) bulbs from his company few days before the fresh presidential elections.

Nurmahomed is also being investigated in connection to the purchase of Sable Framing at Mapanga in Blantyre at K1.5 billion and is now called Africa Farming.

The business man is reported to have obtained a loan through his offshore company Lillypeck Dubai LLC from the Escon deak through Reserve Bank of Malawi to pursace the Sable Farming.

He is also going to be quizzed overK2 billion deal at Energy Generation Company (Egenco), the company established to generate power, for ABB products.

Whitsle-blowers have alerted law enforcing agencies that Ahmed Osman is a partner representing businessperson Zameer Karim trading as Pioneer Investments who is facing money laundering and other charges contrary to Section 25 b (1) of the Corrupt Practices Act.

Karim deposited the K145 million in the Democratic Progressive Party (DPP) bank account at Standard Bank, whose sole signatory was immediate past president Peter Mutharika.

ACB found that Mutharika did not personally benefit from the K145 million deposited in the DPP bank account but that decision is facing review.

Meanwhile, ACB is following up on Osman Nurmahommed contract of leb bulbs worth $4,385,000.00, which is about K3,266,825,000.00 billion awarded to his Lilyeck General Trading LLC and Teligenta Limited companies based in Dubai and Mauritius respectively.

invoices from Teligenta Limited and Lilypeck General Trading LLC indicate that Teligenta will supply 290,000 bulbs while Lilypeck will supply 125,000 bulbs.

All invoices indicate that the terms of payment are 25 percent advance and 75 percent through irrevocable Letters of Credit.

An invoice from Teligenta indicates that out of 290,000 Led tubes, 80,000 are 2 feet Led tubes at $780,000 and 210,000 are 4 feet Led tubes at $2,205,000.

"... to be delivered to Central Stores, Blantyre... The first 50% consignment to be delivered within 8 to 12 weeks, following the approval of the samples. The second 50% consignment to be shipped immediately upon the delivery of the first 50% consignment," reads part of the invoice.

Documents indicate that Escom management on June, 12, 2020 sought irrevocable Letters of Credit, through FDH Bank, to pay Teligenta Limited and Lilypeck General Trading LLC for 75% of the contracts awarded to each of the companies.

"Could you please arrange to establish an irrevocable Letter of Credit with cash cover for USD2,238,750.00 (Two Million Hundred Thirty-Eight Thousand Seven Hundred and Fifty United States) in favour of Teligenta Limited, being 75% of the contract sum of USD2,985,000.00 for the supply of Led Tubes through our Account number 1850000006243," reads a letter, signed by Escom's acting director of finance Brian Ndisale and Allexon Chiwaya, chief executive officer.

On the other hand, Lilypeck General Trading LLC is expected to supply 125,000 all 5 feet Led tubes amounting to $1,400,000.

"25% advance, 75% to be paid through irrevocable letter of credit," reads the invoice from Lilypeck General Trading LLC.

"Could you please arrange to establish an irrevocable Letter of Credit with cash cover for USD1,050,000.00 (One Million and Fifty Thousand United States Dollars) in favour of Lilypect General Trading LLC, being 75% of the contract sum of USD1,400,000.00 for the supply of Led Tubes through our Account Number 1850000006243," reads a letter signed by Chiwaya and Ndisale.

More From: Nyasa Times

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