Police in Karonga have arrested Yekai Liao, a 36-year-old Chinese national, on suspicion of running an unlicensed online business -- after officers raided a lodge and discovered a room packed with computer equipment and staff working strange overnight hours.

Liao was arrested on August 29 during a police operation at Nechos Lodge in Mwanganda Village, with the premises subsequently shut down to the public.

Karonga Police Station Public Relations Officer, Sub Inspector Rose Chipyola, told Nyasa Times the raid followed a tip-off that foreign nationals were operating an international online business from the lodge.

A search of the premises uncovered a startling setup: 20 desktop computers, 20 keyboards and 20 Airtel MiFi devices, all neatly arranged on tables, with Liao present at the scene when officers arrived.

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"During questioning, Liao admitted he was running the business adding that he has 11 employees comprising 9 Malawian nationals and 2 Nigerian nationals who worked from 18:00 hrs to 06:00 hrs (night work). He however failed to provide a satisfactory explanation regarding the nature of the online business he was involved in," Chipyola explained.

The electronic equipment has been confiscated and will now be examined by Cyber Crime officers from Malawi Police Service National Headquarters, as investigators work to establish exactly what the mysterious operation was actually doing.

Police say investigations remain ongoing to establish the full nature of the business and to trace any other individuals connected to the operation.