A new network involved in illegal foreign exchange trading, money laundering and corruption has emerged in Malawi, with businessman Abdul Karim Batatawala at the centre of it..
According to Cables investigations, Batatawala has continued to secure lucrative government contracts worth millions of pounds despite previously facing criminal charges and questions over his business dealings.
The investigation also raises concerns over the recent registration of one of his companies in the United Kingdom, which investigators believe warrants closer scrutiny over possible forex externalization and cross-border financial transactions.
The investigation has established that Batatawala has leveraged influence within key government ministries, particularly in the energy sector, where businesses linked to him have supplied materials to MAREP projects.
These contracts reportedly provided access to foreign currency through letters of credit issued by the Reserve Bank of Malawi.
Cables further reveals that although companies associated with Batatawala were previously debarred, they are no longer listed as barred on the Public Procurement and Disposal of Assets Authority (PPDA) database.
The investigation also claims that he now operates through proxy companies, including Bembeke Trading, which has secured contracts from the Malawi Police Service, EGenco, ESCOM, MERA and the Malawi Defence Force.
Batatawala was charged in December 2021 with money laundering and allegedly defrauding the Department of Immigration Services.
However, according to the investigation, the court proceedings have made little progress since April 2024.
Cables have established that the prolonged delays have effectively shielded him from prosecution, his cases have completely stalled in the courts .
The investigation further reveals that Batatawala has become a dominant player in Malawi’s parallel foreign exchange market, influencing black-market exchange rates and contributing to the country’s worsening forex shortages. It argues that these practices have increased the cost of imports, placed additional pressure on businesses and weakened the value of the Malawi Kwacha.
Cables also raises concerns about the involvement or inaction of several state institutions, including the Financial Intelligence Authority, the Anti-Corruption Bureau, the Reserve Bank of Malawi, the Treasury and the Fiscal Police. He has captured them all and they are working for him .
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