Malawi: Former President Joyce Banda Named in U.S. ‘Dirty Money’ Report
Former president Joyce Banda appears in the US FinCEN files which have revealed how some of the world’s biggest banks have allowed criminals to move dirty money around the world as she was investigated over Malawi government’s arms procurement deal with South Africa’s Paramount Group.
Financial Crimes Enforcement Network (FinCEN), an agency in
the US Department of the Treasury, who combat financial crime, has more than
2,500 highly confidential documents – the FinCEN Files – that have been seen by
Nyasa Times as part of the latest project from the International Consortium of
Investigative Journalists (ICIJ).
Banda is featured in the report which was written by
Barclays Bank which commissioned Orbis Business Intelligence – owned by
Christopher Steel, a former British spy famous for his role in investigating
Russia’s meddling in the election of US President Donald Trump.
The report puts Banda in spotlight with her administrations
barter-trading the Presidential Jet Dassault Falcon 900EX, valued at $15
million, to a Paramount Group subsidiary as part of the settlement for the arms
deal. The jet was sold in 2012.
According to the report, Paramount – Africa’s largest
private defence and aerospace firm and its founder Ivor Ichikowitz benefitted
from their cosy ties with African leaders by being awarded major contracts and
Joyce Banda is mentioned alongside South Africa’s ex-president Jacob Zuma as
some of the leaders.
Banda administration had a deal with Paramount Group to
supply Malawi with equipment that includes seven interceptor boats and training
for the Malawi Defense Force (MDF).
The boats were delivered and deployed to maritime border
patrol duties on Lake Malawi.
The deal also covered the supply of modern combat and camping
gear for MDF units deployed on active combat with the Southern Africa
Development Community Rapid Intervention Brigade, fighting rebel groups and
militias in the eastern Democratic Republic of Congo.
The deal also gave the South African company lucrative
contracts in the fuel trade and agro-trade businesses.
When Banda bartered the jet, she continued to use it
regularly to travel to events around the continent. The trips formed part of a
total of 20 private plane flights she took in just three months at the end of
last year, it was said.
But when Banda was dealing with Cashgate, a major scandal
over corrupt procurement deals made by government departments, leading foreign
donors including Britain to suspend direct aid that had accounted for 40 per
cent of the impoverished country’s budget, a family foundation run by the
directors of Paramount was paying for Bell Pottinger, a London PR firm, to
burnish Banda’s image.
However, Banda has maintained that she did not break any law
in the awarding of the contract to Paramount Group and that she was not
personally involved in the procurements of the boats.
“Allow me to make is very clear once again. President do not
award contracts in Malawi,” said Banda in an e-mailed comments to ICIJ.
Banda states that she was informed that Bell Pottinger “certainly
did not play any role in the awarding of the boat contract; hence any such
suggestion is malicious and false.”
She could not comment on the relationship between defunct
Bell Pottinger and Paramount.
Banda said the boats contract was not awarded by her as a
sitting President at the time, stressing that the contract between Malawi
Government and Paramount was concluded according to Malawian Government
processes and was signed by both the Ministry of Finance and the Ministry of
Defence.
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