Chaudhry in Forex Deception Again

Malawi Exclusive

Controversial businessman Mahmood Azhar Chaudhry is once again at the centre of allegations of forex externalisation and tax evasion, raising fresh questions about how he has managed to operate for years despite mounting accusations of criminal conduct.

Chaudhry, who has long been dogged by claims of underhand dealings, recently approached Standard Bank in Blantyre through his firm MAS International to apply for foreign exchange. The application was made in favour of one of his companies, SMI Health Limited, purportedly to import medical supplies into Malawi.

But sources familiar with his operations have raised alarm, alleging that Chaudhry inflated invoice values to facilitate forex externalisation and evade income tax. According to insiders, he exploits the fact that medical supplies are cleared duty‑free by the Malawi Revenue Authority (MRA), manipulating invoices to siphon forex abroad under the guise of legitimate imports.

“This is the game he knows best and has played for way too long. He does his stuff clean, but the deception is there. Experienced bank officers can easily capture the deception,” one source said, warning banks to scrutinise his applications carefully.

This latest development adds to a growing list of accusations against Chaudhry. Earlier this year, revelations in the High Court stunned observers when he admitted in a sworn statement that he had paid part of the purchase price for a locally sold Mercedes Benz in British pounds in London.

The case, filed in the Commercial Division in Blantyre under number 21 of 2022, involved a soured deal with Speedy’s Limited owner Riaz Jakhura.

In his statement, Chaudhry openly acknowledged bypassing Reserve Bank of Malawi systems by paying Jakhura abroad, an act experts say constitutes clear externalisation of foreign currency, which is a criminal offence under Malawi’s Exchange Control Act.

Economic and taxation expert Moses Benderson described the admission as reckless. “Funds that should remain within Malawi’s financial system were transferred abroad without Reserve Bank approval, draining foreign exchange reserves,” he said.

Benderson warned that offenders risk fines, imprisonment, and seizure of assets.

Chaudhry’s statement detailed that he handed Jakhura £10,000 in London in September 2019, acknowledged in a CM 1 document prepared by Jakhura himself. He further claimed to have given £7,000 for Jakhura’s son Rayyan’s fees and pocket money. Additional payments in Malawi brought the total to K46.6 million by May 2021 and K59.9 million by December 23, 2021. Yet, later, Jakhura’s accountant claimed a balance of K3.7 million, while Jakhura counterclaimed K26.4 million as an alleged outstanding balance.

Beyond forex dealings, Chaudhry has also been implicated in a property transfer scandal involving Title Number Blantyre East 15. Documents reviewed show the property, held by Nirala Kautilal Rejavi and Manjula Guladbas Devraj, was in the process of being transferred to Mahli Trust, linked to Chaudhry and his wife, Neelam Azhar Mahmood.

A whistleblower reported to Fiscal Police that trustees presented themselves as Malawian citizens, supported by national identity cards, to secure consent for the transaction. Concerns have been raised that Neelam may not be a Malawian citizen but a British national residing in Malawi on a permanent residence permit.

In a recent sworn statement by Neelam before Limbe Magistrate’s Court, in a case where she was facing an arrest for allegedly lying to public officers, she confessed she is a British citizen. The case is coming in court this Monday where she wants to argue to have the warrant of arrest permanently stayed or dismissed.

If confirmed Neelam is not a Malawian citizen, which she already confesses she is not, this bars her from owning property in Malawi either directly or through a trust. On record, she has already, alongside her husband, acquired property in Malawi.

On the other hand, investigators are probing whether her identity card was fraudulently obtained and whether false information was provided to public officers.

Under Malawi’s amended Land Laws (2022), foreign nationals can no longer own private or freehold land exclusively for personal use or speculation. They may only acquire land for recognised investment purposes, and must form a partnership or joint venture with a Malawian citizen.

According to inside sources, the Malawi Revenue Authority has now taken a keen interest in Chaudhry’s dealings. Officials are scrutinising transactions dating back to 2022, suspicious of irregularities in documents submitted to the tax body.

“MRA is taking this matter seriously and will leave no stone unturned,” one source said, adding that the authority is expected to continue its review before summoning Chaudhry.

The scrutiny comes amid growing public frustration over forex shortages and allegations that politically connected businessmen exploit loopholes to drain reserves.

Analysts say cases like Chaudhry’s highlight systemic weaknesses in enforcement and the need for stronger oversight of forex allocations and property transactions.

Chaudhry’s ability to operate despite repeated allegations has baffled many. He has faced accusations of misrepresentation in citizenship and diplomatic status claims, irregular property transfers, and now forex externalisation. Yet, he continues to approach banks and government institutions with apparent confidence.

Critics argue that his boldness reflects either gaps in enforcement or influence within certain circles.

“He wears a straight face and keeps going, even when everyone knows what he is doing,” one observer noted.

Forex externalisation undermines Malawi’s fragile economy by draining reserves needed to stabilise the kwacha and finance imports.

The Exchange Control Act criminalises such acts, with penalties including imprisonment and asset seizure.

Property misrepresentation, meanwhile, raises questions about adherence to land laws designed to protect national interests. If proven, Chaudhry and associates could face charges of fraud, misrepresentation, and violation of citizenship and property statutes.

As MRA intensifies its probe, the spotlight is firmly on Chaudhry. Whether authorities will act decisively remains to be seen, but insiders insist the matter is being treated with utmost seriousness.