The Attorney General Thabo Chakaka Nyirenda has clarified that criminal investigations against Paramount Holdings Limited are still on-going and if found guilty, the company may be debarred.
Paramount Holdings Limited is being investigated in relation to forgery of documents which the accused company used to tender for business of supplying motorcycles.
A few years ago, Capital Hill suspended Paramount Holdings Limited and other companies following serious allegations of various procurement-related crimes that the companies committed.
In a letterdated January 27, 2023 w addressed to Malawi’s Deputy Ambassador to Japan Joseph Chikwemba, Chaka Nyirenda said the investigations are still ongoing despite the suspension being lifted.
“The results of the investigations would lead to debarment hearing. If found guilty, Paramount Holdings may be debarred from participating in public procurement in Malawi. Further, although the suspension was lifted, Paramount Holdings Limited has not yet been cleared of any wrong doing in respect of allegations of procurement related malpractices against Paramount Holdings Limited,” reads part of the letter titled ‘Status of Paramount Holdings in Malawi,’ which this publication has seen
Among other things, the Attorney General said he is aware of the criminal investigations against Paramount Holdings Limited, stating that the investigations have been conducted by the Malawi Police Service.
He said the investigations are in relation to forgery of documents which Paramount Holdings Limited used to tender for the business of supplying motorcycles to an agency of the Malawi Govemment.
“I have been informed that the case is ready for trial. A guilty finding against Paramount Holdings Limited may also affect Paramount HoldingsLimited’s eligibility to participate in public procurement,” said Chakaka Nyirenda
His actions followed a letter by Chikwemba inquiring the status of Paramount Holdings Limited in Malawi because the company still operational and still claiming that is it a sole distributor for Japanese-based Yamaha Motor Company.
“This week, local media also reported that Paramount Holdings has been appointed by Yamaha Motor Company as the only recognised distributor for the Asian giant company “after a rigorous process,” reads part of the letter dated January 24, 2024.
There is also a series of correspondences between Malawi Police, Embassy of Republic of Malawi in Japan, Attorney General’s office, as well as Yamaha Motors company in Malawi discrediting Paramount Holdings Managing Director Mr. Prakashu Ghedia, and accusing him of forging and uttering false document purportedly written by Yamaha Motor and certifying Paramount as the sole distributor in Malawi.
“The mission [Malawi Embassy in Tokyo] wishes to report that Mr. Akira Sakaki of Yamaha Motor Co. LTD who is in charge of Malawi, has confirmed that neither Yamaha Motor Headquarters nor Yamaha Distributors South Africa recognises the two dealership letters possessed by Mr. Prakashu Ghedia as Yamaha’s official documents.Moreover, Yamaha distributos South Africa has no authority to appoint Yamaha dealer of Yamaha motorcycles in Malawi.Mr. Sakaki further verified Yamaha Motor has only one distributor in Malawi-Stansfield Motors Limited,” reads one of the correspondences.
Paramount Holdings, has been embroiled in flurry of scams in Malawi involving billions of taxpayers’ money.
In 2018 and 2019, the local media was awash with stories that Ministry of Health (MoH) officials went behind the ACB to issue a MWK4 billion Ambulance contract to Paramount Holdings despite enforcing institutions raising concerns.
The Government Contracting Unit (GCU) raised concerns with legal compliance issues surrounding the Paramount contract raised advised the MoH to consult the Attorney General before issuing the contract.
But the MoH proceeded to award Paramount contract without regard of procurement procedures. GCU has mandate to vet high value government contracts before they are awarded.
At some point, government officials went on a tour of countries to inspect ambulances – under the sponsorship of Paramount Holdings Limited.
However, the sponsoring of the trips made the Public Procurement and Disposal of Assets Authority (PPDA) to raise eyebrows, describing the move as a “conflict of interest.”
In June 2021, local firms ganged up against Asian owned Paramount Holdings, accusing the company of monopolising business of supplying items to Capital Hill by influencing government officials with monetary inducements.
Upon taking over the country’s presidency, Malawi President Lazarus Chakwera’s ordered that priority in the awarding of contracts must be given to indigenous businesses.The directive, however, is still under intense debate as foreigners are still claiming huge chunks of business deals, at the expense of local businesses.
