Title: Malawi Revenue Authority Arrests Five Top Officials at Mapeto David Whitehead and Sons over Alleged Tax Fraud worth K10.8 Billion

Arrest of Senior Officials at Mapeto DWS

The Malawi Revenue Authority (MRA) has announced the arrest of five top officials at Mapeto David Whitehead and Sons (DWS) following a six-week tax investigation.

Faizal Gaffar Latif (Company’s Director), surrendered to MRA officials at Msonkho House on Monday, accompanied by his lawyer Jai Banda.
Mohammed Gaffar (Managing Director) was also arrested on Friday.
Abdul Rashid Bakali (Financial Controller), Yaseen Muhammad (Procurement Manager), and Martin Mpata (General Manager) were taken into custody on the same day.

Allegations of Tax Evasion

According to MRA Spokesperson, Steve Kapoloma, the arrests resulted from investigations at Mapeto DWS Limited. Three separate instances of tax evasion were uncovered:

Under- declaration of sales: The company reported incomplete sales figures to the MRA for both VAT and income tax, preventing the full amount from being reported.
Misrepresentation of finished products as raw materials: Mapeto DWS attempted to evade customs duty by misrepresenting finished products as raw materials, resulting in significant revenue undercollection for the MRA.
Expatriate income non-reporting: The company failed to report correct income related to expatriate pay and Paye to the MRA.

Ongoing Investigations

Following a search warrant from the Blantyre Magistrate’s Court, MRA began investigations into suspected smuggling of various goods, such as fabric, motor vehicle tyres, and other items, at the company. Offenses related to tax evasion and tax fraud, along with contravention of provisions in the Customs and Excise Act, Taxation Act, and VAT, were under focus.

The detained officials are anticipated to appear before court in the near future.