Fiscal Police Nub ‘Businessman’ over Fraud

A young man by the name of Edgar Simpokolwe, reported to be the founder of a company called LUTA INC, which he reportedly operates from his home in Kanjedza Forest, Blantyre, was brought in by fiscal police two weeks ago to answer to allegations that he obtained money amounting to approximately 11 million Malawi kwacha by false pretences, and is further alleged to have used forged company incorporation documents, impersonated businesses through email, and presented contracts that are now in question as part of the alleged scheme.

Edgar Simpokolwe: Answering fraud charges

It is reported that he approached the complainant with the idea of starting businesses together, where both parties were to share contributions equally. The proposed businesses included a maize aggregation venture and a microfinance operation. According to the complainant, the accused gave the impression that he already had his share of the capital, reportedly around 7 million kwacha, and that company incorporation processes had been initiated.

As the complainant contributed his share, the accused allegedly sent images via WhatsApp to show progress of maize purchases. The complainant recalls noting that the number of bags appeared low, but assumed this was due to the early stage of the business.

Months later, the same individual allegedly introduced another opportunity to start a microfinance business, suggesting an equal contribution of 24 million kwacha each. The complainant states that he contributed approximately 4 million kwacha toward this venture and was led to believe that another company was being incorporated.

At the end of the year, as maize prices rose significantly, the complainant sought to sell the maize and engaged the accused to facilitate the sale. However, the accused was reportedly hesitant and instead advised waiting for a potential investor from Uganda, who he claimed preferred that the capital remain in maize stock rather than be liquidated.

Two years later, when the complainant again attempted to sell the maize, the accused allegedly remained hesitant, again citing the same investor. At this point, the complainant became increasingly suspicious and began to investigate the legitimacy of the businesses.

The complainant requested official documentation, including incorporation records and details of borrowers who had allegedly taken loans but had not made any repayments. In response, the accused reportedly shared documents via a Google Drive, including incorporation certificates, and copied the complainant on email communications with individuals he claimed were borrowers.

According to the complainant, these emails appeared to show ongoing discussions and included what were presented as signed contracts. However, upon further verification, the complainant alleges that the incorporation certificate for the maize aggregation company did not exist, despite appearing genuine. He further claims that the company registration number corresponded to a different entity previously registered by the accused, with only the name altered.

Additionally, the businesses that were allegedly listed as borrowers reportedly denied any knowledge of the transactions, stating that the email addresses and contracts attributed to them were not authentic.

Based on these findings, the complainant reported the matter to fiscal police. Authorities are said to have initiated investigations, including verification with the Registrar of Companies, which reportedly confirmed that the certificate in question was not valid. It is further reported that bank accounts linked to the matter were frozen as part of the investigation.

The complainant also alleges that, following the freezing of accounts, he began receiving notifications from the Registrar of Companies’ online platform indicating attempts to register the same company in question using his details and requesting his signature as a shareholder. He states that he did not consent and reported the matter to authorities.

The accused is expected to appear in court to answer to the allegations raised. The matter remains before the courts, and no determination of guilt has yet been made.

Fraud, forgery, and obtaining money by false pretences are serious offences under Malawian law and, if proven in court, may carry significant custodial penalties.