The High Court of Malawi has dismissed an application by Cotton Ginners Africa Limited to have Export Development Fund (EDF), a division of the Reserve Bank of Malawi struck off the list of the parties in the K20 billion bank fraud case.
An application by first accused person Abdul Rehman Abdullah and second accused Rizwana Abdul Rehman, wanted EDF to be removed from the case arguing that the RBM division had no legal mandate to lend money because it was not registered at the time it extended the loan to Cotton Ginners Africa Limited in 2016.
The two were directors at Cotton Ginners Africa Limited and are answering charges of conspiracy to defraud, obtaining credit by false pretences, fraudulent trading by a company and money laundering.
In the case, Cotton Ginners borrowed K8.5 billion from Standard Bank Malawi plc, K4 billion from EDF, K3.4 billion from Ecobank Malawi Limited, K4.4 billion from CDH Investment Bank Limited and K250 million from National Bank of Malawi plc.
High Court Judge Justice Sylvester Kalembera, however, quashed the argument, saying there were no laws guiding EDF registration then.
Trial will, consequently, proceed on 28 February, 2022.