(MENAFN- The Post)
Walim Ashraf, the man charged in connection with the M7.4 million heist that rocked two big companies, forced FNB Lesotho to unfreeze his account and then continued to use the money even as he was being investigated for fraud.
Ashraf, a businessman of Indian descent based in Mafeteng, is allegedly part of a syndicate that used a fake email instruction to mislead Ecofficials to transfer M7.4 million into his FNB account at a Mafeteng branch.
The amount was a payment for the electricity that customers had bought from LEC through Econet's Ecocash platform.
Ecreported the fraud to FNB a few days after the incident and opened a case with the Directorate on Corruption and Economic Offences (DCEO) this week.
thepost can reveal that the DCEO instructed FNB to freeze Ashraf's account to block him from making more transfers while it investigated the matter.
When the account was frozen Ashraf sued the bank in the Mafeteng Magistrate's Court, claiming that he and his business were“suffering irreparably”.
In his affidavit, seen by thepost, Ashraf claimed that when he demanded answers the bank told him that the account had been frozen on suspicion of fraud.
He said he told the bank that the money that had come into his account was a deposit of a property he had sold in South Africa.
He said he told the bank that he could not submit proof of the property deal because the transaction was not yet finalised.
FNB promised to get back to Ashraf but did not reopen the account. Ashraf claimed he was approaching the court on an urgent basis because it had been a month since his account was frozen.
He said he was“suffering irreparably as I am without food and other basic needs”. He also said his business was not operating“since there are no funds”.
“I have exhausted all the money that was in hand for the past month,” he said, adding that he was not being investigated for fraud.
The court ordered FNB to reopen the account.
The order also interdicted the bank from freezing Ashraf's account“unless by due process of law”.
It is not clear if FNB was given a chance to respond to Ashraf's application.
He however told the court in his affidavit that he was approaching the court ex parte. Sources close to the investigation said once the account was reopened Ashraf continued making huge transfers to local and South African banks.
Sources close to the investigation said Ashraf transferred about M4.5 million to three bank accounts in South Africa.
The rest was distributed to accounts held by companies and individuals in Lesotho.
The transfers to South African accounts were in 44 batches of M99 000, just below the threshold M100 000 that usually attracts the attention of banking authorities.
thepost can reveal that one of the banks immediately froze M1.4 million that came into one account.
Another bank flagged M3.1 million for fraud and money laundering and returned it to FNB Lesotho.
But with his account now open, Ashraf allegedly quickly transferred that M3.1 million to several local accounts.
Ashraf appeared in the Magistrate's Court on Tuesday facing fraud and money laundering charges. It is not clear if his suspected accomplices will be arrested or have turned state witnesses.
He remains in remand prison after failing to pay the M500 000 bail and surrender surety of a property worth more than a million. His lawyer is set to appeal the bail amount and conditions in the High Court.
In the Magistrate's Court his lawyer had suggested a M1 000 bail, surety and some reporting conditions. He argued that Ashraf was not a flight risk because he is a Mosotho with a business and property in Mafeteng.
The prosecution however insisted that he pays half a million and surety, arguing that Ashraf was facing sericharges, there was overwhelming evidence and he was also a South African citizen.
Ashraf initially told the court that his wife and three children were living in South Africa. He however later changed after the prosecution saying his family was in India.
When questioned by his lawyer, he said it was a“slip of the tongue” as he meant to say India instead of South Africa.
Staff Reporter
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