Malawi court orders Chinese to pay MK500,000 fine in forex trial

The Blantyre magistrate court has ordered a Chinese national who was earlier convicted after pleading guilty on money laundering counts to pay a fine of half million Kwacha or in default serve a prison sentence of three months with hard labor.
Shen Chong, 39, was arrested at the Chileka International Airport for being found in illegal possession of foreign currency amounting to $39 151 (about MK5.5 million).
And in passing his 30 minute sentence, Magistrate Mzondi Mvula observed that the trial borders on technical law infringement and that the state did not give strong grounds regarding why the convict should be handed a custodial sentence.
He further added that it had become apparently known that the money in question belongs to the accused.
On state prosecutors plea to have the money forfeited, Mvula said doing so would scare away investors as they would not be interested in investing in the country for fear of having their money snatched by the authorities.
“It has to be understood that the convict was arrested during the period of trade fair and when he was arrested he even said that he brought the money to invest here but changed his mind upon learning that things are expensive here so he decided to take his money back…..that to me sounds ok, but the problem is how he wanted to transfer the money that’s the offence he (Shong) is here for.
“This is a technical infringement of law and it does not make the convict a worst offender…regarding the nature of the offence on first point I order you to pay a fine of MK5 00 000 00 or in default serve a custodial sentence of three months imprisonment with hard labor.
“The second point is that you have to sell the money at any commercial bank in the country approved by the government of Malawi then it will be up to you on what you wish to do with your money…..that’s my judgment you are free to appeal the sentence,” concluded the magistrate who received a smiling face from the convict.
Earlier in the morning, the Chinese admitted to the money laundering charges which the police had slapped him with.
However, through lawyer Ralph Kasambara he told Senior Resident Magistrate Mvula that he came with the money from China and wanted to do investments in Malawi but he changed his mind after realizing that materials he were looking for are far much expensive here in Malawi than in his native country.
Chong also said he failed to declare at the Mchinji border that he was travelling with huge sums of money as required by law because of what he called language barrier between him and the immigration officials.
“I understand the offence and I’m pleading guilty. But your worship it has to be understood here that I brought the money with me from China and I was foolish enough not to understand the laws of Malawi on foreign money transactions. My plan was to invest the money here in the country but materials here are expensive that’s why I decided to take the money back to China,” Chong told the court through an interpreter.
After the accused pleaded guilty the state prayed for stiffer punishment.
However, Kasambara told the jam packed court that by taking guilty plea the Chinese national has shown remorse hence the need to give him a lenient sentence of a minimum of fine.
Inside the court, there were pockets of laughter and mumbling after a court clerk who was couting the money told the magistrate that there is $35 000 and not initial $39 151. This forced Mvula to lash out at the state prosecution for the missing money.
He is yet to make a decision on what course of action will be taken. The money was being kept at the fiscal police.
Chong’s arrest came just days after President Bingu Mutharika issued a crackdown on illegal forex dealers following scarcity of foreign exchange in the country.
Meanwhile Malawi is operating without forex bureaus following an order by the Reserve Bank to shut all of them down.