An investigation is being conducted into an embezzlement controversy involving Joseph Kabila, a former president of the Democratic Republic of the Congo (DRC). The investigation is being conducted by a consortium of media outlets and non-governmental groups from around the world.
Their study has helped shed light on the alleged role performed by Harish Jagtani, a businessman who was born in India but currently resides in the DRC.
Table of Contents
- Who is Harish Jagtani ?
- Harish Jagtani Arrrested
- Crores of rupees were found in Harish Jagtani’s car
- Police suspect big hawala scam by Harish Jagtani
- Trouble Mounts for Harish Jagtani
- Corrupt Practices in Africa
- Sunita Neha Jagtani – The wife, and partner in crime?
- Loans as a source of funds
Who is Harish Jagtani ?
According to the website for his company, Harish Jagtani is a humanitarian, visionary, and businessman of Indian descent who has been living and working in the Democratic Republic of the Congo for more than 20 years. He is widely regarded as a successful entrepreneur not only within the Indian diaspora but also within the entirety of the ex-pat business community in the DRC.
The Harish Jagtani Group of Companies is a company house that provides services in a variety of fields. These fields include but are not limited to, domestic and international air cargo, real estate and infrastructure development, healthcare, hospitality, and corporate social responsibility.
Harish Jagtani Arrrested
In Jaipur, the Indian government’s Income Tax Department has taken a number of significant actions to combat black money. In response, the Income Tax Department in Jaipur has conducted searches and inspections at five of the city’s most well-known construction companies. The group had previously apprehended Harish Jagtani, the Chief Advisor (Chief Advisor) of the Congo Government of Africa, from a hotel in Delhi on Sunday morning.
The Congolese delegation that Jagtani was a part of had traveled to India. The department’s preliminary inquiry into this subject has found that Harish Jagtani has invested a significant amount of illegal funds in a project connected to the Builders Group of Jaipur. This information was uncovered as a result of the investigation. Following this, the Income Tax Department conducted search warrants at these well-known building organizations.
Crores of rupees were found in Harish Jagtani’s car
While this was going on, the Rajasthan Police had a great deal of success in the checking that they were doing earlier. During the intense inspection that the police were performing on the road, a large amount of cash was discovered in a vehicle, to the point where the officers who were present there lost all rational thought.
In point of fact, when the car traveling from Rajasthan to Ahmedabad was pulled over on Abu Road, the authorities found cash inside the vehicle that was worth crores. During the search of the vehicle that took place on Abu Road close to Sirohi, the police were able to seize a total of 3.95 million rupees in cash.
Police suspect big hawala scam by Harish Jagtani
Patan locals Jignesh Dave and Kaushik Dave were detained by the police as soon as they learned that a substantial sum of cash had been received. Because the police fear that a significant hawala scam could come to light in this instance, the Income Tax Department has now joined the inquiry alongside the police in order to look into the matter. Last week at the Delhi airport, the same quantity of cash was discovered during the checking process. Cash amounting to crores of rupees was discovered by airport officials at the cargo terminal.
Another case involves the misappropriation of public monies of at least 138 million dollars from the Congo between the years 2013 and 2018. The assets in Congo were transferred through a subsidiary of BGFI, which is one of the largest banks in Africa, and made their way to firms and accounts owned by family and close supporters of the former president Joseph Kabila. In addition, several dubious payments were made to Jagtani’s account; nonetheless, he maintains that the cash he received was used for entirely appropriate causes.
Trouble Mounts for Harish Jagtani
After conducting investigations and conducting analyses of the information for more than six months, a consortium of media outlets and non-governmental groups that was organized by the European Investigative Collaborations (EIC) eventually broke the news in November 2021. One of the other media partners involved in the project is The Wire.
Over 3.5 million documents that reveal nearly ten years’ worth of transactions at BGFI Bank Groupe SA were seized by the anti-corruption organization Platform to Protect Whistleblowers in Africa (PPLAF), which is based in Paris. These records were also obtained by the French publication Mediapart. The leak, which has been given the name the Congo Hold-up, is the most significant loss of financial records to ever occur in Africa.
In the Democratic Republic of the Congo, Jagtani is the owner of a variety of enterprises, some of which are hospitals, air freight companies, and real estate corporations. According to the findings of an investigation that was carried out by the media partner Radio France International (RFI), Jagtani was able to benefit from the money that originated from the Commission Électorale Nationale Indépendante (CENI) of the Congo and was intended for the organization of the elections that took place in 2011 in the nation that is located in the center of Africa.
Jagtani first settled in the Congo in 1995, although she was born in Jaipur. At the time, he was a man of limited resources and worked as an employee at a company that specialized in imports and was run by an Indian merchant. When they lived in their hometown, his mother worked as an educator.
However, in the 25 years he has spent working in the DRC, he has achieved phenomenal success and is now counted among the most powerful businesspeople in the country. It is common knowledge that Jagtani is close to Kabila. In addition to owning one of the major air freight businesses in Congo, the real estate firm with the most high-profile projects on its list, and a super-specialty hospital in the nation’s capital of Kinshasa, Jagtani is also known to be close to the president.
Corrupt Practices in Africa
Over 3.5 million documents were collected by an anti-corruption organization located in Paris called Platform to Protect Whistleblowers in Africa (PPLAF). These documents describe over ten years’ worth of transactions at BGFI Bank Groupe SA, one of the major banks in Africa. The data were obtained from the French website Mediapart.
Over the course of more than six months, an investigation and analysis of the information was carried out by a coalition of news organizations and non-governmental groups that was organized by the European Investigative Collaborations (EIC). One of the other media partners involved in the project is The Wire.
This leak, which has been given the name the Congo Hold-up, is the largest breach of financial documents ever to come from Africa. It reveals how at least $138 million of public monies were misappropriated between the years 2013 and 2018. It describes in detail how public funds in the Congo were funneled through BGFI’s Congo subsidiary so that they could be deposited into the accounts of businesses and organizations owned by Kabila’s relatives and other close associates. In addition, several dubious payments were made to Jagtani’s account; nonetheless, he maintains that the cash he received was used for entirely appropriate causes.
In the Democratic Republic of the Congo, Jagtani is the owner of a variety of enterprises, some of which are hospitals, air freight companies, and real estate corporations. According to the findings of an investigation that was carried out by the media partner Radio France International (RFI),Harish Jagtani was able to benefit from the money that originated from the Commission Électorale Nationale Indépendante (CENI) of the Congo and was intended for the organization of the elections that took place in 2011 in the nation that is located in the center of Africa.
Harish Jagtani first settled in the Congo in 1995, although she was born in Jaipur. At the time, he was a man of limited resources and worked as an employee at a company that specialized in imports and was run by an Indian merchant. When they lived in their hometown, his mother worked as an educator.
However, in the 25 years he has spent working in the DRC, he has achieved phenomenal success and is now counted among the most powerful businesspeople in the country. It is common knowledge that Jagtani is close to Kabila. In addition to owning one of the major air freight businesses in Congo, the real estate firm with the most high-profile projects on its list, and a super-specialty hospital in the nation’s capital of Kinshasa, Jagtani is also known to be close to the president.
Kabila served as President of the Democratic Republic of the Congo (DRC) from 2001 to 2019, when he stepped down and ceded control to Felix Tshisekedi. This year saw the end of the political alliance that had previously existed between the two leaders.
A former employee of one of Harish Jagtani’s enterprises in Congo told The Wire under the condition of anonymity that it is common knowledge in Congo that Harish Jagtani is very close to Kabila. “It is well known in Congo that Harish Jagtani is very close to Kabila,” the source said. “Jagtani’s businesses have benefited greatly from his close relationship with Kabila, and he is able to get away with various forms of illegal activity without repercussions.”
Sunita Neha Jagtani – The wife, and partner in crime?
It would appear that Harish and his wife, Sunita ‘Neha’ Jagtani, as well as Kabila and his wife, Olive Lembe di Sita, had a connection with one another. Sita was spotted attending a party that the Jagtani family had hosted for Harish’s birthday in 2015 at their luxurious home in Jaipur. The celebration was held in honor of Harish’s milestone birthday.
Sita and Neha are seen posing for one of the shots while holding a giant framed collage of their pictures together. The collage is displayed behind the two of them. In none of the photographs did Kabila make an appearance.
There is a magnificent tower in the middle of Kinshasa that was erected by Jagtani and is known as ‘Kiyo Ya Sita.’ Perhaps this structure serves as a testimony to the relationship. Last year, many sources confirmed to RFI that the tower is named after Sita.
Kiyo Ya Sita building. Credits: Radio France International
The BGFI is one of the largest banks in the Central African region, and the BGFI RDC has counted some of Kabila’s close allies and family among its senior executives at various times.
Additionally, in the past, allegations have been made that the bank misappropriated public cash. In point of fact, Jules Alingete Key, the most senior anti-corruption official in Congo, referred to it as a “mafia bank” in an interview with the consortium.
The research has revealed how Kabila and people close to him gained millions of dollars in fortune by siphoning off state money with the assistance of BGFI RDC. Kabila was just 29 years old when he took power in Congo and governed an autocratic dictatorship there for 18 years beginning in 2001.
More than seventy percent of the Congolese population lives on less than two dollars per day, despite the fact that the country is one of the poorest in the world. This is despite the fact that the country is rich in natural resources. According to the findings of certain studies, the poverty rate may have grown under Kabila’s rule, despite the fact that Kabila and his family grew wealthier during that time.
The research conducted under the heading ‘Congo Hold Up’ details the process through which Kabila and his allies have accumulated riches with the assistance of BGFI RDC.
Kinshasa, Congo served as the location for the establishment of BGFI’s Congo subsidiary in 2010. Selemani Francis Mtwale, who is Kabila’s foster brother, was given the position of president of BGFI RDC in the year 2012. Gloria Mteyu, who was the former president’s sister, owned a forty percent share in the bank.
According to the findings of the inquiry, a significant amount of the stolen money was transferred from BGFI to various shell firms. In addition to that, millions of dollars were stashed away in cash for the benefit of Kabila and others who were close to him.
At the center of the alleged financial impropriety are three of Jagtani’s companies: Modern Construction, his real estate firm; Services Air, the air freight company; and Industrie financière et immobilière (IFI), a financial and real estate firm started by Jagtani in partnership with Pascal Kinduelo, who is close to the Kabila family and was also the chairman of the board of directors at BGFI at the time.
Early on in 2011, long ahead of the general elections that would take place in November 2011, Jagtani’s businesses opened bank accounts with the BGFI, which at the time was run by Kabila’s family. Kinduelo, Jagtani’s newly discovered business partner and someone who is also close to Kabila was placed in charge of the board of directors.
According to the findings of an investigation conducted by RFI, the electoral commission of the Congo, known as CENI, wired roughly $4.5 million to Services Air. Of this amount, $4.3 million was wired through BGFI. There have, in the past, been allegations that CENI has paid the business ‘astronomical’ sums of money, and these allegations continue to this day.
Although the paperwork obtained by the ‘Congo Hold Up’ indicate that only approximately $1.5 million was spent on the procurement of fuel, $800,000 was taken in cash, and the remainder was transferred to Modern Construction, Jagtani has denied this in his answer to the consortium. The materials were obtained by the ‘Congo Hold Up’.
The data also demonstrate that these transfers to Modern Construction were frequently conducted on the same day as Services Air received the funds from CENI. This suggests that the transfers were carried out in a coordinated fashion.
Jagtani has admitted that there was never a contract signed with CENI; rather, purchase orders were written each time the commission wanted to transport election-related documents and required the Services of Service Air.
Jagtani also asserts that over one million dollars in the form of intercompany loans were given by Services Air to Modern Construction and IFI from CENI in exchange for “various services” that these firms rendered to CENI. However, Jagtani does not elaborate on the nature of the “services” that were rendered. According to him, 830,000 dollars were given to Modern Construction, and 100,000 dollars were given to IFI.
The remainder, which he estimates to be around $3.5 million, was spent on “purchasing fuel, paying aircraft leases, and various taxes,” according to him.
On the other hand, a report that was compiled by CENI in 2015 found that there are no contracts or invoices to explain the transactions that had been carried out.
In addition to the transfer from CENI, the investigation known as “Congo Hold Up” discovered that between January 2011 and April 2015, Modern Construction received a total of around $27.5 million in suspicious transactions. These transfers were made between the years 2011 and 2015.
Nearly $2 million of this is paid in cash, and over $2 million is attributed to “clerical errors,” which gives the impression that the money was transmitted “in error.” There are also transfers that originate from accounts that were previously held in the Swiss bank Claridien Leu, which has in the past been accused of being involved in questionable business transactions.
The name “Kamal Nandlal Rawtani and Rhea” was listed as the sender of one of the transfers that totaled $840,000. Jagtani adds that the sum was transferred for the sale of a piece of land, but she does not provide any other information beyond the fact that Kamal Rawtani is Jagtani’s brother-in-law.
Loans as a source of funds
The BGFI was responsible for providing loans and credit lines, which resulted in some of the $27.5 million being transferred to Modern Construction being accounted for as such.
A credit line in the amount of $2.5 million was made available to Modern Construction by BGFI RDC in February 2011. After another seven months, Jagtani’s business was given access to a credit line worth $25 million, which resulted in a tenfold increase in the available credit. IFI was created between this two granting of credit lines, and Jagtani and Kinduelo were the initial partners in the organization.
A building with an estimated worth of $19.88 million, an escrow account with an amount equal to one month’s projected cash flow, and an irrevocable domiciliation of the monthly receipts of up to $4 million were the collateral for the credit line.
The provision of a deposit of ten million dollars into an undisclosed account was perhaps the most unexpected form of guarantee that was offered. In order to accomplish this goal, $5 million was moved from Services Air, while the remaining funds came from an organization known as Overseas Juline Ltd., which is domiciled in the tax haven of Mauritius.
One Nazim Charania, who is known to maintain strong relations with both Congo and Jagtani, is the director of the company. Charania followed in Jagtani’s footsteps and made her way to Congo in the latter half of the 1990s, where she found work in the burgeoning informal trade sector. There, he was introduced to Jagtani, who introduced him to Sajid Dhrolia and Salim Kamani. SNS is the name of the company that was founded by Dhrolia, Kamania, and Charania, who are all originally from India.
One of the partners, Dhrolia, is also a partner in Modern Constructions together with Jagtani, and together they possess 25% of the company’s shares. Jagtani disputed that there was any connection between the money that was transferred as part of the bank guarantee and his collaboration with Dhrolia. It was a personal relationship between Sajid Dhrolia, who was a minority partner, and me. He stated that the partnership had dissolved in 2015.
The actual line of credit will be terminated suddenly in June of 2012. In the end, Modern Construction was only given 11 million dollars of the total amount of $25 million that was supposed to be provided to them.
A report prepared internally by the bank in December 2012 details the factors that led to the decision to close the credit line. A number of BGFI’s departments, notably the ones responsible for compliance, voiced their opposition to the line of credit being maintained in its current form. They made the observation that there was not enough reliability on the origin of monies’ in regard to Jagtani’s bank accounts that were held by the bank.
They highlight, in particular, the fact that the assurances granted by Modern Construction for the line of credit went much above the amount of credit that was available to be used. In addition to this, it was said that the provenance of a significant portion of the money that Jagtani had invested was unknown.
Jagtani mentions in his response to the article titled “Congo Hold Up” that his company’s guarantee of $10 million that was offered for the line of credit was funded by lines of credit that were extended by other banks. He asserts that this is a “classic financial operation,” and that any comparisons to money laundering constitute “defamatory” speech on his part.
