Among the stolen properties Mrs Chiluba was suspected to have received is a Toshiba television a property of State House.
A panel of three judges, Evans Hamaundu, Catherine Makungu and Eddie Sikazwe made the ruling this morning.
In overturning her three-and-a-half years prison sentence they said there was no proof that her goods and cash were stolen nor obtained illegally
The court also ordered the forfeiture of properties, mostly on the Copperbelt, and a Toshiba television set.
Regina was facing three counts of failing to account for properties involving US$188,000 suspected to have been stolen or unlawfully obtained, and one count of failing to account for a motor vehicle in her possession.
The other charges were receiving a Toshiba 61-inch colour television set suspected to have been feloniously stolen or obtained and failing to account for cash amounting to K474 million suspected to have been stolen.
On March 2, 2010, Chief resident magistrate, Charles Kafunda, jailed Regina after he found her guilty on five counts of failing to account for properties suspected to have been stolen.