The Drug Enforcement Commission (DEC) placed a Seizure Notice on 41 properties constructed by Madison Capital Limited. The Notice was served on the Chairman of Madison Capital Mr Basil Nundwe.The DEC is said to have informed the company that they were carrying out an investigation following a complaint by a member of the public.
When reached for comment Madison Capital Limited confirmed that the Seizure Notice had been served and stated that the properties in issue belonged to third parties who had purchased the properties or had been assigned the properties against funds held by Madison Asset Management Company under the Fixed Income Fund. The Fixed Income Fund was available from 2008 until December 2018 when the Regulator Securities and Exchange Commission (SEC) advised market players to discontinue such products which offered a fixed return to investors. Madison Capital Limited insisted that the 41 properties were constructed by Madison Capital and sold or assigned to third parties and do not belong to Mr Nundwe.
In a seizure notice dated 29th April, 2020, the DEC stated that the properties have been seized pursuant to Section 15 of the Prohibition and Prevention of Money Laundering Act No. 14 of 2001 as there are reasonable grounds for believing that they are liable to seizure.The DEC warned that the seized goods may be declared to be forfeited to the State under Section 17 of the Prohibition and Prevention of Money Laundering Act No. 14 of 2001.