Wednesday, May 29, 2024

DEC arrests 3 NHEF directors for money laundering involving K36 MILLION

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Three directors from the National Housing Empowerment Fund (NHEF) have been arrested by the Drug Enforcement Commission through its Anti-Money Laundering Investigations Unit for money laundering involving 36 million Kwacha.

The Drug Enforcement Commission – DEC Public Relations Manager Hussein Khan confirmed this development in a press statement issued to the media stating that the Directors who are also shareholders have been charged with the offence of obtaining Money by False Pretenses contrary to Section 309 of the Penal Code Chapter 87 of the Laws of Zambia and Money Laundering contrary to Section 7 of the Prohibition and Prevention of the Money Laundering Act No. 14 of 2001 of the Laws of Zambia as amended.

Mr Khan disclosed that the suspects are Kamphembele Ngulube a male aged 49 years, Margaret Mabingo a female aged 46 years and Lusuntha Ngulube a male aged 46 years of 168 Acacia Drive Roma Park, Lukasha Flats in Kabulonga and Plot 30029 Twapia Ndola respectively.

Particulars of the matter are that, between 1st January 2020 and 30th September 2022, the three (3) whilst acting together with other unknown persons, with intent to defraud did obtain money amounting to 36 million Kwacha from members of the public on the pretext that NHEF had plots for sale in an area called “Riverdale City” situated in Lusaka’s Leopards Hill Area when in fact not.

Mr Khan added that the members of the public paid for these plots believing that they were genuine plots for NHEF.

“And in the course of investigations, the Commission seized 18 motor vehicles and froze several bank accounts, the suspects are on bond and will appear in court soon,” he said

Meanwhile, in a similar incident, the Commission has jointly charged and arrested a married couple, Aaron Yobe Zulu, a male aged 40 years and Christine Nyondwa Msadabwe a female aged 39 years both of House Number 518/100, Ibex Hill in Lusaka for Fraudulent Transactions.

Mr Khan explained that this is contrary to Section 197 (a) and (b) of the Securities and Exchange Commission Act No. 41 of 2016 of the Laws of Zambia, Providing and Conducting Financial Services without a License contrary to Section 6 Subsection (i) and (ii) of the Banking and Financial Services Act No. 7 of 2017 of the Laws of Zambia, Obtaining Money by False Pretences contrary to Section 309 of the Penal Code Chapter 87 of the Laws of Zambia, Theft contrary to section 272 of the Penal Code Chapter 87 of the Laws of Zambia, Possession of Property Suspected of being Proceeds of Crime contrary to section 71 (i) of the Forfeiture of Proceeds of Crime Act No. 9 of 2010 of the Laws of Zambia, Money Laundering contrary to Section 7 of the Prohibition and Prevention of Money Laundering Act No.14 of 2001 of the Laws of Zambia as amended.

Brief facts of the matter are that, between 1st January 2016 and 30th December 2020, Aaron Yobe Zulu jointly and whilst acting together with Christine Nyondwa Msadabwe as Directors and Shareholders of Laurence Paul Investment Services Limited, jointly and whilst acting together with other persons unknown engaged in unlicensed banking services and obtained money amounting to 59 million Kwacha from members of the public under the pretext that the said funds would be invested in securities when in fact not.

“The couple further engaged in money laundering and acquired the following properties which were registered in their names and those of third parties: several farms in Siavonga, Chirundu and Mpika, seven houses in Chalala and one house in Ibex Hill, as well as several vehicles namely, one Quantum bus, one Mercedes Benz, one Renault Kadjar, one Toyota Spacio, one Toyota Alphard, and three Toyota Corollas,” Mr Khan disclosed

Mr Khan disclosed that the above properties including funds in various bank accounts have since been seized by the Commission as they are reasonably suspected of being proceeds of crime.

“The suspects are on bond and will appear in court soon,” he said

In relation to these two matters, the Commission has since warned members of the public to be wary of empowerment and investment scams and to do the necessary due diligence before putting in their hard-earned funds, the public should take precaution when confronted with investment opportunities that promise returns that are too good to be true.

The Commission has noted with sadness that a number of retirees from the public and private sectors have been defrauded of their pensions by unscrupulous individuals posing as investment agents.

“As an investigative agency of the State, the Commission will not stand by and watch fraudsters masquerading as investment experts taking advantage of unsuspecting members of the public through fraudulent investment and empowerment programmes. The Commission has a mandate to fight financial crimes for the public good and it will carry out this mandate with the seriousness it deserves within the confines of the law.”

7 COMMENTS

  1. Please Lusaka times Chief Editor ensure that the grammar is well coordinated before releasing the script. Thank u

  2. The new GRZ needs to immediately form an housing management company to look after these stolen properties………

    Thee are many many more houses and farms to come when the tax records of most PF and former GRZ officials are looked at……….

  3. Don’t pay for plots without first confirming with the local authority.
    #1 my friend even now people are still corrupt. …. you have them in the current government. Just wait.

  4. The couple further engaged in money laundering and acquired the following properties which were registered in their names .
    How did they engage in money laundering? It must be explained

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