Three directors of Kamono Farm Initiative Limited have been arrested by the Drug Enforcement Commission (DEC) on charges of fraud and money laundering. The individuals charged are Fanwell Zulu, Enock Chibutu, and Maxwell Masempela, along with Mirriam Soko and Matimba Chongo. The scandal has caused shockwaves throughout the industry and raised concerns about the need for greater transparency and accountability in business practices.
Three directors of Kamono Farm Initiative Limited have been arrested for fraud and money laundering. According to DEC Public Relations Officer Hussein Khan, the suspects are facing charges for providing banking business or financial services without a license, conducting a money circulation scheme, and violating laws related to the prevention of money laundering. The scandal has caused significant damage to the reputation of the company and raised concerns about the need for stronger regulations in the financial sector.
The suspects, along with unknown accomplices, allegedly provided banking and financial services to the public without a license from the Bank of Zambia. They are accused of fraudulently collecting deposits totaling K134,865,286 between January 1st, 2021 and September 30th.
The company allegedly invited members of the public to invest in their agricultural schemes, promising returns that were never delivered. As a result, funds were collected under false pretenses, leading to legal action against the directors involved.
The scandal has brought attention to the company’s production levels, which were unable to generate the high returns that the directors claimed.
According to authorities, the directors engaged in money laundering by possessing large amounts of cash and funds in various company bank accounts and mobile money accounts. The total amount involved in the scandal is K15, 531,722.99 in company bank accounts, K766, 552.49 in cash, and K38, 611.04 in mobile money accounts.
The Commission has taken action by seizing the funds and freezing the accounts. The suspects are currently on bond and will be appearing in court soon. Mr. Khan, the spokesperson for the Commission, confirmed these developments.
The company was found to be a money circulation scheme that promised unrealistic returns on investments, according to investigations by the Commission. The Commission warns the public to be cautious of such schemes and to avoid investing their hard-earned funds in them to prevent losing their money.
