The National Prosecution Authority has secured a significant conviction against Kamono Farming Initiatives Limited and its key associates—Funwell Zulu, Enock Chibutu, and Mirriam Soko—following their operation of an unlicensed banking business and a fraudulent money circulation scheme, in violation of the Banking and Financial Services Act of 2017.
This case, led by Senior State Advocate Mr. Mukuma Chilila Chipawa and Mr. Stephen Sumbukeni from the Drug Enforcement Commission’s Anti Money Laundering Investigations Unit, underscores the Authority’s dedication to maintaining financial integrity and safeguarding the public against scams.
The defendants were found guilty on two counts: operating without a banking license and conducting a money circulation scheme. Kamono Farming Initiatives Limited received fines of K100,000 and K70,000 for each respective count, while Zulu, Chibutu, and Soko were each fined K60,000 per count, totaling K120,000 each. If they fail to pay these fines, they face an alternative sentence of nine months’ imprisonment for each count, served concurrently.
The prosecution’s case was built on a thorough investigation led by Given Sakala from the DEC-AMULIU, which uncovered that the defendants solicited public investments under false pretenses of high-yield agricultural returns. The court determined that the operation was a classic Ponzi scheme, relying solely on new investments to pay earlier participants, with no actual farming activities to support their claims. Furthermore, the operation lacked necessary authorization from the Bank of Zambia.
In a notable aspect of the ruling, Magistrate Wishimanga found the accused not guilty of a third charge related to money laundering, citing insufficient evidence to substantiate this claim.
Hon. Wishimanga emphasized the severity of the convictions and the importance of public vigilance against fraudulent investment schemes. This case serves as a potent reminder to thoroughly verify the legitimacy of financial ventures.
The National Prosecution Authority remains committed to combating financial crimes that threaten the economic security of citizens, highlighting the ongoing efforts of Zambia’s legal and regulatory frameworks to dismantle schemes that exploit public trust.
