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It will be unfair to pursue contractors for money laundering – ZACCO

• The question of pursuing contractors who have not delivered for money launderings offences is a bit tricky.
• Business is regulated by commercial laws, whilst money laundering issues have to do with financial crimes.
• Where there is a prima facie case to deal with money laundering, law enforcement officers can pursue such people.

Zambia Association for Citizen Contractors (ZACCO) says pursuing contractors who have not delivered projects for money laundering offences will be unfair, because businesses are regulated by commercial laws, while matters relating to money laundering have to do with financial crimes.
Speaking in an interview with Money FM News, Association General Secretary Danny Simumba explains that where there is a prima facie case to deal with money laundering, law enforcement agencies such as the Drug Enforcement Commission (DEC) have the right to pursue such offences.
Mr. Simumba said if the case is purely a commercial transaction, it has to do with civil litigation because non-delivery of services may be caused by a number of factors, and some of them are purely commercial, while others maybe criminal in nature.
“The question of pursuing contractors who have not delivered for money launderings offences is a bit tricky. Business is regulated by commercial laws, whilst money laundering issues have to do with financial crimes or criminal laws, so commenting on this issue are a bit tricky but what we can say is that where there is a prima facie case to deal with money laundering, I think law enforcement officers have the right to pursue such people.”
“But if it is purely a commercial transaction, I think it has to do with Civil litigation because non delivery of services may be caused by a number of factors,” Mr. Simumba said.
Mr. Simumba also stated that if a particular contractor was trying to engage in money laundering activities, law enforcers can pursue such cases unlike following up disputes on payments because these are contractual obligations.
“Like the President has said, we don’t know what information he has to pursue those cases for money laundering. What we don’t want to see is even a dispute to do with payments is followed by money laundering cases because the contractors and even government officials have to be pursued because these are contractual obligations.”
“We are happy that the government like the President disclosed that they will name those who didn’t deliver but received payment that is a good thing because we would like to see those who didn’t deliver the services but were paid named, but if it is to pursue them yet they are just disputes of commercial nature I think that will be unfair and we cannot comment further,” he stated.
Recently, President Hakainde Hichilema revealed that some feeder road contractors have not yet been paid because they siphoned a lot of money by signing contracts worth K13 billion for projects that were never delivered.
He added that such contractors need to be visited by Anti-Corruption Commission and Drug Enforcement Commission (DEC) as their action was equivalent to theft or money laundering.
Government currently owes contractors, engineers and consultants K14.11 billion in terms of road infrastructure.

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