Drug Enforcement Commission (DEC) through its Anti-Money Laundering Investigations Unit has arrested 7 Directors from two Mazabuka based Village Banking groups for money laundering related offences involving K69.4 million.
Commission Public Relations Officer Theresa Katongo disclosed to Money FM News that four of the Directors are from Ono Initiative Limited while three are from COMSAVE Credit Union.
Ms. Katongo said particulars of the offence are that on dates unknown but between 1st December, 2018 and 21st July, 2020, the four Directors of Ono Initiative limited jointly and whilst acting together with other persons unknown did conduct and provide financial services without a license by receiving deposits from the general public and issuing loans.
“The four (04) Directors of Ono Initiative Limited are identified as Isaac Mvula, male aged 40, Ackim Mugala, male aged 39, Khuna Ncheema, male aged 65 and Chuunya Chilala, female aged 34,” Ms. Katongo stated.
She stated that the accused persons also engaged in a money circulation scheme where they advertised to the public to save with Ono Initiative limited for a predetermined return under the guise that people were joining a village banking group when in fact not.
Ms. Katongo added that the Directors therefore obtained over K 22 million from unsuspecting members of the public through this misrepresentation and further engaged in money laundering activities by using proceeds of crime to buy 33 vehicles and 27 houses.
Meanwhile, Ms. Katongo further revealed that the three COMSAVE Credit Union Directors conducted and provided financial services without a license by receiving deposits from the general public and issuing loans.
She added that the trio engaged in money laundering activities by using proceeds of crime to acquire property namely 2 Mercedes Benz, D2 Buses, 1 Toyota Runx, 1 COMSAVE School in Mazabuka and another in Monze.
“Similarly, the three (03) Directors of COMSAVE Credit Union identified as Muleka Given, male aged 29, Onester Sondashi, female aged 33 and Collins Chilufya, male aged 42 conducted and provided financial services without a license by receiving deposits from the general public and issuing loans.”
“They also advertised to the public for people to save with COMSAVE Credit Union for a predetermined return under the guise that people were joining a village banking group when in fact not. Through this misrepresentation, they obtained K46, 823, 545.04 from members of the general public,” Ms. Katongo said.
She stated that the 7 suspects who are currently on police bond have been charged for money laundering, conducting and providing financial services without a license, conducting a money circulation scheme, obtaining money by false pretenses and being in possession of property reasonably suspected to be proceeds of crime.
The suspects are expected to appear in court soon.