The National Prosecution Authority has successfully secured a conviction against Kamono Farming Initiatives Limited and its Director and associates – Funwell Zulu, Enock Chibutu, and Mirriam Soko – for operating an unlicensed banking business and conducting a money circulation scheme, offences under the Banking and Financial Services Act of 2017. This case, which was prosecuted by Senior State Advocate Mr. Mukuma Chilila Chipawa as led prosecutor and Mr. Stephen Sumbukeni from the Drug Enforcement Commission, Anti Money Laundering Investigations Unit (DEC-AMULIU) highlights the Authority’s commitment to upholding financial integrity and protecting the public from fraudulent schemes.

The accused were convicted on two counts: operating a banking business without a license, contrary to Section 6(1) of the Act, and conducting a money circulation scheme, in violation of Section 157(1)(a). Kamono Farming Initiatives Limited, the primary corporate defendant, was fined K100,000 on Count 1 and K70,000 on Count 2. Funwell Zulu, Enock Chibutu, and Mirriam Soko, who played integral roles in promoting the scheme, were each fined K60,000 per count. In total, each individual defendant faces fines of K120,000, with an alternative sentence of nine months’ simple imprisonment per count, to run concurrently if they default on paying the fines.

This conviction follows a detailed investigation by Given Sakala, an investigator from the DEC-AMULIU which revealed that Kamono Farming Initiatives Limited, its director and associates had been soliciting investments from the public under the guise of high-yield agricultural opportunities. The defendants assured contributors of substantial returns, purportedly from lucrative farming ventures. However, the court found that the scheme relied solely on funds from new investors to sustain payouts to earlier participants, a classic hallmark of a Ponzi scheme. No tangible farming or commercially viable activity backed the promises made, and the operation was effectively functioning as an unlicensed banking business, lacking the required authorisation from the Bank of Zambia.

While the convictions on the first two counts signal a clear message against financial misconduct, Magistrate Wishimanga’s ruling took an unexpected turn on the third charge of money laundering under the Prevention and Prohibition of Money Laundering Act. Despite the weight of evidence presented, the court found the accused not guilty of money laundering, citing insufficient grounds to establish this additional offense.

In addressing the case, Hon. Wishimanga highlighted the gravity of the convictions and underscored that the fines should be paid cumulatively. This ruling stands as a critical reminder to the public to remain vigilant against fraudulent investment schemes and underscores the importance of verifying the legitimacy of financial ventures.

The National Prosecution Authority remains steadfast in its mission to confront and curtail financial crimes that threaten the security of our economy and citizens. This case serves as evidence of the vigilance of Zambia’s legal and regulatory bodies in identifying and dismantling schemes that exploit the public’s trust.