THE Drug Enforcement Commission (DEC), through its Anti-Money Laundering Investigations Unit, has arrested the Directors, Chairperson and Treasurer of Kamono Farm Initiative Limited and Kamono Cooperative Society Limited for fraud and money laundering.

In a statement, Thursday, DEC Public Relations Officer Hussein Khan said the commission had jointly charged and arrested Fanwell Zulu, Enock Chibutu, Maxwell Masempela, Mirriam Soko and Matimba Chongo for providing banking business or financial services without a licence contrary to section 6 of the Banking and Financial Services Act of 2017 of the Laws of Zambia, among other charges.

“The Drug Enforcement Commission through its Anti-Money Laundering Investigations Unit has arrested the Directors, Chairperson and Treasurer of Kamono Farm Initiative Limited and Kamono Cooperative Society Limited for fraud and money laundering. The Commission has jointly charged and arrested Fanwell Zulu, Enock Chibutu, Maxwell Masempela, Mirriam Soko and Matimba Chongo for Providing Banking Business or Financial Services Without a Licence contrary to section 6 of the Banking and Financial Services Act of 2017 of the Laws of Zambia, Conducting a Money Circulation Scheme contrary to section 157 of the Banking and Financial Services Act and Money Laundering contrary to section 7 of the Prohibition and Prevention of Money Laundering Act 14. of 2001 as read with Act No. 44 of 2010 of the Laws of Zambia,” he said.

Khan said the accused, jointly and while acting together with other persons unknown, on dates between January 1st, 2021 and September 30, 2022, provided banking business and financial services to members of the public without a licence from the Bank of Zambia (BOZ) by fraudulently collecting deposits amounting to K134,865,286.

“Particulars of the matter are that Fanwell Zulu a male aged 35 of Farm No. 1877A Ndola, Enock Chibutu a male aged 29 of Railways Compound in Kabwe, Maxwell Masempela a male aged 55 of Flat No. 4 Kapiri East, Mirriam Soko a female aged 30 of House No.1467 Chilenje and Matimba Chongo a male aged 32 of Meanwood Ndeke in their capacity as Directors, Chairperson and Treasurer respectively of Kamono Farm Initiative Limited and Kamono Cooperative Society Limited jointly and while acting together with other persons unknown on dates but between 1st January 2021 and 30th September 2022 provided banking business and financial services to members of the public without a licence from the Bank of Zambia by fraudulently collecting deposits amounting to K134,865,286,” he said.

Khan explained that Kamono invited members of the public to invest in their various agricultural schemes which resulted in the collection of funds adding that they engaged in money laundering involving proceeds of crime by receiving and possessing cash at hand amounting to K766,552.49.

“Kamono invited members of the public to invest in their various agricultural schemes which resulted into the collection of the above funds purporting that they would get returns when in fact not. However the production levels at the farms could not generate such returns. Further, they engaged in money laundering involving proceeds of crime by receiving and possessing cash at hand amounting to K766, 552.49, and funds in various company bank accounts amounting to K15, 531,722.99 as well as in various mobile money accounts amounting to K38, 611.04,” he said.

Khan said the suspects were on bond and would appear in court soon and the commission had since seized the funds and frozen the accounts.

“The Commission has seized these funds and frozen the accounts. The suspects are on bond and will appear in court soon. The Commission would like to set the record straight that according to its investigations Kamono was a money circulation scheme perpetrated by unscrupulous individuals to defraud members of the public of their hard-earned funds by promising unrealistic returns on investments. The Commission would also like to advise members of the public to be weary of such schemes as they may lose their money,” said Khan.