By 
The Economic and Financial Crimes Court (EFCC) has mandated the forfeiture of assets owned by Emmanuel Mugala, a suspected proxy of former President Edgar Lungu, and other directors of Pittscon Zambia Limited.
The assets, valued at over K80 million, are to be surrendered to the State due to their association with alleged criminal activities.
The Anti-Corruption Commission (ACC) sought this forfeiture under Section 31 of the Forfeiture of Proceeds of Crime Act (FPOCA), arguing that the assets were acquired through illicit means.
The agency claims it uncovered that Mugala, a director and shareholder of Pittscon Zambia Limited, received multiple road maintenance contracts from the Ministry of Local Government between 2018 and 2021.
Other implicated individuals include Mugala’s son, Edson, Peter Malao, and Lucky Simbeye, all of whom hold directorial and shareholding positions in Pittscon.
From March 2018 to April 2022, the ACC’s investigations reportedly identified significant discrepancies. Pittscon owned numerous vehicles worth K7 million.
It also claimed various individuals acquired residential and commercial properties valued in the tens of millions.
Notably, it alleged that one person owned twenty-one residential properties valued over K1.4 million, while another had fourteen shops worth K5.9 million.
Mugala himself was reportedly found to own unnumbered plots worth K41.8 million and multiple residential units valued at K5.8 million, all acquired during the investigation period.
The agency alleged that primary source of income for these individuals was the road maintenance contracts, raising questions about the legitimacy of their wealth.
The probe also claimed that interviews under caution revealed unsatisfactory explanations for the substantial asset accumulation.
The total value of the contracts was said to be K264,464,513.67, with K199,828,137.00 received, prompting further scrutiny of the source of their wealth in light of their disproportionate asset accumulation.
The ACC argued that the contracts were secured through fraudulent means, citing Section 308 of the Penal Code, which addresses false pretenses.
The implicated parties allegedly misrepresented their qualifications to obtain the contracts, thus benefiting unlawfully.
Records from the Patents and Companies Registration Agency (PACRA) reportedly confirmed that the implicated parties were shareholders and directors of Pittscon Zambia Limited, with Edson being Mugala’s son.
Read More: Ex-Tourism Minister, Chitotela’s appeal rejected by Economic and Financial Crimes Court
The court said it established that the contracts awarded to Pittscon were their sole documented source of income.
The court concluded that the properties were acquired through dubious means directly linked to fraudulent contracts. This decision is said to align with Section 308 of the Penal Code, which criminalizes fraudulent contract inducement.
Despite the contracts’ initial validity, the court ruled that the fraudulent nature of the transactions warranted the properties’ forfeiture.
The ruling is said to be consistent with the precedent set in Stanbic Bank Zambia Ltd v Bentley Khumalo and 29 Others, affirming that illegality begins upon discovery of the deceit.
In summary, the court ordered the forfeiture of the K80 million worth of properties to the State, to be used in accordance with legal provisions.
The implicated parties were also required to cover the costs of the proceedings.
The panel included Justices Pixie Yangailo, Ann Malata-Ononuju, and Vincent Siloka.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments