State accuses lawyer of using suspected laundered funds to buy seized property

The State has alleged that State Counsel, Dr. Henry Mbushi, acquired a Woodlands property in Lusaka using suspected laundered funds.

This claim emerged after Mbushi sued the State over the Drug Enforcement Commission’s (DEC) seizure of the property, identified as Stand Number 8317, House Number 51, Cider Road, Woodlands.

The property was confiscated by DEC on February 21, 2024.

Mbushi argued in his lawsuit that DEC’s actions, initiated in February 2024, obstructed the completion of the property’s purchase from its previous owners.

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He is seeking damages for alleged unlawful seizure, libel, defamation, inconvenience, and wrongful arrest, as well as compensation for increased reconstruction costs.

In his claim, Mbushi contended that DEC was aware of the legitimate source of the funds used to acquire the property and has requested a court declaration that DEC acts as a constructive trustee of the property.

In response, Attorney General Mulilo Kabesha stated that DEC lawfully seized the property during an investigation into suspected money laundering and theft involving K2.3 million received by Mbushi from the Ministry of Justice.

Kabesha revealed that bank records from Stanbic Bank and Indo Zambia Bank indicate that Mbushi used K1,389,803 of the funds to purchase the property.

He further stated that DEC conducted legal searches of bank accounts linked to Mbushi, his firm HBM Advocates, and another individual, Mr. Rupesh Sihna, to trace the funds’ origins.

The State also emphasized that Mbushi has not proven ownership of the K2.3 million allegedly used to acquire the property.

While DEC recorded a warn-and-caution statement from Dr. Mbushi, he has not been arrested, as investigations remain ongoing.

The Attorney General argued that criminal investigations take precedence over civil claims and denied all allegations in Mbushi’s statement of claim.

Kabesha maintained that Mbushi was not entitled to any damages until investigations are concluded.

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