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The Lusaka Magistrates’ Court has acquitted directors of Pittscon Zambia Limited, who were accused of possessing properties suspected to be proceeds of crime.
Magistrate Stanford Ngobola found the directors—Emmanuel Simpande Mugala, Peter Malao, and Lucky Simbeye—not guilty, clearing them of all charges.
However, in August 2024, the Economic and Financial Crimes Division of the High Court ordered the forfeiture of the company’s assets worth K100 million to the state, ruling them as tainted property.
Pittscon Zambia Limited, a construction firm, had secured multiple government contracts between 2015 and 2018 for road maintenance projects.
The prosecution alleged that the directors fraudulently obtained contracts from the Ministry of Local Government and used illicit funds to amass significant wealth.
The Anti-Corruption Commission (ACC) claimed that Mugala, allegedly acting as a proxy for former President Edgar Lungu, acquired over 30 housing units and more than 20 commercial properties under questionable circumstances.
ACC investigator Mulenga Mulenga testified that Pittscon Zambia Limited received over K195 million in payments between 2018 and 2021, while the prosecution also alleged that the company used falsified academic credentials to secure government contracts.
Read More: Pittscon Zambia Limited, directors lose K100 million assets in government seizure
Despite these claims, the court found that the prosecution failed to present sufficient evidence of fraud. The defense provided documents showing the directors had multiple legitimate sources of income, including other business ventures.
A key witness, Chanda Chisha from the National Road Fund Agency (NRFA), confirmed that all payments made to Pittscon followed due process and were for completed projects.
Additionally, a Ministry of Local Government official testified that the company fulfilled its contractual obligations.
Magistrate Ngobola ruled that the properties in question were not proven to be proceeds of crime, emphasizing that without clear proof of fraudulent activity, the charges could not stand.
As a result, all three directors were acquitted.
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