Defrauded buyers seek exclusion of K664,990 from K9 million NHEF property case

Eight Zambian citizens have opposed the forfeiture of properties worth over K9 million, allegedly linked to a money laundering scandal involving three directors of the National Housing Empowerment Fund (NHEF).

Verbson Kafuma, alongside seven others who claim they were defrauded of more than K200,000 under the guise that NHEF was selling plots at Emerald and Riverdale parks in Lusaka, argued that K664,990, part of the K9 million in assets the Director of Public Prosecutions (DPP) seeks to seize, was not tainted property.

The DPP, Gilbert Phiri, had initiated proceedings in the Economic and Financial Crimes Court (EFCC) to confiscate properties allegedly tied to the scandal, implicating NHEF directors Lusuntha Ngulube, Kamphembele Ngulube, and Margaret Mabingo.

The trio were accused of defrauding the public between April 2020 and August 2022 by falsely advertising plots for sale.

The application seeks to seize assets suspected to be proceeds of crime, including funds in accounts at First National Bank (FNB), Zambia National Building Society (ZNBS), and NATSAVE, as well as 18 motor vehicles.

Read More: DPP seeks forfeiture of properties worth over K9 million in NHEF money laundering scandal

In an affidavit submitted by Kafuma, a Lusaka resident representing other interested parties, it was revealed that they had sued NHEF in the Lusaka High Court under cause no. 2013/HL/43, seeking refunds of K244,990 for plots they attempted to purchase.

The court granted a default judgment on July 14, 2023, awarding K664,990, but the plaintiffs were unable to recover the funds as NHEF’s properties had been seized by the state.

Kafuma and his co-petitioners are now requesting that the K664,990 be excluded from the forfeiture proceedings, claiming it was untainted property.

They are also seeking compensation for additional losses, including breach of contract, financial damages, and mental anguish.

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