THE Financial Intelligence Centre (FIC) has revealed how two employees of a government institution allegedly stole over K20 million meant for public use by diverting it into a fake company and using the money for personal benefit.
According to the FIC’s latest report, the employees, identified only as Individual X and Individual Y, worked for Company M, a public institution responsible for managing taxpayer funded operations.
The duo allegedly transferred the funds from the institution’s accounts into a shell company named Company B, which was registered under the name of Individual P, a known associate of the two employees.
The money which was intended for service delivery and statutory obligations, was siphoned off over the course of a year, between 2023 and 2024.
The FIC found that the transactions were disguised as legitimate payments, but more than 90 percent of the K20 million was withdrawn in cash by Individual P, with no evidence that any actual services were rendered.
The report further revealed that Individuals X and Y received multiple suspicious cash deposits into their personal bank accounts during the same period and engaged in inter-account transfers, tactics commonly used to conceal the movement of illicit funds.
According to the FIC, part of the stolen money was used by Individual X to purchase property and invest in insurance policies, while Individual Y transferred funds via mobile money to Individuals P and Q.
The FIC also flagged that Individual Q, another close associate was involved in a separate felony offence.
The case has since been handed over to law enforcement agencies.
“The matter was disseminated to the relevant LEA on suspected fraud, money laundering and corruption. The case was under prosecution,” reads the report in part.
By Catherine Pule
Kalemba, July 28, 2025
