A POLITICALLY connected individual used money tied to government contracts to buy a farm, the Financial Intelligence Centre (FIC) has revealed.
According to the FIC’s latest report, the individual received US$113,000 from a Zambian company that had indirectly benefited from public funds.
The money was traced back to Company ET, a subsidiary of Company G, which was owned by two directors named as CZ and EZ.
These two directors allegedly used a foreign company, named as Company ZO, as a gateway to secure government contracts and move millions across borders.
The FIC’s investigation revealed that Company ZO, a foreign firm which was awarded multiple Zambian government contracts starting in 2016, received US$43 million from the State over three years.
Between 2018 and 2019, over US$100 million was transferred from Company ZO to Company G’s four Zambian subsidiaries, including Company ET.
Company ET then sent the US$113,000 farm payment directly to the politically exposed person (PEP), raising serious concerns about how public funds were being misused to finance private land acquisitions by well connected individuals.
The report also uncovered a US$850,000 transfer from Company ET to a lodge owned by another PEP.
Separately, Company G moved US$2 million to an associate firm that invested in real estate later traced to yet another influential person.
Meanwhile, the directors of Company G, CZ and EZ withdrew or redirected over US$24 million for personal use, with at least US$12.3 million landing directly in their own bank accounts.
It is reported that none of the local companies involved were tax compliant and they acted as channels for vast sums of money flowing from the foreign contractor hired by the Zambian Government.
In 2020, their bank shut down their accounts, classifying them as high risk.
The matter was handed over to law enforcement, leading to court proceedings.
By 2024, the State had recovered US$2.5 million in forfeited assets which was a small fraction of what had been siphoned off.
By Catherine Pule
Kalemba, July 30, 2025
