MILLIONS LOST ...in investment shocker

Regulator drew a raft of remedial measures to ameliorate the deteriorated financial position of the company, but these were apparently disregarded as the company continued to trade in unauthorised products.

In a seizure notice directed at Mamco chairman Basil Nundwe the Drug Enforcement Commission (DEC) has seized 41 upmarket properties from MAMCO on allegations of money laundering, following deliberate and “willful” disregard of regulators instruction to cease some operations which were not authorised.

MAMCO had invested colossal sums of money in properties which are now expected to provide a a salvage realisable value to pay opff some of the secured and unsecured investors.

“It is really heartbreaking to lose such huge amounts money. That was my retirement money and I was counting on it to see my children through school. It really pains to move from financial security to destitution,” he said.

The retired general said with the decision by Government to liquidate the company, the clients will not have access to their money.

He said clients will be left in darkness because there is no proper direction on how they can get back their money which was invested in the company which has been seized for money laundering.

In a seizure notice dated April 29, 2020, the DEC stated that the properties have been seized pursuant to Section 15 of the Prohibition and Prevention of Money Laundering Act No. 14 of 2001.

MAMCO is a subsidiary of the troubled Lawrence Sukutwa and Associated (LSA) Group of Companies which has been Zambia’s leading private sector diversified financial services group.

The DEC warned Mr. Nundwe that the seized properties may be forfeited to the State.

Mr Nundwe is also Country Director of Inside Capital which he joined in 2014 as a special advisor to the Fund and part of the Investment Committee, and became a senior Partner in June 2017.

According to documents availed to the Daily Nation, some of the prominent institutions which could lose money include parishes under the Roman Catholic Church, schools and some prominent individuals.

One woman had invested more than K5 million in the seized property while others had put in more than US$3 million.