News written by Byta FM Zambia
The Drug Enforcement Commission, (DEC)
says all the money from money circulating
schemes may be surrendered to the state to
send a correct message to participants.
DEC Senior Investigations Officer under the
Anti-money Laundering Unit, Mathias
Kamanga says the law is clear that
participating in such schemes is a crime in
During a Syndicated Covid-19 Programme on
Byta FM Monday morning, Kamanga said the
commission will not be giving money to
participants of a money circulating scheme.
“I think we in the past, we had a case with
Heritage coin where people, atleast got a
percentage of what they had invested and all
those things because we had moved in. But I
think for this time around, like I stated
earlier, the law is very clear – participation
in a money circulating scheme, is an offence
by itself. And so, will do the investigations
and take the matter to court and allow the
court to be able to forfeit all the money to
the state,” said Kamanga.
“Probably that will send the correct message
to the public, so that all people can know
that before you can be able to invest in
anything, you should be able to find out, is
this thing registered with the correct
regulators. If it was to go under, what was
going to happen? If these people were to run
away like it was in the other cases that we
have handled in Ikulile, Heritage coin. What
is going to be able to happen at the end of
it all,” he added.
Earlier, Kamanga stated that promising people
over 2000 percent profits in a once-off
investment is not village banking, but
“money schemes that are meant to steal from
the people of Zambia.
He says participants in a village banking
group are like-minded people that take part
in the entire activities of the association
from its formation to the sharing of profits
arising from its monthly savings.
Kamanga says members of village banking
initiatives make monthly contributions and
share profits according to their total
earnings, contrary to expecting hugebenefits from a single payment.
DEC is part of the investigating team that
has seized bank accounts including property
for Ono Savings Association and Comsave
Credit Union on allegations of being involved in illegal money circulating schemes.
The two institutions have dismissed allegations of being involved in illegal activities and say members make their profits through savings and loan repayments with interest.