The Director of Public Prosecutions (DPP), Gilbert Phiri, has petitioned the Economic and Financial Crimes Court (EFCC) for the forfeiture of K8.1 million held in a First National Bank Zambia (FNB) account.
The funds, allegedly linked to fraudulent transactions, were frozen as part of an ongoing financial crime investigation.
The application seeks to seize funds from FNB account number 62908248463, registered under Lusaka Gold and Platinum Refinery Limited, following an investigation by the Drug Enforcement Commission’s (DEC) Anti-Money Laundering Investigations Unit.
According to an affidavit submitted by Abigail Chisumpa Mwepya, a senior investigations officer with DEC, the probe was initiated on October 28, 2022, after FNB reported a suspicious transaction.
The investigation found that a sum of K4,384,678.38 (USD 77,775) was transferred to the account by Smienski Holdings LLC for the purchase of 45 kilograms of gold.
The affidavit states that Almaz Dryrydaev, head of sales at Epytychia DMCC in Dubai, traveled to Zambia, where he was introduced to Johnson Kitenge Solochi, the manager at Lusaka Gold and Platinum Refinery Limited.
Dryrydaev was shown 45 kilograms of gold, which was valued at USD 277,775.
Following the transfer of funds, Lusaka Gold and Platinum Refinery Limited issued an airway bill indicating the shipment of the gold to Dubai.
However, an investigation by the National Airports Corporation revealed that the airway bill was forged.
A representative from Smienski Holdings, Alexandros Smolenski, confirmed that the gold was never received, despite the documentation provided.
Further inquiries showed that Smolenski had also transferred K4,036,392.83 to a Stanbic Bank account belonging to Damphen Clearing and Forwarding Limited for the supply of 123 kilograms of gold, which was never delivered.
The Ministry of Mines and Minerals Development later confirmed that Damphen Clearing and Forwarding Limited does not hold a mineral trading permit.
On November 2, 2022, DEC seized Lusaka Gold and Platinum Refinery Limited’s FNB account. Investigators determined that the funds in the account were proceeds of financial fraud, violating Section 309A of the Penal Code and Section 71 of the Forfeiture of Proceeds of Crimes Act No. 19 of 2010.
“The investigation uncovered a clear case of obtaining financial advantage by false pretenses. The funds in question are directly linked to fraudulent activities and should be forfeited to the state,” Mwepya stated in the affidavit.
