Stolen Funds Traced to Real Estate and Luxury Goods

In a shocking development, authorities have discovered that stolen public funds were used to purchase luxury goods and invest in real estate by senior government officials. The officials allegedly created private businesses registered in the name of third parties, often relatives or girlfriends, and then moved the funds through new technologies offered by financial institutions.

Unauthorised Payments

The investigation revealed that the officials would authorize payments without validation of supporting documents, leading to huge losses for the government. For example, over MK350 million was lost due to unauthorized payments to a single beneficiary in the 2019/2020 financial period.

Asset Restraint

The stolen funds were traced and frozen, with assets such as real estates and motor vehicles derived from the crime being restrained to be used to satisfy a pecuniary penalty order.

Money Laundering Through Exchange Control Violations

Meanwhile, authorities have also detected money laundering activities through exchange control violations. Criminals created bogus investment schemes, disguising themselves as investors and creating offshore companies that demanded insurance premiums and management fees from government officials.

Uncovering the Scheme

The scheme was uncovered after an investigation revealed that a senior public official had stolen more than MK350 million over a 12-month period by authorizing payments without validation of supporting documents. The official used the stolen funds to develop real estates, procure motor vehicles, and support other girlfriends.

Arrests and Asset Seizure

As a result of the investigation, arrests have been made, and assets seized, including real estates and motor vehicles derived from the crime. The cases are currently in court, with efforts underway to recover the stolen funds and hold those responsible accountable.

Call to Action

The authorities are urging citizens to remain vigilant and report any suspicious activities to help prevent such frauds in the future.