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Airtel Zambia and MTN Zambia are facing a K10 billion lawsuit in the Lusaka High Court from more than 300 investors seeking compensation for losses allegedly linked to a nationwide pyramid scheme.
The investors, led by Nathan Lwando, have accused the two mobile network operators—along with the regulator, the Zambia Information and Communications Technology Authority (ZICTA)—of negligence for allegedly allowing their mobile money platforms to facilitate fraudulent transactions connected to Auteri Jewellers Limited, the company accused of running the scheme.
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According to court filings, the plaintiffs are seeking damages for negligence, emotional distress, and interest on the claimed amount.
The scheme reportedly emerged around May 2024, advertising unusually high returns on investments in products priced between K140 and K48,000, with some contracts promising profits within days.
“The fraudster presented itself as a legitimate business, offering high returns which attracted unsuspecting members of the public,” the plaintiffs stated.
Court documents allege that the operation drew approximately 20,000 participants across the country, with most transactions processed via Airtel and MTN mobile money services.
ZICTA is said to have intervened in June 2025, shutting down the operation and freezing accounts linked to Auteri Jewellers.
However, the plaintiffs argue that the defendants failed to detect and stop the scheme early, despite their regulatory and oversight obligations.
“The defendants failed to detect and stop the scheme at inception despite regulatory requirements, allowing it to operate for over a year,” they stated.
They further claim that only four percent of the funds lost have been refunded to a small number of victims, leaving the overwhelming majority without compensation.
The matter is before the Lusaka High Court, and a hearing date is expected to be set.
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