Kamono Farms declare force majeur, as Drug Enforcement agency nabs 3 directors, shareholders


The Drug Enforcement Commission (DEC) has arrested three directors, shareholders, other staff for money laundering and seized all properties of Kamono Farm Initiatives Limited.

According to a statement issued on Thursday in Lusaka, the DEC has seized properties and money amounting to K766, 552.49, and funds in various company bank accounts amounting to K15, 531,722.99 as well as in various mobile money accounts amounting to K38, 611.04.

Read more: Drug Enforcement Commission nabs SOS Children Village staff for allegedly laundering K24m

The Commission has jointly charged and arrested Fanwell Zulu, Enock Chibutu, Maxwell Masempela, Mirriam Soko and Matimba Chongo for Providing Banking Business or Financial Services Without a Licence contrary to section 6 of the Banking and Financial Services Act of 2017 of the Laws of Zambia, Conducting a Money Circulation Scheme contrary to section 157 of the Banking and Financial Services Act and Money Laundering contrary to section 7 of the Prohibition and Prevention of Money Laundering Act 14. of 2001 as read with Act No. 44 of 2010 of the Laws of Zambia.

Government, through DEC, has been conducting investigations into the operations of Kamono and with this action the company has now declared a force majeure clause.

“The effect of this is that Kamono as a going concern has been crippled and rendered incapable of fullfilling it’s obligations to it’s clients and creditors for the time being,” reads a statement from the company.

It said being a law abiding citizen and desirous of according the state both time and environment to conduct and properly conclude their investigations and prosecutorial undertakings, the directors and shareholders had called for an emergency meeting to make resolutions.

The emergency meeting called by the Directors and shareholders Company is with respect to the fate of the company and the plight of its clients and creditors in the face of the Government’s decision.

“Arising from the foregoing and the deliberations of the meeting, the Directors resolved to take a painful step of invoking the force majeure clause in the respective contracts signed with clients for pay-outs that were due and remained unpaid either in part or in full as of April 18, 2023 and leave those that are yet to mature in future to continue running alongside these investigation processes,” the statement read in part.

During the meeting, it was further resolved that management and clients or their representatives meet at Kabayi Farm on the May 6, 2023 where other matters will be clarified and resolved.

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