In 2010, the Zambian government created the Financial Intelligence Centre (FIC) to handle information related to suspected money laundering, terrorist financing, and other serious crimes. The FIC's role includes gathering, analysing, and sharing such disclosures with relevant authorities to combat these illegal activities effectively.
According to the centre’s mission statement, it is "an agency dedicated to providing timely, high-quality, impartial, and actionable financial intelligence to law enforcement agencies and competent authorities in order to make the Zambian financial system resilient to financial crimes”.
However, in reality, FIC often encounters delays in providing "timely actionable financial intelligence to law enforcement agencies" due to bureaucratic hurdles. This discrepancy has been revealed through the Swazi Secret leaks, which comprised over 890,000 internal records from the Eswatini Financial Intelligence Unit (EFIU).
These documents were obtained by Distributed Denial of Secrets, a nonprofit dedicated to publishing and archiving leaks, which shared them with the International Consortium of Investigative Journalists (ICIJ). ICIJ then coordinated a team of 38 journalists across 11 countries, including MakanDay, to explore the documents.
Documents from the ICIJ Swazi Secrets leak reveals a three-and-half-year delay to open investigations
According to documents obtained from Swazi Secret Leaks by MakanDay, the Zambian FIC reached out to the Eswatini EFIU on December 6, 2021. However, the exchange had been delayed due to unforeseen circumstances, although these circumstances were not specified.
Accompanying the email was a letter dated August 26, 2019, from the then Director-General of the Zambian FIC, outlining questions regarding former Zambian President, Edgar Lungu's links to businessman Michelo Shakantu and his purported mansion.
Other allegations were against Inyatsi and its proprietor Shakantu, that he obtained a number of road construction contracts in Zambia and subsequently offered bribes in the form of land and monetary gifts to high-profile individuals.
A mansion fit for an ex-Zambian President
In mid-May 2018, reports surfaced that Mswati had granted land to former Zambian president Edgar Lungu, to erect a mansion in that country.
Architectural drawings of the mansion were leaked on Twitter, revealing its location in the expansive Nkonyeni golf estate along the Usutu River, 50km outside Mbabane.
The project was significant, with The Times of Swaziland estimating the mansion's construction cost at $3.9 million.
Zambia’s then Minister of Information & Broadcasting, Dora Siliya, confirmed that the land was a gift to Lungu from the king and said that it was customary for the Zambian president to receive gifts during international travels.
Amos Chanda, Lungu’s spokesperson at State House, reiterated the presidency’s stance that the matter was a private affair between the two heads of state.
Despite reports, the president’s aide denied any development on the land. However, information from the EFIU suggests otherwise, prompting questions about the financing of such a project: If the land was a gift, who covered the construction expenses?
Time Gap in FIC's Initiation of Investigations
These allegations were dating as far back as May 2018. This timeline reveals a three-and-a-half-year gap between the receipt of allegations in May 2018 and the Zambian FIC's request for assistance from the EFIU in December 2021 to investigate Lungu.
The leaked email implies that the FIC initiated its international investigation into Lungu's alleged Eswatini assets only after Hakainde Hichilema assumed the presidency, despite being aware of the accusations since 2018.
When questioned by ICIJ about why the agency hadn't acted on the allegations upon receipt, FIC Director General Clement Kapalu responded tersely via email, stating that "the FIC does not discuss persons that are subject to inquiry except with competent authorities as defined by the FIC Act".
The results of the FIC's investigation into Lungu's purported assets and questionable acquisitions are still unknown. Nonetheless, Lungu has not been subject to prosecution or any charges in connection with these allegations.
In fact, he is currently attempting to reclaim the presidency after declaring his re-entry into active politics in October last year.
EFIU’s response
In response, the EFIU, in February 2022, found no property directly linked to Lungu in Eswatini. However, evidence surfaced linking Shakantu to the property.
According to a monitoring and analysis report obtained by Open Secrets, the EFIU stated: “The property in question, Lot 225 Nkonyeni Golf Estate, allegedly bought by Dr. Edgar Lungu to build a mansion, is not registered under his name but under the Link Trust, represented by Mr. Mitchelo (Michelo) Shakantu, thus connecting Dr. Lungu to Mr. Shakantu…”
Unfortunately, the EFIU documents lack clarity on the specifics of this connection, leaving the basis of their analysis undisclosed. Notably, all individuals involved are politically exposed persons.
In 2018, The Times of Swaziland reported that the property was initially owned by Rudolph Investments (Pty) Ltd., and the deed transfer to Inyatsi was facilitated by law firm SV Mdladla & Associates, although no public records of this transfer were found in Open Secrets’ investigation.
In response to these accusations, Inyatsi told South African Business Day that it has no ties to Lungu and refuted claims that the Link Trust purchase was made on his behalf.
They also denied any involvement in the property transaction with SV Mdladla & Associates but acknowledged that the firm provides legal services to the Inyatsi Group.
However, separate EFIU documents seen by Business Day, revealed Shakantu signing an agreement with another entity as the Link Trust's representative, indicating a connection between Shakantu and the Trust.
Despite attempts by ICIJ to contact Lungu through the Edgar Lungu Foundation, he did not respond to requests for comment. However, on Monday,Augus April 22, 2024, Lungu made a post on his Facebook page acknowledging the report from ICIJ and stating that he felt compelled to respond due to a senior government official’s comment on the report.
In his statement, Lungu declared, "The ICIJ report is based on unverified information, innuendos, and, in many cases, outright lies". He further addressed specific allegations, stating, "The report, inter alia, alleges that I own a luxurious property in Eswatini. The truth of the matter, however, is that I own NO property in Eswatini".
Inyatsi responded to questions by Open Secrets and denied any relations with Lungu or that the Link Trust purchase was on behalf of Lungu.
Inyatsi Roads Zambia Limited
According to the Patent and Companies Registration Agency (PACRA) registry, Inyatsi Roads Zambia Limited was registered in Zambia on November 19, 2010.
Its directors include Zambians Michelo Shakantu and Paul Nkolola Jolezya Lwiindi, as well as South African nationals Arnold Jan Pouwels, John Himilton, and George de Sousa.
The company's shareholding structure is divided between two entities - Inyatsi Construction Group Holdings(Proprietary) Limited and Inyatsi Construction Limited.
The Swazi Secret Leaks documents show that, during the period of Lungu's presidency from 2014 to 2021, Inyatsi Roads Zambia Limited secured four road construction tenders. This includes a contract valued at over K234 million for the periodic maintenance of the 136 km Solwezi– Mwinilunga road, awarded by the Road Development Agency.
