Businessman acquitted in high-profile corruption case linked to ex-President Lungu

Businessman acquitted in high-profile corruption case linked to ex-President Lungu! The Lusaka Magistrate’s Court has acquitted businessman Emmanuel Mugala, who was accused of possessing over 50 properties suspected to be proceeds of crime. Prosecutors had alleged that Mugala was acting as a proxy for former President Edgar Lungu, but the court ruled that the prosecution failed to provide sufficient evidence to support the allegations.

The properties in question, worth millions of kwacha, were linked to Pittscon Zambia Limited, a company that had been under investigation by the Anti-Corruption Commission (ACC).

Properties Under Investigation

According to ACC investigations, Pittscon Zambia Limited owned a fleet of vehicles valued at K7 million, along with several high-value properties.

Mugala was alleged to own:

• 21 residential properties valued at K1,400,000, K3,400,000, K1,700,000, and K2,600,000.
• 14 shops valued at K5,900,000 and K7,600,000.
• Four unnumbered plots worth K26,300,000.
• Subdivision F of Subdivision No. 26 of F/9/6.

The Government Valuation Department estimated the total value of Mugala’s properties, including various unnumbered plots, at K41,800,000.

Case Against Mugala and Co-Accused

Mugala was jointly charged with:

• Peter Malao,
• His son, Edson Mugala, and
• Lucy Simbeye.

They faced 19 charges related to the possession of property suspected to be proceeds of crime. The properties were allegedly linked to Pittscon Zambia Limited, where Mugala, Malao, and Simbeye were directors and shareholders.

Defense Strategy and Testimonies

During the defense stage, the accused denied the allegations, arguing that Pittscon Zambia Limited was duly awarded government contracts and that all earnings were legitimate.

Mugala stated that the ACC focused only on Pittscon’s earnings, ignoring his other sources of income. He testified that he was involved in the buying and selling of kapenta (dried fish) and beans, with a working capital of K2.8 million.

His son, Edson Mugala, also testified, explaining that some of the properties in his name were gifts from his father, and therefore, could not be considered as proceeds of crime.

Court’s Ruling

After reviewing the evidence from both sides, Lusaka Principal Resident Magistrate Sanford Ngobola ruled that the prosecution failed to prove the case against the accused persons.

The court found that:

• There was no evidence of fraudulent activity involving Pittscon Zambia Limited.
• The accused’s known sources of income were legitimate.
• The prosecution failed to prove that the properties were obtained illegally.

“I also find that there is no proof on record that the properties in question are disproportionate to the known legitimate sources of income of the accused persons,” Magistrate Ngobola said.

With this ruling, the court acquitted Mugala and his co-accused of all 19 counts.

“I acquit the accused persons of all the 19 counts,” the magistrate stated.

Properties Previously Forfeited to the State

Despite the acquittal, a twist in the case remains—these same properties were forfeited to the State in August 2024 following a High Court ruling.

The Director of Public Prosecutions (DPP) had applied for the forfeiture, arguing that the properties—including cars, shops, and houses in Chilanga—were a product of grand corruption.

What Happens Next?

Legal experts suggest that the acquittal could impact the previous forfeiture ruling, and there may be legal efforts to reclaim the seized properties. However, this would depend on whether the DPP challenges the magistrate’s ruling or seeks an appeal.

For now, Emmanuel Mugala and his co-accused are free, but the controversy surrounding the case is far from over.