The ARINSA Network introduces the concept of Forensic Accounting to trace the proceeds of crime to the Southern African region.

The objective of the training was to build capacity of law enforcement officers, prosecutors and financial investigators in the asset forfeiture units of the ARINSA member states. The objective was achieved through presentations, practical demonstrations, exercises and plenary discussions.

The training conducted over three days was hosted by the United Nations Office on Drugs and Crime. The major issues addressed within the three days of the training included:

i)Overview of forensic accounting and financial investigations

ii)Overview of entity structures and books of record

iii)Sources and analysis of financial information

iv)Financial Investigation list and profiling

v)Concept of beneficial ownership, effective control and proving ownership

vi)Tracing assets in a cash economy and,

vii)Case studies

 

The AML advisor for UNODC, Southern Africa opened the workshop. In his remarks, it was observed that a number of countries had not successfully seized proceeds from crime. However, there were significant improvements in the region and this included a number of successful cases in Malawi and Zambia.

The training was a huge success. Almost all of the participants requested that ARINSA consider offering an advanced course in forensic accounting. The participants found the training very informative and they could relate the exercises to similar cases in their countries.

Ms. Zhuldyz Akisheva, the UNODC Representative made the closing remarks and extended her heartfelt gratitude for such an encouraging participation and attendance. She concluded by awarding certificates of attendance to the participants.

To view more photographs from the event please click on the following link: http://arinsa.org/course/view.php?id=21

Visual statistic on Rhino Horn poaching in SA

Poaching Rhinos - The process

Die RepublikeinTuesday 14 July 2015

Swakopmund, Namibia. Senior judges and magistrates from Eastern and Southern Africa gathered in Namibia for the first summit of this nature to find solutions for the international fight against money laundering, financing and promotion of terrorism, and confiscation of assets gained through criminal activities.

This event was hosted by the Bank of Namibia (BoN) in cooperation with the United Nations Office on Drugs and Crime, UNODC. It is the same agency which played a leading role last month in the international operation against wildlife poaching, Operation Cobra III. During this operation, a total of 139 people were arrested and 247 confiscations of ivory, medicinal plants, rhino horn and tortoises were done. Operation Cobra also ensured the arrest of a Chinese national, suspected to be the leader of a rhino poaching syndicate in Namibia, the apprehension of a notorious elephant poacher from India and the location of 340 elephant tusks and 65 rhino horns in Mozambique. The 3-day summit in Swakopmund yesterday kicked off with a serious warning by the operational advisor from UNODC, and organiser of the summit, Mr. Fitz-Roy Drayton.In his opening address he emphasised that professional criminals regard jail terms only as an obstacle in their quest to make money. "They endure incarceration for as long as they reap the benefits of their crimes. Only when the proceeds are taken away, will we be able to eradicate the problem of organised crime”, Drayton told the conference of high-level judges and magistrates.According to him, Southern Africa has recently been the target of a sharp increase in cross-border crime, particularly pertaining to wildlife and natural resources. "These criminals are organised by syndicates which are motivated by one single motive, and that is the enormous profits that can be made. They do not take into account the suffering and economic consequences for countries in the region caused by their deeds. When they are sentenced, they shrug their shoulders about the jail time, but cry openly when you take away their luxury vehicles, and their children's privilege of attending exclusive schools”, Drayton said. Namibia's Judge President and deputy chief justice, Judge Petrus Damaseb, in turn said the summit aimed at establishing an electronic com**tion of legal case studies from across the globe, which will be available to all legal systems to assist decision-making with regard to money laundering and financing or promotion of terrorism.He pointed out that terrorism currently relies increasingly on networks, and are more vocal and less predictable. "Organised crime and terrorism are transnational crimes which knows no borders, and can be committed by pressing a button from anywhere in the world. This enables criminals to hide successfully and to benefit from their unlawful profits. Terrorism, in contrast, remains an important threat for international peace, stability and world-wide democracy,” Damaseb said.

The Office of the President (OP) may have, sometime in May this year, instructed a local bank to freeze Tati East legislator Samson Moyo Guma's business accounts, court documents seen by Mmegi suggests.

The Directorate on Corruption and Economic Crime (DCEC), through the Directorate of Public Prosecutions (DPP) late last month applied for a court order to have bank accounts belonging to Guma's transport company frozen.

In his affidavit seen by Mmegi, Guma as the managing director of IRB Transport stated that on May 29, 2015 when he went to his banker to pay his employees' salaries and creditors, he discovered that the company account was blocked. He explained that on the said date the teller who was helping him at the Game City branch then directed him to the manager for further clarification. He said the bank manager told him that they have received an instruction from the OP to temporarily freeze the said account. Guma said he later took up the matter with vice president Mokgweetsi Masisi who denied the involvement of the highest office in the land. Masisi allegedly told Guma that it might have been a technical error with the bank.

In his affidavit, Guma explained the involvement of the second respondent, Minister of Youth, Sports and Culture, Thapelo Olopeng DCEC is investigating both Guma and Olopeng for possible corruption. But Guma explained that on December 10, 2014 Olopeng resigned from their joint company, sold 1500 shares valued at
P3, 433, 072.79. This payment was made on December 11, 2014. In his affidavit, Guma also stated that in 2013 the Chinese company, Sinohydro, engaged IRB Transport for the construction of Kariba South Power Extension Project, the multi-million dollar Zimbabwe project that was commissioned last year. He said on January 20, 2013 Sinohydro transferred U$3, 200, 000 to Guma's transport company. The Tati East legislator said on March 30, 2014, they issued the Chinese construction company an invoice of P45, 126, 190. Another invoice was issued on August 18, 2014 valued at P153 029. Sinohydro paid Guma's company on November 28, 2014 an amount of U$3, 153, 029.94.

Closing his statement Guma said on May 29, 2015 when he discovered that his company account was frozen there was a total amount of P982, 286 and not P25, 948, 907 as alleged by the DCEC. Late last month, the DPP filed a miscellaneous application to freeze the accounts of Olopeng and IRB Transport. According to the papers filed, IRB Transport is cited as first respondent, with Olopeng and Standard Chartered Bank Botswana as the second and third respectively.

No charges have been laid. The case continues on July 28 before magistrate Lenah Oahile-Mokibe for a rule nisi.

- See more at: http://www.mmegi.bw/index.php?aid=52541&dir=2015/july/10#sthash.926B1LK0.dpuf

ARINSA ANNUAL GENERAL MEETING 2015

The ARINSA Annual General Meeting held in Pretoria, South Africa from 2 to 3 July was a mind blowing experience for the approximately 60 members from 14 countries who attended.

Adv. Shaun Abrahams, the recently appointed National Director of Public Prosecutions of South Africa gave the opening address highlighting the significance the ARINSA network has in putting prosecutors and investigators in contact with counterparts in member countries and with colleagues in the other asset recovery networks worldwide.

Adv Abrahams noted that "Asset forfeiture is a major weapon against crime with the major advantage that it begins to take the profit out of crime and use it to fight the crime”. Adv. Abrahams added that to effectively deal with crime, networks like ARINSA need to be established and to be fully operational.

Frederic Raffray, the president of the Camden Asset Recovery Inter-Agency Network, (CARIN) added that they are proud to be associated with ARINSA and that continuous learning from each other's experiences was key to growth of all networks. 

The AGM welcomed Angola, Madagascar and, Mozambique to the meeting and it was noted that Seychelles had expressed an interest in joining ARINSA.

The new ARINSA website, https://arinsa.org was launched and created a lot of interest. This tool will be essential in seizing the proceeds of crime in Africa.

Member states shared experiences and discussed on best practices, possible areas of improvements, setting up Asset Forfeiture Units and the sustainability of the network.

Presentations were also made by Western Union, MoneyGram and TRAFFIC detailing the trends on illegal financial transfers and wild life crime.

Tofik Murshudlu, UNODC  Section Chief in Vienna, gave closing remarks and thanked all present  for all the hard work and encouraged the spirit of information sharing with other networks. 

Kuwait national in court over tortoise haul

KUWAIT national Hussein Ahmed Ally Mansour appeared before the Kisutu Resident Magistrate's Court in Dar es Salaam yesterday, charged with three counts of conspiracy, leading organised crime and unlawful possession of government trophies.

Before Senior Resident Magistrate Frank Moshi, the Kuwaiti who was found in unlawful possession of 173 tortoises was charged alongside a Tanzania Airport Authority (TAA) employee, Jovin Charles Kafumu. The duo were not allowed to enter plea to the charges because their charges fall under Economic Crime Control Act.

The magistrate told the accused persons that they would be able to enter plea to the charges if the matter would be referred to the High Court for trial or upon the Director of Public Prosecutions (DPP) issuing a certificate to authorise the Subordinate Court to hear and determine the matter.

He also informed them that the DPP has issued a certificate to object bail to the accused persons at the moment on the ground that once provisionally released would jeopardise the public interests. Under such circumstances, therefore, the magistrate ordered them to go to remand.

The case will be mentioned on July 13, as investigations, according to the prosecution, have not been completed. It is alleged that between June 1 and 23, this year, in the city, the two accused persons conspired to commit offences of unlawful possession and transportation of government trophies.

On June 23, this year, at Julius Nyerere International Airport in Ilala District, Mansour and Kafumu, who works with the authority as security officer and hence being a public official, jointly allegedly intentionally furthered a criminal racket of unlawful possession and transportation of government trophies.

The prosecution, led by Principal State Attorney Faraja Nchimbi and State Attorney Paul Kadushi, further told the court that on the same day, Mansour was found in possession of 173 tortoises valued at 27,005,300/-, property of the government without a permit from the Director of Wildlife in the Ministry of Natural Resources and Tourism.

Meanwhile, a businessman, Charles Andrew Samila, was arraigned before the same court accused of trafficking a narcotic drug, Heroin Hydrochloride, valued at 79m/-.

ZAMBIA RECORDS CONVICTION UNDER THE FORFEITURE OF PROCEEDS OF CRIME ACT:

Ex-Minister sentenced over K2million (USD 300,000)

The Supreme Court on Tuesday 2^nd June, 2015 upheld the two-year jail sentence with hard labour imposed on former minister of labour and social security Austin Liato by the Lusaka Magistrate's Court for possession of K2.1 million reasonably suspected to be proceeds of crime.

Supreme Court judge Mumba Malila sitting in Ndola sentenced Mr Liato to 24 months imprisonment with hard labour for possession of property reasonably suspected to be proceeds of crime. Mr Justice Malila further ordered that Liato's farm number L/Mpamba/44 in Mwembeshi area, and the K2.1 million which was in his possession be forfeited to the State.

Liato was on 23^rd July, 2013 convicted and sentenced to 24 monthsimprisonment with hard labour by the Lusaka Magistrate's Court, which also ordered that his farm and the money, which he had buried on the property, be forfeited to the State but the sentence was later quashed by the Lusaka High Court.

The State appealed to the Supreme Court on the grounds that the High Court erred in law when it held that to prove reasonable suspicion under section 71 of the Forfeiture of Proceeds of Crime Act No. 19 of 2010 (FPCA), the prosecution had to link between the source of money or the accused to possible criminal conduct among other grounds of appeal.

In his judgement, Mr Justice Malila stated that: '' The money was buried underground in a chalet at the convict's farm and the top was sealed with concrete. This raises a lot of questions on whether the money was gotten legitimately. This court holds the view, therefore that the money was ill-gotten as no one would conceal money the way the convict did even if one had lost faith in the banking system in the country''.

The High court judgement was therefore, set aside and uphold that of the lower court. Mr Liato was charged with possession of property suspected to be proceeds of crime contrary to section 71(1) Act number 19 of 2010 of the laws of Zambia.

In November, 2011 in Lusaka the Government Joint Investigations Team (GJIT) comprising the Drug Enforcement Commission (DEC) the Anti Corruption Commission (ACC) and the Zambia Police (ZP) arrested and charged Liato for being in possession of K2.1 million which was reasonably suspected to be Proceeds of crime. Liato served as Minister in the MMD Government which lost power to the current Government in September, 2011.

The judgement is a landmark achievement and sets a precedence in the fight against fraud, corruption and money laundering in my country.

About the FPCA

The FPCA was enacted by the Parliament of Zambia on 16^th April, 2010. Proceeds of crime according to the Act, in relation to a serious offence or a foreign serious offence, means property or benefit that is -

a)wholly or partly derived or realised directly or indirectly, by any person from the commission of a serious offence or a foreign serious offence;

b)wholly or partly derived or realised from a disposal or other dealing with proceeds of a serious offence or a foreign serious offence;

c)wholly or partly acquired proceeds of a serious offence or a foreign serious offence; and includes, on a proportional basis, property into which any property derived or realised directly from the serious offence or foreign serious offence is later converted, transformed or intermingled, and any income, capital or other economic gains derived or realised from the property at any time after the offence; or any property that is derived or realised, directly or indirectly, by any person from any act or omission that occurred outside Zambia and would, if the act or omission had occurred in Zambia, have constituted a serious offence.

Section 71 (1) Act 19of 2010

71. (1) A person who, after the commencement of this Act, receives, possesses, conceals, disposes of or brings into Zambia any money, or other property, that may reasonably be suspected of being proceeds of crime commits an offence and is liable upon conviction to--

a)if the offender is a natural person, imprisonment for a period not exceeding five years; or

b)if the offender is a body corporate, a fine not exceeding seven hundred thousand penalty units.

(2)It is a defence under this section, if a person satisfies the court that the person had no reasonable grounds for suspecting that the property referred to in the charge was derived or realised, directly or indirectly, from any unlawful activity.

(3)The offence under subsection (1) is not predicated on proof of the commission of a serious offence or foreign serious offence.

SOURCE: THE ZAMBIA DAILY MAIL

THE FORFEITURE OF PROCEEDS OF CRIME ACT 19 OF 2010

PLEADS GUILTY TO LAUNDERING K4.2bn, CASHGATE

Malawi - 16 June 2015. Business person and former People's Party senior member Oswald Lutepo has been convicted on his own plea of guilty on charges of money laundering and conspiracy to defraud government of K4.2 Bn between April and September 2013.

Following his plea in High Court in Zomba yesterday, Lutepo becomes the seventh person to be convicted on Cashgate-related charges since arrests began in 2013.

His lawyer, Oswald mtu** and Ministry of Justice and Constitutional Affairs spokesperson Apoche Itimu confirmed the development in seperate interviews yesterday. Mtu** said his client decided to plead guilty to save the court's time and resources at the commencement of the trial. Said Mtu** "It is true that he [Lutepo] has pleaded guilty to the charges levelled against him.

Read more in the attached file..