Union President Dr. Evelyn Nguleka and Executive Director Ndambo Ndambo were arrested following audits from KPMG and EMM Corporates.
And ZNFU President Evelyn Nguleka has tendered in her resignation following the developments.
Dr Nguleka has also stepped down as President of the World Farmers’ Organization (WFO).
ZNFU Spokesman Kinsley Kaswende said Dr Nguleka has stepped down in order to prepare for the upcoming court case regarding allegations of misapplication of funds at ZNFU.
“Constitutionally, ZNFU First Vice President Mr Richard Lisimba will act in Dr Nguleka’s capacity. ZNFU will henceforth be restrained to give further comment on the matters, as they will now be before court,” Mr Kaswende said.
She has thanked the government, the farmers and the agricultural industry in Zambia and outside, for the good working relationship she has had with them and that she now looks forward to the full process of the law to take its course.
Dr Nguleka further wished ZNFU well in its future endeavours.
Both Embassies of Finland and Sweden in Lusaka commissioned separate forensic audits that exposed extensive fraud, embezzlement and theft of over K34 million at the farmers institution.
The donors have since with-held further funding and demanded criminal prosecution of the culprits and demanded a refund as the money was from tax payers in their respective countries.
Deputy Head of the Swedish Embassy David Wilkins disclosed that the second audit by KPMG confirmed the high level misappropriation, fraud and theft of their funding to the institutions.
Instead of funds going to farmers, the resources were diverted to unauthorised expenditure of inflated personal allowances, and contracts designed to be vehicles of fraud and theft.