Drone Tax Fraud Scandal: GMX Systems Zambia Convicted in K2.1 Million Case
The Economic and Financial Crimes Court has convicted GMX Systems Zambia Limited and two individuals for customs fraud involving drone imports. The company was ordered to pay over K2.1 million in outstanding taxes and fines for using falsified invoices and making false representations to the ZRA. This case highlights Zambia's intensified efforts to curb tax evasion and ensure compliance with customs laws.
The Economic and Financial Crimes Court, sitting in Chongwe, has convicted GMX Systems Zambia Limited and two individuals, Aminadav Bardavid and Aaron Ngoma, in a significant customs fraud case involving the importation of drones. The court ordered GMX Systems Zambia Limited to pay more than K2.1 million in outstanding taxes, in addition to fines, following the judgment delivered on Friday, October 30, 2026. This conviction sends a strong message regarding the strict enforcement of customs laws in Zambia.
The court found that GMX Systems Zambia Limited imported drones using falsified invoices, leading to an understatement of the goods' value and subsequent lower tax assessments. Furthermore, the company failed to submit the required customs entries to the Zambia Revenue Authority (ZRA), violating the Customs and Excise Act. Prosecution evidence also revealed that Bardavid and Ngoma falsely informed ZRA officials that the drones were intended for GMX Systems Limited in Israel and had been shipped to Zambia in error, when in fact, GMX Systems Zambia Limited was the actual importer of the goods.
For its part in the scheme, GMX Systems Zambia Limited was fined K30,000 on each count, with a warrant of distress to be issued if the fines are not paid. Separately, the company was ordered to remit over K2.1 million in outstanding taxes. Aminadav Bardavid faced more severe penalties, being fined K20,000 on each of 19 counts, amounting to a total penalty of K380,000. He also received a default sentence of 12 months’ simple imprisonment should the fines remain unpaid. Aaron Ngoma was fined K10,000 on each of four counts, totaling K40,000, with a six-month simple imprisonment sentence in default of payment.
In the same case, six other accused persons were acquitted on all charges. These individuals were Jacqueline Ngoma Okhumode, Teddy Nondo, Gary Mushimbwa, Alinjanvwa Bwalya, Ackron Mulela, and Getrude Manda. The ZRA Corporate Communications Manager, Oliver Nzala, confirmed these details in a statement, emphasizing the authority's commitment to safeguarding government revenue.
The ZRA has intensified its surveillance of customs declarations to detect tax fraud and ensure that importers comply with the law. The authority reminds all importers of their obligation to submit accurate customs entries, provide truthful invoices and declarations, and pay all due taxes. This conviction serves as a clear warning that attempts to evade customs duties through false declarations or misrepresentation will be met with stiff penalties, reinforcing the ZRA's dedication to strict enforcement.