Maravi

Chiluba goes for KK, LAZ vice-chairman

Chiluba goes for KK, LAZ vice-chairman
By Bivan Saluseki and Noel Sichalwe
Tuesday May 15, 2007 [04:00]

SECOND Republican president Frederick Chiluba has requested Dr Kenneth Kaunda not to issue unguarded statements designed to heighten emotions over his London judgment. And Chiluba has accused former president Dr Kaunda of fraud and corrupt practices as contained in businessman Andrew Sardanis' book, which according to Chiluba, discusses the loss of US $250 million in 1973 through the abrogation of mining agreements, and ZIMCO bonds issued thereafter. But Dr Kaunda said he would only respond to Chiluba's accusations tomorrow.

Meanwhile Sardanis said Chiluba had got his figures wrong and urged him to read the book again, saying, "Morality I was brought up with is that you don't kick a man when he is down. I shall make no further comment."

Reacting to Dr Kaunda's advice that he should be remorseful for stealing from Zambia, Chiluba said it was not strange that Dr. Kaunda had always joined forces that raised a smear and sustained campaign against him. Chiluba requested Dr Kaunda to read Matthew 7:1-4 which he (Chiluba) quoted and read: "Do not judge or you will be judged. For with what judgment you judge you will be judged. And with the measure you use, it will be measured to you. Why do you look at the speck in your brother's eye, but not consider the plank in your own eye? Hypocrite! First remove the speck from your own eye, and then you will see clearly to remove the speck from your brother's eye."

Chiluba said the fact that he did not publicly expose corruption allegedly involving Dr. Kaunda was not a sign of weakness but an acknowledgment of the immense responsibility he held as head of state to safeguard national interest and stability rather than perform to the gallery. He said he passed the former Presidents Benefits Act of 1993 to cater for the welfare of former heads of state, as Dr Kaunda had not prepared for his and other leaders' retirement. Chiluba said the assertions that Dr Kaunda's benefits were never given to him were a total lie as his benefits were only briefly suspended in 1996-1998 when he held partisan office as UNIP president contrary to the provision of the law.

"It is for this reason that we request Dr Kaunda not to issue unguarded statements that are merely designed to continue to heighten emotions over this judgment. It is however not strange that Dr. Kaunda has always joined forces that raise a smear and sustained campaign against me to fulfil their hideous agenda," he said.

Chiluba requested Dr. Kaunda to read Andrew Sardanis' book, which discusses the loss of US $250 million in 1973 through the abrogation of mining agreements, and the ZIMCO bonds issued thereafter. "According to this book, Dr. Kaunda played a dirty but backroom role, showed no inclination to investigate even after having been warned of the impending fraud pages 266-263, to ensure that his friend Tiny Rowland of Lonrho benefited from the early redemption of the ZIMCO bonds. In 1973, Zambia further lost another vast sum of US $100 million in the TIKA Steel Works project, TIKA standing for Tito and Kaunda, in Solwezi. All studies attribute to the beginning of the serious economic decline of Zambia to 1973. We should include among other factors these major frauds," he said.

"There are other serious acts of fraud and corruption in Dr. Kaunda's government. The Thomas Alexander Wood, commonly known as the TAW scandal, over the order and paid-for industrial trucks that were never received. The direct agents of Dr. Kaunda did this."

Chiluba said his administration recovered a sum of over US $7million from a total sum of US $14million allegedly paid by Dr Kaunda to an Italian confidence trickster. "This Italian conned the country through Dr. Kaunda when he was paid to supposedly get loans to finance development programmes since the country was reduced to discredited levels and could not get loans from accepted international institutions," he said.

Chiluba also attacked Law Association of Zambia (LAZ) vice-chairman Stephen Lungu for his statement that the judgment could be re-enforced in Zambia. But Lungu said Chiluba was expressing his opinion.

In his attacks, Chiluba said it was regrettable that Lungu had recently issued numerous statements in various media outlets including The Post that were poor in facts and seemed not to be founded in law.

"The statements have shown wanton carelessness and only go to display opportunism. It is regrettable that Mr Lungu is abusing the respected platform of LAZ to make such unpalatable and poorly researched statements. He seems to be broadly excited with his new role at LAZ," he said.

"In fact the statements border on misconduct and we hope are not the genuine reflection of LAZ council on this matter. LAZ has a statutory and unique responsibility to our country and its position on any legal matter should not serve to mislead our people but help guide citizens to form informed views."

Chiluba said the court had given defendants 28 days in which to appeal if they were not satisfied with the ruling. "Further the Court will be sitting on Friday June 8, 2007 to assess exact monies defendants are liable to pay and ascertain other costs associated with the case. Unless otherwise, we do not see how LAZ expects the Attorney General to register a judgment whose assessment has not even be done," he said.

Chiluba said he was considering the various options available to him regarding the judgment delivered by Justice Peter Smith in the London High Court. But Lungu said he still stood by his earlier statement that the London High Court judgment could still be enforced in the Zambian courts.

Lungu said LAZ position on Chiluba's liability to pay about US $41 million was based on the reflection of the London High Court judgment. "On the other things he has said about LAZ, I have no comment because he was just expressing his opinion," said Lungu.

Chiluba said his press conference sought to clarify issues relating to the judgment and its findings. He said he had not defended himself as claimed but had never been given an opportunity to do so. Chiluba said he was not given an opportunity to defend himself in Parliament when his immunity was lifted and the matters moved to court and were now before the Lusaka Magistrate Court. Chiluba rejected 'the so-called golden opportunity' given by Justice Smith to defend himself on account of jurisdiction.

He said he had not recognized that Justice Smith was the only legitimate and available forum to rebut the allegations raised by President Mwanawasa in 2002. Chiluba said he was optimistic that an ideal forum would be accorded to him to defend himself.

Judge Smith established that Chiluba and others defrauded Zambia a total of US $ 41 million through the BK Facility and Zamtrop Account in London. Judge Smith ordered Chiluba and others to pay about 85 per cent of the total sum within 14 days upon service. The London court upheld the claim by the Attorney General of Zambia and has found Dr. Chiluba and others liable and has ordered that defendants compensate or account for a total amount of approximately US $41million.

The Attorney General, can register the Judgment using the provisions contained in Foreign Judgments Reciprocal Enforcement Act. Chiluba breached his fiduciary duty owed to the country and gave dishonest assistance in the Arms Sale (B.K. Facility) and he is therefore liable to pay US $20.9 million.

According to the judgment, Chiluba caused others to act in breach of their powers and authority, that in this case, he caused (through Eric Silwamba- presidential affairs minister at the time) a Facility Agreement to be signed between James Mtonga- secretary to the treasury- on behalf of government and Raphael Soriano.

But Chiluba said as Republican president, he was not involved in the awarding of contracts and was never privy to the awarding process.

Chiluba denied that he caused any official to act in breach of their powers or authority.
He has maintained his rejection of the judgment and said it was a default judgment.
Chiluba said he had not appeared before the London court except to only contest the jurisdiction of the court.

"Zambian defendants opposed this claim and retained an English solicitor Edward Keazor to contest the jurisdiction of the London High Court in these matters and disputed the forum sought by the Attorney General of Zambia. The application was to persuade the court to reject the Attorney General's claim and order him to direct and bring such an action to the Lusaka High Court.

Justice Smith later dismissed the application and ruled that the London High Court had jurisdiction on this matter and the Attorney General was properly before his court," Chiluba said.

"The Zambian defendants sought to appeal to the Appeals Court. To grant an application to appeal, Justice Smith ordered, and gave what is called an Unless Order that the defendants enter some form of defence or assertions against the claim to enable him proceed with the trial calendar while the defendants pursued an appeal."

Chiluba said relating to the defence, he and others entered in on February 13, 2006 it was a layman's defence and was merely to satisfy the process of appeal in the Appeals Court against the jurisdiction.

He said he had not defended the substance of allegations.

Chiluba said the defendants petitioned the Lusaka High Court to compel the Attorney General to discontinue the proceedings in London on account of lack of jurisdiction and the matter had not been determined and remained before Judge Mwanamwambwa.

Chiluba claimed the judgment had stated and recognized him together with other defendants that they had not participated in the proceedings and the defence entered on February 13, 2006 did not qualify to be a legal defence as it was not supported by witness statements and participation.

Labels: ANDREW SARDANIS, CHILUBA, CORRUPTION, KENNETH KAUNDA

posted by MrK @ 4:10 PM