Nyoni narrates how he traced funds Chiluba allegedly paid to his....
Nyoni narrates how he traced funds Chiluba allegedly paid to his....By Noel Sichalwe
Thursday August 30, 2007 [04:02]
ANTI-Corruption Commission (ACC) chief investigations officer Trevor Nyoni yesterday told Lusaka deputy High Court registrar Jones Chinyama how he traced about US $189,000 public funds from Zamtrop account which Chiluba is alleged to have paid out to his children.
This is a matter where former president Frederick Chiluba is charged with theft of about US $488,000. He is separately charged with former Access Financial Services Limited (AFSL) directors Faustin Kabwe and Aaron Chungu.
Nyoni, 40, said in 2002, he was tasked to investigate the alleged theft of funds from Zamtrop account which was operated by the Office of the President Special Division. He said his investigations related to money paid out from the Zamtrop account for the benefit of Chiluba's children. He said among the amounts involved were US $123,989, US $27,996 and US $33,000.
He said after concluding investigations, he interviewed Chiluba who opted to remain silent. He said on September 13, 2004, he then charged Chiluba with theft of public funds and later released him on bond.
Meanwhile defence lawyer John Sangwa continued with the cross-examination of ACC senior investigations officer Vincent Machila.
Machila said he was aware that lawyer Eric Silwamba's house in Roma was initially registered in the name of Zamdaell Limited. He, however, said he never found out the connection between Chiluba and Zamdaell Limited.
Sangwa then showed Machila the print out from lands register indicating that Silwamba was buying the house from Zamdaell at K180 million. Sangwa asked why Silwamba was buying a house which is alleged to have been given to him by Chiluba.
In response, Machila said the process was merely of registering the house in Silwamba's name.
Sangwa further produced a print out from the lands register indicating that lawyer Vincent Malambo's Kabulonga house was initially assigned by Zamdaell Limited to Mum's Delicatessen at the cost of US $148,000.
But Machila said Malambo told him that Chiluba gave him the house as remuneration and that the transaction was handled by AFSL.
Machila further said the US $50,000 in contention was credited to Zamdaell account and that the account was later debited and sent to Standard Chattered Bank.
Machila also said about K160 million was further debited from Zamdaell to United Bank of Zambia that went towards the purchase of Silwamba's house in Roma.
He said his investigations showed that AFSL purchased Silwamba's house on behalf of Zamdaell. He said AFSL was in the business of buying of properties on behalf of clients.
However, Machila said he did not establish where the properties that AFSL had bought on behalf of clients were located because his focus was on the houses for Malambo and Silwamba.
He said there was a relationship between Zambia Security Intelligence Service (ZSIS) and AFSL though he was aware that they were working together.
Machila further expressed ignorance of a letter that Faustin Kabwe wrote to ZSIS director general Regis Phiri regarding the money that AFSL was managing for the intelligence.
According to the letter dated May 13, 2002, Kabwe told Phiri that he wanted to know the level of informal relationship between AFSL and ZSIS that would be adopted in managing their finances.
Kabwe noted that the ZSIS was indebted to the sum of K250 million over a house they purchased on behalf of ZSIS in Kalundu.
"As you know our relationship was informal and we accepted the confidentiality that was there," he said. "You have to intimate your wish and advise on the level of formality you wish to apply in future relationship."
However, Machila said this was the first time he was seeing the letter. He said he did not establish that there was a house in Kalundu ever since investigations started in June 2002.
Asked whether President Mwanawasa specified the theft of the money as alleged in the charges against the trio, Machila said President Mwanawasa mentioned about the Zamtrop account in general.
Sangwa then produced the resolutions of Parliament that led to the removal of Chiluba's immunity and asked whether Chiluba was supposed to be charged in his individual or official capacity.
Machila said Chiluba was supposed to be charged in his personal capacity. At this stage, Sangwa wondered why Machila charged Chiluba with theft by public servant instead of being charged in his individual capacity.
In further cross-examination by Robert Simeza, Machila said he collected the documents on which the financial analyst's report was based from ASFL. He said he collected the documents that could assist him in his investigations and that his attempt to be assisted by Chungu and Kabwe failed.
Machila said after collecting the documents, he engaged a financial analyst Maulu Hamunjele to conduct a forensic audit before coming up with a report.
He said it was possible to interpret the documents he collected subjectively depending on surrounding circumstances and that there might have been documents he left out that could have shed more light on the matter.
Machila also said Chiluba never played any role in the transfer of money from the Ministry of Finance to Zamtrop account.
In re-examination by prosecutions lawyer Mutembo Nchito, Machila said Xavier Chungu was involved in running the Zamtrop account but that he could not remember everyone involved. He said his investigations were thorough and that he conducted about three searches for documents at AFSL. He said he made various inquiries from officers at AFSL to assist him with documents to support the investigations.
Machila said the focus of his investigations was on how Chiluba used government money to pay legal fees to his lawyers who represented him in the 1996 presidential petition.
He also Malambo and Silwamba never produced any receipts top show that they purchased the houses alleged to have been given by Chiluba.
Machila further said Zamdaell Limited was associated with ZSIS. He said Xavier Chungu was involved in perpetrating the crimes he was investigating and that was the reason why Chungu could not help him in his investigations.
Machila reiterated that about US $175,000 was paid to purchase Silwamba's house while US $148,000 was spent on Malambo's house.
Hearing continues today.
Labels: ACC, CHILUBA, CORRUPTION, COURTS, TREVOR NYONI, ZAMTROP
posted by MrK @ 4:35 AM
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