Maravi

Chiluba spent sleepless nights over ZCCM, says Francis Kaunda

Chiluba spent sleepless nights over ZCCM, says Francis Kaunda
By Noel Sichalwe
Thursday March 20, 2008 [03:00]

FORMER Zambia Consolidated Copper Mines (ZCCM) chairman Francis Kaunda on Tuesday told magistrate Edward Musona how former president Frederick Chiluba was spending sleepless nights over the privatisation of ZCCM. Kaunda also named United Party for National Development Hakainde Hichilema as having participated in the privatisation process when he headed a committee that was disposing of subsidiary assets.

This is a matter in which Kaunda, 70 and former Access Finance director Faustin Kabwe are charged with conspiracy to defraud. It is alleged that in 1998 Kaunda, as chairman of ZCCM privatisation, abused his authority by offering ZCCM Ndola Primary School to Ndola Trust School, an act that was prejudicial to the interest of the Republic of Zambia.

On the second count, Kaunda and Kabwe are jointly charged with conspiracy to defraud. Both have been found with a case to answer and have now started their defence.

In his defence led by lawyer Frederick Mudenda, Kaunda said after graduating from Howard University in Washington DC with a degree in economics and political science in 1966, he joined the government at Cabinet Office as senior principal.

Kaunda said in 1974, former president Kenneth Kaunda appointed him managing director of the Nchanga Consolidated Copper Mines Limited (NCCM). He said in 1981, two state companies, NCCM and Roan Copper Mine, were merged and he was appointed as chairman and chief executive of ZCCM.

“In all, I was chairman and chief executive of ZCCM for 10 years and was removed without reason or giving me an explanation when there was change of government in 1991. Overall, I was at the helm of the Zambian mining industry for nearly three decades,” he said.

Kaunda said after the MMD came to power, he was retired and that it took two years to be paid his retirement benefits.

“After my retirement, I got a surprise call from State House. I went but I didn’t know why I was being called. I was informed by the second Republican president Dr Frederick Chiluba that he was having sleepless nights concerning the privatisation of ZCCM.

It was early March 1997,” Kaunda said. “The president asked me if I could assist and I suspected why he asked that question because I was not well treated when I left office.

As a patriot, I replied that I would assist. When I left the president’s office, I didn’t know that in fact I was going to be appointed as chairman of the privatisation team. On 11th March 1997, I received a letter of appointment from the president and he gave two reasons why I was appointed. One was that my knowledge on the mining assets and also my credibility with the investors in the mining industry.”

Kaunda said during the transformation plan of 1998, the ZCCM privatisation team formed three groups.

He said the first group to sale core assets was headed by Norman Mbazima and John Patterson, the second group for sale for subsidiary assets was headed by Hakainde Hichilema while the third group to dispose of miscellaneous items was headed by Mwila Lumbwe.

“During my career, I handled huge sums of money but my integrity was never questioned,” he said.

Hearing continues on March 20.

Labels: CHILUBA, FRANCIS KAUNDA, HAKAINDE HICHILEMA, MINING, PRIVATISATION, UPND, ZCCM-IH

posted by MrK @ 3:57 PM