Chungu instructed me to disguise ZSIS investments - Kabwe

Chungu instructed me to disguise ZSIS investments - Kabwe
By Noel Sichalwe
Monday May 19, 2008 [04:00]

ACCESS Financial Services Limited (AFSL) chief executive Faustin Kabwe has said former intelligence chief Xavier Chungu instructed him to disguise various investments through his institution. This is a matter where former president Frederick Chiluba is separately charged with directors Kabwe and Aaron Chungu. Chiluba is charged with theft of about US$488,000.

Kabwe told Ndola High Court deputy registrar Jones Chinyama, who is sitting as trial magistrate in Lusaka that Chungu funded several investment projects through AFSL that were meant to raise money for the Zambia Security Intelligence Service (ZSIS).

He said Chungu had created an investment holding company called Zamdael, which had several investments for ZSIS.

Kabwe said the shareholding for some ZSIS companies were in his name and that of Aaron Chungu, though the assets were under the management of ZSIS.

He said when he asked why they needed to disguise ZSIS property, Chungu responded saying that was how the intelligence operated worldwide.

Kabwe said among the investments established was the estate business through the purchase of houses in Lusaka's Kabulonga area, Siavonga and other parts of the country.

He said one of the investments was in local flats known as 12G Roan Road in Kabulonga from Lonrho Zambia Limited. He said Lonrho was selling a number of its properties in Zambia and Chungu decided to purchase some of them through ZSIS.

Kabwe said the funding for the acquisition of 12G Roan Road was provided by Chungu through off-shore sources and were routed through London lawyers.

"Our role was negotiating purchasing consideration with Lonrho's representatives in Zambia and ensuring that once the settlement between the parties had occurred, Access Financial Services Limited would assume the management of this property," he said. "This property comprises a number of flats. It became the role of Access Financial Services Limited to ensure that the flats were rented out, rentals collected, funds properly accounted for to the beneficial owners of the property, in this case the Zambia Security Intelligence Service through Mr. Xavier Chungu.

Additionally Your Honour, as with any property investment, it was the role of Access Financial Services Limited to look after the general upkeep of the property in order to preserve its value and enhance returns, always acting as the client instructed."

He said when the rentals were received, they were duly banked and statements of income and expenditure were prepared and reviewed.
'Those funds were invested so that they could return revenue for the client," said Kabwe.