'AFSL made transactions for ZSIS without keeping records'

'AFSL made transactions for ZSIS without keeping records'
By Laura Mushaukwa
Friday July 11, 2008 [04:00]

A BANK of Zambia (BoZ) inspector Joseph Munyoro yesterday testified that Access Financial Services Limited (AFSL) made many cash payments on behalf of Zambia Security Intelligence Services (ZSIS) without keeping records of such transactions. And Munyoro testified that the ZAMIN Account that AFSL management told him was a ZSIS account operated off the system.

This is in a case before High Court deputy registrar Edward Musona sitting as magistrate where former finance minister Katele Kalumba, former Ministry of Finance permanent secretary Stella Chibanda, former director of budget Boniface Nonde, former chief economist Bede Mphande, former secretary to the treasury Professor Benjamin Mweene, former AFSL directors Faustin Kabwe and Aaron Chungu are facing corruption charges.

During re-examination led by prosecutions lawyer Mutembo Nchito, Munyoro explained that there were no records at AFSL to show the transactions that the company made on behalf of ZSIS.
He further explained that during his inspections, he never came across any documents to explain or establish any relationship between AFSL and ZSIS.

On the ZAMIN Account, Munyoro said it was not part of the ordinary accounts kept at AFSL as it was not part of the general ledger.
He added that no accounting principles allowed the keeping of off-system accounts and that the accounting system was based on a double entry system of debit and credit transactions.

Munyoro told the court that the ZAMIN Account had no opening balance or running balances.

He testified that he did not find a mandate for the ZAMIN Account.
But earlier in cross- examination by one of the defence lawyers, John Sangwa, Munyoro told the court that there was a business relationship between AFSL and ZSIS.

He testified that the aim of the inspections he conducted at AFSL was to determine the financial condition of AFSL and the aim of the inspections changed following the allegations of theft against the then directors of AFSL.

Asked whether he shared the information of the change in his plan with the AFSL directors, he replied that he did not do it directly.
Munyoro testified that there was no evidence of any relationship between AFSL, Systems Innovation and Wilbain Incorporation and that there was no evidence of any relationship between the AFSL directors and the companies in question.

In cross-examination by Professor Patrick Mvunga, Munyoro said according to what was indicated to him by AFSL management, the ZAMIN Account was a ZSIS Account but it was given a fictitious name to protect the identity of their client.
Trial continues today.