Maravi

Negative press reports made BoZ close my companies, claims Kabwe

Negative press reports made BoZ close my companies, claims Kabwe
By Inonge Noyoo
Tuesday July 22, 2008 [04:00]

ACCESS Financial Services Limited (AFSL) chief executive Faustin Kabwe yesterday claimed that the Bank of Zambia’s decision to close his two companies arose from negative press articles. 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 BoZ’s inspection of AFSL and Access Leasing Limited (ALL), which resulted in the liquidation of the two companies, was not objective.

He said as director, he was not aware of the real intentions behind the inspection until after a decision had been taken by the central bank to liquidate the two companies.

Kabwe said the negative press articles concerning the matrix of plunder created anxiety in the country and had donors, civil society, churches and general public clamouring for action against the alleged plunderers.
He said the press reports even caused President Levy Mwanawasa to address a special session of Parliament regarding the allegations.

Kabwe said the reports in the finding were a complete departure of findings in previous reports.

He said there was no explanation from Bank of Zambia (BoZ) as to why there was such a radical departure in the findings.
Kabwe said the decision taken by BoZ to liquidate the two companies was in reaction to the sustained press propaganda against the companies and to find a way of justifying the allegations.

He said the whole inspection exercise was a fault-finding exercise as opposed to the normal inspection that would involve dialogue between the inspectors and the managers of the company as in previous cases.

Kabwe said the inspection was not objective and was tailor made to support extremely aggressive and sustained media propaganda against the two companies.

And Kabwe said Leyland DAF appeared in the AFSL records because his company had been requested by former director of Zambia State Intelligence Security (ZSIS) to investigate the possibility of acquiring its properties.

He said it was in the context of ZSIS through AFSL intending to buy Leyland DAF’s properties that it was used in the books of the company for identity.

Kabwe said Chungu later informed him that he had arranged US$80,000 for the acquisition of Leyland DAF properties.

He said AFSL came to the conclusion that it would not be worthwhile for a client to acquire the properties at the price demanded.
Kabwe said consequently, Chungu told him to stop the exercise though he had made arrangements for funds.
Defence continues today.

Labels: ACCESS FINANCIAL SERVICES, BOZ, FAUSTIN KABWE

posted by MrK @ 3:38 AM