Maravi

Kabwe admits being well connected to Chiluba's govt

Kabwe admits being well connected to Chiluba's govt
By Inonge Noyoo
Saturday October 18, 2008 [04:01]

ACCESS Financial Services Limited (AFSL) executive director Faustin Kabwe has said he was well connected to government during the reign of former president Frederick Chiluba. And the court yesterday heard that AFSL, Zambia Security and Intelligence Services (ZSIS) and others intended to own 49 per cent shares in Ndola Lime while Daniel Israel, director of Kwachamania, and other foreign investors would own the remaining shares.

This is a case in which Chiluba is separately charged with AFSL directors Kabwe and Aaron Chungu for theft of about US$488,000.

In his cross-examination led by prosecution lawyer Mutembo Nchito, Kabwe agreed to the evidence of Robert Standard in the International Court of Arbitration that he was well connected with government under the presidency of Chiluba.

He said he had various business encounters with Standard in Zambia.

Kabwe said Standard was part of the team that were the preferred bidders for Ndola lime's privatization and were supposed to partner with ZSIS, AFSL and other foreign and local investors in its acquisition.

He said he undertook to interface with local authorities as well as their active support and co-operation on all levels concerning activities of Israel and other investors.

Kabwe said the interface was to allow Kabwe to obtain all required information whether published or not.

He said he also undertook to ensure government protection of interest, positive attitude and co-operation with activities concerning Israel's group.

Kabwe said his company's role was to obtain information published or not that Israel and his foreign partners required from government and other existing companies.

Asked how he was going to manage to obtain unpublished information which could be of interest to Israel and his group when he was just a private citizen, Kabwe said he had a way of getting information from the government of the day whenever he required it.

Kabwe in the memorandum undertook to take all necessary measure to ensure that Israel was granted a license for instant lotto.

Kabwe was also undertaking to provide Israel with published or non published information on other companies wanting to set up lottery business in Zambia and provide proposal from other competing cooperation.

And Kabwe yesterday said according to the memorandum for the acquisition of Ndola Lime, AFSL had made an undertaking that Standard and his team would transfer 100 per cent shares to Israel's group who would in turn transfer the 49 per cent shares to AFSL and ZSIS.

Kabwe said in simple terms, Israel's group comprising multinational entrepreneurs intended to own the majority shares.

Asked if there was any agreement for the US$20 million Ndola Lime acquisition on how it was going to be shared among the parties involved, Kabwe said there was none.

And Ndola High Court deputy registrar sitting as Lusaka magistrate Jones Chinyama has allowed the state to use whatever evidence at its disposal to rebut the evidence of the defence as long as the documents are relevant.

Magistrate Chinyama allowed the state to refer or submit evidence that was used in the International Court of Arbitration as long as it was relevant.

This was after the three accused's lawyer John Sangwa objected to Nchito's use of Standard's evidence deposed in the International Court of Arbitration.

Sangwa objected to the use of statement, saying the prosecution cannot refer to evidence used in a civil matter in a criminal matter.
Trial continues.

Labels: ACCESS FINANCIAL SERVICES, CHILUBA, FAUSTIN KABWE, KWACHAMANIA, ZSIS

posted by MrK @ 4:10 AM