Wednesday, March 18, 2009

RP capital MoU was initiated in Dora’s office, reveals PS

RP capital MoU was initiated in Dora’s office, reveals PS
Written by Maluba Jere
Wednesday, March 18, 2009 2:42:33 PM

THE Dora Siliya tribunal yesterday heard that the Memorandum of Understanding (MoU) between the government and RP Capital Partners was initiated in the minister's office.

This is in a matter where former communications and transport minister William Harrington and ten civil society organisations had asked Chief Justice Ernest Sakala to set up a tribunal to investigate alleged corruption and abuse of office involving Siliya.

During examination-in-chief led by one of Harrington's lawyers, Wynter Kabimba, former permanent secretary in the Ministry of Communications and Transport Dr Eustern Mambwe told the tribunal that he had been away from the office but when he returned, he was briefed by the director of planning in the ministry that the MoU between RP Capital Partners and government was initiated in the minister's office.

Dr Mambwe explained that the board of Zamtel had earlier requested the Ministry of

Communications and Transport to assist with the restructuring of the parastatal through the Management Development Division (MDD).

He said the request was granted and a committee was put in place.

Dr Mambwe said when he returned from Tanzania, he conferred with three officials from the ministry because he wanted to be briefed on what had changed regarding Zamtel's request.

He told the tribunal that he accepted the situation after being briefed on the developments because the minister found it prudent that the contract be awarded to another company and not through MDD.

Dr Mambwe said he then wrote an internal memorandum to Siliya on the Attorney General Mumba Malila's advice.

However, Dr Mambwe explained that Siliya wrote to the director of planning to proceed with the processing of the RP Capital MoU and copied the letter to him.

He said he inquired from directors of planning and communication on whether the ministry had reacted to the legal opinion from Solicitor General Dominic Sichinga's office before proceeding with the MoU.

He told the tribunal that there was no reaction from the minister on the second legal opinion on the matter.

Dr Mambwe narrated that he then conferred with his staff and advised them on the legal opinion from Malila that the MoU was a nullity and the process must be stopped.

He told the tribunal that after he learnt that the MoU had already been signed, he called Malila to seek advice because he wanted to find out whether the MoU could still go ahead or not in view of his legal opinion.

Dr Mambwe explained that the Attorney General told him that his legal opinion was still in force until all requisites had been complied with.

He informed the tribunal that he instructed his staff as well as the director of planning to stop processing the MoU until further notice.

Dr Mambwe said he instructed the director of planning specifically because he was the officer responsible in assisting with the drafting of MoUs.

He told the tribunal that he issued those instructions not knowing that the MoU had already been signed.

Dr Mambwe further said he had never seen the MoU and that he was seeing it for the first time yesterday.

He told the tribunal that he was not aware of subsequent discussions between the ministry officials and the Attorney General's chambers leading to the signing of the MoU.

Dr Mambwe said the MoU was not in compliance with Malila's opinion.

He further told the tribunal that all documents relating to expenditure and procurement are supposed to be signed by the permanent secretary who is the controlling officer.

Dr Mambwe said the minister should refer to the permanent secretary all people who approach them for procurement and that the minister should not commit the government to any procurement.

He said as controlling officer, he never met any officials from RP Capital Partners.

Dr Mambwe expressed ignorance on whether the expenditure relating to the RP Capital MoU went to his committee for approval.

He also informed the tribunal that according to the finance Act 15 of 2004, no person representing a ministry department shall enter into an agreement committing the government to pay or receive monies unless authorised in writing by the finance minister.



Dr Mambwe said he was not aware whether that authority was granted by the finance minister.

He further denied working closely with the minister in formulating the MoU regarding RP Capital but that the director of planning may have done so.

Dr Mambwe also told the tribunal that the Secretary to the Cabinet advised the ministry to seek advice from then Zambia National Tender Board (ZNTB) on the procurement process to be undertaken.

He explained that ZNTB advised that the procurement of radars should not be single sourced.

Dr Mambwe informed the tribunal that when the Ministry of Communications and Transport sought advice from ZNTB, it did not have any particular company in mind.

He said National Airports Corporation (NAC) requested that new radar equipment be procured as opposed to repairing the old system.

Dr Mambwe expressed ignorance on whether or not Selex put in a bid after the ministry advertised for the supply of radars.

He told the tribunal that he did not know who made the decision to take out the free offer from Selex.

He said during his time as permanent secretary at the Ministry of Communications and Transport, he never came across any free offer for services.

Dr Mambwe expressed ignorance on whether Siliya had a mandate or authority to engage a tender process in the procurement Act.

He said the ZNTB interacts with the ministry's tender committee chairperson but that if the minister finds something unusual, she could ask the permanent secretary.

Dr Mambwe also said he was not aware whether or not Thales Air Systems was a middleman.

He denied having received information that the tender procedure was being interfered with by Thales Airs Systems. He also denied having any knowledge of Thales engaging in fraudulent practices with other competitors.

Dr Mambwe reiterated that his role as controlling officer is to authorise the procurement of goods and services and that the minister does not play any role.

Hearing continues to today.

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