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(DAILY MAIL ZM) Ex-ruling party illegally printed dud money, reveals Sata

Ex-ruling party illegally printed dud money, reveals Sata
SATA_ANNOYED2
By DEAN MWAANGA

THE ‘sins’ of the past seem to be catching up with the MMD while in government with revelations that former President Rupiah Banda’s administration illegally printed money using two unnamed printers apart from the official Thomas De La Rue.

President Sata revealed yesterday that the illegal money is in circulation and is also being used to antagonise and dilute the effect of the Patriotic Front (PF) government.

He expressed disappointment with Secretary to the Cabinet Joshua Kanganja and his deputy Evans Chibiliti for not informing the new government about the printing of new Kwacha notes.

“Mr Chibiliti worked at the Bank of Zambia and we have been in government for more than two months. Mr Chibiliti and his Secretary to the Cabinet have not been kind enough to let us know that the previous government illegally printed money from two other printers apart from De La Rue and this money is circulating,” Mr Sata said as the seemingly bemused pair of Dr Kanganja and Mr Chibiliti looked at each other.

Mr Sata made the revelation during a swearing-in ceremony for three deputy ministers and three other members of the technical committee set up to draft a new constitution.

Efforts to get a comment from former Bank of Zambia governor Caleb Fundanga and former Finance and national Planning minister Situmbeko Musokotwane failed.

Last week, the Bank of Zambia issued a statement in which it confirmed that it offered a contract to a German firm, Giesecke and Devrient GmbH (G and D), to print the Kwacha for 2010- 2012.

There is also Sabn printing Kwacha notes in Zambia.

Premier Consult executive director Oliver Saasa said governments can inappropriately print money through deficit financing but said the exercise can be costly to the economy if the money is left to circulate for a long time.

Professor Saasa said more money in circulation triggers inflation.

He said the money in circulation should be equivalent to gold and diamond in reserve at the Bank of Zambia.

“If you leave it longer in circulation it triggers inflation because it disturbs the equilibrium of money in supply,” Prof Saasa said.

He said countries like Argentina and Brazil ended up with crises 20 years ago because of over-printing money in an economy.

Prof Saasa said in Africa, Uganda experienced a similar problem because of the problem caused by having more money chasing few goods.

The deputy ministers sworn in are for Agriculture, Brigadier-General Benson Kapaya, David Mabumba for Education and Dr Mutaba Mwali for Transport, Works, Supply and Communication.

Dr Rodger Chongwe, Council of Churches in Zambia secretary-general Reverend Suzanne Matale and Father Ivis Chituba were sworn in as members of the technical committee set up to draft the new republican Constitution.

The President accused his predecessor of appointing a committee of three chiefs who are going round the country to “antagonise and dilute the effects of the PF government using the fake money.”

Mr Sata, who did not name the chiefs, said Government is aware of their activities and where they are.

“We don’t want to make noise because we are following them; wherever they are, we are also there. We know what they are doing,” the President said.

Mr Sata said instead of going round to look at the benefits of traditional leaders, the three chiefs are trying to disturb the works of Government and warned that they risk contravening the Chiefs Act.

“What they should do is to hire privately Rodger Chongwe to assist them understand what the law concerning the Chiefs Act says and what they are risking. I congratulate them for being appointed and using fake money.

“We know where they are, we know the chiefs they have met and we know who they are meeting today. And those chiefs they have met are coming to tell us,” he said.

House of Chiefs chairperson, Chief Madzimawe wondered why former President Banda would appoint a committee to go round the country and destabilise Government.

“He had his time (and) now it’s Mr Sata’s time to govern,” he said.

Chief Madzimawe denied involvement in any scheme to discredit the PF government, saying all well-meaning chiefs would not want to antagonise a serving Government.
He called for an investigation so that those involved are exposed.

At the time of the interview, Chief Madzimawe said he was in Nyimba on his way to Chipata from Lusaka where he attended an HIV and AIDS workplace policy organised by the International Labour Organisation.

Chief Madzimawe said President Sata should have named the chiefs involved.
And Mr Sata said his appointment of committees is backed by law which empowers him to do so.

He told the deputy ministers who were sworn in to respect their ministers, warning that the PF will go to their constituencies and discredit them if they fail to heed his advice.

“If you don’t respect the ministers you are working with, then you don’t respect your constituencies and if you don’t respect your constituencies, we are going to storm your constituency and disown you,” he warned.

Labels: CORRUPTION, EVANS CHIBILITI, JOSHUA KANGANJA, MICHAEL SATA, MMD

posted by MrK @ 9:16 AM