Maravi

Inquiry on ZRA annoys Sata

Inquiry on ZRA annoys Sata
By Ernest Chanda
Fri 23 Dec. 2011, 13:56 CAT

ZAMBIA Revenue Authority (ZRA) commission of inquiry chairperson Kingsley Chanda annoyed President Michael Sata yesterday when he failed to give a summary of findings into operations of the institution.

A few days after taking over office in September this year, President Sata constituted a commission of inquiry to investigate and report on the operations of ZRA especially the procurement of scanners.

President Sata in October this year disclosed that there was a scam at ZRA where the institution wanted to pay K4 billion to a "fake" clearing firm operating scanners in Nakonde in Northern Province.

President Sata immediately instructed police and the Ministry of Finance and National Planning to block the payment and investigate any other transactions that could have been made from State coffers to pay the firm.

President Sata said the scanners in Nakonde belonged to Zambians through the ZRA.

"This morning, ZRA was supposed to pay K4 billion to a front of somebody who was in my office but the scanners which are at Nakonde belong to the government of the Republic of Zambia through ZRA," President Sata said then.

President Sata therefore set up the commission to investigate irregularities in ZRA.

Most senior government officials appeared before the committee to explain the awarding of tenders.

The commission heard that contracts worth over US$40 million were single-sourced.

During its sitting, the commission heard that former president Rupiah Banda allegedly arranged for an additional US$ 25m for the procurement of four more scanners.

Acting director for investments and debt at the ministry of finance Michael Mwanga said the idea to procure machine equipment at border posts was initiated by the late president Levy Mwanawasa who entered into a US$100 million government loan with China. Mwanga said the deceased had allocated US$25 million towards the procurement of the four scanners but Banda allegedly re-arranged another US$25 million to procure four more scanners.

But Chanda, who used to be ZRA commissioner general but was fired during Levy Mwanawasa's presidency presented the commission's report to President Sata at State House yesterday kept quiet about the findings and recommendations, opting to go straight into reading the terms of reference before handing over the document to the President.

The visibly-upset President Sata wondered why Chanda was not disclosing the findings and openly rebuked him.

"You said nothing in your speech, there's nothing for me to comment other than to direct the honourable minister of finance to bring the report to Cabinet. He should do a Cab Memo so that we can come and look at it because you are economising on the truth. We don't know why we appointed you," President Sata said.

"And that's why you find some MPs are even refusing to come for interviews. We have a member of parliament who refuses to attend a commission of inquiry because you the commissioners yourselves you are not serious."

President Sata quickly called for the national anthem to be sung, and thereafter walkedout.

And as he walked out, President Sata remarked while pointing at finance minister Alexander Chikwanda: "next time don't recommend such people to me," in reference to Chanda.

President Sata then proceeded straight to his office.

Labels: MICHAEL SATA, ZRA

posted by MrK @ 5:03 PM