Monday, December 19, 2011

Sata insists Situmbeko drew double salaries

Sata insists Situmbeko drew double salaries
By Bright Mukwasa
Mon 19 Dec. 2011, 13:58 CAT

PRESIDENT Michael Sata has insisted that former finance minister Dr Situmbeko Musokotwane drew two salaries at the time he served in government.

In a statement issued by President Sata's spokesperson George Chellah yesterday, on November 14, 2008. When he was appointed minister of finance, Dr Musokotwane received two salaries (from the Bank of Zambia and from the central government) for the period November 2008 to January 2009.

"Dr Musokotwane received a salary of K210,664,558.20, that is K70,221,519.40 per month from the Central Bank, and he further received K40,478,512.10, that is K10,281,069.30 as salary for the month of December 2008 and K30,197,442.80 as salary for the month of January 2009 with arrears of salaries and housing allowance for November 2008, from the government as minister of finance," Chellah said.

"Accumulatively, from this arrangement with the Bank of Zambia, from 1st September 2003 to January 2009, Dr Musokotwane collected a total of about K5.5 billion in form of salaries, leave pay, leave commutation, Christmas bonus and gratuity. This amount is far in excess of the amounts which any officer who has served in the capacity of Secretary to the Treasury in the past and present has ever gotten in a period of four years, three months."

Chellah said although that was approved by the previous government, that excessive payment raised moral issues in terms of equity with regard to the whole of the public sector remuneration and it was quite evident from the foregoing that Dr Musokotwane had no "plausibility to stand on moral high ground".

Chellah said following a number of public pronouncements and accusations, and blatant assailing of the integrity of the Republican President, President Sata, and ministers by Dr Situmbeko Musokotwane, State House had decided to reluctantly clarify the matter of public interest.

Chellah said Dr Musokotwane was employed by the Bank of Zambia as an Advisor-Research in 1991where at some point he requested to get leave of absence of two years at the time he was acting—for administrative convenience—as deputy Governor (operations) in October 1997 when he took up the post of economic advisor to the Minister of Finance.

He said Dr Musokotwane further requested leave of absence to take up a position offered by the International Monetary Fund (IMF) as General Advisor to the Governor of the Central Bank of Swaziland in 1998 and on 8th January 1999, he applied to go on early retirement through Voluntary Early Separation Scheme (VESS) and was separated from the Bank of Zambia with effect from 11th January 1999.

Chellah said payment for his separation package was made to him in December 1999.

"In September 2003, he was appointed as Secretary to the Treasury with an arrangement that he be recruited as an ‘advisor' to the governor of the Bank of Zambia, for purposes of him accessing a Bank of Zambia salary, and ‘seconded' to the Ministry of Finance as Secretary to the Treasury for a period of two (2) years to August, 2005. The public may wish to know that this is a junior position for the Secretary to the Treasury who is the supervisor of the Central Bank as chief controlling officer of the government," stated Chellah.

He explained that the position of advisor is at a level of director at the Bank of Zambia, a position which was below that of deputy governor of the Bank a position which Dr Musokotwane had served in prior to asking for leave of absence.

"He was paid his gratuity by the Bank of Zambia as per the contract he signed with the Bank in August 2005. His contract as advisor to the governor was extended for another two years in June 2005 to September 2007 after which period he was paid his gratuity accordingly. It was further extended for another two years in August 2007, when Dr Musokotwane was re-engaged as special advisor to the President"

Dr Musokotwane has denied the allegation and challenged government to countercheck the payrolls at the bank and government to verify if at one point he got double salaries.


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