Maravi

K2.1bn didn't pass through Liato's accounts - witness

K2.1bn didn't pass through Liato's accounts - witness
By Maluba Jere
Wed 25 Jan. 2012, 13:58 CAT

A WITNESS has told the Lusaka magistrates' court that investigations conducted on Austin Liato's bank accounts revealed that the K2.1 billion unearthed from his farm did not pass through any accounts. And the court overruled an objection by defence lawyers to admit into evidence the K2.1 billion.

Meanwhile, principal resident magistrate Aridah Chulu has set March 30, 2012 as the date for ruling on whether or not Liato has a case to answer in the matter involving K2.1 billion.

Isaac Musonda, an assistant investigations officer at the Drug Enforcement Commission testified that he carried out bank searches to analyse and see whether the K2.1 billion found at the former labour minister's farm passed through his accounts.

Musonda said after analysing the bank statements from banks where Liato holds personal accounts, he found that cash inflow and outflow did not show any transactions involving K2.1 billion.

This is in a matter where Liato is charged with possession of property suspected of being proceeds of crime contrary to section 71(1) of the forfeiture of proceeds of crime Act number 19 of 2010 of the Laws of Zambia.

It is alleged that Liato on November 24, 2011 in Lusaka, possessed and concealed money at his farm number L/Mpamba/44 Mwembeshi amounting to K2.1 billion reasonably suspected on being proceeds of crime.

In examination-in-chief led by Director of Public Prosecutions Mutembo Nchito, Musonda testified that following his investigations, he was not satisfied with his findings and so he warned and cautioned Liato who elected to remain silent.

He said at the start of the investigations, he went to the Ministry of Lands to verify the owner of the land where money was unearthed and that he was issued with a printout stating that the property in question belonged to Liato.

"Subsequently, I made up my mind to formally charge and arrest the accused," he said.

"…I issued a notice of seizure to the accused person which indicated the total amount of money found at his farm and other properties that were found. He acknowledged receipt by signing the document and I gave him a copy to that effect."

In cross-examination, Musonda maintained that his investigations and searches on Liato's bank accounts revealed that there was no transaction showing a lump sum of K2.1 billion.

He named the banks he conducted searches on as Zanaco, Manda Hill branch, Indo Zambia Bank, Investrust and Finance Bank in Kaoma.

Musonda told the court that he restricted himself to conducting searches at banks because that was the only way to establish a trail of that money; as such, huge sums were expected to pass through the banks.

He further said he charged Liato with the subject offence because of the way the money was concealed and that Liato failed to give an account of that money.

Musonda added that although Liato has a right to keep money in any way he deems safe, the investigators were convinced that the K2.1 billion was a proceed of crime because of the way it was concealed, saying it did not show legitimacy.

"I do not agree that the money was there for safekeeping because it was my first time to see it buried like that," he said. "To my knowledge, there was something suspicious for the money to be buried in that manner."

Asked by defence lawyer Mutemwa Mutemwa whether there was a law in the country that prohibited a person from keeping money anywhere other than at the bank, Musonda said there was no such law but that the act of burying money underground raised suspicion.

He also said he established Liato's sources of income for the last 10 years by looking at his pay slips, the gratuity he got from the National Assembly and possibly proceeds from his lodge.

He added that the officers led Liato's workers to where the money was buried after they received information that there was money buried there.

And another witness testified that she was part of the investigating team that went to Liato's farm and dug out the K2.1 billion.

Chipezana Phiri Banda said her role in the investigation was to receive and record any items that would be found during the search at Liato's farm.

Banda said the money was found under two concrete slabs and later taken to the Bank of Zambia (BoZ) for safe custody and that it was also counted and verified there.

When Banda told the court that she wanted to have the money admitted as part of her evidence, the defence objected on grounds that the witness had not given sufficient description of the actual money she allegedly received, saying the money before court could be just any other money.

Moses Chitambala submitted that Banda had given sufficient description of the money to enable the court distinguish it from any other money that may be in the possession of the BoZ.

"It is very clear from this witness' evidence she has not had full custody of the money subject to these proceedings now before court," Chitambala said. "It is important and in the interest of justice for the witness to lay a sufficient foundation before money is produced."

And Mutemwa submitted that sufficient foundation must be laid before an intended exhibit is admitted into evidence.

"This witness has not even said how the money was packed and how many bundles in the first safe box…these are ingredients essential to distinguish this money the witness was talking about from any other money," Mutemwa said. "I submit that it is not as a matter of conjecture but on the proof of the identity of money that the intended exhibit may be admitted in evidence."

He said while the defence did not expect Banda to recite all the serial numbers on the notes, she was expected to at least have given even one number, saying Liato's liberty was at stake and the court should be slow to admit evidence which is thin and hazy.

But Nchito argued that the witness had testified that she was present when the money was dug out until it was taken to BoZ for custody.

He submitted that there was no reason of law why the money should not be admitted in evidence.

Ruling on the matter, magistrate Chulu said it was on record that the issue of money being dug out from Liato's farm was not in dispute.

She said it would be unreasonable for the money to be serialised considering that it was huge sums involved.

Magistrate Chulu said in the absence of any tampering of the money, it was the same money that was found at the farm and later safely secured at BoZ.

She then admitted the money in evidence and marked it.

In cross-examination, Banda said Liato was not at the farm when the officers went to search and when contacted to ensure he was present during the search, Liato told the officers that he was in Kaoma and would only be at the farm around 21:00 hours.

Banda who denied assertions that the amount dug out was K2.7 billion said the team could not wait for Liato to get back since his caretakers were present and due to the nature of the case.

She said no one had lodged any complaint to the effect that K600 million had not been accounted for.

Labels: AUSTIN LIATO

posted by MrK @ 2:27 PM