Maravi

MMD sues Sichinga over ‘fake money'

MMD sues Sichinga over ‘fake money'
By Maluba Jere, Namatama Mundia, Chiwoyu Sinyangwe and Gift Cha
Wed 08 Feb. 2012, 14:00 CAT

THE MMD has sued commerce minister Bob Sichinga and the Attorney General for special and punitive damages over allegations that the former ruling party printed fake money amounting to K3 trillion.

And the Bank of Zambia has challenged Sichinga to provide evidence that the fallen MMD government printed and distributed K3.1 trillion in the run-up to last year's elections.

Meanwhile, former BoZ governor Dr Caleb Fundanga regretted the controversy over the ‘fake money' story despite finance minister Alexander Chikwanda explaining that there was currently no fake money in circulation in the country.

The Attorney General has been sued pursuant to state proceedings Act while Sichinga has been sued in his personal capacity and that of being a full Cabinet minister.

A statement of claim filed in the Lusaka High Court, through its national secretary Major Richard Kachingwe, contended that as a political party in government, prior to the general elections, the MMD never printed any money in China whether genuine or fake or counterfeit.

This follows Sichinga's revelations at a meeting in Kitwe recently that the MMD printed fake money amounting to K3 trillion in China.

Sichinga alleged that the said money was distributed to the electorate in rural areas so that MMD politicians could attract votes for themselves.

Maj Kachingwe stated that during the said meeting, Sichinga accused the MMD of having bribed the electorate using fake money.

He said the accusations were published in both The Post and the Times of Zambia headlined; "Rupiah's Government Printed Fake Money - Sichinga" and "MMD Printed K3 Trillion Fake Money" respectively.

Maj Kachingwe said the words attributed to Sichinga and spoken on behalf of the Republic of Zambia were understood to have meant that the MMD engaged in criminal activities with the Chinese government in printing fake money.

He said the words were also understood to mean that the MMD was helped by the Chinese government in the elections and that the party's victory in rural areas was a result of bribery using fake money from China.

Maj Kachingwe further stated that the words were also understood to mean that the MMD had K3 trillion fake money, part of which was intercepted at Nakonde border post.

He added that Sichinga's words were further understood to mean that the MMD destroyed the economy of this country by injecting K3 trillion fake money and that the party was in possession of the said money printed in China.

Maj Kachingwe stated that Sichinga's utterances have far reaching consequences on the MMD as a political party, which was ready to win general elections in 2016.

He said the MMD was being falsely accused and blackmailed before the Zambian people and the international community where it enjoys good standing, having improved the economy of the country by bringing visible and tangible development throughout the country.

"The defendants do not want the plaintiff to exist as a political party because they are inciting the Zambian people through false allegations to rise against the plaintiff and its leadership," Maj Kachingwe said.

He stated that both Sichinga and the Attorney General would be put to strict proof of the allegations levelled against the MMD, saying the words complained of were defamatory and criminal in nature.

Maj Kachingwe further stated that his party had never been called or shown the said fake money, adding that it enjoys a cordial relationship with the people of China. He said Sichinga was tarnishing the MMD's good image by spreading malicious and false allegations against China that it printed fake money to help the plaintiff win the elections.

He said the MMD had sued the government so it can tell the Zambian people and the world at large the truth and with tangible evidence of the K3 trillion.

Other than special and punitive damages, the MMD is also claiming damages, costs and any other relief the court may deem fit.

According to Bank of Zambia, as at January 2012, the total currency in circulation in the country stood at K3,029.1 trillion.

Addressing a meeting with the business community at the Kitwe and District Chamber of Commerce and Industry in Kitwe last week, Sichinga claimed that MMD printed and distributed "fake money" to fund its extravagant election campaign, and the bulk of the money was injected into rural areas.

According to Sichinga, the fake money which he alleged was printed in China, was infiltrated into the country's monetary system including urban areas, and that BoZ and the Ministry of Finance were currently sterilising the notes.

But BoZ head of public relations Kanguya Mayondi condemned the media reports being attributed to Sichinga.

"The Bank of Zambia wishes to note with growing concern, that there have been a number of media reports stating that the former government illegally printed and distributed into circulation bank notes amounting to K3.1 trillion," Mayondi stated in an emailed statement.

"It is further alleged that the Ministry of Finance and National Planning, jointly with the Bank of Zambia, and commercial banks have started withdrawing this illegal money out of circulation."

Mayondi stated that BoZ was ignorant of the presence of any fake money as claimed by Sichinga.

"The Bank of Zambia is unaware of the presence of, and has no knowledge of this fake money. The Bank of Zambia would highly appreciate being furnished with appropriate evidence," stated Mayondi.

"The Bank of Zambia further wishes to assure the general public that the currency in circulation is legal tender, which is duly issued by the Bank of Zambia to commercial banks for distribution."

Dr Fundanga, who was last October ejected from the BoZ top position after almost a decade of leading the Central Bank, said he wanted to avoid the ‘fake money' controversy which was initially stirred by President Michael Sata in the early days of his presidency.

"The only thing I can say is that I don't have a comment because the minister of finance has already spoken on this matter and I don't see anything I can add besides what the minister has said," Dr Fundanga said in an interview. "Furthermore, if there are any more queries, the relevant authorities in the Bank of Zambia can clarify."

Dr Fundanga regretted the conflicting statements of top PF ministers on key policy matters, a move he said was "not helpful".

"If there are any further clarifications to be made, the Bank of Zambia and the minister of finance, who has already made an authoritative statement in Parliament, will clarify…that is the only contribution I can make," said Dr Fundanga. "We cannot be adding more controversy to an important issue. So with all due respect, I have no comment."

Labels: BOZ, CALEB FUNDANGA, KWACHA, MMD, ROBERT SICHINGA

posted by MrK @ 2:31 PM