Thursday, November 26, 2009

AFSL paid for Prof Mweene’s cottage construction – Kabwe

AFSL paid for Prof Mweene’s cottage construction – Kabwe
By Laura Hamusute
Thu 26 Nov. 2009, 04:01 CAT

FORMER Access Financial Services Limited (AFSL) director Faustin Kabwe yesterday told the court that AFSL as a financial institution managing funds on behalf of its clients paid for the construction of Professor Benjamin Mweene’s cottage among other payments.

This is in a case where former ministry of finance permanent secretary Stella Chibanda, former finance chief economist Bede Mphande, former finance director of budget Boniface Nonde, former secretary to the treasury Professor Benjamin Mweene, former finance minister Katele Kalumba, former AFSL directors Kabwe and Aaron Chungu are facing corruption charges.

During examination in chief led by his lawyer John Sangwa, Kabwe looked at a file containing about 200 instructions from AFSL clients valued at about US $6 million.

He explained that he wrote down the instructions as directed by his clients or officers of AFSL who dealt directly with the clients.

Kabwe explained that when he was out of town, the clients would go to AFSL offices and ask officers there to attend to some matters from the funds that AFSL was managing for them at Meer Care and Desai.

He said the officers at AFSL would then contact him wherever he would be so that he could implement the clients’ instructions.

Kabwe testified that he would then write to Meer Care and Desai to effect the transaction.
He told the court that before effecting the transaction, he would establish whether indeed AFSL held funds on behalf of that particular client at Meer Care and Desai or whether the officer who contacted him from AFSL had really been authorised by the client to effect the transaction.

Kabwe testified that it was not AFSL’s business to know why their client wanted to carry out a particular transaction with another party as a financial institution, they had the duty of only complying with the clients’ instructions.

He disclosed that the actual payment instructions were being made by Meer Care and Desai.
Kabwe cited a payment of US $10,000 Meer Care and Desai made to Chibanda’s son Regis Kombe Chibanda in Tampa, Florida on behalf of AFSL.

He testified that AFSL had been engaged by a number of clients to manage their funds.
In cross-examination by prosecutions lawyer Mutembo Nchito, Kabwe said AFSL was regulated by Bank of Zambia (BoZ) as a non-banking financial institution.

He said the company had to keep enough documentation to identify their clients and they were required to keep records in accordance with accounting standards.

Kabwe testified that AFSL was required to keep a clean audit trail.
He told the court that AFSL provided equity support and advice to the Zambia security Intelligence Services (ZSIS).
The matter continues on November 27, 2009.

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Friday, July 11, 2008

'AFSL made transactions for ZSIS without keeping records'

'AFSL made transactions for ZSIS without keeping records'
By Laura Mushaukwa
Friday July 11, 2008 [04:00]

A BANK of Zambia (BoZ) inspector Joseph Munyoro yesterday testified that Access Financial Services Limited (AFSL) made many cash payments on behalf of Zambia Security Intelligence Services (ZSIS) without keeping records of such transactions. And Munyoro testified that the ZAMIN Account that AFSL management told him was a ZSIS account operated off the system.

This is in a case before High Court deputy registrar Edward Musona sitting as magistrate where former finance minister Katele Kalumba, former Ministry of Finance permanent secretary Stella Chibanda, former director of budget Boniface Nonde, former chief economist Bede Mphande, former secretary to the treasury Professor Benjamin Mweene, former AFSL directors Faustin Kabwe and Aaron Chungu are facing corruption charges.

During re-examination led by prosecutions lawyer Mutembo Nchito, Munyoro explained that there were no records at AFSL to show the transactions that the company made on behalf of ZSIS.
He further explained that during his inspections, he never came across any documents to explain or establish any relationship between AFSL and ZSIS.

On the ZAMIN Account, Munyoro said it was not part of the ordinary accounts kept at AFSL as it was not part of the general ledger.
He added that no accounting principles allowed the keeping of off-system accounts and that the accounting system was based on a double entry system of debit and credit transactions.

Munyoro told the court that the ZAMIN Account had no opening balance or running balances.

He testified that he did not find a mandate for the ZAMIN Account.
But earlier in cross- examination by one of the defence lawyers, John Sangwa, Munyoro told the court that there was a business relationship between AFSL and ZSIS.

He testified that the aim of the inspections he conducted at AFSL was to determine the financial condition of AFSL and the aim of the inspections changed following the allegations of theft against the then directors of AFSL.

Asked whether he shared the information of the change in his plan with the AFSL directors, he replied that he did not do it directly.
Munyoro testified that there was no evidence of any relationship between AFSL, Systems Innovation and Wilbain Incorporation and that there was no evidence of any relationship between the AFSL directors and the companies in question.

In cross-examination by Professor Patrick Mvunga, Munyoro said according to what was indicated to him by AFSL management, the ZAMIN Account was a ZSIS Account but it was given a fictitious name to protect the identity of their client.
Trial continues today.

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