NAPSA, the new Zamtrop
By The Post
Sat 05 Mar. 2011, 04:00 CAT
If a foreign investor can be granted 5,000 hectares of land for nothing, why should pension contributors to NAPSA be made to pay US $15 million for 1,500 hectares of vacant land?
When we informed the nation about the rotten US $15 million NAPSA and MMD fund-raising land deal being championed by Robinson Zulu’s Meanwood, we were called all sorts of names.
When we questioned the morality of a state-run pension scheme buying land from a private entity at exorbitant prices, NAPSA tried to dismiss our observations as nothing.
They wanted the public to believe that what we were raising was not important.
As for Rupiah Banda, he did not even have the courage to address the serious issue that had arisen.
Instead he chose to attack us. NAPSA took out full-page adverts in this newspaper and in the two state-owned but government-controlled newspapers to denounce our exposure of their criminal scheme.
One of the issues that we raised and continue to raise is that it does not make sense for NAPSA as a state-run but public-funded pension scheme to buy land the way that an individual would purchase land.
To us, the behaviour of NAPSA clearly demonstrated that there is something criminal about this transaction.
It is no wonder that even people in Rupiah’s own MMD are raising concerns about this blatant abuse of state power in the name of financing politics.
We say in the name of financing politics because it is clearly understood even by those closest to Rupiah that these so-called fund-raising schemes for the party are actually money-making ventures for individuals.
It did not take very long after we questioned the logic of NAPSA buying land from Robinson before the same government, through one of its agencies, proudly announced that it had granted 5,000 hectares of land for nothing to a Saudi Arabian firm or company called Menafea Holdings.
This grant of land to Menafea was published in the latest issue of the Zambia Development Agency spotlight publication.
The state-owned but government-controlled Zambia Daily Mail carried this story prominently in their Wednesday, March 2, 2011 edition at page four.
It was not us who published this story but it was the state-owned media.
And yet the very next day, the same media was being used to denounce us and call us all sorts of names for questioning the NAPSA transaction.
NAPSA director general Stanley Phiri tried to put up a brave face in defending what could not be defended.
Their Meanwood transaction is nothing but naked theft of public funds.
We continue to ask: why should NAPSA have to buy land to build houses when companies coming from as far as Saudi Arabia are being given huge tracts of land for nothing?
We know that when people are caught doing what is wrong, they try to attack those who are exposing their wrongdoing instead of attending to their failures.
We will not be surprised if somebody says that the land which has been given to the Saudi Arabian company is not prime land but is land in some remote corner of the country in North Western Province.
But before these defenders of what is wrong get carried away, we want to remind them to look again at what Zambia Development Agency has announced.
Zambia Development Agency did not only announce the grant of 5,000 hectares to this Saudi Arabian company; they have also said that this Saudi Arabian company has entered an agreement to construct 2,000 housing units in the Lusaka South multi facility economic zone.
How much is Menafea Holdings paying for this prime land in Lusaka to construct 2,000 housing units?
It would be interesting to see the kind of agreement. Certainly, they are not paying Zambia Development Agency anything near US $15 million which is being paid to Robinson by NAPSA, if they are paying anything at all.
Rupiah and his minions should not think that our people are not able to read what is happening to their country.
It is said that you can fool some people sometimes but you cannot fool all the people all the times.
It is clear that the schemes to steal government money are many and varied. Most of them are being passed in the name of legitimate business transactions.
The tender processes within government and parastatal sectors have been cornered and rendered irrelevant in the protection of public resources. Rupiah’s clique is doing whatever they like.
We know for a fact that Robinson’s rotten deal is not the only dirty single-sourced MMD fund-raising transaction at NAPSA.
As we said, it is not the first time that public resources have been abused in this way. Frederick Chiluba did the same.
Maybe that is why he is Rupiah’s consultant.
And probably this is the reason why Rupiah had to do everything possible to ensure that Chiluba was let free in all his corruption cases and allowed to keep his loot.
Rupiah and his friends don’t seem to see anything wrong in what Chiluba did because they are doing the same things.
To them, power is there for personal enrichment, for abusing public resources.
What they are doing are no longer hidden things. It requires a little intelligence – if a little is all one has – to realise that the NAPSA land scam cannot be justified in any sense, legal or otherwise because it simply doesn’t make sense even to the least reasoning person.
These people have become so courageous in their stealing that they have started mistaking daylight for night.
They think nobody is seeing their criminal schemes when what they are doing is clear for all to see.
The problem with impunity is that those who engage in abuse of their offices start to believe that they are entitled to the benefits that they are extracting criminally.
They forget that there are many people who are watching what they are doing.
They also forget that not everybody is happy with what they are doing. People simply don’t like criminals.
What is worse is that the money they are stealing right now belongs to pensioners, to everyone who makes a monthly contribution to NAPSA.
They are simply stealing our people’s monthly contributions to NAPSA.
We are still waiting for Phiri to answer some simple questions we gave him yesterday.
But whilst he is working on that homework, we want him to also tell the nation: when and how, if so at all, did NAPSA ask Lusaka City Council or Chongwe District Council for land?
But also since some Saudi Arabian company is being given land to develop 2,000 housing units in Lusaka South through Zambia Development Agency, has NAPSA ever approached the Zambia Development Agency to be treated the same way?
We don’t expect any honest answers on these questions from Phiri, but we are asking them anyway.
We say this because what Phiri and his masters are involved in are not honest schemes, they are dishonest deals that cannot be explained with truth but can only be defended with lies, half-truths and calumny.
From the way Phiri is behaving, it seems he is a very bad student of history.
If he was a good student of history, he would have known that Chiluba and his tandem of thieves tried the kind of schemes they are doing.
As we said the other day, security was a preferred cover for their criminal scheme. Xavier Chungu, Chiluba’s disgraced chief of intelligence became a big contractor to government, claiming to install all sorts of security gadgets to safeguard government installations when in fact they were just stealing government money.
This is the scam that this newspaper exposed when we exposed the Zamtrop account.
There might be some variations in the execution, but it seems to us that NAPSA is another Zamtrop.
It is a can of worms waiting to be fully exposed.
But greediness blinds people from reality and impairs their capacity to learn from other people’s experiences.
The Lozis say micomibi isize ng’wanyi kwa litindi, meaning greediness got the eagle entangled.
Pomposity and arrogance makes people believe that they are better than the thieves before them.
Those were caught because they were not smart, ‘but we are smart, we have followed all the regulations’.
The last question for Phiri’s homework is this: if a Saudi Arabian company can be given 5,000 hectares and huge tracts of land to build 2,000 houses for nothing, why not NAPSA? Phiri should be careful.
What he is doing is what was happening in Zamtrop and we are right to conclude that NAPSA is the new Zamtrop!
Labels: CORRUPTION, MMD, NAPSA, RUPIAH BANDA, ZAMTROP
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Govt should have given land to NAPSA in the same manner they gave a Saudi firm - Milupi
By Moses Kuwema
Sat 05 Mar. 2011, 04:01 CAT
THE government should have given land to NAPSA in the same manner they did with a Saudi firm Menafea Holdings for the investment of a pineapple plant, says Charles Milupi.
Commenting on the giving out of 5000 hectares of land to Menafea Holdings in North-Western Province by the government and the selling of land to NAPSA by Meanwood Property Development Limited at a cost of US $15 million (K75 billion), Milupi said the deal did not appear clean and smelt of corruption.
Milupi who is Alliance for Democracy and Development (ADD) president said it was criminal for the government to make the National Pensions Scheme Authority (NAPSA) to buy land from Meanwood Property Development Limited at such an exorbitant price as doing so was robbing the poor retirees.
“The ministries of local government and lands have got so much land, why not give it to NAPSA which is a quasi-government institution? These are the inconsistencies we see in the administration of this government, it is clear that the country has been taken over by people who don't believe in sacred things such as land. And the finance minister Dr Situmbeko Musokotwane has the audacity to say this is not a form of colonisation, let him go to Saudi Arabia and ask for this land to see if it will be given to him,” Milupi said.
Milupi said the decision by the government would rob Zambians of their vital God-given resource of land.
“To make NAPSA buy this land is criminal, irresponsible and robbing the poor retirees because NAPSA looks after investment for workers,” Milupi said.
Milupi said Zambia already had serious issues of land from the colonial times in places like Southern Province where the indigenous people were pushed to mountains.
“If the government continues to dish out land like this, we are likely to see what happened in Zimbabwe happening here. In future, the off-spring of these people whose land is being taken away from, willrise up to demand the land. At the moment foreigners are benefiting more from investment than the locals,” he said.
He said it was even debatable if people's lives in places like North-Western Province would be improved following this investment.
Milupi said there was need for the government to also concession land to local investors so that they could also benefit.
MMD members recently expressed concern over what they termed “scandalous” transactions at NAPSA, which President Rupiah Banda wants to use to raise campaign funds for the MMD.
The sources said President Banda was using his friends to mobilise funds from parastatals for campaigns, but the money was not getting to the party.
The sources said Meanwood Property Development Limited has sold land to NAPSA at a cost of US $15 million (K75 billion).
The sources said that with the influence of President Banda, NAPSA had signed a contract with Meanwood to buy land at an exorbitant price, although the firm did not have immediate plans to use it.
And according to the Zambia Development Agency (ZDA)'s latest issue of Spotlight, a Saudi firm Menafea Holdings intends to invest US $125 million in the 5,000 hectares of land it has been given in the North-Western Province in building 2,000 housing units in Lusaka South Multi-facility Economic Zone (MFEZ).
Labels: CHARLES MILUPI, NAPSA, ZAMTROP
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DEC’s pursuit of Sata doesn’t make sense - Chongwe
By George Chellah
Sun 28 Nov. 2010, 04:02 CAT
DEC has lost it over their pursuit of Mich-ael Sata’s source of US$100,000, Lusaka lawyer Dr Rodger Chongwe has said.
In a statement, Dr Chongwe observed that instead of the Drug Enforcement Commission (DEC) pursuing Sata over the source of his US$100,000 they should be questioning Frederick Chiluba about the source of the US$8 million he put in the Zamtrop account and which he claims to be his personal money.
“Forty-six years after independence a leader of a political party in our country is hauled to the offices of one of the law enforcement agents to explain why his personal account was credited with an amount of US$100,000. …But only twelve months ago a former president of Zambia claimed that an amount of US$8 million which was in a Zambian government account was his own money given to him by friends and well-wishers when he was in office. He has named none of these friends and well-wishers!” Dr Chongwe stated.
He stated that Zambians did not know if Chiluba collected this money he chose to bank in a government account.
“Neither have government authorities hauled this former president to their offices to demand an explanation as to the actual source of the money. True that the former president did not claim the US$8 million was a political donation to his political party. All he has told members of the public is that this US$8 million is his own money banked in a government account,” he stated.
He acknowledged that Zambia had a problem relating to donations to political parties.
He stated that before independence in 1964 members of a political party were responsible for raising funds for the running and organisation of their various political parties.
He stated that during the one party state the only political party was directly funded from government revenue.
He stated that with the return of political pluralism, state funding of UNIP ceased but the MMD, after winning the 1991 elections, did not enact a law for the funding of political parties.
“This was and continues to be an omission of immense proportions and has been the cause of political disadvantage to political parties outside government,” he stated.
He stated that it was a prerequisite to any democratic system that there should be a level political playing field between and among the political parties in the contest.
“This means that a mechanism should be put in place to ensure that all the political parties, particularly those with seats in the national legislature, are funded proportionate to the number of their seats in the legislature. Such funding should be governed by an Act of the Legislature,” Dr Chongwe stated.
“The statute should also provide for disclosure for any additional funding received by a political party from other sources. These sources should include both domestic and foreign. Political parties should then open their books for inspection by an independent auditor and the Auditor General’s office since part of the source of the money is from taxpayers.”
Dr Chongwe stated that it was an open secret that the MMD obtained a lot of its funding from the taxpayers’ money and from the private sector.
Labels: DEC, MICHAEL SATA, ROGER CHONGWE, ZAMTROP
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Chiluba failed to prove ownership of $8m in Zamtrop account – TIZ
Written by Mwala Kalaluka
Sunday, August 30, 2009 4:54:44 PM
TRANSPARENCY International Zambia (TIZ) executive director Goodwell Lungu yesterday said former president Frederick Chiluba failed to prove, through witnesses, during his just-ended trial that the US $8 million in the Zamtrop account was his.Commenting on Chiluba's intentions to reclaim the US $8 million that he placed in the intelligence account following his recent acquittal by magistrate Jones Chinyama, Lungu said even the judgment that led to Chiluba's acquittal of embezzling US $500,000 was somehow controversial.
"Our position is that the judgment was somehow controversial in that the Auditor General, Anna Chifungula, who was the defence witness, in short defending the accused, did adduce evidence in court to the effect that all funds whether private or public, which are put in a public account is supposed to be forfeited to the state," Lungu said.
"We believe that was authority enough...that if one claims he or she put private money in a public account, that argument may not be sustained."
Lungu said Chiluba did not call any witness during his defence to confirm that the money in question was his.
"We are left wondering as to how Dr Chiluba can claim that was his money," he said. "I think he has every right to sue the state to claim that money. We feel that if the ruling will be such that a person can put private money in a public account then that will be the end of our public financial management system, for the simple reason that any public officer will put their private money in public accounts."
Lungu said there should be a separation between private and public money.
"It will promote lawlessness if that scenario is sustained," Lungu said.
Asked to comment on the stance that President Rupiah Banda has taken over the Chiluba issue, Lungu said it was difficult to believe President Banda at the moment because he had on a number of occasions defended wrong things.
"He misled the nation that honourable Dora Siliya was cleared of all the breaches that the tribunal found," Lungu said. "Our word of encouragement to the current President; when we provide this constructive criticism, we want him to reflect now before it is too late, because he will leave office one day. We do not want him to be prosecuted in the same way as Dr Chiluba."
Lungu said President Banda had every opportunity now to create a scenario of doing what was right.
Addressing congregants at Matero's Bible Gospel Church in Africa (BIGOCA) last week, Chiluba said he was going to claim 'his' US $8 million in the Zamtrop account, saying what was yours was yours [Akobe kobe].
Addressing journalists at Lusaka International Airport shortly before departure for Swaziland last Friday, President Banda said he had no quarrels with Chiluba and that he would not inherit other people's enmity with him.
When asked to comment on Chiluba's statement that he would claim 'his' US $8 million, President Banda said the matter would be sorted out.
Labels: CHILUBA, GOODWELL LUNGU, TIZ, ZAMTROP
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COMMENT - On why you don't want a sociopath at State House.
Chiluba now wants his money back
Monday, August 24, 2009, 8:31
SECOND Republican president Fredrick Chiluba has said he will claim his money, which he kept in the Zamtrop account now that he has been acquitted of charges of theft. Dr Chiluba said that he would go to Luapula Province to tell the people to vote for President Banda because the incumbent has shown that he is a uniting force in the country.
Speaking at the celebratory church service for his acquittal at Bible Gospel Church in Africa (Bigoca) yesterday Dr Chiluba said he would ask for his money because he had been cleared by the courts of law.
Dr Chiluba said he was advised to keep his personal money in the Zamtrop account meant for the construction of the Institute of Democratic Studies because some of his friends who donated towards the project could have given him money laundered from drugs.
[The mind boggles at the crimes and unethical behaviour listed in that one sentence. Mixing personal funds with state funds and 'donations'; unaccounted for 'donations'; accepting laundered drug money... having friends in the drug business in the first place - MrK]
He said even before he was taken to court, three financial institutions – the Bank of Zambia, Grant Thornton and Price Water House Coopers audited the Zamtrop account and told the Government that there was private money in it as well.
Dr Chiluba said he wondered why he was accused of stealing the same private money when it was a known fact that he was undertaking a project to construct the institute for democratic studies using the money that he sourced from his friends and well wishers.
He said the US$500,000 he was accused of stealing was equivalent to petty cash for State House.
Dr Chiluba said the reason he was taken to court was a spiritual warfare and not legal because of his decisions to declare Zambia a Christian nation. He said it did not make legal sense for the courts of law to find his wife guilty first of receiving stolen goods and not the person accused of stealing.
“How could all the three institutions that audited the Zamtrop account conceal theft if at all I stole the money? Why find a person who received stolen property guilty before you do so to a person who stole,” he said.
Dr Chiluba who quoted the book of John Chapter 8:32 from the Bible said true to the scripture in the verse the truth had come to pass adding that truth did not come from newspapers or television but from the Holy Book.
He said the US$500,000 he was accused of stealing was equivalent to petty cash for State House.
Dr Chiluba told a packed church that included Matero Member of Parliament Faustina Sinyangwe and visiting American pastor Ralph Snook that he had received offers from Angolan and Zimbabwean spiritualists who wanted to assist him win the theft accusation case but that he declined because he knew that the truth would come to pass that he did not steal.
He said there was no way he could accept spiritual intervention in his case because he is a Christian who believes in God.
“Shall we decide to leave the one who created the man who administers charms made from trees or taken from underground when there is a supreme being who created all these? No ways. We chose to honour God and put the matter in his hands,” he said.
And Dr Chiluba said Zambia as a country was getting back together under President Banda’s rule.
He said he would go to Luapula Province, whether they like it or not, to tell the people in that province that President Banda was the right man for Zambia.
He said first Republican president Kenneth Kaunda left the legacy of One Zambia One Nation but that when he left a new era of tribal politics emerged.
He said Zambians were beginning to practice politics of regionalism that was now fading away under President Banda’s leadership.
Dr Chiluba urged Zambians to help President Banda create an environment where everyone was free to express their different views.
He said the declaration of Zambia as a Christian nation had set the country apart in God’s favour and was certain that other African leaders were rejoicing with Zambia.
And Bigoca overseer, Peter Ndhlovu said Dr Chiluba’s victory was not only for his family but the Church as well.
Bishop Ndhlovu said God saved Dr Chiluba from dying because He wanted him to live and see change in the country.
“Sir, the devil wanted to see you in jail but God said no. At the day of judgement of your case, people were saying this case is difficult but in my heart, I was saying nothing is impossible with God,” he said.
And New Generation Party (NGP) president, Humphrey Siulapwa has urged Zambians to accept and respect the court’s judgment on Dr Chiluba.
Mr Siulapwa said at a Press briefing yesterday that Zambians had no choice but to accept the court’s verdict on Dr Chiluba since they had waited for the judgment for more than seven months.
He said that his party had accepted the judgment and that people should not be misled by the media on the issue.
He said the Government should not appeal against the judgment, adding that the Task Force on Corruption should also be dissolved while the Anti-Corruption Commission (ACC) and the Drug-Enforcement Commission (DEC) should be strengthened.
He said Dr Chiluba had a right to claim his immunity since the court had declared him clean of all the allegations.
Mr Siulapwa said the London High Court judgment should not be registered in Zambia because there was no way a Zambian president could be tried in a foreign court.
He also said his party supported the Government’s idea to regulate the media if it failed to regulate itself because it also had to be checked.
[Times of Zambia]
Labels: CHILUBA, CORRUPTION, ZAMTROP
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Mpande explains Zamtrop payments
Written by Staff Reporter
Saturday, August 01, 2009 3:20:26 PM
From yesterday Mpande: It is a debt service account of the Ministry
From yesterday
Mpande: It is a debt service account of the Ministry of Finance at the Bank of Zambia.
Kaona: And this Control 63 falls under head 21?
Mpande: Correct.
Kaona: Who is the controlling officer for Zamtrop account?
Mpande: The Director General, ZSIS.
Kaona: What would be your testimony regards the movement of funds?
Mpande: The Ministry of Finance was financing another government department for the purpose of that other government department, in this case ZSIS, to meet its debt obligations and in particular on the contracts of Systems and Willbain.
Kaona: So, when the funds moved from Control 63 to Zamtrop, they were still in government hands, correct?
Mpande: Correct your honour.
Kaona: Was the Ministry of Finance instructing Bank of Zambia to pay funds into the Zamtrop?
Mpande: The Ministry of Finance was instructing Bank of Zambia to pay funds into the Zamtrop account for the benefit of the contracts of Systems Innovations and Willbain.
Kaona: So, at what stage does the role of the Ministry of Finance officials end?
Mpande: It ends once the money moves from the Ministry of Finance account to the other government account.
Kaona: Whose responsibility was it to pay Zamtrop money for Systems and Willbain?
Mpande: That was the duty of the Director General, Zambia Security Intelligence Services your honour. I would not be liable because I am not and was not a controlling officer of the ZSIS.
Kaona: You also told the court that it is a legal requirement that financial reports are prepared each financial year, correct?
Mpande: That is correct your honour.
Kaona: Was there any financial report brought to this court for the years these transactions took place?
Mpande: I believe the report for 1999, 1998 were brought and these other reports do not mention any over-expenditure on head 21.
Kaona: On whose instance?
Mpande: The defence brought your honour.
At this point, Kaona applies for an adjournment.
Magistrate Musona: The matter will stand adjourned to July 31, 2009 at 14:30 hours.
Labels: COURTS, ZAMTROP, ZSIS
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Stop abusing the intelligence services, Mwiimbu urges govt
Written by Ernest Chanda
Thursday, March 26, 2009 7:44:11 AM
MONZE UPND member of parliament Jack Mwiimbu has advised the MMD government to stop abusing the Zambia Security Intelligence Services (ZSIS).
Debating the estimates of expenditure for ZSIS on Tuesday, Mwiimbu said the intelligence should be used for the benefit of all Zambians.
“May I passionately appeal to this government to depoliticise the Zambia Security Intelligence Services. The intelligence system was not made to be abused by those in power. The intelligence service is for all Zambians and is supposed to serve all political parties,” Mwiimbu said.
“I hope that the unfortunate situation that occurred in the 2001 election does not re-occur where the intelligence system was abused by the MMD government. The Vice-President who happens to be a lawyer is aware of that abuse. It’s a fact that the Zambia Security Intelligence Service was abused and it’s a fact that Zamtrop was abused. The matter was in the Supreme Court of Zambia and records are there for all to see,” Mwiimbu said.
He said it was not good to always have elections that are disputed.
“If you have elections that are disputed each time they are held, then it is not a healthy situation. I would like to appeal to this government to let the intelligence service work professionally as they have been trying now,” Mwiimbu said.
“I want to see them [intelligence officers] mingle among ordinary Zambians so that they are assisted in getting information. I’m saying this because I’m a patriotic Zambian. I would like to appeal through the Vice-President that this service works for all Zambians regardless of their political affiliation.”
And Bangweulu Patriotic Front member of parliament Joseph Kasongo called on defence and security services to sensitise ministers on security matters.
“May I appeal to the government of the day to protect this organisation. Currently, Zambia has become a laughing stoke in the region because we are the only country that has undressed our intelligence. We must be ashamed of ourselves. There is need for our defence and security services to mount seminars that will educate our ministers on respecting their oath of secrecy,” he said.
“It is not good to hear former ministers disclose information that came to them by virtue of them being ministers. But when they are fired they begin to disclose information that they had sworn not to disclose. When you are appointed minister you swear to keep state information and we expect you to keep that even when you are fired. But you come to this House debating and disclosing information. Who are you appeasing? I know that some of you become emotional when you are fired and then you allow traitors to take advantage of the information you disclose.”
Kasongo claimed that civil servants were disclosing information because of ministers.
“All the officers are now disclosing information to the press. You [pointing at ministers] are the source of that because they say follow the leader. You are privileged to be in those positions because of Zambians. I am aware that there are so many people fighting the government of the day, both within and outside. Some people have called the President a failure already, and yet this is his first budget,” Kasongo said.
“I am also aware that some of those who supported him are disappointed because they thought that when he got into power he would appoint them ministers. And some of these political parties have no leadership, may be the only opposition political parties with leadership are the PF and the UPND,” said Kasongo.
Meanwhile, tempers flared in parliament as members debated the estimates of expenditure for the Ministry of Lands.
As Southern Province minister Daniel Munkombwe took the floor, he debated off the motion, attracting constant guidance from committee deputy chairperson Mkhondo Lungu.
“I have never engaged in bruising people, I’m cool. Those who have aimed at bruising me have been themselves bruised. Threaten, you can. But an individual can not threaten the majority. And also to threaten a person of my age it is dangerous. …If you look through my record, I have never been sent out, not even ruled out. I’m useful and not useless. The opposite of useful is useless. I’m useful, all the Presidents have used me,” said Munkombwe.
Labels: JACK MWIIMBU, ZAMTROP, ZSIS
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Witness links Chuungu, Kabwe to Zamtrop account
Written by Inonge Noyoo
Sunday, November 09, 2008 6:35:08 PM
ANTI Corruption Commission (ACC) investigations officer Friday Tembo
yesterday insisted that there was enough evidence to show that AFSL directors Aaron Chungu and Faustin Kabwe knew about the Zamtrop account.
Tembo said this during cross examination by defence lawyer John Sangwa in a case in which MMD national secretary Katele Kalumba is jointly charged for corruption with former finance permanent secretary Stella Chibanda, former secretaries to the treasury Professor Benjamin Mweene and Boniface Nonde and economist Bede Mpande.
Others are former Access Financial Services Limited (AFSL) directors Kabwe and Chungu.
Tembo said during the course of his investigations he managed to get documents pertaining to instructions Kabwe was sending to Meer Care and Desai on money coming from Zamtrop.
He said during his investigations he related Kabwe's instructions to the money coming to the account.
Tembo said there was also a close relationship between former Zambia Security and Intelligence Services (ZSIS) director Xavier Chungu and Kabwe.
Tembo said he believed the information he got during his investigations on Kabwe and the Zamtrop account was simply a tip of the iceberg.
He further told court that Kabwe's co-director Aaron was equally aware of the Zamtrop account.
He said in the ZAMIN account there was money coming from the Office of the President where he got money to purchase his five per cent shares in AFSL.
Tembo insisted that both Aaron and Kabwe knew the existence of the Zamtrop account.
He further testified that the duo knew the money in Meer Care was coming from Zamtrop.
Tembo said Aaron used to have meetings with Chungu to reconcile money coming from Meer Care whose original source was Zamtrop.
Tembo said there were also several ordinary statements recorded from Aaron showing that he was aware of the Zamtrop account.
Trial continues.
Labels: ACC, COURTS, FAUSTIN KABWE, FRIDAY TEMBO, ZAMTROP
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Witness produces documents showing payments made to Katele from Zamtro
By Laura Mushaukwa
Saturday July 12, 2008 [04:00]
A witness from Zambia National Commercial Bank (ZNCB) Inonge Grace Muyunda yesterday brought documents to court showing the payments that were made to former finance minister Katele Kalumba and others from the Zamtrop Account. This is in a case before High Court Deputy Registrar, Edward Musona sitting as magistrate where 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 Access Financial Services directors Faustin Kabwe and Aaron Chungu are facing corruption charges.
Muyunda, who is ZNCB Head of Internal Audit, Compliance and Controls highlighted the payments made to Kalumba, Chibanda and Nonde
She told the court that under the payments to Kalumba, there was a foreign exchange application form in the sum of 21,611 pounds dated October 14, 1999.
Muyunda also brought before court a cash voucher in the sum of 5,000 pounds equivalent to US$ 8,400 dated October 14, 1998.
She further produced before the court a receipt in the sum of 5,000 pounds of October 15, 1999 and a cash voucher dated July 10, 2000 in the sum of 4,000 pounds.
Muyunda added that there was also a receipt of 4,000 pounds dated July 10, 2000.
One of the documents she cited under Stella Chibanda was a foreign exchange application form in the sum of US$ 40,000.
Muyunda also gave a break down of the payments made to Boniface Nonde.
Trial continues.
Labels: KATELE KALUMBA, ZAMTROP
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Kabwe testifies on ZSIS investments
The Post
Saturday May 31, 2008
Kabwe testifies on ZSIS investments
Friday May 30, 2008 [04:00]
Continued from yesterday
Kabwe: We had several clients dealing with us in this similar manner.
The court will recall my reference to a similar arrangement in respect of DG Travel matter that we handled on behalf of another client totally unrelated to the Zambia Security Intelligence Service. Your Honour, even in that instance, we did not ask the client concerned where these funds were coming from and generally, Your Honour, unless you have concerns about the client or suspect what the client maybe doing, financial institutions and banks could not normally make it their business to ask clients where their money is coming from.
In the particular case, Your Honour, of Mr Chungu and the Zambia Security Intelligence Service, we had no reason whatsoever to doubt his credibility occupying the high position in government that he did. Your Honour, it would have been most unlikely that he would have told us anything anyway because when he first approached me, he did make it quite clear that his operations were very private and that me or Access Financial Services Limited could not be privy to unnecessary details about his work.
Sangwa: Now, when did you actually come to know that Zamtrop account was actually an account for Zambia Security Intelligence Service?
Kabwe: Your Honour, this matter started to come to light through newspaper articles, particularly at the time when there was a court case involving the former president of Zambia, Dr Chiluba and The Post Newspaper and some other individuals. Your Honour, as a result of those proceedings, a number of disclosures were made including the identity of the so called Zamtrop account as an account belonging to the Zambia Security Intelligence Service and operated from the London branch of Zambia National Commercial Bank. That is when I recall coming across this Zamtrop name and what it meant.
Sangwa: What kind of services did Mr Chungu request and received from Access?
Kabwe: Your Honour, what Mr Chungu told me was essentially that his service could require establishing investment ventures that could augment the funding support that government was providing and which sometimes was not always adequate.
He wanted Access Financial Services Limited to help him with managing such investment as and when they were identified and to put together the appropriate structures to ensure these investments were managed confidentially.
Sangwa: Where were these investments to be made?
Kabwe: What Mr Chungu told me was that investments would be local.
Sangwa: What kind of investments were made, with regard to local investments?
Kabwe: Your honour, I have already alluded to the issue of Avalon Motors whose assets were converted to Motor City.
Sangwa: Could you tell the court the background to this particular investment?
Kabwe: Your Honour, what I was told by Mr Chungu was that the Zambia Security Intelligence Service was interested in acquiring a business in the motor industry for use by themselves and as a profit making venture.
Your Honour, Mr Chungu and his organisation had identified these investments themselves when newspaper advertisements appeared to the effect that Avalon Motors Limited had been placed in receivership and that the receiver was selling the assets of the company.
Hence Your Honour, Access Financial Services Limited was retained by the Zambia Security Intelligence Service to negotiate the acquisition of Avalon assets on the client’s behalf which is what we did Your Honour and succeeded to put the assets into a new operating entity by the name of Motor City which the client himself had suggested.
Sangwa: What is the status of this company?
Kabwe: I know very little about the status now except that it is one of the assets taken over either by the Task Force or Zambia Security Intelligence Service.
Sangwa: Is this company in existence or it has been liquidated?
Kabwe: I don't know. It is now over six years since I had anything to do with this matter.
Sangwa: Mr. Chungu was DG in Zambia and based in Zambia and the assets he acquired in Zambia. Why is it that the money to pay for the assets he acquired came from abroad?
Kabwe: Your Honour, our only concern was to make sure that our clients funded us for whatever project he wanted us to undertake on his behalf. Your Honour, whether the client, in this case Mr. Chungu, gives us money from abroad or from anywhere in Zambia, it was not our concern. Mr Chungu told me that to fund a particular transaction we were talking about, he would rely on resources he had mobilised from outside Zambia.
It was for that reason Your Honour that I explained to him the route through which he could remit those resources to Access Financial Services Limited which, Your Honour, as I said before was applicable to every other client of ours who wanted to send funds to do their business in Zambia.
Therefore, Your Honour, for us this was an ordinary straight forward matter which complied with the operating system we had already established not for Zambia Security Intelligence Service but for all clients of Access Financial Services Limited whose resources were coming to us from outside Zambia.
There was nothing special about this as far as Access Financial Services was concerned. Our only and simple requirement that we be funded for what we were being asked to perform. How the client, Your Honour, organised his funding was entirely his business and this, Your Honour, is ordinary practice with any other financial institution.
Sangwa: There has been a name of a company that has been frequently talked about by the name of Zamdael, what exactly did you know about this company?
Kabwe: Your Honour, another investment which Mr Chungu wanted to acquire for his organisation was some farm land and housing structures belonging to a company called Zamdael Limited.
Your Honour, as Access Financial Services, we came to learn that this company and this property belonged to a Mr Dale who had wanted to establish a block manufacturing plant at a site in the Kanakantapa area of Lusaka. The property, Your Honour, was partially developed with some housing structures as I indicated earlier and Mr Dale was about to commence business when he was attacked by robbers and therefore, decided to abandon the project and return to Kenya I understand.
Your Honour, Mr Dale after this unfortunate incident decided to appoint an agent to dispose off his investment in Zambia. Your Honour, that agent was called Mr Murray Dewar. It was, Your Honour, Mr Dewar that interested Mr Chungu in the Kanakantapa property belong to Zamdael...
To be continued
Labels: ACCESS FINANCIAL SERVICES, COURTS, ZAMTROP, ZSIS
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Chiluba's 'gifts' to KK's sons attract Task Force
By Amos Malupenga and Patson Chilemba
Wednesday December 05, 2007 [03:00]
The Task Force on Corruption will soon institute investigations to ascertain whether or not former president Frederick Chiluba abused public funds when he bought a house and vehicle for Dr Kenneth Kaunda’s children.
In an interview yesterday, Task Force chairperson Max Nkole said there was need for his officers to follow up on Chiluba’s revelations on Monday that he bought a house in South Africa for Kaweche Kaunda and a Pajero for Col Panji Kaunda using public money from the Zamtrop account.
Nkole said he agreed with The Post’s editorial comment yesterday which called for the investigation of Chiluba on this matter and also for the Task Force to repossess the house from Kaweche because it was acquired using public resources.
“Yes, I agree that we need to make follow-ups on such revelations,” Nkole said. “The levels of abuse of office in this country are beyond what Dr Chiluba talked about. There are many such cases which we have been investigating and some of them we have already taken to court.”
Nkole said the Task Force would have to thoroughly investigate the matter because there were cases where Chiluba did something using his discretion.
“Like in this case of Kaweche and Panji, he could have still used his discretion,” Nkole said. “But during the investigations, we will have to look at his status as a president in terms of the civil service; we will also look at the discretion.
We will also have to interpret some acts and weigh that against discretion. After that, we can tell or conclude whether what he did amounts to abuse of office or can fall within his discretion. Where we find that there was abuse, we will take the matter to court.”
Nkole said this would not be the first time for the Task Force to deal with such a cases.
“We have been dealing with such cases all this time,” he said. “Some of them end up in court but others do not. But in this case, I will not be surprised if officers are dispatched to South Africa to check the existence of this house and also to record some statements from Kaweche.”
And information minister Mike Mulongoti said Chiluba’s moral standing is in question until the corruption charges against him are cleared.
Featuring on MUVI TV’s Eyeball-to-Eyeball programme on Monday night, Mulongoti said it was clear that Chiluba had robbed the people of Zambia as revealed in the London judgment.
He said Chiluba should check himself before alleging that the Zambian people were being robbed by the government through the financial irregularities being revealed in the Auditor General’s report.
“You have no moral right to stand up and say that the people of Zambia were robbed and you are named by a court judgment. How about this indictment (London judgment) which is public record?” Mulongoti asked.
“To begin to open cupboards, you must ensure that there are no skeletons because as soon as you open the cupboards, the skeletons will start falling all over.”
Mulongoti urged Chiluba to exercise restraint because there was a court judgment which showed that he participated in the looting of public coffers.
He said it would be important for Chiluba not to continue acting as though he was an ‘angel’ when it came to the issue of corruption.
“The angel veil was taken away when the court pronounced that he participated in taking away the money from the Zambian people. Until this judgment is reversed by another judgment of the courts, it remains a dark cloth on him,” Mulongoti said.
He said Chiluba allowed the ‘cancer’ of corruption to grow when he was in office and did nothing to stop corruption during his tenure of office.
“For him what I would expect is not to say much about it because every time a matter was reported to him, he said ‘bring the evidence’.
There were issues of people who used public money to have private rentals paid for them. The question of people taking government money until it generated interest started in his administration,” Mulongoti said.
He said there was no truth in Chiluba’s insinuations that the government parastatals have been ordered to move their accounts to Finance Bank and to have their insurances with Professional Insurance Corporation. He said some parastatals chose to shift to the two institutions because of the market forces that were at play.
“In liberalisation, you move to the most cost effective company. Now if you look at the interest rates that were being offered by different companies at the time. At the time it became more cost effective to go to private insurance companies,” said Mulongoti.
Mulongoti urged Chiluba to provide cogent evidence rather than just peddling rumours.
Labels: CHILUBA, CORRUPTION, MAX NKOLE, TASK FORCE, ZAMTROP
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Nyoni narrates how he traced funds Chiluba allegedly paid to his....
By Noel Sichalwe
Thursday August 30, 2007 [04:02]
ANTI-Corruption Commission (ACC) chief investigations officer Trevor Nyoni yesterday told Lusaka deputy High Court registrar Jones Chinyama how he traced about US $189,000 public funds from Zamtrop account which Chiluba is alleged to have paid out to his children.
This is a matter where former president Frederick Chiluba is charged with theft of about US $488,000. He is separately charged with former Access Financial Services Limited (AFSL) directors Faustin Kabwe and Aaron Chungu.
Nyoni, 40, said in 2002, he was tasked to investigate the alleged theft of funds from Zamtrop account which was operated by the Office of the President Special Division. He said his investigations related to money paid out from the Zamtrop account for the benefit of Chiluba's children. He said among the amounts involved were US $123,989, US $27,996 and US $33,000.
He said after concluding investigations, he interviewed Chiluba who opted to remain silent. He said on September 13, 2004, he then charged Chiluba with theft of public funds and later released him on bond.
Meanwhile defence lawyer John Sangwa continued with the cross-examination of ACC senior investigations officer Vincent Machila.
Machila said he was aware that lawyer Eric Silwamba's house in Roma was initially registered in the name of Zamdaell Limited. He, however, said he never found out the connection between Chiluba and Zamdaell Limited.
Sangwa then showed Machila the print out from lands register indicating that Silwamba was buying the house from Zamdaell at K180 million. Sangwa asked why Silwamba was buying a house which is alleged to have been given to him by Chiluba.
In response, Machila said the process was merely of registering the house in Silwamba's name.
Sangwa further produced a print out from the lands register indicating that lawyer Vincent Malambo's Kabulonga house was initially assigned by Zamdaell Limited to Mum's Delicatessen at the cost of US $148,000.
But Machila said Malambo told him that Chiluba gave him the house as remuneration and that the transaction was handled by AFSL.
Machila further said the US $50,000 in contention was credited to Zamdaell account and that the account was later debited and sent to Standard Chattered Bank.
Machila also said about K160 million was further debited from Zamdaell to United Bank of Zambia that went towards the purchase of Silwamba's house in Roma.
He said his investigations showed that AFSL purchased Silwamba's house on behalf of Zamdaell. He said AFSL was in the business of buying of properties on behalf of clients.
However, Machila said he did not establish where the properties that AFSL had bought on behalf of clients were located because his focus was on the houses for Malambo and Silwamba.
He said there was a relationship between Zambia Security Intelligence Service (ZSIS) and AFSL though he was aware that they were working together.
Machila further expressed ignorance of a letter that Faustin Kabwe wrote to ZSIS director general Regis Phiri regarding the money that AFSL was managing for the intelligence.
According to the letter dated May 13, 2002, Kabwe told Phiri that he wanted to know the level of informal relationship between AFSL and ZSIS that would be adopted in managing their finances.
Kabwe noted that the ZSIS was indebted to the sum of K250 million over a house they purchased on behalf of ZSIS in Kalundu.
"As you know our relationship was informal and we accepted the confidentiality that was there," he said. "You have to intimate your wish and advise on the level of formality you wish to apply in future relationship."
However, Machila said this was the first time he was seeing the letter. He said he did not establish that there was a house in Kalundu ever since investigations started in June 2002.
Asked whether President Mwanawasa specified the theft of the money as alleged in the charges against the trio, Machila said President Mwanawasa mentioned about the Zamtrop account in general.
Sangwa then produced the resolutions of Parliament that led to the removal of Chiluba's immunity and asked whether Chiluba was supposed to be charged in his individual or official capacity.
Machila said Chiluba was supposed to be charged in his personal capacity. At this stage, Sangwa wondered why Machila charged Chiluba with theft by public servant instead of being charged in his individual capacity.
In further cross-examination by Robert Simeza, Machila said he collected the documents on which the financial analyst's report was based from ASFL. He said he collected the documents that could assist him in his investigations and that his attempt to be assisted by Chungu and Kabwe failed.
Machila said after collecting the documents, he engaged a financial analyst Maulu Hamunjele to conduct a forensic audit before coming up with a report.
He said it was possible to interpret the documents he collected subjectively depending on surrounding circumstances and that there might have been documents he left out that could have shed more light on the matter.
Machila also said Chiluba never played any role in the transfer of money from the Ministry of Finance to Zamtrop account.
In re-examination by prosecutions lawyer Mutembo Nchito, Machila said Xavier Chungu was involved in running the Zamtrop account but that he could not remember everyone involved. He said his investigations were thorough and that he conducted about three searches for documents at AFSL. He said he made various inquiries from officers at AFSL to assist him with documents to support the investigations.
Machila said the focus of his investigations was on how Chiluba used government money to pay legal fees to his lawyers who represented him in the 1996 presidential petition.
He also Malambo and Silwamba never produced any receipts top show that they purchased the houses alleged to have been given by Chiluba.
Machila further said Zamdaell Limited was associated with ZSIS. He said Xavier Chungu was involved in perpetrating the crimes he was investigating and that was the reason why Chungu could not help him in his investigations.
Machila reiterated that about US $175,000 was paid to purchase Silwamba's house while US $148,000 was spent on Malambo's house.
Hearing continues today.
Labels: ACC, CHILUBA, CORRUPTION, COURTS, TREVOR NYONI, ZAMTROP
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