Govt. denies claims of transfer of assets to Professional Insurance

Government has denied claims by second republican president Dr. Frederick Chiluba that it has instructed  three  parastatal companies to transfer their insurance  policies from Zambia State Insurance Corporation (ZISC) to the privately owned Professional Insurance.

 

Finance and National Planning Minister Ngandu Magande disclosed that Zambia Electricity Supply Corporation (ZESCO) decided to transfer its assets to Professional Insurance in 2004.

 

Mr. Magande told journalists in Lusaka today that government in 2004 decided to leave ZISC through a competitive tender process, which was undertaken, because the business by the insurance company was becoming uncompetitive.

 

The Minister stressed that in a liberalised state, it would be erroneous for government to command parastatal firms on how to conduct business.

 

Dr. Chiluba during a press conference at his Kabulonga residence claimed that President Mwanawasa’s government had directed Indeni Oil Refinery, Tanzania – Zambia (Tazama) Pipeline and ZESCO to transfer all their assets from ZSIC to Professional Insurance.

 

Mr. Magande said it was not right for the former Head of state to be talking about such matters now, whose decision was made three years ago.

 

He said ZESCO had just had a newly constituted board whose members he was not familiar with.

 

The Minister further denied allegations of instructing ministries and departments to move their bank accounts from Zambia National Commercial Bank (ZANACO ) to a privately owed  financial institution.

 

He said the decision for the government to choose which financial institution to provide banking  services is made by the Secretary to the Treasury and controlling officers in  ministries and departments.

 

He said their chioce of the bank is based on the financial institution that is usually selected every year through an open tender .

 

He said the Auditor General, together with the Chief controlling officer and Bank of Zambia (BOZ) select from the tenders received, which banks should provide services in that particular period.

 

He said it is through those selected financial institutions that the chief controlling officer and his controlling officers would choose the bank which would be convenient to their operations.

 

Currently about seven local banks are providing banking services to various government ministries and departments.

 

These Include ZANACO, which has the majority of the government accounts, Finance Bank, Barclays Bank, Indo Zambia Bank, Citi Bank, First Alliance Bank and Stanbic Bank.

 

Mr. Magande said under the Public Financial Act CAP 349, the Secretary to the Treasury was responsible for government resources.

 

He said it is the reason why ministers do not appear before the Parliamentary Accounts Committee (PAC) as they have no idea as how the money is managed and utilised.

 

Mr. Magande said Dr. Chiluba might have not heard rightly when government stated that it would withdraw its money in commercial banks that was lying idle.

 

“what I am saying is  that I am denying ever instructing  ministries to transfer their money. Maybe what the former head of state did not hear correct was the announcement to withdraw government money in commercial banks that was lying idle,” he stressed.

 

 He said government wants to improve the management of the treasury hence the decision to ensure the funds which ministries are not utilising are kept in a special account at BOZ.

 

He said it was not the intention of the new deal government to run government affairs as was the case under Dr Chiluba’s regime.

 

Mr. Magande  has since challenged  Dr. Chiluba to avail audited reports for the year 1996 to 2001 to enable the public to compared with the current audit reports on the misappropriation of resources.