VARUN Beverages chief executive officer S Sharma has said his firm was waiting for official communication from the Government before it starts processing payment in a deferred tax refund.
“We are ready to refund the Government the money. When we receive official correspondence, the process to make payment will start we understand the Government’s position,” Mr Sharma said in an interview in Lusaka yesterday.
Finance Minister Alexander Chikwanda had earlier asked Varun management to pay back the K15 billion the firm had accumulated between 2010 and 2011 in deferred taxes including Value Added Tax which does not appear on the Zambia Development Agency Act as a tax that could be deferred.
And the Government has handed over the report by the Zambia Revenue Authority (ZRA) Commission of Inquiry to security wings to launch investigations on the 14 former senior Government officials who have been recommended for investigations.
Home Affairs Minister Kennedy Sakeni said in an interview in Lusaka yesterday that while some individuals were already under investigations since the suspected irregularities were already in the public, investigations had started on the others.
Mr Sakeni said the allegations against former president Rupiah Banda who appears on top of the list would wait for further advice from the security wings and the National Assembly but Government would not be in a position to comment on the immunity.
Mr Banda is legally immune to prosecution but there has been pressure that the Parliament should lift the immunity to allow him to stand trial and clear his name.
“As for the rest of those appearing on the list, I can safely say that investigations have started and on those already under investigations, police will continue because that is the mandate the people of Zambia have given us,” Mr Sakeni said.
Mr Sakeni said the Government wanted the truth to come out and it was also an opportunity for those suspected to have engaged in corrupt activities to clear their names.
He said bad names should not continue haunting them but it was incumbent upon them to clear their names.
On Thursday, Mr Chikwanda announced that all former Government officials appearing on the list compiled by the ZRA commission would be investigated and prosecuted.
Mr Chikwanda also said the report and recommendations by the commission was adopted in full but assured that the Government did not have any scores to settle.
Mr Banda appears top of the list in the report which also had 13 other names.
Others are former minister of Finance and National Planning, Situmbeko Musokotwane and former Works and Supply minister, Mike Mulongoti.
The resolution is hinged on recommendations to Cabinet by the Kingsley Chanda-Commission of Inquiry in the 117-paged report that was handed over to President Michael Sata last month.
Mr Chikwanda said Cabinet held a meeting on Wednesday at which it was resolved that Mr Banda and 13 other officials listed in the report should stand trial on allegations of corruption, abuse of authority and generally breaching financial regulations.
The report recommends that Mr Banda should be tried because he allegedly participated in the procurement of four extra border cargo scanners and for his alleged role in increasing a loan from China from US$100 million to US$125 million. A Chinese company, Nuctech, was single-sourced to come and manage the scanners.
Mr Banda has been a subject of debate on whether his immunity should be lifted or not so that he could have an opportunity to clear his name of allegations of impropriety.
The report also reveals that Dr Musokotwane’s company, ZamBuild Investment Limited, is alleged to have supplied bricks to Varun Beverages of Lusaka, a company he is alleged to have earlier awarded tax concessions for five years.
Meanwhile, spokesperson of the security team Charity Chanda said yesterday that investigations in relation to suspected scams at ZRA were launched before the report was made public.
She said warn-and-caution statements were recorded from former ZRA commissioner general Wisdon Nhekairo, ZRA board secretary Nana Mudenda on the basis of the same offences highlighted in the report.
“The two were cautioned on January 9 and 12, 2012, respectively. This was in connection with the fraudulent engagement of Bradwell Global Corporation to operate and maintain eight border scanners,” she said.
Yes. Bring back that money. Thanks to the Commission of inquiry
It looks like most Zambians access Internet from there offices. On a Monday such topic would have attracted loads of comments. Witchhunt, Satan corruption etc. On the other hand I think the PF is moving too slow for my liking to depose off these cases.
The investigative wings are actually moving very fast; the issue is credibility of the process. Basakala Nyongo knew they would be pursued so they removed the “abuse office clause” which ensured that the onus was on the individual to prove that their wealth was gained normaly. as it is, the onus is on the government to produce evidence, and that is very difficult bwana.
This update news is progressive and in a way meets people’s expectations and rests anxieties in the nation. The recoup of tax from Varun Beverages and their guilty acceptance is a serious indictment on parties involved in instigating this scam. Those found out have to defend themselves in court for denying Zambia its much needed revenue for social developments. We urge government to do more and claw back resources to government coffers. This too has to extend to former heads of state who have so much renumerations that has to be cut back and recover what they stole from Zambians. We support govt fully on this progressive move and let others be aware especially those aspiring for higher offices.
When we say MMD was a verry corrupt party, people like MMD chief bootliker say no. How do you award tax concessions without following laid down laws. Imagine what that money this company has earned doubiously could have done to a poor villager in Kaoma? If I was in power, I was going to appeal to Zambians to de register MMD as a party. This party should be removed from Zambian politics..This party mismanaged our resources and the same thieves are in parliament representing our people. SHAME!!!!!
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That is good news for our nation. Let them bring back 15 billion plus interest on top
That means more money in peoples pockets. This money was not in budget so it can to new initiated projects such as to help new district
Who said commissions of inquiry are a waste of time and money.
This is nice at least it will help the government raise enough money to increase people’s salaries by 100%. I also urge this government to get back the money we wasted on the commission of enquiry for the constitution from the people who participated in it. Huge cash was wasted there only to throw the report in the bin in the last minute. We need our money back. Let the previous government give us this money. There a re a lot a companies that are not paying tax even unto now. Let them start paying now so that the government can raise enough revenue for its running. I end here!
At least these guys at VARUN are not call legitimate investigations WITCH-HUNT!
It is about time govt did a through inventory of all foreign corporations who avoided paying lawful taxes with the help of gluttonous MMD “Iscariots” who sold their own souls to the devil. God have mercy!!!!!!
The Varun Beverages guys understand how valid these investigations are and are coorperating. These are the types of investors who would be moved when Zamtel is taken back by the government. I am impressed by Varun Beverages but I sincerely hope the didn’t blackmail or dupe the previous government into that tax break. Go go PF, we are behind you. Let NO ONE be spared if found wanting!
Companies get tax breaks all the time when they set up shop.It is way of attracting jobs and capital to a certain area.You cannot have legistlation for every thing under the sun.This govt should focus their energies on nation building rather than conducting a spiteful witch hunt.It is hard enough to keep you own intentions and deeds clean,so focus on that.
This cannot be witch hunt. This is good for the country because in a true democracy there should be no sacred cows. Everyone irrespective of their position should be subject to the same law. Someone should clear the air on how much M’membe’s post Newspaper still awes the ZRA as well as reported case of tax evasion all these and many others should be cleared by this Govt. Rupiah’s involvement in cases cited in the commission of inquiry should also be brought to its logical conclusion. When we set this precedency then Zambia will be truly democratic. Sata himself like all other PF Government officials should be under no illusion that when his term is finished he will not be required to clear his name should there be some doubts in his dealings.
Where is Boot Fimo Fimo/Capitalist/Free Market Fimo fimo?
The *****s have run away.
Probably change their names and in PF camp already. I see very strange and new names nowadays on this blog, LOL!!!!!!!
They have gone to where they belong, The watch SHIT! Let the BULLSHIT there! Or they have changed the Lanes to PF lane.
“Mr Sakeni said the allegations against former president Rupiah Banda who appears on top of the list would wait for further advice from the security wings and the National Assembly but Government would not be in a position to comment on the immunity”
SAKENI is being over-protective over RB. He must also be investigated. PF promised to procecute MMD leaders for their wrongdoings.Its a wonder why Sakeni is so much worried about RB’s immunity removal.
#2, I FEEL THE SAME. PF IS MOVING TOO SLOW. THESE PEOPLE MUST BE DEALT WITH QUICKLY SO THAT MORE TIME IS LEFT FOR DEVELOPMENTAL PROJECTS.
Now Mr Sharma must answer a few questions. If he can afford to refund K15 Billion in tax deferment, why did he ask for it in the first place? Why did he lie to the previous government that he needed a tax break? Did he pay bribes to the concerned officials? Mr Sharma must be arrested too for his clearly corrupt conduct. And, his company VARUN must be confiscated without compensation for abetting and encouraging corruption among Zambians.
And while you are at it, ALL citizens who have engaged in corrupt practices since KK left office in 1991 must be made to account for their deeds because they laid the seeds of corruption, they led the way and others followed. Those being investigated now are merely victims of the master minds from the 1991 – 2001 era. If the masters are in the current government let them prosecute themselves or at least apologise publicly to show that they are serious about fighting corruption.
And all those who have breached the constitution by illegally acting in senior positions must investigate and prosecute themselves. You cannot claim to be fighting corruption when you knowingly commit and abet a clearly illegal act. Maybe that is why Guy Scott does not act? kekeke.
I want to hear the reaction of our economist Musokotwane’s comment on this one? On Zamtel he reacted to each and every statement by pf concerning zamtel! what is saying about the 15bk tax to be paid and that might have been burried also had it been that mmd warn the elections.
@19, Musokotwane cant say anything. He has been caught paints down. MMD should be de-registered. The party has done alot of damage to this country. We should not allow this party to function in this country.
screw u!!
Zambia Breweries/ Coca Cola are feeling the heat of the competition from Pepsi!!!!
This is the “name, blame and shame” approach that government is employing. They are squeezing the chaps at the lower level of the “food chain” before they get to the master and guru!! In the process the small chaps will sure squirm, squill and sing to hell and back. With that data well secured, it will be time to move in and catch the “godfather”.
@ 2 kci you are right. GOD BLESS ZAMBIA.
#22, I agree with your thinking. One Zambia One Nation.
#19 & 20, Dr Musokotwane has been warned and cautioned by the so called security forces, meaning that they are taking him to court. In other words he has been effectively gagged (donchi kubeba at its best) until the court process.
Checks and Balances on where this loot is going to deposited.
Ok honestly speaking how can the Government chose to defer VAT, this does not make any sense. VAT is incurred by the consumer and is only collected on behalf of the Government by the supplier.
Let the prosecutions start now! MMD was a party of misplaced priorities.
guys honestly you think varun is going to pay back 15b,,,you guys must be living in cuckoo land,,this is 21st century nobody gives back,,,eventaully wat will happen is da will grease and slip out….also shaarma is a manager not owner of vb…until and unless their is constant checks and balances in our finanaces nothing will happen,,,,90days????????
I wonder why bloggers are so excited about this 15 billion. It will probably be passed on to the consumers at some point in time. So it is you who are paying the 15 billion!!!
COMMISSIONS OF INQUIRY ARE STILL A WASTE OF MONEY BECAUSE EVEN BEFORE THIS ONE WAS SET UP, IT WAS A WELL KNOWN FACT THAT THIS COMAPNY WAS GIVEN A TAX FREE CONDITION, SO IT WAS A QUESTION OF THE GOVERNMENT ASKEN THE COMPANY TO PAY.