Tuesday, March 19, 2024

World Bank to hand over names of Zambian officials who received bribes over ZESCO deal in 2002

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World Bank, Washington DC
World Bank, Washington DC

The world bank has said that it will soon hand over to the Zambian government details and names of senior government officials in the previous MMD government who received a bribe from Alstom Corporation of France.

The World Bank slapped a hefty 9.5 million dollars fine on the Alstom Corporation, a major French engineering company and blacklisted two of its subsidiaries, Alstom Hydro France and Alstom Network Schweiz AG (Switzerland), after it admitted to bribing a Senior Zambian government official.

Alstom admitted to an “improper payment” of 110 thousand euros to the official for “consultancy services” when the company submitted a bid to ZESCO to perform bank-funded rehabilitation work on hydropower systems at Victoria falls in Livingstone.

Alstom’s subsidiaries have been banned from the Bank’s call for tenders for a period of 3 years, and committed themselves to pay US$9.5 million to the institution.

The bribe was paid in 2002, just two years after France outlawed the payment of bribes to officials in ­foreign countries. ZESCO signed a 45-million dollar contract with Alstom Hydro France in April 2002.

The Tender was issued in 1999 and the project was completed in July 2008 at a cost of 51-million dollars. The world Bank declined to name the official who allegedly received the bribe, saying that disclosure could “jeopardise the security of witnesses”.

But during an interview with selected Zambian business journalists, World Bank Managing Director Sri Mulyani Indrawatti said the referral will be sent to the Zambian government explaining how the corruption happened and the people involved.

Ms. Indrawatti said that it will then be up to the Zambian Authorities to act against the official.

And SHERPA, a Paris-based, non-profit organization that aims to protect and defend the victims of economic crimes in developing countries, has welcomed the decision by the World Bank but called for the damage caused to Zambia by this corrupt deal to be fully compensated.

SHERPA further said that there was no reason for not including restitution payments in the case of Alstom in Zambia.

55 COMMENTS

  1. We’re listening! We don’t want the “dog to chew some pages,” we want the whole report, it must be put out for public consumption. What a test of corruption allergy!

  2. MMD nafuti nafuti corruption everywhere. I think we should change the acronym “MMD” to mean “corruption”. Surely, and you still want to be re-registered. You still want to rule Zambia in 2016. What a bunch of shameless fools. Please Mr. Registrar of Societies, do not re-register MMD, twapapata. Instead of doing checks and balances they want cheques and balance.

  3. Too little to late,but we will take the compensation from France.  2002, it has to be the late Finance Minister in Mwanawasa Government Emmanuel Kasonde and Levy gave him the boot for that and brought in Magande and the rest as they say is history.

    Next Case please. When am I getting more money in my Pocket from India?

  4. zesco has been a goverment cash cow for a long time. Thats why its always never efficiently run. And whoever thinks an engineer should head head zesco must think again, engineers are hands on pros not administrator unless if maybe that person has a M B A. So zesco should never be a political appointee so that when they siphon money for campaigns or any project he wont say anything. So Sherrif ukwa think deep bout tesco

    • Bufi bwana, you are speaking about “old school engineering”; we have done more management (strategic and general), financial management and the like. The problem is political influence and adherance to professional ethics. Nearly all professionals melt each time politians attack them; evne though they would know that they are in the right. Look at the media; the ZWD, Ba LT; when they write articles, at times you would think they have never been to school. Yet, they are very educated. If you gave me a chance to run Zesco, you would be surprised. Even PF would be amazed. I would categorically say the truth, and educate the Zambians about power deficit; and the consequences of inaction.

    • I disagree about journos.  They are not highly educated.  It is the failures in academy who can’t get into any college who go for journalism.  

  5. So when are we going to hear about new jobs created, MPs debating about how to better education, health and all the urgent issues we should be working on. We are tired of these corruption witch hunts. They won’t put food on the voter’s table.

  6. Zesco must be managed by one with an engineering background, just like zamtel. U guys who did social sciences think engineers cant manage anything. We can engineer anything. Proud engineer.

  7. Where was the World Bank all these years, it has taken them 10years to report the crime. maybe the thieves are dead by now, this is justice denied to the Zambian pipo.

  8. It is mind boggling to see the levels of inefficiency that that befallen Zesco in Chingola. Power goes off, sometimes for days, without them telling customers what is going on. Their so called customer service seems to have no clue of what is happening and more frustrating even when there is no power, their vehicles go round the townships threatening customers that power will be disconnected if they don’t settle their bills! As for Mulonga Water their only customer relations is driving around threatening customers about water disconnection in the most vulgar language.

  9. @BRO can we please get rid of the false assumption that engineers can not run an organisation!Google, Mercedes Benz, Blackberry, Microsoft, Oracle, Facebook, Apple I could go on and on are all companies that were founded and are run or were succesfully run by engineers. In the UK a lot of engineers went directly into the banking industry.here is no ” secret management sauce” that an MBA bestows, ZESCO is an organisation that is hamstrung by the fact that as a politically influenced organisation it can not make the long-term decisions that are required in the energy industry. These bribes were bad decisions due to a lack of transparency, we dont know what the criteria of being ZESCO MD is only that you need close links to plot 1. These are the problems that we will continue to face

    • Posted on Yo, thanks for the shout-out! Part 3 is prblboay coming sooner rather than later, detailing JLA #111 and bringing people back up on to speed on Libra (who DC has been pushing as a factor in FC recently). That’s his one and only appearance, and there’s a lot there to suggest connections with G-Mo’s themes.Again, glad to hear you liked it!

  10. This is rubbish , its not corruption the zambian official must have provided consultancy services to the bidder to put a competitive bid and win. It is happening everywhere when a bid is being submitted and the bidder really needs to win he must cheka to some pipo on the evaluation panel. Infact 110,000 Euros was too little for a project of such magnitude, further more the official acted in his own capacity not as MMD. Even PF chikwanda how did he get a contract to rehabilitate state hse? he definately paid something to somebody somewhere.

  11. Sad that master minder Chiluba is dead, am sure he would on the list, Thank God MMD IS NO LONGER IN POWER. How could a country develop with this levels of corruption MMD exhibited?

  12. name them this hopefully we make it imppossible for citizens to forgive them. not like in the case of katele kalumba,machungwe, FTJ

  13. #19 Mwiponta Mukabwela,
    Yes you are right and remember also that at that time Chiluba and Sata were birds of the same fearther and they flocked together and they messed up Zesco together and initiated all the dirty deals in GRZ and parastatals. In short, Sata must be aware of all this.

  14. This will catch up with UKWA bcoz late Emannuel Kasonde is his relative, that is the reason Mwanawasa fired this BEMBA Minister of Finance by then, so Bemba are never clean pipo.

  15. Bufi bwana, you are speaking about “old school engineering”; we have done more management (strategic and general), financial management and the like. The problem is political influence and adherance to professional ethics. Nearly all professionals melt each time politians attack them; evne though they would know that they are in the right. Look at the media; the ZWD, Ba LT; when they write articles, at times you would think they have never been to school. Yet, they are very educated. If you gave me a chance to run Zesco, you would be surprised. Even PF would be amazed. I would categorically say the truth, and educate the Zambians about power deficit; and the consequences of inaction.

  16. This is how it is. If you want to be corrupt in Zambia, do it while you are in office BUT get caught before the next government comes in because your own government will just fire you, and release you to enjoy the stolen money. If you do not get caught and then you just lose power, then you will be prosecuted by the new government. This is the trend in Zambia since 1964. All who stole in KK’s government were just fired. In Chiluba’s government, they were never caught and they carried on into Levy’s. Then Levy prosecuted them. Those who stole in Levy’s and were caught, were fired. Then RB carried on Levy’s prosecutions but started new ones from Levy’s era. Now Sata is prosecuting the RB phase thieves, but just fired his State House aide for corruption.

  17. # 7 BRO Lusaka Stock Exchange was run by Charles Mate a Chemical Engineer, Mines on the Copperbelt are run by engineers. It is common sense that if a company is engineering biased then it should be headed by an engineer. During my time at KCM, the company started employing engineers in the  commercial and procurement departments because business, finance, economic etc graduates could not do a good job.

  18. Engineers are the brainy ones. It’s not debatable. That’s why they easy add ACCA, CIMA, Management studies to themselves later in life. Engineering studies are the hardest. If you want brains at the top of the company, get those who did engineering for first degree. Case closed.

  19. If the guy was paid for consultancy services he provided, how does that become corruption? Something must be missing in this article if corruption indeed took place.

  20. Even Zambia Wildlife Authority (ZAWA) under management by accountants e.t.c. has not done well unlike when it was managed by e.g. biologists and environmental scientists. Some left tribalism as their legacy.

  21. am not amused by some characters masquerading as engineers and wanting to manage some parastatal institution such as zesco. real engineers do not cry for positions but go out in the factory and make things happen. why do you want to swap your overall or worksuit for a suit if you call yourself an engineer. for all i know successful engineers are not complaining but only metal fabricators making wheelbarrows, gates and window/doorframes would complain and i hope some characters here do not fall under this category. why are you jealous of the man at zesco. is he getting paid from your grandfathers pockets or what. leave him alone and his family. its time for them to enjoy the life that you only watch in movies.

  22. The minister of energy in 2002 was mpombo and then followed by mutati. Infact he was removed when there was a fuel shortage. But my information tells me the deal was at PS and MD Zesco level

    • Strength: 275lb sumo felt fast, goodStrength & Cond. first set started with 225 on the front saqtus. Had to break at 4. Last two sets dropped to 185 and fired through pretty well, minus tight hip flexors.Times were roughly 1:45SS Run had to do at work on a treadmill. Felt pretty good. Rested about 5 hours.

  23. Surely, it is pity and indeed unwise for our friends to be pensive, engrossed or preoccupied with corruption instead of sanity. Realistically speaking, the so called “Political Leaders” have know clue of what there act (corruption) is doing to a common Zambian because they have a thing for Money then giving the outmost servies required by a poor Me.

  24. Just Asking,

    Inform your pretending perpetual presidential contender President that Moussa Sal of Mali was a Cabinet Minister responsible for three different positions before he became Prime Minister and now he has run for the Presidency and won. That is how it is done, the Obama he compares himself to was a senator and so was David Cameroon. That way you learn the ropes of Governance. The President’s health while private is also a national issue to be handled with caution, you dont want to send wrong messages to the markets!!!

  25. I think its wrong for World Bank to hand over names of Zambian officials who received bribes over ZESCO deal in 2002, lets leave the officials alone an enjoy the money with there familes.

    • oo naman, mas magaling ang anteeo sa la salle. syempre may bias ako, nag-aral kasi ako sa ADMU.pero isa kasi sa criteria nila e facilities, mas OK yata facilities ng la salle.

  26. Not big bucks for a deal of that magnitude. But lets hear the names. About engineers not being good managers, it is a well know fact they are not unless they add on some management and/or finance courses. To me the best manager is a person with good finance background. ACCA or CIMA alone just makes you a good accountant unless this is coupled with first degree or MBA, Msc etc in any field. It is undisputable that engineers who have gone this route have made good managers.

  27. Hahahaha, this blog is funny. Engineers, if your course of study is so ‘reputable’, why is it that you have to study ACCA? Most of you Zambian engineers embarrass the country. You cannot even point to a successful invention, you are not visionaries, you are status quo driven. You cannot even assemble a car, you can only sell spare parts and work at mines. You owe the country an apology. You owe your sponsors an apology. You do not even qualify to call yourselves engineers, you bribe lecturers at university and get degrees. Harvard undergraduates are better than you. Alas oh Alas!

  28. President FTJ was not in government at the time please leave him out of this nonsense talk about cabbage

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