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Alba Iulia
Wednesday, January 29, 2020

USD $34.5million Maize Scandal involving PF government

Economy USD $34.5million Maize Scandal involving PF government

Farmers in Moyo chiefdom of Pemba district found knitting the 50 Kilogrammes bags of maize for sell at one of the Food Reserve Agency depots in the area.
Farmers in Moyo chiefdom of Pemba district found knitting the 50 Kilogrammes bags of maize for sell at one of the Food Reserve Agency depots in the area.

AS POSTED BY UPP PRESIDENT, SAVIOUR CHISHIMBA (DR.)

Statement on partial details of the US$34.5 million maize scandal involving the PF government

Fellow compatriots:

A couple of days ago, I gave the MMD-run PF Government a 24 hour ultimatum to apologise to the nation and take action against officials who are corruptly behind the maize scandal under the pretext that the transaction is between the Government of the Republic of Zambia and Malawi when in fact not.

To the best of my knowledge, the government has not taken any corrective measures. To this effect, I feel duty bound to let the people of Zambia know about the whole transaction in the following chronological order:

Since 2015, a Zambian company called Kaloswe Commuter and Courier Ltd invested in the project to export maize to Malawi. After several trips to Malawi, Kaloswe found a local Malawian partner called ADMARC Ltd.

  • On 31st May 2016, Kaloswe Commuter and Courier Ltd entered into a contract for the purchase of Zambian White Maize (Non-GMO) with the Zambia Co-operative Federation Ltd (ZCF). A Mr. James Emmanuel Chirwa in his capacity as Director General signed, under seal, for ZCF while a Mr. Isaac Kapambwe in his capacity as CEO signed, under seal, for Kaloswe. Under this agreement, ZCF agreed to reserve 100, 000 MT of maize at the selling price of US$215 per MT.
  • On 17th June 2016, two agreements were executed. The first being between Kaloswe and ADMARC Ltd. Under this agreement, ADMARC was going to buy the maize from Kaloswe at US$345 per MT. All transportation of maize to Malawi and other logistical requirements were to be met by Kaloswe. This agreement was signed by a Mr. Foster C. Malumbe for ADMARC and a Mr. Isaac Kapambwe for Kaloswe. The second agreement was an addendum in which the parties mutually agreed that since ZCF was the ultimate source of maize it would be prudent to pay the whole amount of US$34.5 million into their (ZCF) account. ZCF would in turn deduct US$21.5 million due to it (ZCF) as duly agreed with Kaloswe on 31st May, 2016. The balance was going to be paid to Kaloswe whose legal duty it was to transport and handle all logistics in the whole transaction.
  • On 22nd June, 2016 Kaloswe issued an instruction, in line with the agreement, to ADMARC to process and wire the US$34.5 million into the ZCF account number 0003203000439 at First Capital Bank.
  • On 13th July 2016, PTA Bank wrote a letter of comfort to ZCF. In this letter referenced PTA/TF/ZCF/20160713, jointly signed by a Mr. E Ali and Mr. G. Mudange, PTA Bank was confirming with ZCF that the Reserve Bank of Malawi has approached PTA to support the transaction involving the importation of 100, 000 MT of white maize through a programme that the bank extended to the Republic of Malawi. PTA Bank further confirmed, in the same letter, that there was an existing arrangement between the Agricultural Development and Marketing Cooperation (ADMARC) and PTA Bank over maize importation financing.

UPP is concerned with the escalating business dealings between companies owned by the PF-MMD Ministers and senior civil servants who have become billionaires over the past few years

 

? On 26th July 2016 at 12:04:13 hours (12hours 4 minutes 13 seconds), US$34.5 million was wired into the account of ZCF at First Capital Bank via Standard Chartered Bank (Mauritius) Ltd.

  • On 6th September 2016, Mr. Malumbe of ADMARC wrote an email to Kaloswe in which he was categorically re-affirming that all logistical costs on the Zambian size would be met by Kaloswe as per the agreement. The same email was copied to the First Capital Bank.
  • On 6th September 2016, ZCF wrote a letter to Kaloswe in which they were confirming that logistical payments are to be made to Kaloswe on need-based. This letter was signed by a Mr. Frank Munthali the ZCF director of finance. The director of finance was replying to the request by Kaloswe to be paid an advance of US$350, 000 for logistics. Apparently, ZCF indicated that the payment would be considered “…once the documents are finalised…”

These details are just 10% of the whole matter, but before I go deeper I once again challenge President Edgar Lungu to intervene and correct the wrong impression that the transaction was between the Government of Zambia and Malawi. This was a purely private sector driven transaction. The involvement of government at this stage is meant to loot public resources. It is an act of greed by the selfish public officers who have transformed government into a cash cow for fast-track wealth. Many deserving entrepreneurs in Zambia are failing to do business because of corruption. SMEs are already beginning to collapse and our economy is headed for a meltdown.

If government does not intervene or provide new information to the contrary, UPP will after seven (7) days from now expose more details and take legal action on behalf of the Zambian public that expects tax revenues to be paid for national development. The Zambian workers from public (defense, security and civil service) and private sectors continue to contribute more than 50% of income tax revenues to the state. This means that the taxes mining companies pay are far less than what workers pay and yet billions of dollars are made by the mines and they (funds) are repatriated out of Zambia every year.

UPP is concerned with the escalating business dealings between companies owned by the PF-MMD Ministers and senior civil servants who have become billionaires over the past few years.
This scandal is among the many that we are fully aware of including the offshore accounts that our “leaders” have opened over the past few years. The plunder of public resources which has gone on over the past 5 years of the PF in government is far more than all the previous regimes put together.

We call for a forensic audit at the Road Development Agency and the Ministry of Youth and Sport as the top priority.

The people of Zambia cannot be told to continue sacrificing when public funds that are meant for local development continue to leave the country through offshore accounts by public leaders and bogus investors.

The UPP-led Government will not only heavily invest in agriculture, but also reform the marketing of crops and livestock. We shall create the National Livestock and Crop Marketing Authority which shall be in charge of marketing locally and internationally. This way, our hard working farmers will have access to lucrative international markets as well.

God bless Zambia!

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66 COMMENTS

  1. My simple understanding is a Zambian company bought maize from ZCF and sold to a Malawian company. The Zambian company did not have logistic money so it asked for a 10% to be paid upfront before the maize is to be shipped and this was done. So i dont see anything amiss in this transaction. Is it that maize is being export when there is a ban or is it maize is being bought from ZCF by a malawian company. Honestly apart from those two i dont see how this transaction is illegal and at what point it is stated that it is a Govt to Govt transaction

    • He said he will reveal more if the government doesn’t come clean. This is not the whole story. Wechipuwa!

    • ZCF is a Zambian government agency and ADMARC is a Malawian government agency while the middle person is a private company.

    • Then remember that there procedures to follow for any government business for transparency and to avoid corruption. So this should have gone through tender and companies would have to bid to get a contract to transport that maize. But someone can pay a bribe to get the contract and inflate prices, which is not value for money and loss for taxpayers. Thats the point of the article.

    • Read carefully and seriously to understand the whole transaction and please don’t rely on your ‘simple’ understanding. The issue is why do you have Kaloswe in the transaction? ZCF could easily have sold to ADMARC at $34.5million and handled all logistics. ZCF sold to Kaloswe at $21.5million, then Kaloswe sold to ADMARC at $34.5million and the difference is $13million . . . these are huge amounts and if you don’t see anything wrong, then you’re not being honest.

    • This case can be well argued as a no case. Kaloswe had a contract but did not have maize. he bought from zcf who had maize then Kaloswe supplied ADMARC

    • Chishimba Kambwili off-loaded this information to his friend Saviour Chishimba. RB might be involved in Kaloswe company.

    • Heh heh heh heh hee pa Zed! If I were independent ACC I’d quickly smell the rat and fish it out! But I fear – O! Dr Chishimba could be putting his head on the chopping board and I hope he has taken measures that no matter what the Zambian people will get to know what facts he has unearthed! He is kind enough to be kicking the tin slowly down the slope by giving government time to come out clean on this matter when he can just put it all out for the nation to judge and then go ahead and sue! Kaloswe could even be an acronym of the names of people involved in the whole scam! Thanks Dr Saviour Chishimba while this energizes our desire to be enlightened more there must be lots of sweating somewhere behind the scenes!

    • Firstly, Lungu himself has already admitted that there’s rampant corruption in PF, especially among his ministers. So this is not surprising that some of his ministers may be behind this scandal. Secondly, Lungu is now calling all the shots, and ACC doesn’t seem to have any power to freely investigate anyone. Thirdly, and most importantly, Dr. Chishimba should have revealed ALL that he knows up to this point, instead of withholding information and asking Lungu and his minions to take action, “or else.” Does it mean that if they “take action,” he’ll then NOT reveal the whole scandal? Action or no action, the Zambians deserve to know the whole truth, and that’s what will give Dr. Chishimba credence and respect from the Zambian public. So doctor, tell it all. We the Zambian people…

    • (Continued)… demand to know what’s happening in Lungu’s underworld. And doctor, you’re doing a great service to the Zambian people. Don’t get intimidated. We’re behind you. And we salute you for blowing the whistle.

    • Watchman the cost of transport and customs clearance from Zambia into Malawi is about USD90 per tonne so from the $345 please remove USD90 and USD215 cost of product see how much profit remains. No doubt there was also cost of GIT.

      Looks like a normal business transaction to me. These guys flew into Malawi and procured a contract and sourced maize from ZCF. I am pretty sure ZCF also made a profit on this maize. This price is like above k100 per 50 kgs bag.

    • @ Chiweme. True USD90 could be the tax but as this was termed as “Govt to Govt agreement” no taxes were to be paid. So here the issue is, Why would a Govt to Govt involve kaloswe a private individual? This Kaloswe is selling this maize at $345 when it was a meant to be $215. Therefore somebody is making dirty money here.

    • This business is called grain trading. This is what made Glencore to be the big company we know today. We have many companies of foreign origin who were paying villagers as little as k80.00 per 50 kgs bag and exporting it at USD345.00. Equally we have many more ordinary Zambians who were doing the same thing. In addition depending on how the deal is structured there could be the cost of finance too .

    • @House Fly. I am not refering to customs duty which is the tax. Instead i am talking of moneys you pay to clearing agents to clear goods at Customs both for Zambia and Malawi and ofcourse the cost of transporting the maize. Total cost is USD90 per tonne. As you will see the profit comes right down from the 13 million to 4 million
      That is not all … for deals like this you need to raise goods in transit insurance the costs are plus plus by the time you are done you end up with less than 4 million in your pocket.

  2. Not even your children will enjoy such misconducted evil transactions. If this be the case as it seems to come from reliable sources, shame to all involved.

    • What is the role of UPP in this scam? Is Kakolwe company owned by one of theirs? The mistake was not to pay the company directly and instead to be refunded by ZCF. The thieves in PF want to eat alone.

  3. How can you run to look when he himself is a tool for corruption…its like running to a Drug Baron to sort out the drug problem on your street. Corruption is so ingrained in our society that ACC is scared to look into this as it goes straight to State House….you can not have that much maize crossing the border without Top Officials in Lusaka not noticing. If Lazy Lungu was eager to fight corruption do honestly think he would agree to advise from RB to appoint some of is people to key positions.
    Up to now, ACC is still looking into BUFFOON CK’s case even in the face of overwhelming evidence….ACC is only there for arresting lowly paid cashiers!!

    • @Bala Ngombe, Unlike Lazy Lungu I sweat for my money and when I am not working money works for me…I am not Lazy Lungu who lies about halving his salary which is laughable as you can not ask Ministry Of Finance to pay you half of what is already budgeted…then take foreign trips every 4 days to neighbouring countries like a Tourist.

    • YES IT IS. ONCE THEY ARE NO LONGER IN POWER THEY WILL BE COURT CASES AND JAIL SENTENCES HENCE THE BIG FIGHT TO STAY IN POWER.

  4. And Ba Chishimba, us who supplied vehicles to ECZ for Elections have not been paid. Who can speak for us

    • @One Zambia – No, he clearly says he will continue the tale if government doesn’t tell the truth. He has given a chance to the people involved to speak out. Besides that, we need to find a way to expose corruption especially now that The Post is no more.

  5. thats what was announced in the news when they said only maize sold to malawi and zim was to be allowed to go and no other because this was under the UN Food arrangement support by zambia to neighbours; in short govt to govt initiative.

  6. How do you start black mailing the govt if you are a true Zambian. Why not report the matter to the AAC or the police. As usual, we have attention seakers trying create a scene. Bafikala umo nkamuponona very soon.

  7. This PF govt is an organised criminal enterprise with its turf being Zambia. They won’t fight corruption when they are perpetuating it. It would be like Satan condemning sin or a prostitute preaching chastity, or Lungu ranting against alcoholism. Chishimba will do well to take govt to court. The best would be to get rid of this evil PF govt before it wrecks the economy completely.

    • Taking the Gov’t to court requires funds, Lawyers are not ***** and do not do “Pro bono”…how can you hire Lawyers when you can not afford stationary for your Political Party…he can only bark like a toothless guard old dog.

  8. Expose them Mr Chishimba and if its possible to sue them on behalf of the Zambian people, we will send you money to start the court process.Enough is enough.

  9. THIEVING IS IN SOME PEOPLE’S DNA, TO AN EXTENT THAT THEY EVEN STEALPOWER FROM DESERVING ZAMBIANS. PF IS BEST KNOWN FOR STEALING AND LOOTING.

  10. THIS IS THE MOST NAIVE CHITOLE DR I HAVE EVER SEEN. ZCF IS A GOVERNMENT AGENCY DEALING IN MAIZE BUYING AND SELLING. ADMARC IS A GOVERNMENT AGENCY DEALING IN MAIZE BUYING AND SELLING IN MALAWI. THESE TWO AGENCIES DO NOT HAVE OFFICERS DOING IN LOGISTICS. ITS KNOWN WORLD OVER THAT INTERNATIONAL TRADE {LOGISTICS} IS DONE B Y COMPETENT COMPAIES SPECIFICALLY TRAIND FOR THIS COMPLICATED WORK. ITS NOWN WORLD OVER THAT GOVERNMENT TO GOVERNMENT AGREEMETS EMPLOY PRIVATE COMPANIES TO DO THE DONKEY WORK. NOW, THIS CHITOLE OF A DOKOTA, WANTS MINISTER DORA AND HER EMPLOYEES TO GO A LINE UP AT MWAMI BORDER AND TELL HER MALAWIAN CONTERPART, COME FETCH YOUR MAIZE. WHAT SHALLOW THINKING.

  11. Why are they selling maize ? Why MMD-PF is behaving like this?
    They know there’s no opposition that can remove from power.
    In the country we have shortfall of maize,

  12. The last paragraph shows that Mr. Chishimba is just campaigning – doesn’t seem to realize that the next presidential elections are in 2021. At the “UPP-led Government” – bwana, if you have any evidence against impropriety, just report to relevant authorities, and if there is no action then report or complain to the President. Do not alarm people by issuing useless ultimatums. Also, will you please justify your title – it can’t just be applied loosely.

  13. THIS IS THE ONLY COUNTRY IN THE WORLD WHERE A GOVERNMENT MUST INVOLVE ITSELF IN NEGOTIATING, PROCUREMENT, SHIPPING, EXPEDITING, AND DELIVERY OF THE PRODUCTS BOUGHT UNDER INTERNATIONAL TRADE AGREEMTNS. ALL YOU STUPID SELF STYLED ECONOMISTS LIKE UNDER FIVE, THIS FAKE CHITOLE DOKOTA, WHY DO GOVERNMENTS SIYGN TRADE BILATERAL AGREEMNTS, TRADE PROTOCOLS? IT IS TO FACILITATE LOGISTICS SO THAT TRADE RUNS SMOOTHLY. LOGISTICAL MATTERS ARE HANDLED BY INTERNATIONAL MANAGERS. CHISHIMBA, THEERE IS NOTHING STRANGE IN EMPLYING MIDDLEMEN TO EXPEDITE GOVERNMENT DEALS. ALL GOVERNMENTS THE WORLD OVER HAVE NO TRADE EXPETITERS, ITS NOT THEIR B USINESS. EVEN COPPER MINES IN ZAMBIA, ITS NOT THEIR BUSINESS TO MOVE THE COMMODITY, ITS THE INTERNATIONAL EXPEDITERS WHO DO THIS MWE BA FIKALA

    • Ba Chile: listen to yourself, why so much anger and insulting other people? Are you a beneficiary of this scandal? True, in the developed world, Govt has no business in business but there is strict adherence to procedures and their systems are transparent. ZCF could have advertised for transportation of Maize to Malawi so that all us with trucks could have pushed in bids. What would you call the lack of transperancy in this deal?

  14. I read on “Face of Malawi” the government official confirming the arrival of the first lot and expecting the second and final of the 100mt from Zambia. Unless this alarmist is talking of a different Malawi to that of the achimwene. To hell with your kachepa.

  15. Pastor: PF are thieves;

    Ans: All the time!

    Pastor: All the time;

    Ans: PF are thieves!

    All: AND THAT’S THEIR NATURE

  16. @Watchman. Kaloswe and Admarc are business partners from Malawi, as simple as that.How they execute their deal is up to them. Anyway the man has promised more information, maybe after that you may be able to sound clever.

  17. A private Zambian company sold maize to private Malawian company simple. This is excellent & genuine international deal is concluded. PTA Bank & Reserve Bank of Malawi backs up ADMARC to pay ZCF through First Capital Bank backed by Standard Chartered Mauritius. Again, excellent & genuine international financial deal is concluded. Back in Zambia, its all crimes being committed. Going by Ministrial Statement by Agriculture Minister of 11/11/2015 on Maize Marketing and the Price of Mealie Meal and Other Commodities’ to Parliament, ZCF has no maize to sell locally or outside because they neither buy nor sell maize to anyone. ZCF receives maize from FRA for distribution to Solar Milling Plants on behalf of FRA. FRA, buys maize from farmers for strategic reserves & export at times.

    • Kaloswe Commuter is free just like millers & other crop marketing agents to buy maize directly from farmers for sale either locally or outside the country but not to source maize from FRA or ZCF. Tender should have been issued to give all Zambians & Zambian companies chance to benefit. Dr. Chishimba is right & all Zambians concerned with corruption should support him by donating money for legal fees even ZMW 1.00 will do to fight this shamelessly high level corruption. Waiting for Anti-Corruption Commission to liberate Zambians will never happen because such bodies are created to offer posh jobs to the elites & their families of officials of ruling govt. As the old adage goes, there is no one who can bite the finger that feeds him / her.

  18. Your picture reveals child labour. What is the answer from government? Is the ILO aware that Zambia’s government employs child labour?

    • Baba – The caption reads “Farmers….”, what child labor? These are farmers who brought their maize from their fields.

    • Its not the caption that describes the picture. Don’t you have eyes? Cant you see the child in the picture?

    • Africans! That’s how we colonised them cos we taught them to read and they stopped seeing. When he reads a caption he can’t see what is in the picture. He believes that these are farmers

    • The more you look the less you see the source of argument here! The caption just means what it says of the picture for all I care the “farmers” being referred to are only the group of women and men we see in the picture then you have a boy whiling away his time walking through the rows of maize bags and looking at what could have caught his eye as he is waiting for his parent/s! Mind you Pemba is a rural setting where carts/bicycles are used to transport loads and boys accompany parents either for a fun ride or to help guide the animals pulling the cart! If you had grown up in a rural setting @ AreQ Puncture you’d have had a better understanding than want to behave child labor advocate! What you should have been wondering is whether the picture was taken while school term was on and…

    • Ba AreQ Puncture must have been a very lazy child at home (oh sorry he never lived in a village or at a farm). In a typical setting you are taught farming, even at subsistence level, from a very young age – in fact from the time you are a baby. You go with your parents to the fields and do everything done in the fields including harvesting and taking produce to the market (in fact you have your own “field” as soon as you can walk) – you should have reported this child labor a long time ago then. That is what I meant when I said those are “farmers” – not the caption.

  19. A lot of scandols mu zambia first one katele kalumba must tell us were they took the money with chiluBa for all th houses they solD thruout zambia then money for every compny idustRys minesa a lot of grz buildings in lusaka money from zamtel zr u can’t run zambia like ur kantemba wear even ur wiefe u hide ur trasaactions and sata gave mugabe maize mugabe wanted to pay but sata (kulibonesha) refused said first eat. Th maize an pay nga mwaikuta can wqe know if mugabe paid’

  20. Saviour Chishimba nabasula banobe u were so instrumental in helping PF to return power, some of us saw that. So please shut up and continue dancing dunununa reverse. Infact rumour has it that umusula munobe Kambwili is giving u this info which is very possible.

  21. Oh! How come some Zambians do not see anything wrong in this $34.5 million maize deal scandal?. How can @ Munjila, Chile, True Zambian etc seriously justify and legitimize this scandal as a normal transaction. If PF government does not guide the nation and take stern action over such stinking deals, it may just be proof that the whole PF govt is rotten. Zambians are waiting action from PF Lungu over corruption and office abuse by Mr Chishimba Kambwili that has cost him ministerial job but more prosecution needs to be done. Now this maize scandal is a litmus test on corruption of PF govt. Zambians are watching and waiting – judgement will surely be secured now or later.

  22. To be fair this man is all about selling his manifesto, there are other avenues to handle this corruption and money laundering scheme.Are you intending on throwing the PF government out just now for you to sell your manifesto? Secondly why give the nation half the story and leave the said scam to continue which you know very well is laundering of money? Unless you are telling us that the whole government which includes everyone on a public salary is a thief. Think through before you alarm the situation and get your facts right.

  23. Malawi government approached the Zambian government why involving Kasolwe it was suppose to be tendered. Today Sylvia Masebo is in court because of the same. wake up Zambians

  24. the truth of the matter is governments do not involve themselves in buying, expetiting and export deals. the Malawian government asked the Zambian government to sell them maize. the Zambian government which has stopped buying maize for stocking through fra, passed the request to zcf which buys and sells maize. zcf bought the maize, obviously through maize marketing companies. zcf made all the logistical arrangements as its their business to conduct such deals. why should the government float a tender for maize in which they had no part? it was not fra maize. fra maize was bought and sold up to 2015 season. now government has no business in maize except for strategicl food reserves. there is nothing scandalous about this deal except in the mind of this crazy dokota who refuse to…

  25. who refuses to accept the changes that government has made to the handling of maize. this is simply that it has decided to have nothing to do with buying and selling maize apart from strategic food reserves. the buying and selling of maize as a commercial venture has been left to the players in this product. surely this is simple for all to see. if you hav the resources, venture into buying and selling maize and make money or losses, do cry to government.

  26. TALK,CRY,WEEP UNTIL COWS COME HOME, TO FILL UP THIS TONNAGE, ZCF WENT TO SEVERL HUNDRED FARMERS TO BUY THE MAIZE, NOT ONE. AND NO ONE FARMER WAS GOING TO SELL MAIZE WORTH $35 MILLION . ITS FAR FETCHED. THIS IS THE NAIVETY WE MUST GET OUT OF. PEOPLE TALK TOO MUCH AND DO VERY LITTLE PRODUCTIVE WORK. ALL THEY DO IS TALK, TALK, TALK, HOW CAN PVERTY LEVELS REDUCE?

  27. The issue for boarders is different because the government of malawi buy maize at kaloswe not zambian government so anything for boarder transaction is separate which means kaloswe has gained $13 million and its not only for him but for two countries malawi and zambia may be kaloswe is getting only 10 or 20% fot using his name don’t forget politicians there is no way in the world government will buy something from broker while the issue is simple for government to government hard it been the government of zambia subcontractor kaloswe because he has enough maize but is the buyer who is looking for broker it’s impossible
    I can’t buy a shirt from abroker while am able to see and talk to the owner there is corruption taking shape inbetween

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