Friday, June 14, 2024

The Allegation is that HH was a Director of Sun International (Zambia) Limited at the Time of Privatization

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President of the Opposition Patriots for Economic Progress (PeP) has said that he doesn’t know anyone who has accused United Party for National Development (UPND) President Hakainde Hichilema of being a shareholder in Sun International (Zambia) Limited at the time of privatization

Reacting to Mr. Hichilema’s interview clearing himself of the allegation from FDD President Edith Nawakwi, Mr. Tembo said that the allegation was that Mr. Hichilema the was a DIRECTOR in Sun International Zambia at the time that he, as Negotiating Chairman for the Zambia Privatization Agency, decided to sale Mosiotunya Intercontinental Hotel to Sun International Zambia at a lower purchase consideration of $6.5 million when they were other higher bids including $26 million, $20 million and $10 million and failed to declare conflict interest, which he said was a criminal offense, which if convicted can attract a fine and jail time.

Mr. Tembo further said that during his interview, the UPND leader Mr. Hichilema failed to refute that he was appointed as ZPA Negotiating Chairman for the sale of the hotel around July 1997 and that while he was ZPA Negotiating Chairman, he incorporated Sun International Zambia Limited on 18th November 1997 and in March 1998, he sold the hotel to a company that he had incorporated and in which he was a Director.

In a post on his Facebook Page, Mr. Tembo said that his view is that these are very serious allegations regarding his conduct in the sale of the hotel and that Mr. Hichilema would do well if he answered them at his earliest opportunity.

“The people of Zambia would like to know; was he the ZPA Negotiating Chairman in the sale of the hotel? Did the sale of the hotel commence around July 1997? Did he incorporate a company called Sun International (Zambia) Limited on 18th November 1997? Did he, as ZPA Negotiating Chairman sale the hotel in March 1998 to a company called Sun International (Zambia) Limited which he had incorporated a few months earlier, for a lower price of $6.5 million when they were higher offers as high as $26 million? ”

Below is the full Post

ABOUT PRIVATIZATION: THE MOSIOTUNYA HOTEL MATTER

By Sean Tembo MBA, BAcc, FCCA, AIPZ, FCPA, FZICA – PeP President

  1. Yesterday morning l was very happy when l heard that the UPND Party President, Mr Hakainde Hichilema was going to be featuring live on a special Hot FM program to provide further explanations to allay the allegations that had been leveled against him by Honorable Edith Nawakwi, the Party President for FDD, who at the time of privatization was the Minister of Finance under the FTJ Government. Like l have always said, these allegations of misconduct against Mr Hichilema are very serious, especially given his position as an aspiring President of this Republic. That is why l was not agreeable with Mr Hichilema’s initial approach of seeking to downplay these allegations by responding to them using Facebook and Twitter memes. I have always insisted that Mr Hichilema needed to explain himself in the same detailed manner that Honorable Nawakwi made her allegations. And am sure that l am not the only citizen that demanded for him to explain himself in detail. You see, the assets which Mr Hichilema is alleged to have misappropriated are national assets, and as a bonafide citizen of this Republic, that makes them my assets too. So l have every right to pursue this matter to its logical conclusion. The fact that l am a practicing Statutory Auditor, Chartered Accountant and Insolvency Practioner, gives me a privileged position to better understand the issues of corporate governance that are at play here. I would be failing in my duties as a citizen of the Republic if l did not use my privileged position of being qualified and experienced to actually help in explaining this national matter to my fellow citizens who might have the knowledge to understand it by themselves. That is the reason why l have written two articles on this matter since it arose last week, and this one is a third of such an article.
  2. When l wrote my last article a few days ago, Mr Hakainde Hichilema’s lawyers had just written a demand letter to Honorable Edith Nawakwi. In that demand letter, they also sought to explain, on behalf of their client, three specific allegations. The first allegation was that Mr Hichilema had bought his Kabulonga house from Lima Bank which he was liquidating, the second was that he had undervalued RAMCOZ assets during privatization and the third was that during the sale of Mosiotunya Intercontinental Hotel, as Negotiating Chairman, he had ignored higher bids of $26m, $20m and $10 and instead sold the hotel to a lower bidder Sun International Zambia at $6.5m, which lower bidder he was a director in and has remained a director in. Like I indicated in my previous article, based on the explanations that Mr Hakainde’s lawyers had proffered on his behalf in the demand letter to Honorable Nawakwi, my view was that Mr Hichilema had reasonably been exonerated on the first and second issue, but not the third issue involving the sale of Intercontinental hotel. And so, during his Hot FM program yesterday, my attention was specifically directed on what his explanations would be on the last issue, and not necessarily the first and second issues.
  3. Although the interview started a bit later than scheduled, l made sure that l remained glued to my two-band radio. I was happy to note that Mr Hichilema was very prepared for the interview. He did not only provide detailed and specific explanations, but he also backed up his assertions with documents, which was very commendable. However, this was only with regard to the Kabulonga House and RAMCOZ issues. On his sale of the intercontinental Livingstone hotel, Mr Hichilema failed to explain himself for the second time.
  4. Mr Hichilema’s argument regarding his sale of Intercontinental Hotel is that he was not a SHAREHOLDER of Sun International Zambia, which bought the hotel. However, the allegations are not that he was a shareholder but that he was a DIRECTOR in Sun International Zambia at the time that him as Negotiating Chairman for the Zambia Privatization Agency decided to sale Mosiotunya Intercontinental Hotel to Sun International Zambia at a lower purchase consideration of $6.5 million when they were other higher bids including $26 million, $20 million and $10 million. During his entire protracted interview on Hot FM, Mr Hakainde Hichilema did not at any given time deny that he was the ZPA Negotiating Chairman in the sale of Mosiotunya Intercontinental Hotel in Livingstone. Neither did he deny that he sold the hotel to a lower bidder of $6.5 million when they were higher bids of up to $26 million. During the entire interview, Mr Hichilema did not deny the allegation that he was a Director in Sun International Zambia Limited which is a subsidiary of Sun International South Africa, and which was incorporated in Zambia on 18th November 1997. Neither did he deny the allegation that the process to sale the hotel started as early as July 1997, no that the sale was only concluded around March 1998.
  5. The summary of the timeline of the allegations that were leveled against Mr Hichilema regarding the sale of the hotel, which Mr Hichilema failed to refute yesterday are that he was appointed as ZPA Negotiating Chairman for the sale of the hotel around July 1997 and that while he was ZPA Negotiating Chairman, he incorporated Sun International Zambia Limited on 18th November 1997 and in March 1998, he sold the hotel to a company that he had incorporated and in which he was a Director. My view is that these are very serious allegations regarding his conduct in the sale of the hotel, which Mr Hichilema failed to categorically deny yesterday. He would do well if he answered them at his earliest opportunity. The people of Zambia would like to know; was he the ZPA Negotiating Chairman in the sale of the hotel? Did the sale of the hotel commence around July 1997? Did he incorporate a company called Sun International (Zambia) Limited on 18th November 1997? Did he, as ZPA Negotiating Chairman sale the hotel in March 1998 to a company called Sun International (Zambia) Limited which he had incorporated a few months earlier, for a lower price of $6.5 million when they were higher offers as high as $26 million?
  6. Now, let me address Mr Hichilema’s arguments regarding his role in the sale of the hotel. His first argument is that the Sun International offer came with a $50 million dollar investment promise. However, we are told that the Sun International offer was not the only offer that came with a promise of reinvestment. All the other offers came with comparable reinvestment promises, so there was nothing unique about the Sun International reinvestment promise. Mr Hichilema’s other argument is that the sale of the hotel to Sun International (Zambia) Limited is one of the few privatization success stories because it had remained operational up to now. Well, firstly there are plenty of the privatized companies which are operational and robust today, including Zambian Breweries, Zambia Sugar, ZANACO etc., and secondly the fact that a privatized company is robust and operational today does not excuse the illegality that might have taken place in its privatization process. The third argument that Mr Hichilema puts forward is that he was not a Shareholder in Sun International (Zambia) Limited. Like l earlier said, l have been very keenly following this privatization issue since it caught momentum last week and l don’t know of anyone who has accused Mr Hichilema to have been a shareholder in Sun International (Zambia) Limited, but a Director. So the quest by Mr Hichilema to answer an allegation which was not leveled against him and instead ignore one which was, is akin to that student who walks into an exam room and finds that none of the things that they had studied have come in the exam. So in order to show the examiner that they at least know something, they just begin to answer questions that have not been asked in the exam, simply because that’s all they can manage to do.
  7. Allow me to now address the issue of whether the fact that Mr Hichilema was not a shareholder of Sun International (Zambia) Limited but only it’s Director would still mean there was a conflict of interest or not. The answer is a definite YES. There was a conflict of interest. The only question is whether Mr Hichilema declared interest or not. My take is that he most likely did not, because if he had, he would have been gleefully waving the declaration in front of the camera during his interview yesterday, in the same manner, and fashion that he was waving his title deed for the Kabulonga house. The next question is whether such an apparent conflict of interest would amount to a criminal offense or whether it is just an ethical and moral issue? Well, section 11 of the Zambia Privatization Act Cap 386 of the Laws of Zambia states “if any person is present at a meeting of the Agency or any committee of the Agency at which any matter is the subject of consideration and in which matter that person or his immediate family or his professional and business partners, is directly or indirectly interested in a private or professional capacity, he shall, as soon as is practicable after commencement of the meeting disclose such interest and shall not unless the Agency or the committee otherwise directs, take part in any consideration or discussion of or vote on, any question touching on such matter”.
  8. Indeed, section 11 of the Zambia Privatization Act, Cap 386 of the Laws of Zambia above is very clear. Therefore, if Mr. Hichilema did not declare an interest, which l doubt he did, then he possibly committed a criminal offense. If indeed he committed a criminal offense in the sale of Mosiotunya Intercontinental Hotel in Livingstone, the next question is what are the penalties? Well, this question is answered by section 48 of the same Act, which states “a person who knowingly falsifies any information or KNOWINGLY DOES NOT DISCLOSE ANY MATERIAL FACTS or solicits for his own use or as an agent of any other person any confidential information relating to the privatization of a State-Owned enterprise shall be guilty of an offense and shall be liable on conviction to a fine not exceeding fifty thousand penalty units or to imprisonment for a term not exceeding five years, or to both”. There you have it.

43 COMMENTS

  1. The upnd supporters and evil tribal diasporans are too quick to make assumptions based on an alleged criminals flimsy evidence. As I said mama nawakwi is not dull to allege what she alleged without solid evidence. I have told you that a lot of evidence is there and am sure the authorities will ensure solid allegations are brought. We are tired of this hypocrite hh

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  2. HH, explain in clear terms so that we hear you. The task you are about to undertake in 2021 as president of Zambia requires a decent person this time around. We need a fresh start, we need to break away from the criminal enterprise that has looted Zambia and then turned around to seek leadership in the highest office in our Land. We have a clear example of what people who abuse other peoples resources end up doing to a country. There are more than 15 million other Zambians, I’m sure we can find a clean leader. So please explain clearly, not beating about the bush.

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  3. Lungu stole from a widow and barred from his profession for bringing it in disrepute.

    Further, this same Lungu had accomplished nothing home about serve for a tavern behind his home.

    We can see the follies of electing a failure how he has failed to run this country. Being a thief, he has surrounded himself with thieves, and one of them is you.

    Kakaizar zezulu you are on record terrorising citizens from the time you were an “advisor” till you were fired. However, the law will visit you sooner than later. What goes around comes around.

    As for HH, he has to set the records straight and if he is guilty, let him face the consequences. There are no sacred cows, even Lungu the day is soon beckoning for him.

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  4. HH knows the gravity of this case hence the rants that are coming from himself and his colleagues. They will insult anyone who dare asks about this issue of none declaration of interest and consequently commission of a criminal act. Now HH wants all the Tongas to support his theft by saying that if he wasn’t Tonga no one would have remembered or brought out this case. These are, but remarks of a tribalist, he wants to steer the whole Tonga clan to support his underhand practices. Ecl is on record to have indicated that any other Tonga can be president of Zambia and not HH, why? HH has been rejected by the people of Zambia 5 times already.

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  5. Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

    Mate… you are telling the entire MMD government (which by tehe way was full of much smarter and intelligent people than the current PF government full of former bus conductors) didn’t see anything wrong with whatever HH is alleged to have done until now?

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  6. Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans Corruption scandals: 48 Houses Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

    Mate… you are telling me the entire MMD government (which by the way was full of much smarter and intelligent people than the current PF government full of former bus conductors) didn’t see anything wrong with whatever HH is alleged to have done until now? And how do you know it was illegal then? Most corporate laws around the world were enacted after the Global Financial Crisis (GFC) in 2009 FYI.

    FYI IMF and World Bank dictated the terms of Zambia’s privatization program by the way. Why? Because we owed them so much money…. these may be called upon as witnesses.
    Truth is we didn’t get much from the sale of these companies… but whatever little we got, it was stolen by Chiluba and his Bemba Kawalala friends. The likes of HH were merely advisers who benefited from the breadcrumbs…

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  7. What is Sean Tembo’s interest in all this? This matter is now in Court and Sean Tembo is not a Judge of the High Court to our knowledge. Sean Tembo should assist Edith Nawakwi to gather and present evidence in Court to defend herself. HH has not complained about Sean Tembo being convicted in Botswana for defrauding the Botswana Govt. Instead of writing long Articles on HH’s alleged theft may we suggest that Sean Tembo goes back to Botwana to clear his name. Meanwhile Sean Tembo should leave HH and Edith Nawakwi to settle this Defamation Case in Court.

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  8. Nonobo – You can talk about Lungu and anybody else, that is okay and within your rights, but that does not absolve HH of any wrongdoing if there is. You are also free, like Nawakwi, to bring up names of other criminals that need to exculpate themselves.

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  9. Kleptoh² is extremely dull.
    The chap is not articulate.
    If you have this nigga on an interview to articulate issues, he comes out extremely blank, mostly blabbing.
    You wonder why his court cases are always thrown out. He uses emotions and often boring at facts.

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  10. KZ, please tell the people of zambia how you were fired as a adviser to the president. People need to know what happened. #INSONI EBUNTU

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  11. Fuc.king hell, this Mosi oa Tunya, wa tunya luli! If it’s true this is what he did, let him be nailed to the cross for that. But all others too who have cheated Zambians must be made to account, not just one Tongaman. Too many Bembas such as Chitalu, Nawakwi, Penza and Francis Kaunda must be made to account!

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  12. Leave HH alone a lot of people are employed because of him unlike you people who hind the money in Dubai and eswatini.

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  13. Klein and nonobo, you two constipated Bush pigs need to realise that I was not fired. Anyone fired from Civil service gets issued with a letter relieving them from their role. I am yet to see such a letter. Non was ever issued. To the contrary I was promoted to my current role as director of higher intelligence within OP. Jealousy will kill you

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  14. Sean Tembo it seems that clobbering you suffered by PF has turned you into a PF cader yourself…….

    Let HH go to court instead of trying to make your self relevant with SM court sessions …

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  15. PF *****s are busy bubbling that HH is a thief, has Edith presented any evidence? I thought in Zambia when someone is a criminal u report to Police, so that the person is taken to court & tried. This Edith ran to the media just for public attention to try and dirt the name of HH, i dont think this dull lady even has facts & evidence to present. If it hard it would hv presented evidence decades ago to the court. It has just come to the media now because time is up & career has failed her.

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  16. PF cadres did not do a good job on this Tembo guy. What Sean Tembo needs is another Nkonyo on his big empty head! When you see someone calling themselves opposition leader attacking fellow opposition leaders, just know they have nothing to offer. These are broke chaps crying for left overs from their pay masters.

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  17. Kakaiza zezulu, i don’t know what you think you are. Point is you were fire publicly. If at all that was a public stunt, at least you have been clipped of your clout. At least Zambians are somewhat relieved as one terrorist has been muzzled.

  18. and i said it earlier…the swiftness of getting Lawyers and demanding US$3 million is a clear sign of panicking….HH has failed to explain himself but quickly mobilizing youths at his residence and the majority of them were not even born when HH was selling off our assets…I seriously dont think HH should be trusted with ruling Zambia,,,we have had enough of Bandits destroying our country and no wonder am holed up in the Diaspora…am willing to move back to Zambia only if we we sane leadership…not HH,not Lungu,not Nevers Mumba or let me just say non of our current Politicians

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  19. HH reminds me of fake conman professor Clive Chirwa….a few months ago he came with a hogwash story of inventing buses….a check ob company it turns out he was just fronting and being used by the Chinese since he is Zambian…and what happened to the buses,,,,,blah blah blah…HH is capable of selling the entire country to the Chinese, remember that letter he wrote to the Chinese govt begging for funds in exchange for deals once he is elected,,,,,,

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  20. Anonymous, HH does not owe anyone an explanation including you. Your Lungu told people to bring evidence instead of accusing his fellow thieves, so you too as a PF cadre bring evidence instead of falsely accusing someone. You have seen how Stupid Nawakwi looks when someone produced the evidence and the whole nation was pleased. We are tired of you cadres constantly lying to us, and taking us for granted like kids

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  21. Anonymous, HH does not owe anyone an explanation including you. Your Lungu told people to bring evidence instead of accusing his fellow thieves, so you too as a PF cadre bring evidence instead of falsely accusing someone. You have seen how Stupid Nawakwi looks when someone produced the evidence and the whole nation was pleased. We are tired of you cadres constantly lying to us, and taking us for granted like kids

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  22. These matters are documented. Pick up all the documents and present your facts. Don’t go around shouting of galleries. By the way, help the Zambian masses who have no reading culture and show them the veracity of your arguments. After that, head go court. Too much noise for nothing at this stage. It is not as if you are discussing stolen onion and tomato from a truck at Soweto Market. Mwe tupuba mwe.

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  23. HH was saying znbc,kk airport,nrdc and zafico were sold,did he produce any document to that effect? This is the reason Am also saying” Bally Ni lazo”

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  24. HH is a thief, big crook. Let him just retire peacefully and enjoy his stolen money like Valentine Chitalu (so called Zambia Privatization Agency chairman), who is in London enjoying the looted Zambian money! Now Hichilema is so dull by thinking that Zambians are very dull to give him another chance to steal again! It will never happen! He will just end up going to jail! Let him just retire from politics and enjoy stolen money peacefully.

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  25. Ba Sean Tembo when assets or properties are on sale we normally check names of buyers. Why didn’t they scrutinise and say this person or company can not buy because of ABC and Im sure rules and ragulations were set before privatisation. The chiluba government was very capable of checking who to buy. Any person can be apppointed to be a director after the company has been sold it is not an offence. Who is going to foot the bills if it comes to call other people from outside. Problem you hate HH.

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  26. Thieves have ganged up against a person who has never held a public office. How can this woman say we were convinced by HH that the price was OK. She now can turn around and say she was stupid herself and these fools are saying she has no case to answer in that regard ? If HH in found guilty on Musi O tunya sale, Nawakwi equally goes in as approving officer who could not protect GRZ interests- She was employed and paid to do that. Period!

  27. you been saying he sold mines, he collapsed the economy; now you run to a single issue seeing youre getting nowhere.

    Lets see them in court

  28. If HH is found guilty of stealing what are you going to do those are defending him now when you even not there when it was happening.The question is was he the director when the hostel was sold to his company?is that question difficulty to answer if don’t have anything to hide

  29. It is not an offence to buy shares nor is it an offence to be Director after sold successfully. At the time of sale he was not director nor share holder.

  30. She lied about the house of course and just about everything. Come to court. You are in soup KZ after 2021. Keep on comforting yourself. 8 months remaing.

  31. Can they televise this court case!!!! Like the Oscar Pistorius one. We want an open court hearing. There’s so much at stake! We don’t want dribblers. Let HH be defeated at the ballot box. We shouldn’t kill democracy!!!!!

  32. It is amazing how leaders of tuma one-man political parties all want to come out and condemn HH. They seem to be resurrecting from decay and dream of being noticed for 2021. They are like small dogs hoping to mate only if the big dog were to leave the yard

  33. HH indeed is guilty b ut he is playing tribal politics.If I was born in other parts no one whould have asked.What kind of a leader who plays such tribal remarks.That man can divide the country.He is thief who wants to hide in tribe.Coz i was born that earlier that’s why they don’t want me to be a presdeint.The man is pure tribalists.Those youths who want to follow him careful<he has no interest for the country but for himself.he will never even help the tongas.Ni lazo indeed

  34. The fact that Sean Tembo can be allowed to make political statements or run a political party is an indictment on the ineptitude of the Zambia Institute of Chartered Accountants (ZICA).

  35. HH should not only jump at the helpless woman . Here is SEAN with all the facts. Why doesnt he sue him too. Sean is alleging HH was a Director at the time he was negotiating the sale and he did not declare interest. Why is he quiet about this?

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