By Marvin Chanda Mberi

In the last two consecutive years, the Financial Intelligence Centre has been subject to ridicule by the political players owing to the politicization of the work.

In their quest to paint those in the corridors of power darker than the colour black, reliance has been placed on the perceived ill in the management of national resources to make the exposure a source of despondency especially as we head to the politically charged year.

Without any taint of doubt, some subjective minds expected that “Politically Exposed Persons” (PEPS) will again be the basis of political talking points.

Likely, the litany of allegations of wrongdoing that have previously flooded the Executive and the PEP have since been subdued by the indiscriminate institutional reforms that have been implemented in the aftermath of the 2016 General elections.

We had the liberty to invest time to intently read the latest Trends Report and we are delighted that in an unprecedented move, the PEPs have technically been cleared from the malpractices of yesteryears and they will make no more headlines.

This development has not taken place in isolation but dependent on the various factors which we will highlight in this write up in a fair detail. Herein is our analysis in numerical order.

In its quest to promote efficiency in the prudent utilization of national resources, the PF Government has promoted the independence of the institutions charged with the responsibility to fight against corruption. For example, for the first time, the PF Government under President Lungu’s tenure assented to the Constitution of Zambia in 2016 which enhanced security of tenure for the office of Auditor General among others. For the first time since independence, despite the abuse of the criminal justice system, ACC has arrested but unsuccessfully prosecuting cabinet Ministers.

In its report, FIC acknowledges the institutional framework to the effect that the Inspectorate Department has been introduced to complement its work. In this regard, we do appreciate the enormous role the institution plays to promote financial crime prevention as well as promoting financial crimes literacy among stakeholders.

In its report, we understand that in its quest to consolidate its rigorous efforts, FIC has enhanced inter-institutional collaboration with the relevant regulatory and investigatory wings. This is the sharp contrast with the previous works were it worked to the exclusion of other institutions. It is this previous lonely effort which made the entree to produce uncoordinated and half-baked reports which largely brought the Government into disrepute. The relevant institutions include but not limited to banks, the Central Bank, Zambia Revenue Authority (ZRA), Drug Enforcement Commission (DEC), regulatory bodies among others. We are on record of arguing that had the institution collaborated with other institutions in the past, it would not have produced the previous reports which were clothed with the political overtone.

As regards the lamentation by the institution that it was unable to do a satisfactory work owing to the human resource constraint is with all due respect unconvincing. We say so on our understanding based on the institution’s own admission that it works in collaboration with other institutions. Since FIC and the sister institutions are working to achieve the same objectives, the Centre can take advantage of the goodwill of the sister institutions to exchange information as an alternative to cushion the human rescore constraint.

We are glad about the significant reduction of suspicious transactions from ZMW 1.6 Billion (from the previous Trends Report) to ZMW 984 Million (in the year under review). This is a result of the various internal controls implemented by the Central Government with the operationalizing of the Public Finance Act of 2018 as most financial malpractices originated in the public sector. We have also noted that the financial malpractices have the Accounting Departments and the commercial banks as the weakest link. Lessons have been learnt and let the right thing be done. Never is the less owing to the observation of specific laws which were violated by perpetrators, the onus on the institutions charged with administration and enforcement of necessary laws to put their houses in order and take a preventive approach.

On the exposed fraud allergy committed by the Mining Companies, the revelation by the Centre has exonerated ZRA Commissioner General Mr. Kinsley Chanda who had brushed shoulders with the Mining Companies on matters of taxation. ZRA must therefore take a firm stance and defend our sovereignty on taxation. Looking at the complexity of Tax fraud, the Taxman must ensure that as per the recommendation espoused in the Trends Report, take practical measures within the law to strengthen its capacity to counter future tax cheating and ensure that correct taxes are paid. The Trends Report at page 20 (although did not expressly say so) seems to prefer the introduction of Sales Tax to substitute the frequently abused Value Added Tax (VAT). It is our hope that this will bring the stakeholders to the negotiating table and ensure that the best interest of the nation is secured in the administration of taxation.

As regards corruption in the award of tenders, our submission is that the ills lie in the incoherent in the implementation and administration of the procurement system. In this regard, there is need to confer Zambia Public Procurement Authority (ZPPA) institutional independence (preferably it should report only to the President) as this will safeguard its oversight and supervising authority in the quasi-Government institutions who are one of the busiest procuring entities. This is one of the ways to endorse the recent proposal by Zambia Institute of Purchasing and Supply (ZIPS) to introduce the position of Procurement General when the leaders met with President Edgar Chagwa Lungu. The State-Owned Enterprises (SOEs) cannot be therefore be explosively excluded in the noble cause of implementing a highly transparent procurement system devoid stains of corruption. This requires a heightened supervisory system by the respective Boards of Directors to whom residue authority to supervise SOEs is irrevocably delegated into. With sound Corporate Governance, the Boards can easily hold the Management of the erring parastatals accountable.

With regards to crimes allegedly committed with the aid of Financial Service consumers, perhaps it is one of the gaps that are in place that promotes illicit financial transactions. It is high time some provisions of the Banking and Financial Services Act no. 7 of 2017 were amended to integrate Mobile Money Services as part of the definition of the bank.

In conclusion, after careful scrutiny of the report, our observation is that the report presented no mention of wrongdoings by the Presidency, his cabinet, PF or its structures or indeed PEPs. Indeed, this must be commended as the previous reports are now bearing fruits and we hope there will be a corrupt-free public service delivery. The pilferage of financial resources has been linked to the procuring entities and this has necessitated the institutional and legal reforms of procurement laws. We expect in future that the Centre will be useful in thwarting the financial scammers who have now invaded the Mobile Money services as there is a need for assured consumer protection in the financial market.

By Sunday Chilufya Chanda

Reference is made to a recent article _“Zambia’s Zimbabwe Redux”_ wherein the writer gave his two cents regarding South Africa’s Finance Minister Tito Mboweni’s snide remarks on the appointment of a new Bank of Zambia Governor. This was before UPND leader Hakainde Hichilema brought privatization fires on himself – maybe its by God’s providence that this matter is being interrogated by Zambians, both young and old, today.

Coming to the issue for this piece, and never mind that Mboweni has since been severely reprimanded by his own Head of State -President Cyril Ramaphosa – for meddling in the affairs of a sovereign nation. The piece attributed to Greg Mills of the BrentHurst Foundation and published in sections of international media is at best simplistic and at worst morbidly disingenuous.

Simplistic for its disregard of Zambian statutory provisions for the appointment of a Central Bank Governor; disingenuous, because it is part of a poorly concealed scheme to trigger erosion of confidence in Zambia’s Central Bank and the country’s economy as a whole.

It is part of elaborate regime change agenda that has been hatched to prop-up the political interests of Greg Mill’s “anointed candidate” Hakainde Hichilema, who just so happens to be defacto Life president of Zambia’s main opposition party –the United Party for National Development (UPND). Mill’s political interests arising out of common interests known between his foundation and the Zambian opposition leader explains his ad hominem attacks on the Zambian political leadership of the country’s ruling party and the newly appointed Central Bank Governor even as he awaits ratification by Parliament. His remarks have nothing to do with corporate governance.

On the other hand, they have everything to do with cheap attempts to lay a basis for op-eds with anti-Zambian sentiments across the regional and western media landscape, in which the country can be used as a bad case of “erosion of independence” of Central Banks in the Region.

RUNNING A MILL FOR REGIME CHANGE AT ALL COSTS

Is it a coincidence that Africa Confidential Volume 55 no. 23 in article, entitled “Foreign boost for opposition” claimed that some dignitaries and “South African businessmen” are bent on galvanising Zambia’s fractious opposition by uniting them against Zambia’s ruling party- the Patriotic Front (PF)?

The piece by the London based investigative journal outlines an alleged conspiracy linked to Brent Hurst Foundation – an institution headed by Greg Mills – to agitate regime change and facilitate the installation of Hakainde Hichilema as President of Zambia.

It alleges that Hichilema – perhaps Africa’s longest serving opposition leader with a highly questionable “rags to riches” story is being funded and supported by some South African mining interests that are apparently motivated to install him, having mobilised themselves to oust President Edgar Chagwa Lungu and Patriotic Front, whom they view as a major impediment to their schemes.

Mills and his South African mining interests are reportedly and allegedly bent on installing a “user friendly” Zambian President that would ostensibly be used as a proxy in their bid to take over Zambia’s state assets and resources.

Going by the Africa Confidential report, the blind prejudice of Greg Mills’ should come as no surprise. It is in fact par for the course.

BACKGROUND: THE MAZOKA, HICHILEMA, UPND & GREG MILLS CONNECTION

Before he retired and joined active politics in the year 2000, UPND founding President the late Anderson Mazoka worked for Anglo American Corporation (AAC) as its Chief Executive in Zambia.

AAC managed the Konkola Copper Mines (KCM) Nchanga Open Pit Mine and the Chililabombwe mine in Zambia’s Copperbelt Province, until 2001 when Mazoka lost Presidential elections to the Late Levy Mwanawasa. Is it a coincidence that after their erstwhile employee and business partner lost the 2001 Presidential election, AAC hurriedly packed its bags and left Zambia reportedly leaving thousands of mine workers in a lurch?

Fast forward, after the death of Mazoka, in 2006 a hitherto politically unknown Hakainde Hichilema controversially took over the reins of UPND in what was widely seen as an intra-party coup d’état inspired by tribalism, regionalism and nepotism.

Considering Hichilema’s rather curious campaign promise of 2015 that he would “bring back Anglo American Corporation to KCM if elected into office” coupled with Greg Mill’s alleged interests in Anglo American Corporation, would Mills be expected to be anything other than uncomplimentary about Zambia?

…Or wouldn’t he be expected to do what he is doing now;
Milling around with an axe to grind!

The Author is Media Director for Patriotic Front- Zambia’s Ruling Party

By Parkie Mbozi

THE STORY about UPND President Hakainde Hichilema’s involvement in the privatization of state companies in the 1990s has been trending on all forms of mass media platforms – both online and offline and social and mainstream media. The story came about after FDD President Edith Nawakwi, a former minister during the time, ‘’revealed’ what she alleged as foul play on Hichilema’s part in the process.

Opinions are divided on the issue. Conspiracy theories abounds. One school of thought is that the story always surfaces just before elections, simply for political mileage, but dies down again post-elections due to lack of credibility. If winning public opinion and voters is what is at stake here, the questions is how effective is the strategy? In this era of interactive media, where media audiences have a say, I decided to dedicate this article to gauging the readers’ views on the matter.

To do that I viewed readers’ comments to a News Diggers online (Facebook) story titled, “Govt might act on Nawakwi’s allegations against HH – Dora”. The story’s intro reads, “CHIEF Government Spokesperson Dora Siliya says government will soon inform citizens should it decide to act on former finance minister Edith Nawakwi’s allegations against UPND leader Hakainde Hichilema.”

News Diggers is regarded as a credible media outfit on almost all fronts, hence my pick. This story carried 403 comments and 13 shares as at 06:00 Hrs on Wednesday, September 2, 2020. Due to lack of space I have published the first 35 comments, unedited, and in the order that they appear on the site. The names of the authors are also provided as published. Both the story and ALL the 403 comments can be accessed on:

https://web.facebook.com/Diggers.News/?_rdc=1&_rdr

Here go the reader views:

Gospelson Kamawu: How I wish they could also act on allegations of Mukula, FIC report and GBM’s claims of him knowing who was spearheading and financing the gassing issues across the country.

Vincent Muchiso: My President Edger Changwa Lungu can’t afford to make such mistakes to waste time petty issues. You’re making the president unpopular ba MMD.

Andy Hanny: I want president Lungu to tell nation how he acquired wealth so fast in 15 months. Taking into account that in 2015 he declared his assets at 2 million kwacha, but 15 months later his assets jumped to 23 million kwacha. We however note that his salary and allowances for the period could have increased his assets by less than 800 000 kwacha. Mr Lungu doesn’t own any business. We need a complehasive report.

Mcdonald Mudenda: But madam Nawakwi was then the finance minister and the whole entire MMD cabinet ministers approved that actually there are the ones who called me HH but to day only HH is being blamed I think to end this matter those MMD former ministers should be called sit together other than targeting one person.

Sinkala Derrick: Senseless,governments that meant well for the nation failed to find anything against him and honesty do we have normal people in this government

Victor Zulu: Let them act so that we can sort this issue once and for all,then after that HH must sue Nawakwi and the PF government cos i am very much sure that he is innocent.

George Malupande: The government is scared of HH winning next year that’s why it’s doing so and why did it fail to find the owner of the 48 houses and the fire tenders and also failed to do justice to Hon Chitotela upon finding him with trunks of money??
We also need justice to those cases.

Joseph Kalaba Kaoma: Dull government in history instead of focusing on the economy busy digging archives meant to destroy a single person.

Sipho Fair Mufwafwi: Its high time the church rose and showed its relevance. Cant we feel united as a nation?? Everyday is about battles at the expense of moving the nation as one. The atmosphere our politicians have created isnt health.

David Simbayi: Dora should be thanking what killed HE the president of the republic of zambia ??, mhsrip because if Mr Sata was alive you should have been in jail by now for dubiously awarding a to some Italian company to supply the Radar at the then Lusaka International Airport which was Never Delivered to zambia ??, Dora you are not the right person to talk about corruption, because you stick corruption yourself, shame on you.

Namasiku Wasilota: Last kicks of a dying horse. Less than a year remaining. Prepare yourselves. Most of you will be in jail and a small fraction will retire kuma “famu”
And while you’re at it, Nawakwi should also explain the role she played back then as finance minister naiwe wamene na maize scandal yako.

Phyllis Musambo Sialumba: It just shows they are the ones doing this, corruption in the regime is the order of the day, they don’t act but act on something that won’t benefit us currently, 48 houses we never head govt saying they will act on those alleged no owner.
Won’t be surprised to hear HH will be arrested for privatisation, no wonder they allowed Nawakwi on ZNBC its an agenda, God is still on the throne, you can’t do such to your own

Chola Mwale: Is there an accepted limit of sinking low for any govt? Or a govt is allowed to sink as low as they wish?

David Ngosa: Corrupt mind has.evil.desire nothing good from corrupt mind always fault finding looking for defence we need to move forward 48ghost houses died nature death fire tenders nothing hidden that will not be exposed with God all things are possible at heart

Pearson Lungu: The failing of Bill 10, has brought the privatisation of the mines, apon realizing that its a none starter, they reduced it to the Hotel, house, and a farm, after been answered, of how a farm and house was been bought and who where the real owners, they jumped to a Hotel, after they realising that he was clean, they are asking why he has shares, lets see what next, bally ni bally. I love noise makers, coz they start from academy, to primary, primary to, secondary, up colleges and universities.
Teddy Simukonda: But he has been telling you to go to court , what are you waiting for?????, pipo are scared to report him…mu Zambia.

Malama CM: 30yrs down the drain government and Nawakwi are realizing now that HH committed a crime? This is a faster way of facilitating another pay check for HH because you know you will loose

Moses Mwala: This will be nice for a precedence because after this, sale of zamtel to Lapgreen will be probed, radar systems, fire tenders, ambulances, Avic roads, mukula trees etc will equally demand for commission of inquiries. We shall see how many will be caught in these webs and so we welcome any inquiry.
Muka Obly: This Woman does not learn from the past. Remember what she used to do to sata and what she went through after mmd lost elections. She is one of the people that made rb loose terribly to sata after she came up with the policy of selling all grz schools and people voted them out.

Mukusa Muksa Mumba: You are just trying to divert people’s attention from the FIC report where your names are

George Bwalya: When the Malawi zambian maize scandal was reported in which yourself was involved, you never allowed anyone to study it. That’s the confirmation then that you sponsored nawakwi with her nonsense, nonsense that the same story comes before the elections, why not study the cost of fire tenders and toll gates? Why not study why corruption cases die natural deaths, or take keen interest to ascertain your own failure to let the dollar reach k20? Why is dora only at politics of personal attacks than issues? Zambians are tired of the same nonsense!! It’s nonsense that when you were in MMD you failed to arrest HH for privatisation, why today ? at a time when the boat is sinking at a fast rate, PF was king cobra!!!

Moidah Hamunali: Dull how about zamtel issue during her time as minister of communication, shameful without shame on her face.

Haggai Gondwe: Yes all who participated in Privatization must investigated. Up to those who sold Zamtel to LapGreen of Libya. Thereafter, we demand for the publication of the Zamtel Report which late President Sata commissioned. These are very interesting times.

Ken Peters: Let’s also have the FIC report. Investigations should also include the sale of Zamtel and single sourcing of airport radar.

Hlupo Ziba: Well! Maybe the law enforcement agencies should act on the revelations from Chellah Tukuta if that’s how the system works under the current regime.

MD Rain Mvula: Your government is so defensive when it comes to accountability??
Levy Ngulube Sr. We knew this game from the start but you know that “WE ARE MILES AHEAD OF YOUR GAME PLAN”.After the failure of BILL10,we knew something strange will come up!!!! Let us also have the FIC REPORT 2019.
Jimmy Muteba Kahokola Just act now … not might act…we want to know the truth….it’s like what HH has said many times not enough…your hero will be the first to be jailed.

Noritah Mwanza: It will expose a lot of things including the one who sold Zamtel.

Della Nila: While you are strategizing on how to act on HH. We the Zambian people are waiting for our FIC report. It’s long overdue.

Mutinta Mulonda: What are they going to act on that has not been acted on previous governments? PF trying to use gimmicks to arrest HH by using a washed up politician in Edith Nawakwi who should be charged for her incompetence as well.

Greyson Shilukobo: Please go to PACRA and check who the shareholders are. I am so shocked with this ignorance and lucky of knowledge on their part.

Mary Taguma Bilsborough: What Zambians want to know is what is in the fic report. This HH corruption allegations by you guys does not sound well. You can’t be pointing fingers at anyone regarding corruption, you’re the masters of corruption, deal with it.

Jackson Thompson Dora is finished. 10 months left in office and she continues to butcher her career and image beyond repair. We will see where idiots like this will end up past August 2021 – there are no tricks that will make Zambians change their mind.

Conclusion: Going by the sampled views of the readers, anyone wishing to cash in some political mileage from the HH privatization story is clearly flogging a dead horse. The following Bemba proverb seems to hold: Mwaloba lyauma

The author is a media, governance and health communication researcher and scholar with the Institute of Economic and Social Research, University of Zambia. He is reachable on [email protected].