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As the Green Party, we think that the political fallout of the Financial Intelligence Centre (FIC) is a text-book example of the English adage which states that too many cooks spoil the soup. We also believe that the confusion surrounding the role of FIC is a constitutional systems failure resulting from constitutional lip-service democracy.
Furthermore, believe that the FIC fallout justifies the Green Party 2016 election manifesto on the defence and security cluster wherein we proposed that if it formed government, we would have amalgamated the Anti-Corruption Commission (ACC), Drug Enforcement Commission (DEC), the Zambia Security Intelligence Services (ZSIS) and Financial Intelligence Centre (FIC) to transform them into an economic, trade and financial crimes agency. Here is why.
The genesis of the FIC fallout is public dissemination of the trends report. The Attorney General and the Director of the Financial Intelligence Centre collectively disseminated the FIC trends report. In fact from TV and other visual aids, it is shown that the report was launched by the Attorney General, who, according to the Constitution, is the legal chief adviser to Government. At the same event, the Attorney General reportedly informed the nation that he many times advises the investigative institutions to drop cases.
Meantime, all the criticism is focused on the FIC. Is it not the Attorney General who launched the trends report? Is it not the constitutional responsibility of the Attorney General to give advice to FIC on implications of the dissemination of the report? Is it not the responsibility of the Director of Public Prosecution to advise investigative agencies which cases to prosecute and which not to? Why is it that all the criticism focused on FIC? Why not the Attorney General who launched the report? Is this not the case of shooting the messenger? Why is criticism by the presidency, and other executive agencies, paying a blind eye to the Attorney General’s role in the dissemination of same report when the Attorney General was the key player?
The confusion surrounding the FIC debacle is proof of constitutional systems failure. This failure has resulted from constitutional lip-service democracy. The English say too many cooks spoil the soup. This means that when there are too many people involved in trying to do the same thing, the final result will not be good. We have too many institutions doing a small bit of everything on economic, trade, financial crimes that each of one of them is doing, and at the end of the day achieve nothing at all.
Last year, FIC produced and disseminated a similar trends report. There was hullabaloo from the executive led by presidency. This year, again, the executive led by the presidency, is upset, calling the trends report as kachepa spreading falsehoods. This view is supported by one of the cluster members the Drug Enforcement Commission. The DEC is of the view that FIC is an alarmist not only jeopardizing investigations but spreading falsehoods. Neither the presidency nor DEC has mentioned the role of the Attorney General in the whole matrix.
The FIC fallout proves our Green Party 2016 election platform manifesto on the need to amalgamate and transform some of the Chapter 18 institutions, particularly Article 235 investigative institutions which include the Anti-Corruption Commission; the Drug Enforcement Commission; and the Anti-Financial and Economic Crimes Commission (AFECC). Although the Constitution provides for the establishment of AFECC, this is has not be done. Instead there is established elsewhere in the subsidiary legislation this toothless bulldog called FIC which has no powers at all to arrest and prosecute suspects of economic, trade and financial crimes. The report is launched by the Attorney General, who advises investigative wings to drop cases. This is where the problem lies. We apply too much lip-service on constitutionalism, hence, this constitutional systems failure we have found ourselves in.
The Green Party believes that state investigative institutions should be stopped from spying on people, and investigating and prosecuting people solely because they hold different views from those of government on political and socio-economic issues. We also believe that it may be more appropriate to have responsibility prosecuting criminals returned to the Director of Public Prosecutions.
We also believe it is essential to tighten the recruitment and discharge of functions of Chapter 18 institutions to eliminate political patronage and prosecutions which are solely targeted on people holding dissenting views from those of the government of the day.
If we ever form government, we plan institute a review of Chapter 18 institutions. We plan to amalgamate ACC, DEC, FIC, and ZSIS, and transform them into only one anti-economic, trade and financial crimes agency.
We will work to stop our intelligence agencies spying on legitimate, peaceful, political dissenters. We support an inquiry as to whether the Zambia Security Intelligence Services and Anti-Corruption Commission, Financial Intelligence Centre and Drug Enforcement Commission should be transformed. We believe that the responsibility for detecting politically motivated crimes should be returned to the Police.
Also another point to note is that with the liberation wars well and truly over, the new orientation for the ZSIS should be towards economic and not political well-being of Zambia. The Zambia Police can ably handle the latter, without complications. The Police are always in close contact with the politicians through various political processes. They have their own police intelligence unit which could be oriented towards political intelligence. This being the case, the Police is better placed to deal with politicians and political issues. As for anti-terrorism crimes, we believe that should be the responsibility of the military intelligence and should therefore be hived off to be the responsibility of the Zambia Army and Zambia Air Force.
Patriotic Front (PF) Member of the Central Committee Kebby Mbewe has advised the opposition to stop peddling falsehoods that can mislead the Nation
Reacting to comments by made by National Democratic Congress (NDC) party leader Chishimba Kambwili, Mr. Mbewe said that it was irresponsible for opposition leaders to twist any statement issued by President Edgar Lungu.
Mr Mbewe said that the Patriotic Front will not allow the opposition leaders to continue peddling falsehoods in the media in order to gain political mileage.
Mr. Mbewe said that President Lungu was just advising the Financial Intelligence Centre to stop misleading the country because of the Speculative and raw data they released.
Mr. Mbewe said that the PF has for a long time been challenging the opposition to provide evidence of how the Government and President is corrupt, but they have failed.
After attending a court session, NDC leader Chishimba Kambwili said that he will jail President Lungu once he forms Government in 2021 and asked President Lungu to immediately step down as Head of State on account of incompetence.
Mr. Kambwili said that Mr Lungu was a shameless corrupt leader who was shielding fellow corrupt Government officials and that it was inconceivable that the Head of State has deliberately elected to rubbish the latest FIC report.
Mr. Kambwili wondered why president Lungu was shielding corrupt elements and questioned why Mr. Lungu did not respect the FIC.
Mr. Kambwili said that the President was scared to comment on the FIC report because, the Republican President himself is corrupt, and wondered why President Lungu could not respect governance institutions.
The NDC leader accused President Lungu of governing the country like the extension of his bedroom.
Mr. Kambwili said that he will pursue all criminal elements cited in the FIC report once the NDC forms Government.
VEDANTA Resources has appointed Nchito and Nchito a firm in which former Director of Public Prosecutions (DPP) Mutembo Nchito is a partner to represent it in its legal battles with the Zambian government to take charge of Konkola Copper Mines (KCM – in liquidation).
In their first filing in court, Nchito and Nchito have questioned whether Messrs Ellis and Company, Messrs Makebi Zulu Advocates, Messrs Andrew Musukwa and Co. and Messrs DH Kemp and Co. who are appointed by the provisional liquidator, can appear on behalf of KCM to support or oppose the appointment of the provisional liquidator and the winding up petition generally.
Srinivasan Venkatakrishnan, a London based director of Vedanta and a KCM director has asked the High Court to state whether liquidation of the mining company can be conducted without being heard through lawyers of its choice.
Vedanta owned majority shares in KCM before ZCCM-IH, a minority shareholder on behalf of the government, applied to the High Court to allow it to appoint a liquidator to wind up the partnership.
Messrs Nchito and Nchito Advocates has filed a notice saying when the matter comes up on June 11 this year, the court should determine whether the lawyers representing ZCCM-IH and KCM could represent the companies.
In this matter ZCCM-IH placed KCM under liquidation after which Milingo Lungu was appointed provisional liquidator.
Mr Lungu has retained Bonaventure Mutale to represent him while Makebi Zulu advocates to represent KCM.
But Mr Venkatakrishnan, who is also KCM board chairman and chief executive officer of Vedanta Resources Limited, the parent company of Vedanta Resources Holdings Limited which is the majority shareholder in KCM with 79.4 of the issued ordinary shares, raised preliminary issues arguing that lawyers appointed by the provisional liquidator cannot oppose his appointment.
According to a notice of motion to raise preliminary issues, Mr Venkatakrishnan said his argument was supported by the fact that the advocates appointed by the provisional liquidator had not filed an affidavit in support of or in opposition to the application to appoint a provisional liquidator.
He said at law, a provisional liquidator could not appoint a legal practitioner to support or oppose his own appointment or the making of a winding up order of the company.
Mr Venkatakrishnan contended that the power of the provisional liquidator was specific to things the liquidator was empowered to do but was unable to do personally.
“I am advised by counsel and verily believe the same to be true that at law, a provisional liquidator cannot appoint a legal practitioner to support or oppose his own appointment or the making of a winding-up order in respect of a company such as the respondent, notwithstanding that a provisional liquidator has been granted powers of the kind,” Mr he said.
“Where there is no guidance the people fall, but in abundance of counselors there is victory.”
(Proverbs 11:14, NASB)
Safety in Numbers
Are you facing an important decision today? God wants to give you the answer. He wants to direct your steps. Many times, He will speak to us through the people He has placed in our lives. That’s why the Bible says that safety is found in a multitude of counselors.
God designed us to live in families, communities, and congregations. We should always stay open and be willing to take advice. But after you’ve prayed about something and looked at all the options, be bold enough to make a decision that is right for you. If you’re trying to please everybody else by doing things you don’t really want to do, you will be cheating yourself. You can run yourself in circles trying to be something that you’re not, and you’ll run the risk of missing out on God’s best for your own life.
Make sure the people who are giving you advice have earned your respect as a source of wisdom. Then you need to follow your own heart in light of God’s Word and do what you feel is right and good for you.
A Prayer for Today
“Heavenly Father, thank You for the people You have placed in my life as wise counsel. Help me understand Your truth so that I can make godly choices. Keep me close to You always and lead me in the way everlasting in Jesus’ name. Amen.”
Financial Intelligence Centre Director General Mary Chirwa
By Isaac Mwanza
When Zambia enacted the law to create the Financial Intelligence Centre (FIC) in 2010, Government recognised and does still recognise the Centre as an essential vehicle in combating money laundering and promoting national security through receiving, requesting, analysing and disseminating suspicious financial transactions. So what has gone wrong now, that the nation is getting divided each time the FIC releases what it calls “Trends Reports”?
Best Practices from Western Countries
Firstly, it’s worth appreciating that a good number of countries around the globe have established Financial Intelligence centres as functional limbs of the Executive arm of government. The US Financial Crimes Enforcement Network is a bureau of the United States Department of the Treasury whose periodic data analysis is published as Suspicious Activity Reports Statistics, which is essentially an Excel spreadsheet with multiple tabs.
Also, the UK Financial Intelligence Unit (UKFIU) receives, analyses and distributes financial intelligence gathered from Suspicious Activity Reports (SARs). Nearly all of the SARs data is shared with UK law enforcement through a secure channel, enabling visibility of over two million SARs that can be used to deliver impact against crime threats.
Why is there uproar in Zambia over the FIC reports?
The current uproar in Zambia as regards the FIC reports is, in the main, not only centred on lack of clarity in the law on how the FIC Trends reports must be disseminated and to whom, but also the type of information being published and the massive detail which, with subtlety, connect State institutions and individuals to wrongdoing (corruption, money laundering, and tax evasion) without according these institutions and individuals any right whatsoever to respond.
Where is the wrong in the manner FIC disseminates its data?
Firstly, an examination of best practices from both the US and Britain show that financial intelligence entities in those countries do not publish the information to the public that would, in the minds of the American and British public, connect State institutions or their political leadership (whether under investigation or not), to these reports. Those foreign centres are still able to disseminate information to the public without being suggestive as to who is alleged to have done or not done what wrong.
Secondly, these financial intelligence units are custodians of raw data. What do we mean when we say raw data? Intelligence practitioners use the term “raw data” as a common sense category, as a description of information they want or have gained access to, in the same manner FIC gains access to banking records of citizens, that is, by receiving this information from the financial institutions as mandated by law.
The principle concept to understand in financial intelligence analysis is that analysts try to understand a financial world they cannot see by patching together a mass of data from various sources. This data can vary greatly in reliability, completeness, and bias. One must therefore not wonder that the Drug Enforcement Commissioner, Ms. Alita Mbahwe, said this about the FIC reports:
“…the intelligence reports disseminated [by FIC] to law enforcement agencies such as the Drug Enforcement Commission sometimes turn out to be false on enquiry leading to closure of cases, a situation which is always misconstrued as inaction by investigative wings.”
To be clear, raw intelligence is raw data gathered by an intelligence operation, such as the data we have seen published in the Trends Reports by the FIC. As a matter of intelligence practice, such data require processing and analysis to make it useful and reliable. To turn the raw intelligence into a finished form, the steps required may include decryption, translation, collation, evaluation and confirmation.
In the United States of America, the Central Intelligence Agency was created to collate, analyse and summarise the raw intelligence collected by the other departments while in Zambia that duty is reserved for law enforcement agencies. US agencies which focus on the collection of raw intelligence include the National Reconnaissance Office and the National Security Agency and the CIA itself collects human intelligence – essentially a whole lot of stories from people.
When Zambia’s lawmakers enacted the law to provide for FIC, they understood that raw data on its own is useless until it is made useful by law enforcement agencies, the courts, and the policy makers. The process of putting data to good use begins with its acquisition of data to interpretation of this data by other institutions or experts interpret so it can become information. None of this actually matters for purposes of a decision yet, it’s just more refined than raw data.
Once a significant amount of information is organised by FIC or indeed any other intelligence body, it is then that these institutions arrive at knowledge of what is really is happening. Combining this with a much bigger part of the story, institutions like FIC do, at that point, shape up what is called an intelligence assessment. Ordinarily, data in its raw format is become increasingly refined by intelligence analysts who come together to see a picture form. That is not an investigation but intelligence assessment.
The Zambian law is quite clear at this point. The function of FIC as provided in Section 5(2)(a) would be ‘to make a suspicious transaction report and determining whether there are reasonable grounds to transmit reports for investigation by law enforcement agencies or foreign designated authorities.’ Further, Section 5(2)(b) categorically states that the FIC “shall disseminate information to law enforcement agencies where there are reasonable grounds to suspect money laundering or financing of terrorism or proliferation.”
It is clear that while Zambia’s financial intelligence Centre can make an intelligence assessment that reasonable grounds exist to suspect money laundering or financing of terrorism or proliferation, this task does not extend to further carrying out the necessary investigation to establish criminality or otherwise; the law does not permit or authorise the FIC to undertake investigations. Rather, the FIC is under a legal obligation, stipulated by the Financial Intelligence Centre Act itself, to hand over their suspicious activity report, to law enforcement agencies.
But what obligation does the FIC have to the public? Does such an obligation include giving details to the public on matters which are under investigation by law enforcement agencies?
The FIC has an obligation to the public as stated in Section 5(2)(e), that is, “to educate the public and reporting entities of their obligations and inform them of measures to detect, prevent and deter money laundering and financing of terrorism or proliferation.” It should be abundantly clear, therefore, that the FIC does not have the mandate to make public its Suspicious Activity Reports, not even when names of the persons or entities under suspicion, are removed and replaced with X or whatever wannabe identities they choose to use.
The presumption of innocence, as guaranteed and enshrined in our Constitution, comes into operation here: the fact that a person, either natural or corporate, receives or sends a large amount of money, does not constitute a crime even if the person does not ordinarily receive or send! Such large amounts of money may be a matter of routine or convenient business practice.
As a matter of fact, it is this unusual activity which the FIC is mandated to look out for, but once it is detected, the FIC is by law required to pass the information on to law enforcement agencies who have the power to investigate and, where appropriate, to prosecute any person suspected to be engaged in illegal financial activities.
In sum, the FIC is not obliged to disseminate to the public, any of the information which it collects because such information is of a preliminary nature and affects persons who are protected by or under the constitutional presumption of innocence. The fact that no names are mentioned, is immaterial; the law clearly stipulates to whom such information is to be made available, and it does not include the public.
On the other hand, when such information leads to action by the law enforcement agencies, such as an arrest and possible prosecution, the law enforcement agencies are empowered, at the point of arrest, to publicly name the culprit and state the charge(s) against such a person.
Does Zambia need to reform the FIC?
The answer is that Parliament must, as a matter of urgency, reform the FIC by amending the Act that establishes the FIC.
As stated earlier, the US Financial Crimes Network is a bureau of the United States Department of the Treasury. It would not hurt to make the FIC a specialised department, either under the direct oversight of the Treasury or the Drug Enforcement Commission which will soon be changing its name to the Anti-Narcotics, Economic and Financial Crimes Agency (ANEFA) or better still as a Financial Unit under the Zambia Security Intelligence Services (ZSIS).
The advantage is that, by placing it under the DEC which is responsible for investigation of crimes related to money laundering and part of the National Intelligence Centre, its reports will be handled carefully to avoid jeopardising any investigations by any law enforcement agency through disclosure of details.
The disclosure of details by FIC, in whatever form, does easily alert sophisticated wrongdoers who may then take steps to destroy evidence, or to hide their actions or to flee the country, thereby defeating the ends of justice, as noted by the Commissioner of the Drug Enforcement Commission in her statement on this issue.
Secondly, the reports published by FIC are – without any recourse to aggrieved entities – lowering the standing of individuals who do not have the opportunity to howsoever explain themselves before their details, in whatever form, find themselves around social media blogs where shrewd individuals with scores to settle, begin to put names of real people to these reports on pure speculation.
The FIC Trends reports are also gravely putting State institutions in bad light to the world at large. This was not the essence of creating the FIC, to have a government wing put other State institutions on their defence for no reason at all.
The most useful part of the FIC Trends Report – no doubt – is its ability to excite the public and as a weapon for eroding public trust and confidence in their Government and its elected leaders. For some diplomats, this may soon become a tool to justify the withholding of developmental support to the current administration and ushering a puppet administration.
The FIC Trends report is also a useful tool for any person or entity or groups of persons or entities, usually in the political realm, to score points against their opponents by linking these FIC Trends Reports, to individual persons in the government, or to government officials or, more broadly, to the government itself. This is a gross abuse of FIC data, but we have already witnessed the damage that these speculative reports can do.
The Auditor General – in 2018 – made more reports to DEC (45 reports) than FIC (which made 16) but it is the sensationalisation of the FIC report that attract the public eye because of its ability to create a negative narrative for the current regime and Government. If not handled with care, these reports will cause the public to lose confidence in the civil service – which is the engine which runs the Government. The reports, untested and unverified, will also increase voter discontent against their own Government with a very sad ending: revolts caused by a well-calculated scheme executed through a governmental body for the eventual downfall of the Government.
Article 88 (1) of the Constitution of Zambia reads,
“A citizen may petition the National Assembly to initiate the enactment, amendment or repeal of legislation.”
We need to amend the legislation that provide for the work of the FIC by placing it as a specialised agency under the DEC or a unit of the ZSIS.
CONCLUSION
The creation of the Financial Intelligence Centre was done in good faith and still has a role to play in our country’s quest to fight against financial crimes and terrorism. This noble task must be done in good faith where the Centre must be providing information, advice and assistance to law enforcement agencies in furtherance of an investigation by these agencies rather than publicly exposing its raw data which is subject to investigation by law enforcement agencies. The Centre was created as an arm of government, and not an adversary of Government or its institutions. It cannot also be used as a vehicle for spreading formalised gossip which only be useful for the political ends.
Disclaimer: The views in this article do not necessarily represent the views of this media nor the institutions the author is affiliated to or has membership on but represent the views of the author who is a governance and legal expert
Just 24 hours after their Zambia B counterparts won the 2019 COSAFA Cup in South Africa, Chipolopolo A team will be in action at the opposite side of the World this Sunday when they face face Cameroon in a friendly.
Zambia dates the African champions in a friendly away in Madrid, Spain on June 9 at Atletico Madrid’s B and Women teams’ home ground at Miniestadio Cerro del Espino.
The match is part of Zambia’s week-long, three-match away tour that will see them play Gambia and Morocco.
Zambia arrived in Morocco on Friday where they have set up a training camp until June 17.
On Sunday, Beston Chambeshi’s team will take a flight to Madrid from Casablanca for day-stop in the Spanish capital to play Cameroon.
“I have seen the teams we are playing against, they are of a high level because they will be competing at the AFCON so we will give them the kind of training and games they want,” Chambeshi said.
“We will show them we are part of this game of football.
“We are looking forward to the three games ahead of us, especially the first one; we have to see how we are going to handle Cameroon.”
Meanwhile, Zambia will return to Casablanca to prepare for their June 12 date against Gambia in Marrakech before wrapping-up their tour against hosts Morocco on June 16 at the same venue.
Zambia today ended their seven year wait for COSAFA Cup glory when they beat Botswana 1-0 in the final at Moses Mabhida Stadium in Durban.
It wasn’t a convincing performance by Aggrey Chiyangi’s men but the means justified the end when Green Eagles striker Tapson Kaseba redeemed himself after questions were asked about his favoured selection in Zambia’s starting XI in all three games before braking his drought with the winning goal.
The winning goal came in the 78th minute when Kaseba turned in midfielder Benson Sakala’s header to break the deadlock to avoid the prospect of another Zambian match at COSAFA heading for a third successive penalty shootout decider.
Kaseba could have added a second goal two minutes later but his effort came off the beam.
Prior to the goal, Botswana dominated, especially in the first half, when Thero Setsile had two great attempts.
Setsile’s first chance came on the 27th minute but it was parried by Zambia goalkeeper Sebastian Mwenge while his 37th minute shot rolled across the face of Chipolopolo’s goal.
Mwenge made another great save in the 68th minute to stop Segolame Boy’s rocketing free-kick a meter outside the box, in line with the penalty spot.
Meanwhile, Zambia are now clear second on the senior COSAFA Cup honours list with five wins, one behind record champions Zimbabwe.
Vice President, Inonge Wina has directed the Disaster Management and Mitigation Unit to dispatch a team of officers to Kitwe, Luanshya and Kalumbila, to conduct a rapid assessment on affected infrastructure in the three districts.
This follows a report by the Parliamentary Committee on Cabinet Affairs, which conducted a tour of disaster prone areas on the Copperbelt and North-western provinces.
In Luanshya district, the team will assess the Akatiti and Chonga tailing dams, which have posed a serious hazard to the community’s livelihoods, environment and vital installations.
The situation is an emergency and must be worked on before the onset of the 2019/2020 rainfall season in order to prevent a disaster.
The team will further conduct an assessment on the estimated 150 houses which have developed serious cracks on the walls in ChaChaCha Township in Kitwe district. The cracks on the bases and walls of the houses were caused by vibrations as a result of mine blasting from the mines managed by ZCCM-IH.
Mrs. Wina says the exercise in Kitwe is important in order to establish the extent of the damage, the number of affected households and the impact of the mining activities on the affected population.
The team will also conduct an assessment on the 84 houses which collapsed, affecting approximately 500 people in Tundula, Kalumbila district of North-western province. The collapse of the houses was due to heavy rainfall experienced during the last season. DMMU provided relief food and shelter to the affected households as an immediate response to the situation.
And DMMU National Coordinator Chanda Kabwe has assured the Vice President that the team will be on the ground by tomorrow, Saturday 8th to make sure the assessment is done in order to provide timely interventions on the findings on the ground
Mr. Kabwe said the assessments in the three districts will guide DMMU in coming up with appropriate intervention measures to mitigate the impacts of the respective damages in order to ensure no lives are lost and that normalcy is restored within the shortest possible time.
The team is composed of Officers from DMMU, Geological Survey, Department of Evaluators and Mines Safety. The assessment will take six days, upon which a report will be generated to guide the appropriate interventions.
This is contained in a statement issued to the media by DMMU Communications Officer Rachael Mupanga.
HH talks with an official from the Airports Corporation at the Simon Mwansa Kapwepwe airport
7th June 2019
Mr Hakainde Hichilema
C/O UPND Secretariat
Lusaka
My Dear brother Hakainde,
Fraternal greetings and warm salutations to you.
I wish to focus on your rather queer commentary of the FIC Report. Given the manner in which you pride yourself as being an economist of sorts; it is striking that that your “talents” as an economist aren’t just confined to the corporate world. It is uncanny how exceptionally skilled you are at being economical with the truth!
As far as the FIC Report is concerned, the truth is that there are parallels to be drawn between the FIC Report and the infamous “Paradise Papers” in which a certain “Hakainde Sammy Hichilema” featured quite prominently.
Do you my brother recall the Paradise Papers?
The Paradise Papers, numbering 13.4-million leaked documents from Appleby’s offices in Mauritius, revealed how some questionably rich people like a certain “Hakainde Sammy Hichilema” evaded millions of dollars in tax and kept questionable business decisions under wraps.
The following is extracted from the website of The International Consortium of Investigative Journalists (ICIJ). My dear elder brother, are you the “Hakainde Sammy Hichilema” it mentions as one of the many politicians across the world that have used tax havens for tax dodging purposes?
”Hakainde Sammy Hichilema, a Zambian corporate executive with interests in mining, finance and other industries, has run unsuccessfully for president five times since 2006.”
“Hichilema became a director of a Bermuda company, AfNat Resources Ltd., in March 2006, and he resigned that August, according to Appleby’s records. AfNat Resources was incorporated in 2005 and explored for nickel and other metals in Zambia and other African countries. It was listed on London’s alternative investment market until 2010 when it was purchased by Canadian mining company Axmin for about $14 million”_.
The international consortium of investigate journalists further reported;
”Hichilema declined to answer questions from ICIJ, including about his roles as director. “There is nothing illegal about a company registered in Bermuda”, Hichilema told ICIJ by phone”.
My elder brother, remember how you also ducked and dived similar questions about your wealth from SABC interviewer and “Question Time” anchor Mpho Tsedu?
PARALLELS BETWEEN FIC REPORT & PARADISE PAPERS
In the same way that the said “Hakainde Sammy Hichilema” claimed that “there was nothing illegal about a company being registered in Bermuda” please be reminded that not all transactions under FIC would be illegal. That is the very reason we need the relevant raw data passed on to investigative agencies as the law prescribes. Infact while the FIC report mentions no one’s name, the Paradise Papers do.
LINGERING QUESTIONS – PARADISE PAPERS
Bermuda is a UK island in the North Atlantic Ocean and is widely known as the World’s worst corporate tax heaven with zero personal income tax and corporate tax until 2016.
1. Could you be the same “Hakainde Sammy Hichilema” exposed in the Paradise Papers? If so, as an aspiring leader of Zambia are you really supposed to be encouraging tax-evasion?
2. Would the Hakainde Sammy Hichilema mentioned in the Paradise Papers have paid taxes on his reported share of USD$14m?
3. Could it be that the Hakainde Sammy Hichilema in the report has been under declaring his net worth leaving out assets abroad which are denying his home country the much-needed tax?
4. If again you evaded taxing it by investing it in the same country (Bermuda) – why would an aspiring president of Zambia avoid investing in his own country?
CONCLUSION
Brother Hakainde, in light of the above, if you are the “Hakainde Sammy Hichilema” exposed in the Paradise Papers , one truly wonders whether Zambia as a country would be safe with your peculiar brand of financial gymnastics if you by a long shot became its leader.
Least we all forget, the Paradise Papers are more than a form of “FIC” Report on you as it mentions you by name. On the other hand, the Zambian FIC Report is as speculative as it is a witchhunt with no names mentioned.
Zambia Revenue Authority (ZRA) has vowed to collect Taxes highlighted in the Financial Intelligence Centre, report, once the Report is handed to them.
ZRA Corporate Communications Manager Topsy Sikalinda said that, to carry out its mandate, the Authority is yet to receive the report from FIC.
Mr. Sikalinda said that the authority is mandated to collect taxes and will await the fine details of the report to ensure it collects the required taxes if they are collectable.
Mr. Sikalinda said this in a statement released to the media .
The recent revelations by the Financial Intelligence Centre (FIC) revealed that an estimated loss of revenue amounting to 1 billion was lost through tax evasion and possible violations under the Income Tax Act chapter 323 and Customs and Excise Act chapter 322.
The report also highlights that “tax evasion schemes involved individuals or corporation misrepresenting their income to the Zambia Revenue Authority (ZRA).
Many of the cases analyzed on suspected tax evasion involved small and medium enterprises (SMEs) which are mostly entities either not registered for tax purposes or were not tax compliant.
Below is ZRA’s full statement
For Immediate Release 8th June 2019
ZRA KEEN TO COLLECT TAXES REPORTED IN THE FIC REPORT UPON RECEIVING DETAILS FROM THE CENTRE
The Mandate of the Zambia Revenue Authority is to collect taxes on behalf of the Zambian Government.
We have received a number of press queries related to the FIC report which is in public domain hence our decision to update the nation on this important subject matter.
The recent revelations by the Financial Intelligence Centre (FIC) in the 5th Money Laundering and Terrorist financing Trends report, 2018 are interesting.
The report reveals that there an estimated loss of revenue amounting to 1 billion was lost through tax evasion and possible violations under the Income Tax Act chapter 323 and Customs and Excise Act chapter 322.
The report highlights that “tax evasion schemes involved individuals or corporation misrepresenting their income to the Zambia Revenue Authority (ZRA). Many of the cases analysed on suspected tax evasion involved small and medium enterprises (SMEs). Most of these entities were either not registered for tax purposes or were not tax compliant”
The report further states that some cases analysed were based on the following:
“Group company loans: some companies externalised funds to their parent companies. The same companies would then receive the funds in form of loans. This reduced their tax liability as interest on the loans received tax relief”.
As an authority mandated to collect these taxes, we await the fine details of this report to ensure we collect the required taxes if they are collectable.
We have not yet received the fine detail of this report and if we receive it, we shall ensure we collect the necessary taxes.
Outspoken Movement for Multiparty Democracy MMD Youth Prince Ndoyi has come to the defence of Zambia Revenue Authority ZRA Commissioner General Kingsley Chanda contrary to UPND leader Hakainde Hichilema’s position that the Commissioner General should be instantly dismissed for engaging in illegal dealings with PF officials.
Commenting on the leaked phone conversation were a PF cadre was asking for favors from ZRA Commissioner General, Ndoyi said PF cadres have developed a sense of entitlement with impunity as they are now expecting favors from government agencies as if they are first class citizens.
Contrary to UPND’s position the youths have instead called upon the Patriotic Front leadership to instead protect government officials from their cadres who have been pressuring senior government officials for favors as witnessed in this latest leaked audio.
He noted that Kingsley Chanda and many others whom the public don’t know about should be protected by the PF leadership further calling on PF Secretary General Davies Mwila to emulate former party CEO Wynter Kabimba who cautioned Chishimba Kambwili against using the name of the party to solicit for funds from State institutions when he served as PF National youth chairperson.
“There is indeed a growing ugly trend where party cadres have developed a sense of entitlement with impunity as if they themselves have become first class citizens against the ordinary Zambians. They want to be given priority at anything before any other Citizen which is unfortunate.
“The saga of the ZRA commissioner is one that just highlights the many who have fallen victim at the mercy of party cadres. Everyday we hear of incidences where police officers, council workers etc are victimised by party cadres and this must be stopped.
“It seems efforts to abet the situation by ministers and senior government officials to protect citizens against abuse and unfair treatment in the competition for opportunities to promote equal opportunities seem to fall on deaf ears, cadres are not ready to listen. We need sanity. Kingsley Chanda is one among many officials that cadres have been attempting to abuse for favors,” he said.
Ndoyi explained that the behavior of Nyela and many others was due to the lack of empowerment for party cadres who in turn resolve to use the party as a tool for threatening appointed officials when dealing with government agencies.
And Ndoyi said the ZRA Commissioner General should be commended for his diplomacy when refusing to engage in illegalities.
He said the Commissioner General clearly told Nyela that the culprit should go through due process of the law.
“On the issue of the ZRA CG Kingsley Chanda saga, if we follow a logical path and in doing so observe the logical path of the conversation. It is easy to conclude that Kingsley Chanda tried in all uncertain terms to be diplomatic about his refusal.
“Kingsley Chanda spoke like a friendly police officer who knowing your crime makes you feel comfortable enough to walk yourself to the police station. Any sane person knows that when one asks for a favor from someone in a position of power to do it, and that person asks you to follow procedure, that’s usually and in most circumstances a polite refusal.
“ZRA CG did not want to disagree openly with the person requesting for a favour. But instead, he diplomatically declined. He, in fact, proposed to the caller that the due disciplinary procedure be allowed to take its course,” he said.
Meanwhile Ndoyi advised politicians to stop the “pull him down” syndrome as it was bad for the development of the country.
He said some politicians have decided to misconstrue what was discussed just to gain some political mileage with malicious statements and demands against an individual who has worked well for the country.
“And the on the political issue, where others are suggesting he said he is a PF cadre. In Zambia today everyone has been forced to wear a political jacket to survive. Can you imagine the backlash that would have ensued had Kingsley Chanda refused anything to do with PF and claimed to be a professional who would not consider who was PF or not? Who in any government position today will trash PF in a conversation with a cadre, not even a police or intelligence officer. It’s a question of loyalty!
“Under the circumstances, we can only but applaud Mr. Kingsley Chanda for turning down Nyela’s manoeuvres. We say so in recognising the difficult circumstances under which parastatal/quazi-government Chief Executives are operating with such crooked cadres winching like vultures for any slight slumber. It can only be hoped the ZRA Chief will stand his ground through and through in his efforts to professionally collect the so much needed revenue for the nation, after surviving such a devilish witch-hunt.”
On Chanda Nyela, Ndoyi said it is his likes who are destroying the good fortunes of the party by putting it’s name in disrepute.
“Chanda Nyela and others of his kind are the kind of people that are puppeteering the leadership from behind the scenes. Destroying the good fortunes of their party. Destroying the good will from the Zambian people.
“Frustrating hard working citizens who should be allowed to explore their skills and talent thereby contributing to the development of our country devoid of politics. Unfortunately we want to frustrate everyone by simply entangling them in tribal and political fights. Deeply fighting good performers because they don’t bend to our demands,” he said.
It is barely a week when Patriotic Front SG Davies Mwila fired shots at two infamous PF youths Munir Zulu and Chanoda Ngwira over the use of social media at a press briefing that suspended KBF and Julius Komaki for gross indiscipline. It is yet to be seen what the PF will do concerning youths who are involved asking for favors from senior government officials.
A taxi crossing the Knife Bridge at the Zambia Zimbabwe border.
The Zambia Revenue Authority is aware about plans by smugglers who are claiming to be clearing agents going round the country soliciting for a country-wide disruption to the smooth facilitation of trade across our borders.
This scheme is being hatched in response to our heightened anti-smuggling strategy and the standardization of the valuation, for duty purposes, of imported used motor vehicle including the recent decision to start allowing individuals to self-clear their importations aimed restoring stability in the clearing industry.
These interventions have reduced opportunities for corruption and smuggling hence the reaction by smugglers who are masquerading as clearing agents and causing confusion in the clearing business.
These purported clearing agents decided to protest at Chirundu, Kazungula and Livingstone and unfortunately some genuine clearing agents blindly joined in the protest.
“We want to remind the clearing agents that we are mandated to collect revenue on behalf of the Government. As the licensing Authority, we shall not hesitate to revoke any license for anyone who is found abetting smuggling by changing invoices or deliberately misclassifying goods at the ports of entry. Since January 2019, we have revoked 49 clearing licenses for various offences related to smuggling”, according to Topsy Sikalinda.
The ZRA Corporate Communications Manager says the clearing industry in Zambia currently has 823 active clearing companies out of which 10 companies control almost 93% of business and the rest 813 companies share the remaining 7%.
“The top 10 Clearing and Forward Agents by volume and value of business who also control 93% of the business in terms of value are Bollore Africa Logistics Zambia Limited; Customized Clearing and Forwarding; Transtra International Zambia Limited; Global Logistics Limited; Cargo Management Logistics; Ultimate Logistics Limited; Esse Clearing Limited; Hill And Delamain (Zambia) Limited; Uti (Zambia) Limited; and Barthsam Freight Services Limited”, he said.
Mr. Sikalinda said ZRA will support and protect these clearing agents whether they are local or international.
He said most clearing companies are doing a great job by ensuring that all requirements are followed and correct declarations are done but we have a number of small clearing companies who do not want to follow the laid down procedures and guidelines because they survive on facilitating smuggling.
Mr. Sikalinda has appealed to clearing agents’ associations not to accept smugglers to be part of their membership.
Meanwhile, Mr. Sikalinda has announced the ZRA legal team have successfully secured two convictions in Nakonde involving clearing agents namely IIan Sinyinza aged 27, and Joe Zyambo aged 28.
He said the two were convicted of forgery and altering a false document contrary to section 342, 347 and 352 of the Penal Code Act, Cap 87 of the laws of Zambia. There two are currently serving their six months jail sentence.
Mr. Sikalinda said the Authority has strengthened the screening process of all Clearing and Forwarding agencies in order to protect the rights of importers and taxpayers in general.
He said under Domestic Taxes DIRIE LIMITED, a trading company located at Plot No. 24646, Zani Muone, along the Great North Road in Lusaka was also convicted by a Lusaka subordinate court on one count of the offence of failure to issue a tax invoice contrary to section 7(3) and (4) of the Value Added Tax (Amendment) Act No. 12 of 2017.
Mines Minister Richard Musukwa at the meeting with the Japanese Officials
Government says it will continue to create an enabling environment aimed at generating mutual benefits for investors and Zambia.
Minister of Mines and Minerals Development Richard Musukwa says for mutual benefits to be attained, investors need to comply with the law and it is government’s duty to make it easy and possible for investors to put money into the country.
Mr. Musukwa emphasized that the Mining sector will continue being private sector driven that improves the lives of workers, Zambians at large and profits for investors.
The Mines Minister was speaking in Chililabombwe on the Copperbelt during a meeting with Lubambe Mine Chief Executive Officer Nick Bowen.
Mr. Musukwa stated that the issue of Konkola Copper Mines is an isolated case which is largely triggered by the investor’s failure to comply with conditions set out in the license.
He added that KCM is bleeding before the liquidator came in and Government’s decision was done in the best interest of the Mine and the workers.
Mr. Musukwa re-affirmed Government’s position of not allowing investors to take advantage of millions of Zambians.
And Mr. Bowen expressed happiness with Government’s decision to dialogue with Mining houses on challenges that the sector is facing.
He projected an increase in Copper production and that the mine has not recorded any accident this year.
Mr. Bowen added that Lubambe will continue working with Government on key issues surrounding the Mine in the best interest of Zambians.
This is according to a statement issued to the Media by Ministry of Mines and Minerals Development Public Relations Officer Lucy Shawa.
Ministry of Gender Permanent Secretary Auxila Ponga
Government says the country has made tremendous progress in reducing poverty in female headed households at national level.
Ministry of Gender Permanent Secretary Auxila Ponga has however said in as much as the country has recorded positive results in reducing poverty in women headed households, more still needs to be done.
ZANIS reports that Dr Ponga was speaking in Lusaka yesterday, during a Gender consultative forum.
Dr Ponga explained that government’s robust programmes such as the Girl Education and Women Empowerment in Livelihood (GEWEL) project, has been the driving force towards reducing gender parity and women empowerment in the country.
The Ministry of Gender PS has since called on various stakeholders to discuss gender and development issues in relation to the five pillars of the Seventh National Development plan (7NDP).
And during discussions, European Union (EU) Health and Social Sector Attaché, Ester Bouma, lamented that it is sad that society and women have allowed Gender based violence (GBV) especially where women are abused by their husbands.
Ms Bouma explained that women are more profoundly affected by GVB as can be evidenced by the increase in cases reported to the police.
The Gender Consultative Forum was necessitated by the gap created after abolishing of the sector advisory groups and subsequent replacement by the cluster advisory group.
Minister of Water Development Sanitation and Environmental Protection Dennis Wanchinga
Works on the Kanyemba and Shichama water project in Mwense district have reached an advanced stage.
The K9 million water project is expected to be commissioned in the next two months.
Speaking when he toured the construction works for the two projects, Water Development, Sanitation, and Environmental Protection Minister Dennis Wanchinga described the project as a fulfilment of government’s commitment to improving quality of life through clean drinking water.
Dr Wanchinga observed that Mwense is prone to water borne diseases and that the coming of the water project will go a long way in ensuring that water borne diseases are eliminated.
He said the water project has come at a time when people are grappling with access to clean drinking water and that with the coming of the water project people in the area will concentrate on agriculture and empower themselves.
And Luapula Water and Sewerage Company Managing Director Kenneth Chense described the project as landmark in fulfilling the company mandate of expanding the supply of water to more people
Engineer Chense says the project will impact positively in reducing the disease burden resulting from drinking untreated water.
He says the piped water project will further increase on productivity as it will reduce the spent on drowning water from both the mothers and school going girls.
