Three investigators from the Drug Enforcement Commission (DEC) are this week expected to fly to South Africa to probe why Shoprite Holdings is refusing to pay dividends to Zambian minority shareholders.

This is at the expense of Shoprite checkers and it is not known why the DEC has asked Shoprite Checkers to fund the trip.

This is a case in which Shoprite Holdings Zambia and its South Africa subsidiary have been refusing to release over K5.2 billion as dividends to Zambia minority shareholders.

But the chain store has paid off its South African shareholders, while holding on to the money for Zambians.

On Monday this week, the Lusaka Stock Exchange general Manager Beatrice Nkanza directed Shoprite Holding to pay Zambia minority shareholders their dues within two weeks or face reprimands.

The dividends have accrued from September 2011 to April this year.

The Lusaka High Court has refused to grant the Drug Enforcement Commission (DEC) stay of execution following a May 18 judgment against the DEC continued seizure of bank accounts for a Lusaka law firm Lewis Nathan Advocates.

The DEC had seized bank accounts for Lusaka law firm Lewis and Nathan for alleged money laundering the Lusaka High Court asked DEC to unfreeze the accounts because the law firm, which was representing Zambian minority shares was not involved in any fraud.

The Court which has however allowed the DEC leave to appeal against the judgment could not grant the stay as the appeal might not succeed.

In the judgment, Justice Christine Phiri has observed that the DEC seizure came at the time when the Shoprite Group freezing order granted by the Kitwe High Court but later thrown out, was still subsisting.

Sources at the DEC have said the commissions has authorized three officers including one from the Zambia Police to travel to South Africa to probe why the Shoprite Group is refusing to pay Zambian shareholders.

The named Drug Enforcement Commission (DEC) officers led by Mathias Kamanga are set to travel to South Africa this week on a trip that Shoprite Holdings has financed.

The trio’s trip is highly disguised in a DEC request for funding through normal channels ostensibly to undertake investigations in South Africa.

The three DEC officers leave for Johannesburg in a quest led by Deputy Commissioner Lottie Mpundu seeking to save the DEC’s face in the eyes of appointing authorities as well as prevent the law firm Lewis Nathan Advocates from pursuing damages against Shoprite in the Kitwe High
Court.

“It was today (May 28) when Elizabeth Kanjela discussed the list of officers to travel to South Africa together with Mr. Mpundu.” We thought this matter is over; It is far from being over because there is an invisible hand that is controlling the whole matter, the source said, adding “I personally told Mr. Mpundu to be careful but he seems to have a vested interest in the matter.”

The Lusaka High Court reprimanded the DEC over the move by Shoprite Checkers Zambia not to release dividends for local minority shares.

The Lusaka High Court also asked Shoprite Checkers to show cause for their continued seizure of the now unblocked accounts belonging to former Shoprite Checkers transfer secretary, Lewis Nathan Advocates.

The High Court also ruled that all sales that occur on the Lusaka stock Exchange are published on a daily basis to the knowledge of all market players including Shoprite Checkers which had however told a shareholders’ that the shares were lost in Lusaka.

The High Court also ruled that the DEC investigators overstepped the realm of the relevant confines and scope of the investigations relevant and logical to the fact in issue.

On December 5, 2011 and January 30, 2012, the DEC had seized bank accounts for Lewis and Nathan Advocates.

But the Court ordered and observed the opening of the account whose closure was effected while a Shoprite action in the Kitwe High Court to freeze the account through an injunction was still subsisting.

The Kitwe Court also disagreed with Shoprite claim that the seized accounts contained their money, before throwing the injunction and freezing order earlier granted.

The judgment came three days after the DEC had issued another seizure notice on Lewis and Nathan at Barclays and Stanbic banks.

ZANIS

United Party for National Development (UPND) leader Hakainde Hichilema has said that the country could have realized about K4 trillion if the government had reintroduced the windfall tax for mining companies.

Mr. Hichilema said that the money collected from the mines in form of tax could have been channeled into infrastructure development in the country.

The opposition leader observes that investing in infrastructure would have helped in reducing the cost of doing business in the country.

Mr. Hichilema adds that this would have further encouraged the private sector to participate in the economic activities that would among other things contribute to job creation.

He has told QFM news that the PF government does not seem to have a clear policy on investment citing the take over of Zamtel as one example that makes the government’s position on foreign investment questionable.

Mr. Hichilema notes that government should be mindful in the way it handles cases involving companies suspected to have been corruptly sold to ensure that investor confidence is not eroded.

QFM

Former Access Financial Services Director Aaron Chungu has maintained that government needs to probe the financial dealings at the company which is now in liquidation.

Mr Chungu says none of the facts about the misconduct and potential criminality that he earlier stated have been disputed by the Bank of Zambia .

He told a media briefing on Thursday that some of the irregularities include huge and unjustified salary and administrative payments in excess of 12.7 billion kwacha paid from Access to the liquidator among others.

But the bank of Zambia yesterday urged Mr Chungu and his colleagues to go and inspect the liquidation schedule the central bank lodged at the High court.

The Bank of Zambia also advised Mr Chungu to report any matter he considers criminal to law enforcement agencies for action.

ZNBC

DHL employees in Kitwe have downed tools, demanding a pay increase and improved conditions of service.The DHL employees are demanding for 100 per cent salary increment. Their salaries range from K2 million to K2.5 million but their counterparts in Lusaka earn K3 million and above.

The workers have paralysed company operations and have voewed never to return to work because of slave wages.

The Kitwe workers said DHL workers received lower wages compared to their counterparts in Lusaka and other regions who do the same work.

Some employees interviewed said the strike was started after their DHL failed to implement a new pay structure two weeks ago.

The workers said they had not received a pay raise in the last four years although the courrier firm had been recording huge profits.

DHL has refused to issues a response because it is carrying out investigations into the workers’ strike.

ZANIS