A JOINT investigations team of Drug Enforcement Commission (DEC) and Anti Corruption Commission officials has arrested former Finance Bank chairman Rajan Mahtani for alleged money laundering involving over K80 billion.

DEC spokesperson John Nyawali confirmed Dr Mahtani’s arrest in a statement released in Lusaka.
Mr Nyawali said Dr Mahtani’s arrest comes after Director of Public Prosecutions Chalwe Mchenga gave consent for the case to proceed following conclusion of consultations with the investigations team.

“However, investigations in other matters involving Dr Mahtani are ongoing and the nation will be kept informed as events unfold.

“The commission would like to warn that it will investigate and prosecute anyone involved in money laundering activities regardless of their status in society to ensure protection of the national economy,” Mr Nyawali said.

He said Dr Mahtani, 62, a resident of Finance House Cairo Road, Lusaka, has also been arrested for flouting Banking and Finance Services rules.

It is alleged that on dates unknown but between January 1, 2003 and December 31, 2009, Dr Mahtani jointly and whilst acting with some unknown people, directly or indirectly engaged in a business transaction that involved property acquired with proceeds of crime when a total of K81,700,253,230 was deposited into bank accounts of Finsbury Investments Limited.

The accounts were kept at Finance Bank’s corporate branch, the bank in which Dr Mahtani had more than 25 percent shares. This was contrary to the Banking Act.
Mr Nyawali said Dr Mahtani has since been released on bond and will appear in court soon.

Early this year, Dr Mahtani resigned as Finance Bank board chairperson on grounds that he wanted to protect the bank’s interest, and to defend himself from allegations leveled against him.

[Zambia Daily Mail]

The Director of Public Prosecutions (DPP) has with immediate effect withdrawn Lusaka lawyer Robert Simeza as a co-prosecutor in the murder case involving Inktech managing director Mohan Matthews and others.

In his letter to Mr Simeza dated July 20 this year, Mr Chalwe Mchenga indicated that his action to immediately withdraw him had been necessitated to protect the integrity of the trial process.

This is in a case in which Matthews and Crown Paints proprietors Idris Suleiman Patel and Shabbir Patel have been charged with the alleged murder of Cyclone Hardware managing director Sajid Itowala on July 21, 2009.

“ This letter serves to advise that I have with immediate effect withdrawn the authority for you to co-prosecute the case of ‘The People Vs Mohan Matthews and others, my action has been necessitated to protect the integrity of the trial process.

“ And the inconvenience that the very short notice may cause you and your clients is deeply regretted,” said the DPP.

And the respondent’s family representative and uncle of the deceased, Mr Mohamed Suleman Itowala had filed an appeal against the DPP’s decision to withdraw Mr Simeza as a co-prosecutor in the matter.

In his affidavit, Mr Itowala alleged that he had authority to depose his support of Mr Simeza as co –prosecutor and that as family, they were comfortable with the way he had been prosecuting the case and felt that justice was going on well.

Mr Itowala said as the family they had been grandly taken aback and distressed by the turn of events that the person who had primary conduct of the prosecution would no longer be able to direct the prosecution at this advanced stage of the case.

“ That I and the family are desirous to see Mr Simeza continue to play a role in this matter as he is well versed with the facts of the case as he has spent time interviewing witnesses including those who may not be called to testify, he will be of great service in easing the mind of the deceased’s family and of great value to the court,” he said.

Mr Itowala indicated that allowing Mr Simeza to continue a role in the prosecution of this case would go along way towards ensuring that justice was not only done but also manifestly seen to be done.

That this case was the first of its kind in Zambia and had generated enormous public interest especially in the Muslim community and as such there should not be any lingering doubt as to the manner the prosecution would have been conducted.

But Mr Mchenga in his response said his withdraw of Mr Simeza from the case was not as a result of any misconduct on his part but followed his assessment that it was not in the broad interest of justice for this case to continue to be prosecuted by a private legal practitioner.

“ This being the case I will not reverse my decision to withdraw Mr Simeza from the case, neither will I allow any other private legal practitioner to join in the prosecution,” Mr Mchenga said.

He said it was his obligation to act as he did knowing well that his decision might not be well received by interested parties like him and his family and apologised for his action and the inconvenience.

The matter has been set for August 9, for continued trial.
[ Times of Zambia ]

A LUSAKA magistrate’s court yesterday convicted Patriotic Front (PF) president Michael Sata’s body guard Judge Ngoma on two counts of assault.

The court has since reserved sentencing to this Friday.

Senior Resident Magistrate David Simusamba yesterday said he was satisfied that the prosecution had proved its case beyond reasonable doubt and found the accused guilty on both counts.

Mr Simusamba said Ngoma’s defence could not stand because there was overwhelming evidence, which showed him and his colleagues punching and kicking at a helpless man trying to escape from them.

“I am therefore satisfied that the prosecution has proved its case beyond reasonable doubt and I accordingly find the accused guilty as charged and convict him accordingly on both counts,” he said.

In count one, Ngoma 42, of plot 21/15 of Barlastone Park in Lusaka on June 5, 2009 in Lusaka jointly and while acting together with others unknown, assaulted Mubanga Chileshe thereby occasioning him bodily harm.
[pullquote]“I am therefore satisfied that the prosecution has proved its case beyond reasonable doubt and I accordingly find the accused guilty as charged and convict him accordingly on both counts,” he said.
[/pullquote]
In count two, Ngoma on the same date jointly and while acting together with other persons unknown assaulted Samson Zulu, thereby occasioning him actual bodily harm.

Mr Simusamba said during trial, Mr Zulu testified that on June 5, 2009 while hosting a Press conference at Courtyard Hotel in Lusaka as a pressure group within the PF protesting against the party’s failure to call for a convention, he was confronted by a group of seven members whom he identified as his colleagues in the PF.

Mr Simusamba said Mr Zulu narrated that among the group Ngoma was also present.

“He testified that the members of the group took turns in beating him up while the now accused was speaking on the phone to the effect that he had been apprehended and abducted him by which time the now accused participated in the beatings and took him to a place he recognised as the party’s secretariat where he was further physically abused,” he said.

He said Mr Zulu testified that after the abuse, a statement denouncing his Press conference was forced out of him and was released and warned not to report the matter to the police since the matter was resolved.

He, however, decided to report the matter to the police where he was issued with a medical report, which he took to the hospital.

And Mr Chileshe also testified that on June 5, last year, while hosting a Press briefing with Mr Zulu, he was attacked by a group of people he identified as PF members, among them, Ngoma who was with his friends took turns in punching and kicking him.

Mr Simusamba said another witness Chiwele Maimisa testified that on the material date, Ngoma, together with others known went to Courtyard Hotel to disrupt a Press briefing where he witnessed the other members of the group beat up Mr Zulu and Mr Chileshe.

He said Mr Mamisa testified that he drove in the front seat of the vehicle in which Mr Zulu was bundled when he was abducted and taken to the party secretariat where he was further physically abused.

Mr Simusamba said after considering all the evidence before the court, he was satisfied that the evidence of Mr Zulu, Mr Chileshe and Mr Maimisa and as corroborated by an exhibit of a video footage that on June 5, 2009, both the complainants were assaulted by persons known to them.

Mr Simusamba said Ngoma’s defence was that he was merely acting in self-defence when Mr Zulu descended on him.

Ngoma has since been detained in custody pending sentencing.
[ Times of Zambia ]

Parliament today heard that the Zambian government paid a total of over US$1.9 million to the African Union (AU) in annual subscription between the year 2006 and 2010.

Deputy Minister of Foreign Affairs, Fashion Phiri said in 2006, Zambia paid US$310,186 while in 2007, the country paid US$242,375 as subscription fee to the AU.

Professor Phiri further said Zambia paid US$468,840 for the year 2008, US$412,739 to cover the year 2009 and an advance payment of US$40,000 to the union to cover the year 2010.

He explained that there was still an outstanding balance of US$450,699 to be paid to the continental body for this year.

He said this balance, which was supposed to have been paid before the July, 2010 AU summit in Kampala, would be cleared before the end of this year.

Professor Phiri was responding to a question raised by Chilubi Member of Parliament, Obby Chisala who wanted to know how much money Zambia paid in subscription fees to the AU between 2006 and 2010.

He said the total amount paid was US$1,925,901 to the African Union as subscription fee.

And Minister of Foreign Affairs, Kabinga Pande said any member country of the AU which failed to pay subscription fee was suspended.

Mr. Pande explained that the suspension barred members from voting even when they were allowed to attend the summits of the continental body.

ZANIS