Secretary to the Treasury, Evans Chibiliti, has revealed that K700 billion State cash meant for development is lying idle in commercial banks because controlling officers have failed to apply the funds for development purposes.

“We shall hear a perverse situation where commercial banks are lending Government’s own money back to Government and the immediate impact of this is to complicate the conduct of monetary policy by the central bank and increase the cost of contractual works due to late payments,” Mr Chibiliti said.

Speaking at a two-day controlling officers’ review workshop on strengthening treasury and financial management at Mulungushi International Conference Centre in Lusaka yesterday, Mr Chibiliti said it was disheartening to note that implementation of measures aimed at controlling such situations had not been sustained.

“The central bank governor has informed the Ministry of Finance and National Planning that once more, the Government was holding close to K700 billion in the commercial banks. We must devise and agree sustainable solutions to this problem,” he said.

He said Government was unable to pay salaries and meet contractual obligations on time because of cash shortage yet its billions were lying idle in banks.

Regrettably, the Government was not earning any interest on the idle cash in commercial banks because the money was held in “clearing accounts in balance and mirror accounts.”

He called for remedial measures to control the situation.

He also invited the Director-General of the Zambia National Tender Board to speak to controlling officers at the workshop following observations that one of the major reasons permanent secretaries were carrying such large balances of idle funds was the stringent tender procedures they had to satisfy to authorise large payments.

He also called for prudent management of public resources in order to reduce the increasing audit queries from the Auditor-General.

“I want us to embrace the view that the Auditor-General is our ally and her work is intended to complement ours by bringing to our attention areas of our financial management which need strengthening,” he said.

He appealed to controlling officers not to be defensive on audit queries but reflect on the concerns raised and respond with operational measures that could constructively address weaknesses.

Meanwhile, Secretary to the Cabinet, Joshua Kanganja, directed permanent secretaries to put in place measures aimed at reducing audit queries and mismanagement of public resources.

Dr Kanganja observed that there had been frequent concerns by oversight institutions regarding the abuse, misapplication, mismanagement and outright misappropriation of public resources.

“In all these instances there is a controlling officer who authorised a payment to be made for such shoddy work…in all such cases, there is a controlling officer who has allowed a situation where work has been certified as complete and having met the stipulated standard for payment to be effected,” he said.

He directed the Secretary to the Treasury to ensure that disciplinary provisions under Part Four of the Public Finance Act Number 15 of 2004 were enforced.

Controlling officers were custodians of public resources who should spearhead the development of the country and safeguard the interests of all citizens.

He appealed to them to cooperate with the Office of the Auditor-General, saying its efforts helped to strengthen treasury and financial management and implementation of programmes outlined in the Fifth National Development Plan.

Auditor-General, Anna Chifungula, and three parliamentary committee chairpersons: Charles Milupi (public accounts), Godfrey Beene (estimates) and Request Muntanga (Government assurances) attended the workshop.

Drug Enforcement Commission commissioner, Ryan Chitoba, and Zambia Revenue Authority Commissioner-General, Chriticles Mwansa, also attended the meeting.

Parliament today heard that a total of 508 lecturers and support staff retired from the University of Zambia (UNZA) and the Copperbelt University (CBU) between 2001 and December 2006.

Deputy of Education minister Lucy Changwe disclosed that 416 officers retired from UNZA while 92 support staff retired from the CBU.

This brings to  508, the total number of employees who retired from the country’s
highest learning institution over the period under review.

Ms. Changwe said out of all the retirees, only 66 from both institutions have since
received their terminal benefits.

She was responding to Chilubi member of parliament (PF) Obius Chisala, who wanted to
know the number of lecturers and support staff retired from the two universities
between January 2001 and December 2006 and how many had been paid their benefits.

The deputy minister said the 442 retirees were still waiting to receive their
retirement packages.

Ms Changwe said out of the 442 retirees, 391 were former UNZA employees while 51
were from the CBU.

Kantanshi member Mukanga Yamfwa (PF) asked what measures government had instituted
to ensure the retirees that had not yet received their benefits did not turn into
destitutes.

In response, education minister Geoffrey Lungwangwa said the workers were still on
monthly salaries until they received their benefits.

Professor Lungwangwa added that there was K38 billion allocated in this year’s
budget for the payment of retirement benefits at the two universities.

Meanwhile, Ms. Changwe told parliament that 420 basic and secondary school teachers
retired in Northern Province between December 2000 and December 2006.

She said the retired teachers were to be paid their retirement benefits by the
pension’s board while her ministry was responsible for repatriation for the
teachers.

Ms Changwe said this in response to a question from Chilubi Mp Obius Chisala Mr. Who
wanted to find out why the 420 retired teachers were not receiving their monthly
dues for over 15 months as at January 2007.

And Ms. Changwe said government has started realising the objectives of establishing
community school dotted around the country.

She said this in response to a question raised by Mpika Central PF Mp, Mwansa Kapeya
who wanted to know the purpose of introducing community schools in the country and
whether the idea has worked according to expectations.

NDOLA resident, Andre Mtine, has been arrested along with two senior employees at Zambia Postal Services (ZAMPOST) in Ndola for money laundering and theft involving more than K100 million.
Drug Enforcement Commission (DEC) spokesperson, Rosten Chulu, confirmed the arrest of Mtine, 43, a Football Association of Zambia (FAZ) committee member along with ZAMPOST Finance manager, Gilbert Kapambwe, 42, and Financial accountant Ignatius Kapembwa, 49, all of Ndola.
Mr Chulu said in an interview yesterday that the three were arrested on Saturday and would appear in court soon.
In the first count, the three, who are on bond, were charged with theft contrary to cap 87 of the Laws of Zambia while in the second count, they were charged with obtaining money by false pretences.
The third count was money-laundering contrary to section seven of the prohibition and prevention of money laundering Act 14 of 2001.
The total amount involved is K110,737, 000.
“I can confirm that Andre Jabulani Mtine of 35 Lualaba road in Kansenshi was arrested on July 7, 2007.

He was arrested with two others namely, Gilbert Mofya Kapambwe Finance manager at ZAMPOST of 5628 Itawa extension and Ignitius Kapembwa Financial accountant of Kasusu road in Northrise,” Mr Chulu said.
He said Mtine was arrested as consultant and director of Riskmate Limited and charged jointly with the two ZAMPOST employees for the offences allegedly committed between January 1, 2004 and June 26, 2007.
“The three are alleged to have been making bank transfers from Africa Banking Corporation, money amounting to K110, 737,000 to Riskmate limited. They will appear in court as soon as possible,” Mr Chulu said.
When contacted, Mr Mtine refused to comment and referred the matter to his lawyer Chimuka Magubbwi.
Mr Magubbwi confirmed that he was handling Mr Mtine’s case.
“He is our client in the matter. This is a matter, which is coming up in court and we are going to defend it. We’ve not been given a date yet,” Mr Magubbwi said.
In Chingola, Police have arrested a Lusaka illegal currency dealer who was also found in possession of other stolen items.
Chingola Police chief, Felix Mulenga, confirmed the arrest and named the suspect as Sydney Mukosha, 23, of Lusaka’s Chaisa township.
Mr Mulenga said police received a tip off from members of the public who had seen the suspect dealing in currency.
“Following his apprehension, police officers went to search his house where they found a briefcase containing millions of money in different currencies.
“We also found him with a Laptop that helped us to trace the details of the owner. The suspect is detained in custody,” he said.
The currencies included United States dollars, New Zealand dollars, South African rand, travellers cheques, Indian Rupees, United Kingdom pounds, United Arabic Emirates currency, Nokia and Motorola Cell phones, two pieces of precious stones of diamond and emerald.
At the weekend, police arrested Evans Mwata Michelo, 27, who was trapped between burglar bars in his intention to steal from Mimosa Evertake Preschool in Chingola’s Kabundi north township.
Mr Mulenga said Michelo went to the school at night and squeezed his head in quite well but the body failed to go in and his effort to get the head out failed.
The suspect later started screaming for help as he swung between the burglar bars helplessly, prompting the people in the neighborhood and the owners to call the police.
He was arrested for felony with intent to steal.
Mr Mulenga said the two suspects would appear in court soon.
And Police in Lusaka have picked up a man who is alleged to have been planning to marry his niece.
Police spokesperson, Bonny Kapeso, said the man had been picked up by police to assist with investigations following a report on the matter.
Mr Kapeso said that the man has since been remanded in police custody while investigations have been instituted to establish the relationship between the two.

United Liberal Party (ULP) president Sakwiba Sikota has defended the
chairmanship of Dr Katele Kalumba at the Zambia Centre for Inter Party Dialogue (ZCID).

Mr Sikota who is also Livingstone Member of Parliament said in a livE interview on Zambezi FM community radio station in Livingstone last night that although Dr Kalumba was facing charges in the courts of law, he remained innocent until proven guilty.

”Dr Kalumba is facing charges, yes he is. As per my profession, everyone is innocent until proven guilty. If Dr Kalumba today was convicted, I would be the first one to ask him to step down,” he said.

He said even Patriotic Front Leader Micheal Sata was also facing charges in courts of law  over the alleged defamation of President Levy Mwanawasa adding that no one had asked him to step down on those grounds.

The position of Dr Kalumba as Chairman of the ZCID has raised debate within certain sectors of society as he is still facing charges in court.

Meanwhile, Mr Sikota has expressed concern at the Heads of Departments who allegedly shared the carcass of an elephant that died about two weeks ago in
Simoonga area near Kazungula district.

Mr Sikota wondered why ZAWA decided to share the meet with the Heads of government departments at the expense of local villagers who were harassed by the
animals.

He said he has asked ZAWA to furnish him with the criteria that was used for people to benefit from the meat adding that even if ZAWA did not give him a list, he would still table the issue in parliament.

”I would like ZAWA to give me a full list of those who benefited and what criteria was used. Even if they do not, Iam going to table the issue in parliament.

 I went to Simoonga this morning to find out if anyone of them was offered the meat and they all said no, yet they are the ones that are harassed by elephants,” he said.

Government has reiterated its commitment to the independence of  judiciary.

The government has also assured the judiciary of improved funding following renewed
economic activity in the country.

Central province minister Sydney Chisanga said government fully supported an
independent and impartial judiciary through which citizens could enjoy their
fundamental rights and freedoms.

Mr. Chisanga said this in a speech read for him by Provincial Deputy Permanent
Secretary Luke Mankapi during the ceremonial opening of the High Court criminal
session n Kabwe today.

“As a government, we are fully committed to the existence of an independent and
impartial judiciary, for it is only through the existence of an independent and
impartial judiciary that citizens can fully enjoy their fundamental rights and
freedoms,” he said.

The minister said government was fully aware of the poor funding to the justice
sector due to limited resources which had to be shared between competing needs such
as development projects.

Mr. Chisanga was however quick to point out that funding to the sector would soon
improve following improved government revenue collection brought about by the
renewed economic activity.

On increased sexual offences against minors, Mr. Chisanga implored the bench to mete
out  stiffer penalties against offenders in order to show society’s disapproval of
such offences.

And turning to rundown  infrastructure, Mr. Chisanga  said government  was
addressing the situation, citing the ongoing construction of a magistrates and local
courts complex at Kapiri-Mposhi.

He said government had also addressed the issue of transport for the Prisons
Department while the Zambia Police Service would soon be given vehicles so that
prisoners could be taken to court without delay.

Speaking at the same function, Kabwe High Court judge in charge Reuben Mwape
appealed for increased funding to the judiciary if the sector was to effectively
play its role in the democratic dispensation.

Justice Mwape also bemoaned the high number of cases from Chibombo district and
stressed  the need to have  a magistrate stationed there permanently to cut down on
the costs of taking cases to Kabwe.

And Mukobeko Maximum Security Officer in Charge Phastone Shaloba told the opening
session that currently there were 2,601 inmates in state prisons in Central
Province.

Lawyers representing former president, Frederick Chiluba  have argued that the registration of the London High Court judgment in the Lusaka High Court was done outside the provisions of the law.

Lawyers John Sangwa and Robert Simeza were submitting before Judge Japhet Banda today when the matter came up for hearing of the four applications made by Dr. Chiluba, Faustine Kabwe, Aaron Chungu and Stella Chibanda, to set aside the Lnodon High Court judgment.

The other application was on the notice of an intention to raise preliminery issues
on whether part II of the foreign judgment reciprocal enforcement Act of the London
High Court handed down on the respondents on May 4, 2007 was done properly.

Dr Chiluba’s lawyers  argued that there were some conditions that were to be
satisified before a judgment of the foreign court judgment is registered in Zambia.

“What this means is that a person desiring to register a foreign judgment must
ensure that the judgment passes certain threshold,” Mr. Simeza said.

And Mr. Sangwa submitted that the registration of the London High Court judgment in
the Zanbian courts was nullity, adding that part II of the said Act had not been
extended to the judgment of a foreign country.

He said the power to extend part II of the Act to register foreign judgments was
vested in the President, adding that of relevance to the preliminary issues was
section 31 of the same Act, which provides the procedures for the extension of the
foreign judgment.

He said the President must be satisfied that if he gave recognition of his country,
the foreign country must also recognise the judgments made by the Zambian courts.

Mr. Sangwa also said a President of a particular country must issue a statutory
instrument or an order for the extension of the foreign judgment.

“The precondition is that the President must be satisfied that the court in a
foreign country will accord similar recognition of the judgment in the Zambian
court. There has to be reciprocity in the benefits,” he said.

He submitted that in the event that those preconditions were not met, such judgment
could not be registered and even enforced in Zambia.

He pointed out that since the 1930s, no government or president in Zambia has ever
issued an order extending part II of the Act to the United Kingdom or to the London
High Court of Justice.

“From 1964 to date, we stand to be corrected by the learned Attorney General, none
of the Presidents in Zambia has ever issued a statutory order extending part II of
the Act to the UK. If there is, no judgment from UK can be recognised in this
country, that is the law,” he said.

Mr. Sangwa said if there was any order issues, then the Attorney General, Mumba
Malila should state who issued it and when it was issued.

On this Mr. Malila said the lawyers for the defendants had ambushed him because
certain issues they argued about were not clearly stated in their affidavits.

He therefore applied for an adjournment for him to ascertain the facts of the
arguments.

“Having been misled by the affidavit which was filed as to which facts defendants
will rely upon, it is only fair my Lord that we be given an opportunity to ascertain
the fact so that the court has a well informed fact before a ruling is made on the
preliminery issue made,” he pleaded.

But Mr. Sangwa said he was taken aback by the application for an adjounrment to
ascertain the facts, saying it was basic and fundamental to consider the issue of
whether there was an order on the registration of a foreign judgment into the
Zambian court before Mr. Malila could do so.

However, the Judge Banda adjourned the matter to Friday, July 13th, 2007 to allow
Mr. Malila ascertain the fact on the issues.

Meanwhile, scores of Dr. Chiluba’s supporters and sympathisers gathered outside the
court premises singing solidarity songs.