The Lamba-Lima Royal Council of Zambia (LLRCZ) has backed the fight against corruption being spearheaded by the New Dawn Government.

LLRCZ Executive Chairman Josphat Nsundwe said people that have stolen public resources must be made accountable for their actions without looking at tribe or political affiliation.

“The Lamba Lima Royal Council of Zambia (LLRCZ) is in total support of the New Dawn Government’s fight against corruption. The LLRCZ is of the view that all those who stole from the Zambian people should be made to account for their actions without looking at tribe pr political affiliation,” Mr. Nsundwe said.

“In other incidents, the Zambian people have heard of the alarming revelations of the previous leadership to strip the national assets, among them, Zambia Electricity Corporation (ZESCO) – Zambia Telecommunications (ZAMTEL), Zambia Railways Limited (ZRL). Zambia Airways, just but to mention a few. Let the New Dawn Administration look critically at the lifting of the immunity of the fallen Government leadership since 1991. This will make equal the stripping of the national assets by the corrupt leaders to lift the immunity of the corrupt leaders in order for them to face the law,” he said.

Mr. Nsundwe alleged that the Lamba-Lima Royal Council of Zambia is aware that some former and current officers in the civil service were corrupt.

He said the UPND Government should not hesitate to fire Government officials who have records of corruption in the past.

“The LLRCZ wishes to advise the New Dawn Government to get rid of all Council Secretaries who have records of corruption at the time they served in the previous administration. The District Council Secretaries, District Education Board Officers, Judicial officers who previously served in the previous regime and are known to be corrupt should not be spared if the New Dawn Government is to succeed in its developmental agenda,” he said.

Mr. Nsundwe said the UPND Government’s developmental agenda may not succeed when corrupt elements remain in the system.

“The above mentioned civil servants are key in any development agenda of the country. The LLRCZ further wish to advise the New Dawn Government through the Chief Justice, Inspector General of Police to re-organise the judiciary and the Police Service that corrupt judicial and Police Service and officers others are flashed out of the system if this fight is to succeed,” he said.

Meanwhile, Mr. Nsundwe said there is a need for the New Dawn Government to investigate the gassing incidents witnessed in the country around 2020 and the burning of markets.

He said people behind gassing incidences and burning of markets must face the law.

“In addition to the trust the Zambian people have given the New Dawn Government, the people expect to see to it that they are informed of the alleged perpetrators of gassing incidences and the burning of markets, the country experienced prior to the change of Patriotic Front (PF) Government,” Mr. Nsundwe said.

Police in Lusaka have arrested Isaac Chulu aged 33 of Katete in Eastern Province after he handed himself to the Police for shooting dead his 28-year-old wife Modai Mwambazi of Katete.

According to the Police Spokesperson Rae Hamoonga, the incident occurred on Tuesday 18th January 2022 at around 18:00 hours in Kabanana Site and Service in Lusaka.

Mr. Hamoonga said on a fateful day around 07:00 hours, the deceased called her father Clement Mwambazi, and informed him that they were traveling to Lusaka from Katete to sort out their marital disputes which the couple was facing.

He said according to the father of the deceased, around 18:00 hours upon arrival in Kabanana Site and Service in Lusaka in the company of a marriage counselor and friend to the suspect, they sat to discuss the matter.

Mr. Hamoonga explained that while they were discussing, the suspect went outside the house and was followed by his wife and suddenly a gunshot was heard and the father went to see what was happening only to find his daughter lying on the ground and bleeding profusely from the head.

He said immediately after that, the suspect, marriage counselor and the friend to the suspect got into the vehicle which was parked outside and sped off.

Police rushed to the scene picked the victim and took her to Chipata level one Hospital where she was pronounced dead upon arrival.

The body of the deceased has been deposited in the Mortuary awaiting postmortem and burial.

Transparency International Zambia (TIZ) has urged President Hakainde Hichilema to take immediate, visible, and decisive action against his appointees whom he has discovered to be getting influenced into corruption.

TIZ Executive Director Maurice Nyambe said that action based on evidence and against his appointees found wanting, will consolidate the head of state’s position that he will not allow corruption under his watch.

Mr. Nyambe says it is worrying to hear revelations from the head of state that a clique of criminals who are currently pursued by law enforcement agencies have now started teaching his ministers and permanent secretaries how to siphon money meant for the poor.

He has reminded the government that Zambians elected them into office partly on the basis of their promise to be different from the patriotic front regime under whom corruption was allegedly allowed and at its highest.

Mr. Nyambe added that the President and his ministers must now begin to act towards eradicating corruption beyond just saying the right things without results.

Yesterday, Opposition Patriotic Front Member of the Central Committee in Charge of Information and Publicity Raphael Nakacinda has refuted allegations made by President Hakainde Hichilema suggesting that the PF was teaching UPND Government officials to steal.

President Hichilema on Monday said the clique of criminals whom law enforcement agencies are currently pursuing have now started teaching his ministers and permanent secretaries how to siphon money meant for the poor.

The Head of State said this when he swore in the Teaching Service Commission chairperson Daphne Chimuka and Drug Enforcement Commission (DEC) Director General Mary Chirwa.

But speaking after escorting PF’s Clement Tembo to file his nomination for the delayed Kabwata Parliamentary by-election, Mr. Nakacinda wondered how PF officials would teach corruption the UPND Ministers and Permanent Secretaries whom President Hichilema oriented when coming into Government.

Mr. Nakacinda further commented on the audio circulating on social media purporting that President Hichilema was destabilizing opposition political parties.

“Before I call the acting Secretary-General (Nixon Chilangwa) to invite the Vice President (Given Lubinda) allow me to speak to you about what happened, let me tell you what happened before they cancelled these elections,” he told PF supporters who came to witness the filing in of nominations.

“Yesterday a video came out in which Levy Ngoma implicated the President in something suggesting that it is him who has embarked on a crusade to destabilize opposition political parties.”

“The other day the President was alleging that PF is corrupt but it is his Ministers who are corrupt. He was alleging that some people are teaching his Ministers to be corrupt but is it not Mr. Hakainde who had an orientation workshop with his Ministers? Is it not Hakainde who taught his Ministers? The S.G here is the microphone, I am a trouble maker. Speaking in Bemba can land me in problems,” Mr. Nakacinda said using Bemba and English.

Copperbelt Energy Corporation Plc (CEC) has said that allegations and claims made against the company by Dr. Mbita Chitala, the immediate past Board Chairman of ZESCO Limited in his book, ‘Corporate Capture: The Political Economy of Electricity Management in Zambia (How Not to Manage a State Enterprise)’, do not have merit.

In a statement made available to the media by Chama Nsabika, Senior Manager Corporate Communication, CEC said that the integrity of the book, which is purported to contain information suggestive of a CEC scheme in the alleged corporate capture of ZESCO, is questionable and that it is extremely disappointing that Dr. Chitala chose to make such serious and unsubstantiated claims against a company bound by strict disclosure obligations as a listed entity, whose information can easily be verified.

Below is the full statement

CEC STRONGLY REFUTES CLAIMS MADE BY DR. MBITA CHITALA

CEC is deeply concerned by the claims made by Dr. Mbita Chitala, the immediate past Board Chairman of ZESCO Limited (ZESCO), in his recently released book; ‘Corporate Capture: The Political Economy of Electricity Management in Zambia (How Not to Manage a State Enterprise)’.

The integrity of the book, which is purported to contain information inter alia suggestive of a CEC scheme in the alleged corporate capture of ZESCO, is
questionable and the claims made against CEC are meritless. It is extremely disappointing that Dr. Chitala chose to make such serious and unsubstantiated claims against a company bound by strict disclosure obligations as a listed entity, whose information can easily be verified.

As one of the leading listed companies on the Lusaka Securities Exchange (LuSE), CEC adheres to strong corporate governance principles and conduct and has clear, transparent and honest communication and disclosures.

Whatever Dr. Chitala’s motives, it is clear that he makes several contradictions, misstatements, omissions of fact, and repositioning of narratives to lead the reader to a particular conclusion.

Dr. Chitala openly acknowledges various schemes, including the establishment of a new Special Purpose Vehicle, which was considered to take over CEC while he was Chairman of ZESCO.

He provides two detailed options which he sketches out in the book. This could explain his motivation to undermine CEC so as to bring its value down
and possibly take over the Company on the cheap. We are continuing to study the book systematically and are still seeking legal guidance on some of the allegations and inaccurate statements.

However, in the interest of transparency, we would like to highlight a few of the allegations and inaccurate statements:

• Throughout the book, Dr. Chitala tries to build the narrative that CEC’s shareholding is dominated by foreign interests.

In Table 60, he presents a “CEC shareholding at becoming public” which is completely fabricated.

Two shareholder groups in the table which he credits with a combined 45.1% shareholding in the Company were not even shareholders of the Company at the time.

ZCCM-IH and ZECI, two entities representing Zambians, held over 72% of the shares which is not captured therein.

In Table 61, he again continues with the misrepresentation showing shareholding in 2018 with ZCCM-IH at 13.25% instead of 20%.

CEC is a listed company on the LuSE and, therefore, its shareholding is a matter of public record and easily verifiable by anyone.

It is surprising that Dr. Chitala, whose biography at the beginning of the book refers to him as, “a registered Finance and Investment Adviser with the Zambian Securities and Exchange Commission” couldn’t verify this basic information which he relies on to make a key argument in his book.

• An allegation he makes consistently is that CEC disadvantages ZESCO by paying a suboptimal tariff. Dr. Chitala contradicts himself with regard to what the actual tariff CEC pays ZESCO.

On page xvii, he states, “[ZESCO sold] to the mines through CEC at an average tariff of US$c 6.33/kWh. This was simply poor business.” Yet on page 114, he states, “Under the BSA, CEC obtained power from ZESCO at an average tariff of US$c 8.11/kWh.” If the Chairman of ZESCO for 5 years is not clear what their largest customer buys power at, why should we expect any different from those he reported to? No wonder Mr. Ronald Chitotela recently argued in Parliament that under the BSA, ZESCO sold power to CEC at US$c 3/kWh.

• CEC – Mopani Tariff Negotiations of 2017. Dr. Chitala on page 148 writes: “Until I left ZESCO, CEC had not concluded its tariff discussions with Mopani and failed to provide any progress to ZESCO or government.”

This is, again, another blatant lie by Dr. Chitala. The truth is that CEC and Mopani completed these negotiations within 2017 and signed an addendum to their Power Supply Agreement (PSA) reflecting the agreed changes in tariff.

It is again difficult to understand the motive behind blatant lies as presented on this subject by Dr. Chitala.

Following the signing of the addendum between CEC and Mopani, CEC proceeded to inform both ZESCO and the Government and proposed a draft addendum to the BSA
to ZESCO.

However, under the leadership of Dr. Chitala, ZESCO was unwilling to review the addendum from CEC nor to sign it.

• Dr. Chitala makes a claim that the BSA through Clause (b) (i) and (ii) gave exclusivity of supply to CEC on the Copperbelt to the detriment of ZESCO and its business.

In similar fashion as all the other points that Dr. Chitala raises as issues that ZESCO had with the BSA, what has been presented in the book is, unfortunately, nothing but misrepresentations and half-truths.

However, for brevity, we will only cover the issue dealing with exclusivity of supply because of its alleged business implications on ZESCO.

On page 97, he writes: “Clauses 10 (b) (i) and (ii) gave Exclusivity of Supply by CEC to the Copperbelt and was bad as it was discriminatory and violated all laws of commence.

By this clause CEC was granted an ‘exclusive franchise’ for the supply of power on the Copperbelt.

This entailed that only CEC could supply all mining and mining related activities. This exclusively was very restrictive and provided a monopoly to CEC with regard to supply of power to the mining customers on the Copperbelt, a position not commercially viable.

Further, the said clause prohibited ZESCO from constructing, owning or operating transmission and distribution lines in these MineCo sites.

The net effect of the foregoing was that ZESCO became restricted in owning or expanding its network on the Copperbelt.

Section 8 of the Competition and Consumer Protection (CPC) Act, prohibited Parties from entering into Agreements that restrict competition.”

However, Dr. Chitala completely omits an important aspect of the BSA contained in Clause 1 (a) (iii) which prohibited CEC from purchasing the power it supplied to its mining customers from any other source but ZESCO, unless in situations where ZESCO had no capacity to supply CEC’s power requirements.

The BSA, therefore, exclusively reserved the Copperbelt mining market for ZESCO’s power and, thus, solidly protected ZESCO’s business interest in this respect. It was always clear that under the BSA, CEC could not and did not buy power from any other company but ZESCO.

• Dr. Chitala makes various claims of CEC owing ZESCO an amount ranging from US$225 – 325 million.

On page xxix, he pegs CEC’s alleged owing to ZESCO at US$325 million and on page
120, when discussing his proposal for ZESCO to acquire CEC, he states, “ZESCO would have to pay a cash price of US$288 million.

However, ZESCO also noted that CEC owed ZESCO about US$257.1 million and that this amount would be used to offset the price for the purchase of any ordinary shares from CEC.”

However, Dr. Chitala goes on to contradict himself on page 124 by stating that the purported money that CEC owes ZESCO is the subject of Judicial Review proceedings in a case brought by the Chamber of Mines
against the Energy Regulation Board (ERB) in 2014.

Dr. Chitala states, “If the ERB decision is determined to be lawful by the Zambian High Court, ZESCO would be entitled to claim US$ 225 million from CEC.” Worth noting is that CEC would also be entitled to claim a similar amount from the mines in such a case.

Further, Dr. Chitala omits to state that the decision of the ERB, while being the subject of the ongoing judicial review, has also been stayed by the High Court.

• Dr. Chitala misrepresents a number of the court cases involving the companies.

1. Common Carrier Proceedings (Statutory Instrument 57 of 2020) – this is a matter in which CEC commenced judicial review proceedings against the then Minister of Energy’s decision to declare CEC’s transmission and distribution lines as common carrier on 29 May 2020.

Dr. Chitala selectively does not take the reader through to the final outcome but rather chooses to end with the following; “The court of appeal refused to grant CEC an order of stay of execution of the Minister’s statutory directive. This meant that ZESCO would be enabled to use CEC’s assets to supply KCM and other mining companies on the Copperbelt who so wished at a tariff set by the ERB and the CEC action appeared to be
academic actions with no legal import.”

The real final outcome is that High Court Judge Elita Phiri Mwikisa found that the applicant (CEC) succeeded on all grounds and accordingly quashed the decision of the Minister of Energy to declare its transmission and distribution lines as common carrier (SI 57).

In a 71 page judgement, Judge Mwikisa stated, “whereas the Applicants concede that the minister does have power under section 15 (1) to declare a transmission line as a common carrier, they argue that he does not have power to declare the entire interconnected
power system as common carrier and that he acted in excess of his powers.

The Applicants contend that this action by the minister amounts to expropriation. I tend to agree with the submissions of the Applicants to the extent that the Minister’s decision was ultra vires as he acted in excess of his powers,”

2. ZESCO and KCM Injunction – this is a matter in which ZESCO and KCM were granted an ex-parte injunction against CEC which stopped CEC from interfering with the supply of power by ZESCO to KCM following the expiry of the PSA between CEC and KCM. CEC counterclaimed, accusing ZESCO and KCM of colluding, which led to CEC not being paid US$144 million relating to unpaid invoices for power CEC had supplied to KCM under their PSA.

Again, Dr. Chitala selectively does not take the reader through to the final outcome but rather chooses to end with the following, “ZESCO considered the CEC action as groundless, not least since ZESCO had not been privy to that PSA and was itself free as the Electricity Act 2019 provided to compete for business.”

The final outcome is that the matter came up for a status conference in August 2021 at which both ZESCO and KCM informed the court that they were discontinuing their actions following the quashing of SI 57 of 2020 by the High Court upon which they had grounded their respective claims.

ZESCO finally filed its notice discontinuing the action.

We are deeply concerned with the way Dr. Chitala’s book is positioned and with its depiction of CEC. Our Board is discussing any additional action the Company could take, about which our stakeholders will be
informed accordingly.

CEC remains committed to transparency and full disclosure.

The Company reassures all its stakeholders that it is engaging constructively with the new Board and Management team at ZESCO, the Ministry of Energy and the ERB with the key objective of advancing the interest of the sector in a fair and equitable manner.

For more information, contact:

Chama Nsabika
Senior Manager Corporate Communication
[email protected]

The African Parliamentarians Network Against Corruption (APNAC) has noted with serious concern the approach taken by the Anti-Corruption Commission (ACC) and the Drug Enforcement Commission (DEC) in the fight against corruption to continue summoning and arresting suspects, properties ceased while depriving the owners before investigations are concluded.

APNAC Zambia Spokesperson Miles Sampa has said that despite the new dawn government and the President in particular, highly demonstrating goodwill towards the fight against corruption with a resounding call to zero tolerance on corruption, which APNAC fully supports.

Mr. Sampa said that some searches carried out on suspect’s properties though having the blessing of the law, have been more of an ambush with a lot of illegalities such as denying suspects access to follow the proceedings of search as well as denied the right to engage legal representation during the search.

He said that APNAC, therefore, calls on the ACC and DEC to exercise professionalism in the execution of their mandates so as to inspire public confidence which is already eroded or the whole process may be rendered to be an academic exercise and a battle for politics.

Mr. Sampa said that APNAC further requests the ACC and DEC to take interest in the reinstatements of public officers taking place to ensure that the officers being reinstated were not genuinely under some disciplinary action but now conveniently claiming to have been political victims.

Below is the full statement

APNAC ZAMBIA CHAPTER PRESS STATEMENT ON THE ANTI CORRUPTION COMMISSION (ACC) AND THE DRUG ENFORCEMENT COMMISSION (DEC) 19/01/22

The African Parliamentarians Network Against Corruption (APNAC) Zambia Chapter is a non partisan voluntary body of Parliamentarians established in May 2005.

The main impetus of APNAC is to be a vehicle for coordinating and strengthening Parliamentarians in the fight against corruption and promotion of good governance.

We wish to start by categorically stating that ACC and DEC, both established by Acts of Parliament, stand us our valuable partners in the fight against corruption and therefore we fully support their mandates.

However, we wish to state that we have observed with serious concern the approach taken by ACC and DEC towards the anti corruption fight. The New Dawn government and the President in particular, has highly demonstrated goodwill towards the fight against corruption with a resounding call to ZERO tolerance on corruption and this we fully support as APNAC. He has also been very categorical that while we pursue the perceived corrupt, be it in the past , the present and the future, there is need to uphold the rule of law. Emphatically, no arrests should be entertained before investigations are concluded.

In view of the foregoing, we find it very unfortunate that suspects continue to be summoned and arrested, properties ceased while depriving the owners even before any investigations are concluded. Some searches carried out on suspects properties though having the blessing of the law, have been more of an ambush with a lot of illegalities. Suspects have been denied access to follow the proceedings of search as well as denied the right to engage legal representation during the search. Undoubtedly, this falls below any good practice.

We therefore, want to call upon ACC and DEC to exercise professionalism in the execution of their mandates so as to inspire public confidence which is already eroded otherwise the whole process may be rendered to be an academic exercise and a battle for politics.

We further wish to request ACC and DEC to take interest in the reinstatements of public officers taking place to ensure that the officers being reinstated were not genuinely under some disciplinary action but now conveniently claiming to have been political victims. We also wish to call for investigations into some seemingly improper appointments of public officers especially those alligned to top Government officers such as Minister or MPs.
We undertake to ensure no one is above the law in our quest to advocate against all forms of Corruption be it petty, institutional or grande.

Going forward, We demand that DEC should change its name to one that does not restrict them to only drugs related issues but to the fight against all white collar crimes. We are further of the strong view that the new DEC should be of equal institutional standing as ACC as opposed to being a parallel crime unit but with junior or lower powers. With this approach, there will be accountability and transparency between ACC and DEC and able to investigate each other if and when need arise as happens with CIA and FBI in the USA.

We finally wish to reiterate our position of continuously working and partnering with ACC and DEC as we carry out this noble cause for our Country and Continent.

I thank you.

Issued by: Miles Sampa MP,
CHAIRPERSON/SPOKESPERSON -APNAC Zambia

UPND National Youth Chairperson, Gilbert Liswaniso has called on youths in the party to desist from inciting fellow youths to rise against the party and its leadership.

And Liswaniso has warned that the youths would not sit back with hands folded and watch members of the opposition wage unjustifiable attacks on President Hichilema.

Addressing the Press at the UPND National Youth Command Center in Lusaka on Tuesday, Mr Liswaniso stressed that he has noted with regret how named opposition political parties have taken to unfairly and unjustifiably defaming the name of the President for political expediency.

Mr Liswaniso, who emphasized that President Hichilema was aware of the numerous economic challenges that the youths in the party and the country were facing, stressed that the there was no need for Zambians to stress as the Head of State had only done about a quarter of available appointments in the civil service.

He also called on the youths to abide by the party guidelines on forming co-operatives, stating that those who wanted quick benefits would only jeopardize the operations of Government and its endeavours to deliver development for all Zambians.

“As much as we want quick benefits, we should be aware that this will in the long run affect our well being. We have the pressure from our youths and this calmness that we see from the youths is because we engage each other,” he said.

He also warned members of the party to desist from attacking the party and Government in public.

“As party members, we should guard against attacking the party in any way. If you’re a genuine member of the party, you should guard against attacking the party and its leadership. If you attack your own political party, tell us…we will give it to you. It is our responsibility to rectify things when they go wrong. We are aware of the high expectations from the youths who turned out in large numbers to vote for change. From the time we formed Government, as the National Youth Chairperson, we have been going round the country to assure the youths that the promises that President Hichilema made would come to pass,” he said.

Liswaniso has since warned of stern action against those who were in the habit of issuing unwarranted attacks against the party, Government and civil servants.

He says those who will be attacking President Hichilema as an individual would be dealt with in their individual capacity.
He also warned members of opposition political parties to desist from fanning confusion and violence in the 3rd February Kabwata Parliamentary by-elections to stay away.