20 December 2007
Ndola — THE Task Force on Corruption recommended the out-of-court settlement in a maize case involving the Zambian Government and Democratic Republic of Congo (DRC) Katanga province governor, Moses Katumbi.
Task Force on Corruption executive chairman, Maxwell Nkole said Mr Katumbi still remained a potential witness and had promised to assist with investigations in cases such as BK Facility involving U.S.$20 million arms contract, the Challenger jet purchase and other high level cases.
Mr Nkole said in a statement yesterday that although investigations revealed traces of fraud in the way the maize contract was executed, it was of the view that the contract was a poorly managed business transaction leading to claims and counter-claims.
He said the Lusaka High Court's case concerning K53 million maize deal contract between the Government and Tamba Bashila was the basis for Mr Katumbi's counter-claim to be paid an outstanding amount of more than K17 billion.
At the Kitwe High Court, he also contested the seizure of various properties and equipment that were restricted by the State agents on suspicion of being proceeds of fraudulent deals with Government officials.
He said that Mr Katumbi's Chani Enterprises signed a contract with the Ministry of Finance for maize and mealie meal marketing in 2001, a contract that generated disputes between the two parties, leading to the civil cases in the Lusaka High Court in which Mr Katumbi sued for recovery of K17 billion and Government counter-claimed for K37 billion.
"An amicable out-of-court settlement was recommended and accepted by both Mr Katumbi and the Attorney-General in terms and conditions which were agreed upon by both parties," he said.
Mr Nkole said that the Task Force mandate was not about vengeance but restitution and recovery of assets apart from investigations and prosecutions.
He said the recoveries made from Mr Katumbi marked one of the most successful asset recovery efforts registered by the Task Force.
He said the High Court cases in Lusaka and Kitwe had taken so long to conclude and were becoming more and more costly and yet subsequent judgments could have gone either way for or against the State.
He said Mr Katumbi, as Katanga province governor, enjoyed diplomatic immunity and could, therefore, not be sued or arrested as a common man, and the good relations with Congo DR were another consideration.
The Task Force motive for investigating Mr Katumbi remained justified because he was a suspect as was justified by the settlement agreement made with him and assistance and cooperation could now sought from him in unearthing evidence against the big fish targets.
"The Task Force is aware of several people who were used as conduits or middlemen by political engineers to perpetuate grand corruption. The extent and depth of that corruption will only be known if Task Force can work with some of these insider witnesses," he said.
He said the Government on this matter was grossly mis understood and that the statement represented the factual clarification and the settlement was done in the best interest of the country.
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