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Zambia: 'ZSIS Was AFs' Client'
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The Times of Zambia (Ndola)
15 May 2008
Posted to the web 15 May 2008
Ndola
ACCESS Financial Services (AFS) chief executive officer, Faustin Kabwe yesterday narrated how the Zambia Security Intelligence Services (ZSIS) became the company's client in the financial business.
Kabwe, 58, told Ndola-based High Court deputy registrar, Jones Chinyama, sitting in the Lusaka Magistrate's Court, that one of AFS clients was ZSIS and that the relationship arose when former director general, Xavier Chungu approached him.
Kabwe said he knew Chungu while they were at the same school in Luapula Province and the late former Foreign Affairs minister, Remmy Mushota informed him that he was a senior official in the intelligence service.
Kabwe was giving evidence in defence in the case in which he is accused of theft with former President, Frederick Chiluba and AFS director, Aaron Chungu. They are alleged to have stolen public funds from ZAMTROP intelligence account.
He said that he later met Chungu, who informed him that he would be seeking his services from time to time on the basis that AFS would perform to his expectations.
Chungu introduced Kabwe to other senior intelligence officers such as the late Mr JK Lungu, Mr Yotum Zulu and a Mr Mandona.
Kabwe said he introduced Mr Chungu to Aaron Chungu, who was a senior executive of AFS and that was the way they facilitated business between AFS and ZSIS in an orderly fashion.
He said he had no formal knowledge of what Chungu was doing but that he maintained his formal contracts with him just like other clients.
Kabwe explained that serious interactions arose when he was summoned to help in the Meridian Bank crisis and that Chungu would occasionally call him on the progress.
He said Chungu did not disclose what his interest in the issue was but it appeared that it was an assessment of the gravity of the crisis.
Kabwe also recalled being approached by Zambian Airways representative Mutembo Nchito to assist in the fund-raising efforts for their business of exploring options for acquiring an aircraft.
The court heard that AFS were also liquidators of MEMACO and that an amount of K16 billion was realised for the Government.
He said as liquidators of MEMACO, they were shocked and surprised that the Task Force on Corruption, without any consultations, decided to block the account, which had the funds at Barclays Bank and terminated any arrangements entered into with the bank.
He told the court that he had since ceased to participate in the operations of AFS and that he was last effectively there in 2002.
In another development, the Supreme Court has ordered the State to forfeit fugitive Chungu's Kabulonga house which was recovered by the Anti-Corruption Commission (ACC) in 2003.
Chief Justice, Ernest Sakala, sitting with Peter Chitengi and Sandson Silomba stated that the forfeiture of the recovered property was automatic once the State had met the requirements as set out in the re-enacted legislation cited in the laws of Zambia.
This was in an appeal case against the ruling of High Court Judge, Japhet Banda last year, who refused and dismissed the application by defence lawyer, Nicholas Chanda who was challenging ACC's move to forfeit property number F/488a/8/B/2, Whitewood Lane, Kabulonga.
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Hearing continues.
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