Zambia: Trail of Corruption Haunts Rupiah Banda, Allies

editorial

The detailed report on the operations of the Zambia Revenue Authority (ZRA) made public yesterday has opened a pandora's box and exposed a trail of corruption, plunder and, in some cases, brazen theft perpetrated by high ranking officials in the Rupiah Banda administration.

A total of 14 senior officials, including the former Republican president Mr Rupiah Banda and several former cabinet ministers, have been cited in the commission's report for various forms of suspected impropriety during MMD's reign.

The commission, chaired by Mr Kingsley Chanda, former ZRA commissioner in charge of direct taxes, has recommended that "appropriate action/investigations" be instituted against the named officials.

Among those named are former Finance and National Planning minister, Dr Situmbeko Musokotwane, former Works and Supply minister, Mike Mulongoti, former Transport and Communications minister, Prof Geoffrey Lungwangwa and former Local Government and Housing minister, Dr Eustarckio Kazonga.

Two former ZRA commissioner generals, Mr Criticles Mwansa and Mr Wisdom Nhekairo have both been cited in the report.

Mr Nhekairo is named in connection with the award of the controversial Bradwell contract, which was skewed in favour of the company engaged to operate ZRA border scanners, as well as justifying single-sourcing of the equipment on "flimsy grounds", and payments to Cargo Scan Limited with no regard to service delivery and contract terms.

Mr Mwansa has similarly been cited for justifying direct bidding of Nuctech company and Cargo Scan Limited and justifying the

procurement of four additional scanners and reduction of the floatation period.

The report paints a picture of unprecedented levels of impunity in the manner in which key Government functionaries circumvented laid down procedures aimed at ensuring transparency and accountability in the procurement process.

Failure to adhere to prescribed procedures will impact adversely on the Zambian tax payers who will foot the bill from the US$125 million loan contracted from the Chinese Government.

The genesis of the deal dates back to 2007 when the then president Levy Mwanawasa visited China and negotiated for a credit line of US$100 million for storage sheds for Food Reserve Agency ($11million), Government complex ($25 million), earth moving equipment $39 (million), irrigation ($12.5 million), and water and sanitation ($12.5 million). The coordination of the use of the loan, including the purchase of four scanners, was delegated to then vice-president Banda.

When Mr Banda ascended to the presidency in 2008, part of the loan ($50 million) which was reserved for irrigation, water and sanitation was diverted, on the advice of Chinese officials, to the procurement of four additional scanners, bringing the total to eight.

The total loan contracted was also increased from $100 million to $125 million to cover the cost of four scanners.

Then Finance minister Ng'andu Magande opposed the variation of funds to favour procurement of scanners, while then secretary to the treasury Evans Chibiliti cautioned Government to take into account the views of the technocrats who had advised against procurement of more scanners.

Dr Musokotwane also excpressed misgivings about the additional equipment, but the advice was ignored as Government proceeded to buy the eight scanners from Nuctech, and all of them were single sourced, a decision which the commission has criticised.

Although the speedy procurement was purported to be based on urgent need to enhance revenue collection at the borders, the equipment has been lying idle since its importation, save for one installed at Chirundu.

The commission is appalled, and understandably so, at the callousness and impunity of the individuals involved.

The decision to circumvent the open tender process is indefensible and single-sourcing has cast serious doubts on the whole procurement process, and the motives by the key figures who sanctioned the illegal purchase.

We hope the investigations will leave no stone unturned in order to ensure that all those linked to the scanners purchase, the Bradwell contract and related matters are brought to book.


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