November 08, 2010

http://zambianchronicle.com/?p=6661

THE Committee of Citizens has appealed to the Drug Enforcement Commission (DEC) to investigate allegations that Patriotic Front (PF) president Michael Sata gave Change Life Zambia director Father Frank Bwalya US$100,000.

Former PF secretary general Edward Mumbi made the allegations at a press briefing in Lusaka on Saturday.

The civil society organisation has also challenged Mr Sata to explain to the nation the source of the money.

Committee of Citizens executive director Gregory Chifire said in an interview in Lusaka yesterday that the allegations that Mr Sata gave Fr Bwalya US$100,000 raises questions which should be answered.

“We wish to know the position of DEC over this matter because it amounts to money laundering as the source of the funds is not known,” he said.

He said this revelation amounts to economic and financial crime.

“Any amount an individual, institution or company makes should be explained and relevant taxes levied on such monies. We wonder whether there is an explanation concerning this money and whether Zambia Revenue Authority got any taxes,” he said.

Mr Chifire challenged Mr Sata to explain the source of the money.

“Could it be that this money was gotten from consultancy work as the case was in the money confiscated in South Africa? If it is from donors, who are they?” he asked.

Mr Chifire said Finance Bank should also come out clean and tell the nation its role in the transaction.

He challenged Zambia Episcopal Conference (ZEC) to come out clean on this matter and state its position.

And Forum for Leadership Search (FLS) executive director Edwin Lifwekelo said the allegations that Mr Sata gave Fr Bwalya US$100,000 makes sad reading.

“This allegation is very grave if at all it is true,” he said.

Mr Lifwekelo said Government should investigate the matter.

He advised Fr Bwalya to speak out on the allegation, as silence would mean consent.

But Finance Bank Executive director corporate banking and marketing Noel Nkoma said the bank has nothing to do with this matter.

“This matter is not connected to the bank because if at all there is any truth, the bank has nothing to do with it,” he said.

Mr Nkoma said he cannot discuss customers’ bank transactions with the public.

He said the banker and customer confidentiality clause binds and, therefore, he cannot discuss private or personal transactions.

Mr Sata has described Mr Mumbi’s allegations as false.

Meanwhile Chief Government spokesperson, Ronnie Shikapwasha said in Lusaka yesterday that the law required that procedure should be followed where huge amounts of money were deposited into any commercial bank.

He said the Zambia police frauds department, Drug Enforcement Commission and other security wings should investigate the matter to establish how the money was raised and whether it was declared before being deposited in Finance Bank.

Gen Shikapwasha said the security wings should investigate issues around money laundering and tax-related ones.

“The law will visit all those involved in this matter. The police, the DEC anti-money laundering unit will investigate this matter together with the Bank of Zambia which has laws about money laundering,” he said.