‘’HH’s businesses should transact with govt, but must tender/compete,’’ said UNZA students – Pt 1

‘’HH’s businesses should transact with govt, but must tender/compete,’’ said UNZA students – Pt 1

By Austin Mbozi

First, ‘Let President Hakainde Hichilema’s (HH) private businesses transact with government’. Second, ‘his businesses must go through competitive open tenders’. Third, ‘his businesses must not bear his name’. And fourth, ‘he must re-introduce laws on compulsory declaration of assets’. These are the two third majority opinions of my female-dominated class of business ethics students on Wednesday, 21 August 2024.

While some students suggested that HH should declare his assets even without a compelling law, the majority argued that this is unfair to him since without this law his competitors might not declare their business interests. ‘’Everybody must declare so that we see what businesses they all do, not forcing HH alone to face public scrutiny,’’ they finally agreed.

I am not politicking. I am only doing my taxi-paid job of state-university-teaching and asking the opinion of these students, the future public office bearers. In business ethics our main text books, American written, have case studies of alleged unethical behaviour of American firms. So I replace them with Zambian ethically controversial cases. And we are fair by hearing all sides. Some time back, I invited HH to UNZA’s then Commonwealth Youth Centre to explain alleged unethical wealth accumulation methods during the Chiluba-era privatisation of public companies. He arrived, but the Mwanawasa administration used UNZA bosses to chase him, thinking he was campaigning. Comrade Fred M’membe may confirm that I had written-invited him, dropped the invitation at his business colleague Mutembo Nchito’s office at Godfrey House, to explain their side on the Zambian Airways controversy. But he did not make it. Over the years we have featured business persons like Mr Chibamba ‘Business-Mentor’ Kanyama, Mr Chisha ‘Mondo-Music’ Folotiya, Mr Dante ‘Tamanga-Business’ Saunders, Ms Edith ‘Legana-Sausage’ Nawakwi, Dr Rozious ‘Exams-are-Easy’ Siatwaambo, Ms Silva ‘Catering’ Banda, Mr Richard ‘Daily- Nation’ Sakala, Mr Kunda ‘Ma-Flat-Builder’ Mwila, Mr Brebner ‘Ma-Chalk’ Changala etc.

We are not doing business law but business jurisprudence /business philosophy, where we challenge which laws of business need changing for allowing big business persons to get away with practices that are legally permissible but unfair to weaker people. Many allegations against President HH, even if they are proven to be true, like these about his privatisation-era, cannot win in court. They only raise ethical issues against law-abiding business persons.

Initially, I was irritated by my students’ without-first-thinking defence for President HH over recent allegations that he was selling his properties to government at inflated prices. I warned them that I knew that President HH was their darling as we saw in their welcoming ‘Bally wakulekafwe’/‘Viva meal allowances’ frenzy when he came for his honorary doctorate. I reminded them that I was also his supporter but warned that we are in academic circles where it is mandatory to charitably hear his opponents’ concerns and respond rationally/objectively.

So I showed them media/opposition claims that Aflife is owed by HH’s business partners Valentine Chitalu and Muna Hantuba (some opposition leaders claim that HH actually co-owns Aflife with these but he hides his name). Aflife then has 13.31 per cent shares in Zambeef. This makes HH/his partners a partial owner of Zambeef. Then as President of Zambia, he is chairman of the board of the Industrial Development Corporation (IDC) to which he appointed Mr Cornwell Muleya as its boss. IDC is the supervising entity of Zambia National Service (ZNS). And again President HH is the Commander-in-Chief of ZNS, where again he appointed Lieutenant General Maliti Solochi as its boss. Then he allocated to ZNS huge state funds to produce food.

Then I told them the opposition’s following ‘corruption’ allegation connections, real or imagined, in their worst form. ‘HH secretly ordered the ZNS boss to ask the IDC boss to buy farmland for ZNS. Then he secretly ordered the IDC boss to look for land. Then he secretly tells his Aflife partners Mr Hantuba and Mr Chitalu to tell Zambeef to offer for sell ‘his’ Chiawa farm. Then he sends $13.5 million to IDC to pay Zembeef who will then pay dividends to Aflife who will then dividend-pay HH’s partners who will then secretly send part of this amount to HH’s pocket’.

Initially, my students were bewildered. Have they finally believed HH’s opponents? Not yet. They regrouped, raised hands to defend their HH, asking, ‘does HH sit on Aflife/ Zambeef boards?’ Some replied that this did not matter since he can still influence his partners without being on the boards. So, some suggested prohibiting public officers from doing business. But line failed when I asked them if they themselves will not open businesses that will transact with government when they graduate. They said they will. So will they close their businesses on assuming public office? When they replied ‘no’ I sympathised with them.

In his book, ‘Depths of my footprints’ former finance minister Ng’andu Magande (2018, page’s 137-138, 265-267) exposes public officers’ envy for personal business. In 1983, Magande got cash for his car loan while serving at finance ministry. Instead he bought a tractor for his leased Choma TBZ farm. UNIP SG Grey Zulu threatened him with dismissal for violating the Kenneth Kaunda-era ‘Leadership Code’ that prevented business involvement of public officers. Magande opted to resign. But UNIP compromised, ‘okay, just repay the loan’.

On 31 August 1988, Anglo-American Corporation boss Anderson Mazoka visited the now Lima Bank boss Magande to negotiate Anglo’s sale of Kaleya Engineering Limited. Magande envied Mazoka’s business life. So he privately formed a ‘partnership’ with Mazoka and HH, meeting in evenings in Mazoka’s ‘mentoring room’ at Anglo offices. Because he was a public officer Magande did not share-hold but was only a ‘sounding board’ member advising on government policies and regulations.

…Continued next Monday. Meanwhile, ask yourselves, ‘was Magande abusing his Lima Bank public office in his Mazoka/HH partnerships’?

The author teaches business ethics, encourages HH’s political opponents to whistleblow. But they must produce facts. Phone: 0978-741920, Email: austin.mbozi2017@gmail.com