HOW MALANJI STOLE MONEY FROM THE ZAMBIAN PEOPLE AND GOT CONVICTED – JUDGMENT SUMMARY

HOW MALANJI STOLE MONEY FROM THE ZAMBIAN PEOPLE AND GOT CONVICTED – JUDGMENT SUMMARY

===============
I got the following article from NPA Facebook page but I will discuss it later at 20:00hrs.

Below is a breakdown of the charges that defined this decisive case.

The Yamba Convictions – A Breach of Financial Trust

The prosecution team secured decisive convictions on two counts against former Secretary to the Treasury Fredson Kango Yamba, painting a clear picture of abuse of power. In Counts 1 and 2, Yamba stood accused of abusing his office by authorising the unlawful transfer of public funds.

Yamba was tried for Illegally and irregularly authorising the transfer of K108,401,197 and K45,800,000 to the Zambian Mission in Turkey without following procedure and in violation of Public Finance Management Act. 

The Court found Yamba guilty on both counts, noting that the Controlling Officer at the Ministry of Foreign Affairs did not request the variation of funds intended for overseas emoluments to be used for the procurement of properties for the Zambian Mission in Turkey.

The Court also highlighted the irregularity in the allocation and authorisation of funds outside the appropriation by the National Assembly, and in the absence of a budget line for the procurement of properties for the Zambian Mission in Turkey in the 2020 and 2021 national budgets.

The Court found that Yamba deliberately bypassed the legal financial controls and accountability mechanisms, thereby facilitating the misappropriation of public funds.

The Malanji Convictions – From Public Funds to Private Assets

Counts 3 and 4 saw Mr. Joseph Malanji tried for possession of a Bell 430 and a Bell 206 Jet Ranger Helicopter, respectively.

The Court found convictions justified based on a series of suspicious financial activities.
The evidence revealed that from the US$ 7,132,000.00 allocated for the purchase of properties for the Zambian Mission in Ankara, Turkey, only one property was acquired at a cost of US$1,127,308.00, yet US$4.6 million was withdrawn.

The evidence further revealed that the money was ferried to Zambia using the Presidential Jet which Mr. Malanji used for the trip.

The Court rejected Mr. Malanji’s claim that the funds used to purchase the helicopters were derived from his businesses, observing that Gibson Power Systems’ dollar account had a zero balance, while the Kwacha account held only K365 at the at the start of the deposits in issue.

However, immediately following Mr. Malanji’s return from Turkey and Morocco, the account received substantial cash deposits daily for several weeks, facilitating the purchase of both helicopters.

It was confirmed that Mr. Malanji was the sole signatory of the accounts from which these suspicious transactions originated and that he was the beneficial owner of the entities holding the helicopters, thereby nullifying his claim that he did not possess the helicopters.

The Court returned a verdict of Guilty on both Counts 3 and 4, concerning the possession of the two helicopters, reasonably suspected to be proceeds of crime.

The timing of the transactions, the unexplained deposits, and the secrecy surrounding ownership all gave rise to a strong presumption of illicit activity.

In Count 5, the Court considered the Gibson Royal Hotel and whether there was evidence to warrant the suspicion that Hotel was a proceed of crime.

The Court acquitted Malanji on this Count, holding that the hotel predated the illicit financial activities in question.

The facts adduced in support of this count, however, revealed that Mr. Malanji, acting for and on behalf of Gibson Power Systems, a company in which he holds directorial control and a significant interest, secured a loan with the First National Bank (FNB).

The loan was backed by a mortgage on Stand 1326, Kitwe, where the Gibson Royal Hotel is situated. The evidence showed that in July 2020, shortly after Mr. Malanji returned from a trip to Morocco, a substantial deposit of K10 million was made into an FNB account, which cleared the outstanding loan.

This occurred just as the bank had begun legal proceedings to recover the unpaid loan, which had been overdue since 2015. It is significant to note that the timing of this repayment, coinciding with his overseas trip and the sudden influx of funds, raised serious concerns.

The timing of the loan settlement and the unexplained source of the funds remain critical issues, and the State intends to appeal the acquittal on this count, as the evidence points to a level of suspicion warranting further review by a higher Court.

In Counts 6 and 7 Malanji was alleged to have possessed US$110,000 & US$105,000 suspected to be proceeds of crime respectively.

Sums of US$110,000 and US$105,000 were transferred into Gibson Air Charters’ account from Burhan Asaf Safak’s account. It is crucial to highlight that Burhan Asaf Safak is the lawyer allegedly engaged by the “owners of the 12 properties” to represent them in the conveyance.

The funds sent to Gibson Air Charters form part of the monies remitted by the Zambian Embassy in Turkey to Burhan’s account for the purchase of the 12 properties.

Mr. Malanji claimed these funds were payments for helicopter hire, but no contracts, invoices, or supporting documentation were provided.

Evidence however showed that his declared monthly income from the helicopter hires was roughly US$10,000, making these transfers especially suspicious in volume and lack of transparency.

The Court found that absence of evidence supporting these transfers, combined with the implausibly large sums relative to income, led the Court to view them as proceeds of crime resulting in convictions on both counts 6 and 7.

Counts 8, 9 and 10 relate to Mr. Joseph Malanji’s possession of three Silverest Gardens Properties in Lusaka with house numbers 033, 269 & 270.

The Court stated that Mr. Joseph Malanji made payments to clear off the outstanding balances on the three properties through Gibson Power Systems’ account immediately following his return from Turkey.

His claim was that these properties were paid off over time using his allowances, gratuities, rental income, and proceeds from a transportation business.

However, no lease agreements, bank statements, or documented savings substantiated these claims in Court leading to the Court’s finding that even if earlier payments for these properties may have been legitimate, the commingling of suspicious cash with lawful income sufficed to taint the assets leading to convictions on all three counts.

With the convicts’ guilt now established on the majority of counts, focus now shifts to the next phases of justice: the initiation of formal post-conviction forfeiture proceedings to permanently reclaim all assets taken from the people of Zambia.

This victory signals a new era where complex financial crimes are met with even more sophisticated and determined investigative and prosecutorial power.

WE WILL TALK AT 20:00HRS

TAYALI THE PUBLIC LAWYER OF THE PUBLIC COURT OF OPINIONS!!!