By Mwaka Ndawa
A BANKER at First National Bank has told the Lusaka Magistrates’ Court that the K4.4 million which is alleged to have been stolen by KCM provisional liquidator Milingo Lungu from the mining firm’s account was used to clear legal fees which he owed to Messrs Muya and Company.
This is in a matter where Konkola Copper Mines Plc (in liquidation) provisional liquidator Lugu is facing two counts of theft and money laundering.
It is alleged that on dates unknown but between May 22, 2019 and September 28, 2021, Lungu being a provisional liquidator of KCM, embezzled K4,400,000 belonging to the mining firm.
In the second count, Lungu is on the same dates alleged to have transferred the money in question to his account, knowing it was proceeds of crime.
Testifying before magistrate Felix Kaoma, Natasha Mutantabowa a relationship manager at FNB said on September 12, 2019 Lungu opened two accounts with the bank in the name of KCM.
She said according to Lungu the dollar and Kwacha accounts were opened for purposes of liquidation and availed the Bank a court order appointing him as provisional liquidator of the mining firm to supplement his claims.
Mutantabowa said last year the Drug Enforcement Commission (DEC) approached the Bank and requested to review the mandate and bank transactions on accounts belonging to KCM.
“I gave the said documents relating to the dollar and Kwacha accounts to the DEC officers,” she said.
The witness told the court that among the documents were instructions from KCM to transfer money from the company’s account to different accounts and Lungu appended his signature on the instructions.
“The first instruction was from KCM to the bank to transfer US$410,000 from its dollar account to the Kwacha account and the instructions were signed by Milingo Lungu on June 19, 2020; the amount was equivalent to K7,421,000,” Mutantabowa said.
“The second instruction was to transfer K4.4 million from KCM’s Kwacha account to Muya and Company held at First Alliance Bank for legal services, and Milingo Lungu signed the instructions.”
She said she gave DEC officers a swift copy for an incoming payment of US $5 million into the mining company’s dollar account on May 21, 2020.
Mutantabowa said the $5 million which was paid to the dollar account by Moxico Resources Limited was part payment of the aggregate sum of $20 million for the mining rights areas belonging to KCM which was sold to Moxico Resources Limited, Rephidim Mining and Technical Suppliers Limited, and Mimbula Minerals.
In 2020 Lungu had entered into a consent judgement before the Court of Appeal to sale Lot 649/M Chingola part of KCM’s Mining Licence area at $20 million to three companies Rephidim, Mimbula and Moxico Resources with whom KCM had been in legal dispute over the area since 2016.
During cross examination by Lungu’s lawyers, Mutantabowa confirmed that the bank opened the two accounts based on the court order appointing Lungu as provisional liquidator of KCM.
She affirmed that the DEC also asked for information relating to accounts held by Lungu’s law firm, Messrs Lungu Simwanza and Company which are more than eight.
Mutantabowa told the court that all accounts belonging to the mining company have been frozen including those belonging to Lungu’s law firm, with an exception of one.
She further confirmed that Lungu had authority to perform transactions on KCM’s accounts by virtue of his position as provisional liquidator of the mining firm.
Earlier, Derrick Bwalya, a banker at ABSA Bank said Zachariah Muya instructed the bank to transfer K3, 500, 000 from his law firm’s account Messrs Muya and Company to Mwembazi Financial Services Limited and that the transaction narration was “balance on services rendered”.
Trial continues on April 11.