YAMBA BROKE THE LAW WHEN HE SUCCUMBED TO MALANJI’S PRESSURE TO RELEASE FUNDS – MUKELEBAI
TOP DEC investigator Kwaleyela Mukelabai has told the Economic and Financial Crimes Court that former Secretary to the Treasury Fredson Yamba had guided that the purchase of a chancery in Turkey and staff houses for the Zambian mission be budgeted for in the national budget under staggered payments.
He said despite having guided that procedure be followed, Yamba lost his grip and ended up abrogating the law when he was pressured by former minister of foreign affairs Joseph Malanji, to release K154,201,197
In his testimony before magistrate Irene Wishimanga, Mukelabai said Yamba abrogated the Public Procurement Act Section 4 and 31, as he did not follow procedure relating to supplementation.
“I checked the yellow book, my interest was to check whether the movement of funds from head 21 to head 17 was approved by parliament between the period 2020 and 2021,” he said.
“In supplementary appropriation the properties for Ankara were not catered for and even in excess supplementary the properties were not catered for. In the yellow book the Zambian embassy in Ankara, Turkey, was sub head 48 under head 17 and that is where I established that for the whole year in 2020, government had budgeted for K28, 404, 648 for the 22 missions.”
He said K108,401, 197.00 was sent to the ministry of foreign affairs, which supplemented the K28 million without approval from parliament.
“There was about K13 billion allocated to head 21, and the activities for head 21 in 2020 did not talk about the purchase of property in Turkey.
On the excess appropriation in 2020 head 21 was provided with K900 million for the recapitalization of Natsave Bank,”Mukelabai said.
“Mr Yamba wrote to ministry of foreign affairs Permanent Secretary Dr Ronald Simwinga asking him to budget for the properties under staggered payments in the 2021 national budget.”
Mukelabai also informed the Court that Malanji bought a building from Workers Compensation Control Board and turned into Gibson Royal Hotel.
The building which was purchased in 2013 sits on plot no. 1326 Buchi Kitwe.
Malanji got a loan from FNB in the sum of K10.2 million, which accrued interest and ballooned to K14 million.
It is reported that the Bank sued him for failing to liquidate the loan which was later repaid in 2020 after his Morocco trip.
Magistrate Wishimanga has since extended the life of the proceedings for 45 days, following the expiration of the five month period on September 13, 2024.
In this case, Yamba and his co-accused Malanji, are accused of failing to adhere to guidelines relating to the management of public resources and possessing property suspected to be proceeds of crime.
Yamba is alleged to have abrogated the law relating to the management of public property when he approved the transfer of K154, 201, 197 for the purchase of a chancery in Turkey.
Malanji is accused of possessing two helicopters, BELL430 and a BELL 206 Jet Ranger helicopter, and houses suspected to be proceeds of crime.
Trial continues on September 23.
Kalemba