Yamba did not authorise FTJ Chiluba University payment, witness tells court

Yamba did not authorise FTJ Chiluba University payment, witness tells court

A Former chief accountant at the Ministry of Finance has exonerated former Secretary to the Treasury Fredson Yamba of the problematic payment of US$33,750,000 to China Energy Engineering Group Hunan Electric Power Designer Institute for the construction of non existent FTJ Chiluba University.

Thomas Phiri who is now attached to the Ministry of Community Development and Social Services said Yamba who is the former secretary to the treasury did not approve the said payment as his mandate had expired at the time the request was made.

Testifying before the Economic and Financial Crimes Court, Phiri told Lusaka Chief resident magistrate Davies Chibwili that during an inquiry by the ACC he was shown three memos and two foreign payment vouchers relating to FTJ Chiluba university in Luapula province and he was asked to explain the payment process.

He explained that the first memo was issued by Assistant Director Acting External debt indicating that approval for payment had been provided, and the accounts department had to facilitate the payments.

“The second memo was from my assistant principle accountant. The third memo was from me as chief accountant at the time addressed to the director budgets. Under the fine seal of the director, it was a request for funding to the budget office in relation to the FTJ University requesting for funding of US$33, 750, 000,” Phiri said.

“The fourth document is a foreign payment voucher with a payment related to FTJ University as downpayment. It was part of the payment and it was worth US$8 million. The fifth document was another foreign payment voucher a part downpayment of US$8 million.”

He said the procedure for the accounts department to facilitate payment starts after the relevant department obtains approval.

Phiri said when payment is approved the payment voucher and supplementary documentation is captured in the system and it undergoes three stages.

“Once that is done, it goes back again to the accountant who will print a document from the system. Once they are verified by three signatories which include an accounting officer, a non accounting officer and a payment secretary the documents are fully signed,” Phiri explained.

“They( accountants) submit an item and a foreign payment voucher will be submitted to the Bank of Zambia then the payment will be done by Bank of Zambia and the Accountant General office. That is the payment process.”

During cross examination the witness said no payment was authorized in 2017.

Phiri told the court that acting secretary to the treasury Mukuli Chikuba authorized fresh payment of US$33.7 million to the Chinese company and not Yamba.

He confirmed that Chikuba is not among the accused persons being tried for causing government to incur a loss in the questionable construction project.

Asked if Mukuli errored in approving payment, the witness denied.

In this matter Yamba and five others are accused of contracting a Chinese company to construct FTJ Chiluba University in Mansa and Kasama without the approval of Zambia Public Procurement Authority and for failing to monitor the project which resulted into government incurring a loss of US$45,000,000.

Yamba is jointly charged with former ministry of higher education permanent secretary Owen Mugemezulu, Joseph Phiri and Joseph Ngulube for wilful failure to comply with applicable law and procedure relating to procurement, management of public resources and abuse of authority of office.

Trial continues on March 15.

By Mwaka Ndawa

Kalemba