Power and Politics

Witness absolves ex-Ministry of Defense official, Mwale, of blame in alleged $1.7m fraud

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Mwale, arrested

An ex-permanent secretary at the Ministry of Finance and National planning, Pamela Chibonga, has told the Economic and Financial Crimes Court that she facilitated payment of US$1.675 million to African Security Academy for the supply of Zambia National Service uniforms.

Chibonga said ex-Ministry of Defense permanent secretary, Stardy Mwale, did not receive any bribe for the facilitation of the payment of management fees to Africa Security Academy, to supply the uniforms.

This is in a matter where Eagle Trading International Limited, its owner Clever Mpoha and Mwale are charged with corrupt practices.

It was alleged that Eagle Trading and Mpoha greased Mwale’s palms with US$200, 000 in order to gain ‘unfair’ advantage over other vendors to supply military attire to the Ministry of Defense.

Mwale is also accused of possessing property suspected to be proceeds of crime.

Testifying before principal resident magistrate, Sylvia Munyiya, Chibonga who was the controlling officer for budgeting and economic affairs said on October 20, 2020 ACC investigations officers requested her to state the role she played relating to the supplier’s credit agreement signed between government and African Security Academy.

Read more: Police arrest ex-Defense permanent secretary, Stardy Mwale, for hate speech

This was in relation to the purchase of Zambia National Service uniforms at the sum of US$ 47.19.

“My role was to facilitate payment to African Security Academy at a sum of US$1.675 million to cover for arrangement and management fees,” Chibonga said.

“The secretary to the treasury received a request from the ministry of defense requesting that the treasury makes payment on the arrangement and management fees to African security Academy.”

She said the request was forwarded to the director in charge of investments and debt management for verification on whether the request was in line with the agreement and whether there was budget allocation.

Chibonga said after the contract passed the test, the secretary to the treasury approved the foreign payment voucher and indicated that a voucher needed to be raised.

“The payment voucher was made I appended my signature and it was sent to Bank of Zambia,” Chibonga said.

In cross examination by Milner Katolo, Moses Chitambala, Leon Lemba and others, the witness said the Ministry of Finance wouldn’t have facilitated payment if there was no supplementary budget.

Asked if she was privy to the alleged US$200, 000 bribe given to Mwale, the witness denied.

Chibonga said no one was influenced by Mwale to make payment to Africa Security Academy.

She said when processing the payment of US$1.675 million no complaint of any illegalities was made.

Chibonga further confirmed that the contract was not marred with corruption.

Trial continues on September 29.

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