DBZ gave out loans to three firms without insurance cover-AG

1. 2007 its the Legacy at work.Mpombo, Magande and Mmembe here is a job for you besides the Zambia, ABSA US$100m scam– who is involved? 7:58:14 Pm
   On 15th August 2003, a motion to impeach President Levy Patrick Mwanawasa SC was moved in the National Assembly by UPND Chief Whip, Crispin Sibeta.

   Sibeta laid impeachment charges that accused Mwanawasa of corruption, nepotism and breaches of the Constitution.

   Rooted in the twelve allegations and twenty five counts, was one corrupt allegation that President Mwanawasa received kickbacks from an oil firm and importer of crude oil, Trans Saharan Trading (TST).

2. MMD Vice- President and Kapompo West Member of Parliament Enoch Kavindele laid 32 documents on the table in Parliament supporting an Opposition impeachment motion against his former boss and MMD President, Levy Patrick Mwanawasa. Many thought Kavindele was suffering from a poor taste of sour grapes. He was fired three months before this motion as Republican Vice-President by Mwanawasa.

   Mwanawasa accused Kavindele of practising corruption.

   Among the documents Kavindele laid on the table were two books written by Simon Zukas and Andrew Sardanis entitled ‘’Into Exile and Back’’ and ‘’Africa- Another Side of the Coin’’.

3. Kavindele stated that the 32 documents he had laid on the table of Parliament were to show that Mwanawasa was inherently corrupt and that some of his nefarious activities could be traced to his time when he was practising as a lawyer, his tenure as Republican Vice-President under President Frederick Chiluba and his presidency since 2002.

   He recounted how Mwanawasa had tasked a team comprising himself, and Finance Minister Emmanuel Kasonde

4. Let them all account for the taxpayers’ money without exception. A handful of people can not be allowed to go scot free at the expense of the majority who struggling to survive. The DBZ management team of that time should be prosecuted and so too it should be for these con businessmen who have probably just used the money to acquire luxuries at our expense.

5. Why Give out Money without Collateral but with Moba i Know they are building a very Big Hotel and a Filling Station in Kitwe that could be their Collateral it is a Development in Kitwe.

6. This information should have come off her figure tips during the time the matter was being discussed at PAC. The PAC Chairman should have repremanded the OAG seriously for having half-baked information. The OAG knew they would be discussing DBZ that day and thus should have all the information. As a layperson I feel that Hon Haachipuka was very lenient with the AG. The PAC was subjected to wishy washy stuff over the DBZ deliberations!

7. only in zed…shame on the people that are sufferring…..l know other countries do it too but not that open…

8. This DBZ thing should be closed,that bank only serves politician’s interests.Almost all politicians owe that bank billions of kwachas[-x[-x[-x[-x[-x

9. #5 Madetsa Woyela, My dear is Abraham Mwenda the DBZ MD your relative or tribesman? This is the guy who did not furnish the PAC as to who was owing what? He only mentioned the defunct Zambian Airlines. After all it is Annie Chifungulwa who volunteered to furnish the PAC with the name of the debtors because Mwenda seemed to have no clue as to was owing the institution he is running. Now that OAG has revealed the names I honestly dont understand how any normal person can call for her crucifixation. Zambians!

10. Mweenda joined them after the loans had been disbursed. the article says the funds were disbursed in 2007 and Dr. Mweenda only joined late in 2008.

    The other chaps that were there like Dr. Ngandu, Mr. Phiri and Simi etc could know better.

    Mweenda am sure knew but they were yet to get some clarifcation in terms of disclosure of confidential information.

11. This story shows a whole lot of ignorance by the Auditor general and her team.
    Firstly, all the loans mentioned were fully secured and this can be verified with DBZ themselves.
    On the issue of insurance I have got facts from DBZ as follows:

    Zambian Airways – Fully secured by a fixed charge on 2 Boeing Aircraft and a debenture on all the assets of the company. There is an insurance certificate on file and this can be proved from PICZ who were the insurers. Besides, am surprised that the AG does not know that no plane can fly even for 1 minute if it does not carry insurance. Therefore its not possible that ZA could have been flying planes that had no insurance.

    The failure by the Management team to explain these facts before the committee shows a serious lack of competence.

12. Consolidated Milling – The asset acquired was a milling plant under a letter of Credit. Under a letter of credit, you pay against shipment documents. Most often, documents arrive faster than the goods. In this case, the goods were consigned to DBZ and the client had no access until certain conditions were met. Payment was made against the LC documentation as per the terms and conditions of the LC. Anything short of that would have attracted penalties for the Bank. INSURANCE BEFORE DISBURSEMENT WAS NOT FEASIBLE!
    African Textiles Ltd – Warehouse finance: Payment was made to hundreds of suppliers of cotton. ITransporters carry the transit insurance while FIRE insurance is only arranged once the cotton is in the warehouse. Again no insurance is feasible before disbursbursement.

13. MOBA Investments: Hotel Construction in Kitwe. Security was the hotel itself. The project was already insured at the time of the financing and as such, insurance was not a pre-disbursement condition. The promoter had already advanced the works with their own resources and DBZ was only funding the fittings which were also orderd under an LC, where payment was due on sight of documents i.e. before the arrival of the goods).

    Its important for the AG’s office to start recruiting ex-bankers for all their bank audit assignments otherwise they will continue doing a shoddy job and always misleading the public.

    Suffice to say that all these business promoters are credible zambian businessmen who have been successful in their other businesses. DBZ did not lose any money other than on ZA.

14. Late 2008 eh?Mwenda is supposed to know. This is 2010 and the dude as MD should have been briefed about the position of the institution within the first month of taking over!

15. i have just read it now, but for moba investments ltd i passed through there on christmas day and the place is more than the k3.8billion. and i think DBZ should advance more funds towards such developers. congratulations to the owners of moba hotel.

Comments are closed.