GOVERNMENT revenue amounting to K12 billion has been kept in an account at a private commercial bank in Lusaka since January, contrary to regulations that such should be immediately transferred to the central bank.
Times investigations reveal that this money is tax revenue collected by the Zambia Revenue Authority (ZRA).
The money has been lying idle for the last 11 months in the said account referred to as ESCROW account.
It has also been revealed that the K4 billion payment in a transaction President Michael Sata intervened and stopped midway, was to be made from the ESCROW account.
It is not yet established how many other transactions have taken place in the said account.
The President disclosed at a swearing-in ceremony in October this year that there was a “scam” in which ZRA was about to pay K4 billion to a “fake” clearing firm operating scanners at the northern border town of Nakonde in Northern Province.
Mr Sata immediately instructed the Zambia Police Service and the Ministry of Finance and National Planning to block the payment and investigate any other transactions that could have been made from State coffers to pay the firm.
The president noted that the scanners at the border post belonged to the Zambian people through the ZRA.
“This morning, ZRA was supposed to pay K4 billion to a front of somebody who was in my office but the scanners which are at Nakonde belong to the Government of the Republic of Zambia through ZRA,” Mr Sata said when he made the disclosure in November.
Documentation has also revealed that the same local commercial bank is holding US$1 million belonging to Mpundu Trust Limited, whose source is unknown.
The Times has learnt that the named local commercial bank received instructions from a Cabinet minister in the previous regime to open this account.
The Drug Enforcement Commission (DEC) has since opened investigations into the matter.
President Sata recently instructed law enforcement agencies to investigate how a private bank account belonging to Mpundu Trust Limited, got to hold a colossal sum of $1 million.
The president gave the directive in the wake of revelations that Mpundu Trust had unexplained funds in one of the commercial banks in the country.
On the basis of the colossal amounts involved, the president felt that it would only be fair and prudent for the DEC in liaison with other law enforcement agencies to professionally and systematically investigate the matter.
Recent media reports revealed that Mpundu Trust was linked to former president, Rupiah Banda.
[Times of Zambia]
Useless vindictiveness by ci Sata why is he fooling everybody isn’t the same guy who banked mezarf flats fund into his private account at stantchart . Only fools will take This PF tribal government serious
WE CINANGWA WE WHO TOLD YOU TO VOTE FOR HIM ….STUUUUPIT IDIOOOOT
you are an I.D.O.I.T why attack the President when he is just doing Zambia good foolish
fu.ck you octopus
No commwent. Sata please act now
Go get them Cobra
If you are Bwalya then your PF. Hey mufwaya muleliya pali na zi. Tepapo nomba
Job well done here. I hope that found money doesn’t grow legs again and work into another private pocket
Nizanga Ndalama izo from all my workshops, seminars, travelling allowances, sitting allowances, out of station allowances, hardship allowances etc
things are coming up. PF is realy working but some people cant see all these things they are busy criticizing the government that they are doing nothing. GO PF GO.
Octopus Paul Bwalya ulicipuba kwena!
PF cadre twalimishiba m****** muli bansele
Sata, pleas conclude these investigations fast, 90 days has alraedy expire. Start talking about other developmental issues.
THERE IS NOTHING TO SHOW THAT PF GOVERNMENT IS WORKING. WE HAVE COME TO THE END OF 90days in power but nothing tangible is seen.
Pa first I used to think Chi Sata speaks to early kanshi ninshi cili na data and he is just giving us tips of Ice bergs, things are not looking too good and as a person who faithfully pays my Taxes I feel like I can strangle these plunderers ine ndelya umulembwe na bondwe becoz naba mputwila Tax elo fyena file angasha money like so!!
I wish Jesus would come back today
Psi psi psi psi yazanda
I CAN SEE NOW THAT BLOGGERS INSULT NOT BECAUSE THEY WANT TO…ITS BECAUSE IT PAINS TO SEE THE MASSES SUFFER AT THE EXPENSE OF A FEW INDIVIDUALS..PLEASE…CAGE THESE PEOPLE…
Thumbs up Mr President!
Honestly, this has nothing to do with Sata so he does not deserve to be insulted, Octopus Paul Bwalya, grow up and look at facts.
@Analyst- I agree, there is no way an organisation that enforces best practice on others must act inappropriately. I think whoever the related party is, such a one must be jailed, probing is pointless, res ipta loquita, the facts speak for themselves. There is no excuse for this one!
Considering the account name is ‘escrow’ which is a technical legal and account title, it is quite possible that there is a lawful reason for the existence of this account. I think further investigations are needed before an assumption of mal-intent is made, I think the problem here is that in any thing that the PF government doesn’t seem to understand there is the assumption of corruption e.g. fake money which turned out to not be fake. So in like manner we do not know what purpose the escrow account was for. Things held in escrow are usually held in trust for a third party- in this case since payments were being made from such an account for government business (e.g. paying scanner company) the relationship between the account, ZRA and the third party (if there is one at all)…
:(( awe katwishi as a tax payer am grieved
needs to be established. Once again it would have been far better for the President to wait until the investigations are well near completion before issuing a statement. It is in this manner that he is behaving as he did in the opposition, he has some information and immediately acts on it for political gain. NO. As the head of state he needs to be more cautious and realise that his rhetoric and actions have a direct impact on the mood of the country and on investor confidence.
The fight on corruption is applaudable, but the way he is going about it is simply creation a police state in which he is commissioner of commissioners. What is needed are better systems and mechanisms of detecting and stopping corruption as it takes place.
People that are busy trying to measure the performance of PF by the 90day yard stick are not being reallistic. How do u expect PF to undo the 20 year ills (more so the last three yrs), and do other important developmentals in this short time? Start looking beyong the 90 day slogan.
No they are simply keeping the politicians to their word- the problem is not that they are holding the politicians to their campaign promises. It is that the politicians promised fantasies without any basis in what can actually be achieved and the masses believed the lies.
That is the problem.
We knew/know they couldn’t do it. But they are in power and in control now, they can undo, do, and re-do anything in any length of time given political will.
At this stage, it is hoped that they have a road map, a plan on how they will take the country forward. At this point they should already have a 6 month, 1 year, 5 year, 10 year plan (I hope!).
This plan is what they need to be communicating to us at this point, and in my book would have counted as a success within 90 days.
Corruption and embezzlement allegations have always been there from the days of Kaunda. We need to develop inspire of that – it cannot per-occupy us to the point of being stagnant, and at times moving backwards.
@chi Octopus – You creature with more than four legs… stop your tribal accusations and grow up.
Like I have mentiond the gov should establish the relationship between ZRA the Escrow account and it’s relationship to the Government.
Also there is a need to establish how the scanners company is fake. A clearer picture is needed before we all jump to immediate conclusions on little information.
It is all good to work on such case but also tell us what this money will be used for as it is not budgeted for? I will be happy if the $1m was to be used to build low cost houses say for teachers in Lusaka. Then we can see where this money is going, otherwise it is the same old story of the same money being taken over by PF officials as they do have a history of doing such things as part of the perious govt under Chiluba.
K12Billion IS THE PRINCIPAL AMOUNT. WHAT ABOUT INTEREST EARNED ON IT? WHO HAS BEEN “Chewing Interest” FOR 12 MONTHS? PLEASE INVESTIGATE FURTHER. THIS WHOLE THING STINKS!!
ZRA has a Treasury department whose job is to monitor and reconcile Tax revenue funds to ensure they get to Bank of Zambia. If 12 billion were missing, they would easily pick this up. So this was an official arrangement. It is best to know the facts on this before commenting. The Govt usually makes huge deposits with Banks to help them with liquidity. Could be this bank was in trouble and could have collapsed without this Govt aid.
PLEASE ALSO INVESTIGATE WILLIAM BANDA’S INVOLVEMENT IN ILLEGAL LAND ALLOCATIONS IN KAFUE. THE ENTIRE COUNCIL STAFF MUST BE FIRED. THEY HAVE BEEN INVOLVED IN ILLEGAL LAND ALLOCATIONS AND FRAUDULENT LAND SALES……. SHAME.
Sata also banked mezarf flats fund into his private account at stantchart, let him also be investigated.
OCTOPUS PAUL BWALYA WECINANGWA WE NANI WAKWEBELE ATI UVOTELE RB….STUUUUPIIIT IIIIDIOOOT
Steven you are right I wonder why many people w
Ant to paint Sata as an angel when this thug must be cited for genocide he manipulated people during the third term and chawama a matcheted hacking
@Thoughts- ZRA is not the CIA. Ask ZRA’s auditors. Such a bank account is nowhere in the records. Now, if you cannot disclose such a matter to your auditors, there is something fishy. Moreover, this seems to be a personal account because K12bn is not a very large sum to ZRA’s standards.
HHHhhhha ha ha ha . No action, except hullabaloo press statements. Who owns the scanners found at the boarders? Surely by now you know that person and would have appeared in courts.HHHhhahaha Uko. Who is that former cabinet minister? Just take him/her to task why that “scam”account was opened and inform the nation with solid facts. Not rumours, Kachepa when its your relations invoved you grow cold feet, cowering down evidently impotent to act. Hypocrisy at best.
Alabi and dollar were using this account to pay for their personal issues
Ifipumbu fya bantu like octopus whatever they call this tribalist. We voted 4 PF not basing on 90 days dev promise.Just like 1 blogger rightly put it. Its not possible 4 20yrs damage to remedied within 90days. Zonda uleme We are Ruling ifwe ba PF!
can we also investigate the account that was opened for people to donate money to Chiluba and Mwanawasa funerals and how this money was spent. I hope alabi and dollar did not dip there dirty hands into these accounts also
Ya, ya, ya,ya. To much money went. Who are the parties to the ESCROW account?
What does ESCROW stand for and who are the signatories to this account? What are the sources of the money in this account? Does’nt ZRA have its own bank account where revenue should be kept? Can we also have an institution called FIB (Financial Intelligence Board) that can ably deal with such matters instead of DEC – looks like a misplaced mandate to me!
@ OCTOPOUS. IS THIS CALLED OCTOPOUS NORMAL WANTS TO BRING TRIBAL ISSUES ON EVERYTHING.MIND U SATA HAS 4 PLUS MORE YEARS TO GO, U WILL DIE OF HEART ATTACK WITH A HARD ONE FOOOL. GET A LIFE
We had a ‘Financial Intelligence’ body named SITET in time of Kaunda. Chiluba got rid of it to facilitate stealing just as Rupia Bwezani Bamba got rid of the Abuse of Office Clause. Guys, Rupia and Chiluba STOLE BIG TIME! Kafupi is gone to meet his maker – I hope and pray that he is in hell – and we Zambians lost our money. Rupia is arround. Let’s squeeze his UGEN or is it NTWANIKANI until he pays back what he has stolen before he kicks the bucket too.
@Mark #37. My prayer is Ka Kafupi belekatoba amapi kuli LPM. Kaili ma neighbours. I hope this Bwezani pays back what he stole.
No wonder he is scared.
They are the idio-t.s busy talking about 90 days knowing very well that they stole.
Where is Capitalist on this. He used to analyse these issues perfectly.
What else is new!
It seems PF cadres are quick to jump to conclusions with little facts. Explains why they were cheated on the 90 days. Very shallow!
Rupiah Banda’s immunity must be removed so that he can help provide answers to these scandals that clearly show that he was the master-mind. The on-going investigations will yield nothing as long as this man remains free.
Ba PF get serious with work not this rubbish witch hunt get real people want food and development and ooh money in the pocket not this street vending rubbish any way Ni mwebo bakaponya so it’s just fair u do what u know best the street in Lusaka are dirt because of Sata development plan. We know the 90 days stupidy something something was just a hoax or a fluke to get get power mind u PF was not voted in as a basis of quality people were just fed up of MMD not that Sata was the best candidate no no. Get this in your heads fools
Sata should thank his stars.He is on record that he banked the entire funding for the Mimistry of Local Government in his private Account at Stanchart Main Branch Cairo Road when he was Minister of Local Government.He was not savagely investigated as he is doing to other people.Up to now,the colossal interest he chewed from this scam has not be repaid to the Treasury.
Ouch! That hurt Octo fimofimo.
Try finding a girl friend!
……I’m sure more jobs are coming soon. We need a clean Zambia first.
I hate plunder and I’m with HE MCS on this one.
Guys please find below the meaning of Escrow: Something of value, such as a deed, stock, money, or written instrument, that is put into the custody of a third person by its owner, a grantor, an obligor, or a promisor, to be retained until the occurrence of a contingency or performance of a condition. So before tamulaisebanya ba Lusaka Times please google certain stuff
@Octopus Paul Bwalya- You are clearly disgruntled and you are a symbol of hate and anguish. Street vending should be allowed. It is the responsibility of corporations to move their premises to areas away from Cairo road so that Cairo can become a market place.
Am sorry to tell you but Zambians voted for Sata and most like him. As for your party, MMD, even to reach the 900,000 votes they had, they practiced very questionable antics.
90 days have passed and one thing we know is that at least, unlike the MMD and Banda, we have a government that is ready to listen and is trying.
PF you can obviously do better than that. GO! GO!
It is only thieves who hate this govt, as for us we want all thieves to be brought to book , as for you plunderers these five good years will be very long for you, how ever we will add another term for this president
BASHIKULU SATA, we voted and funded your campaign that we have never asked back because we believed in you.
PLEASE slow down and let the investigation wings do their job. Recently you have fired a number of blank bullets
Fili eko tuleya. Maybe it would also be time to tell the nation why Finance Bank has branches in all the border posts and how long they take before they remit the customs money to the Central Bank and what the law stipulates. I would love to hear the full story of this account. I pray this time around it will be something tangible unlike the previous embarassments. For once cant someone be nabbed please.
Balopoleni mwandini.Bamukukulu.
@octopus whoever you are,grow up and be real your so called mmd turned our country into a free for all.20 years of damage can not be turned around in 90 days.shit! what kind of planet are you from you haters?Get real and get it into your thick head that SATA is in charge and if you dont like it,you are free to go to hell,the devil ll be waiting for your black ass.
Firstly it’s not a private account but a the authority account at a private commercial bank. Secondly the money is not tax revenue but ZRA’s annual allocation from govt. Tax revenue goes straight to BOZ. ZRA has no access to it. Thirdly it’s an operations account created out of the over 200bn ZRA budgetary allocation. All operations related expenses are drawn from this account at access bank. Half baked journalist.
Its not wise to get someone clearing suffering from retirement to State House. Clearly it was a matter of “lomba vaoneka nikudyelapo I should never suffer like that again. Ise tinaona chabe lelo a Pulezidenti ali ku Brazil Zulo anali ku China Mailo azaenda ku Middle East. It was trip after trip after trip after per diem after per diem after per diem after gold after flats in Malawi after Hotels in Tanzania after ……………….everything!
There is money in Zambia! Daily billions…all in the wrong places.
With a new administration in power and in control now, they can undo, do, and re-do anything in any length of time given political will.
Measures need to be put in place to make sure this sort of thing is still not going on.
Corruption and embezzlement allegations have always been there from the days of Kaunda. We need to develop inspire of that – it cannot per-occupy us to the point of being stagnant, and at times moving backwards.
Sole William I meant to say Its not wise to get someone clearly suffering
#49 ufyile walisambilila ukunya(sana)! Usually there is more that one party to that arrangement. The bank being the custodian (where the ESCROW account is held), the owner of the instrument and in most cases a third person or institution who has an interest in the item until that occurrence crystalyses. Tefyo mwana BANKER? Walinwa inki mune kwene!
Octopus u ar vry stupid and retrogressive,stop insulting sata and stop yo stupid sentiments bordering on tribe. I knw dat u ar recoverin frm da lamentable and shameful defeat u suffered at da hands of pf. Can u plz grow and stop dis yo stupidity.zambians votd 4 sata coz he was da best otherwise they wud hav gon 4 HH or da others.Dont b ignorant my friend.
Sata same old politics – breaking news every day till his term is over even Chiluba was better. Crap every day and all you lots do is insult each other on this blog.what jobs do you do?
Work hard guys where we are going with this crap of a Govt,only Jesus knows when we shall be saved yet again.
Yes friends, Those of you who are measuring PF performance in 90 days are not realistic and don’t know what you are up to. We voted in the PF for 5 years and not 90 days. Their performance will be measured in years and not in days. A person in his right senses can give credit to PF government for what they are doing now. PF please, sweep and mop and make Zambia standout in Africa as a country ruled by law. Cage all the Thieves and bring sanity to the country. Viva PF
Big mpuno must be arrested
Every five years mop up when onather party comes to power.
ZRA have been at it for years. The Indian business community in Zambia can tell you how staff from ZRA ventured door to door collecting money from Indian shop owners under the influence of greedy Zambians making Indian communities suffer. ZRA are corrupt and they are very unprofessional. They target groups of businesses and refuse to register that these businesses are the ONLY ones keeping Zambia going. Zambian businessmen DO NOT pay tax…!
Thanks for the great article..