Wednesday, October 9, 2024

Government Wins International Case in which it was accused of Corruptly Awarding a Contract to AVIC International

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The Zambia Government has won a case in which Lodestar International, a Company registered in North Carolina, USA, took the Government to court in the United Kingdom, London for corruptly awarding a Police Housing Project to China’s AVIC International and failing to reasonably perform the obligations under the contract initially awarded to Lodestar

Speaking to the media at a press briefing, Home Affairs Minister Hon Stephen Kampyongo disclosed that Lodestar International and Lodestar Zambia sued the government in 2018 on Contractual grounds.

“In 2018 Lodestar International LLC and Lodestar International Zambia Limited sued the Zambian Government in the London court of international arbitration through their Lawyers based in the United States of America, MESSRS COOLEY LLP on a Contract entered into by the parties on 4th September, 2012 for the Construction of Housing Units for the Ministry of Home Affairs, Mainly the Zambia Police Service,” Hon Kampyongo said.

Hon Kampyongo disclosed that Lodestar claimed that Zambia was in breach of contract because it failed or never tried at all to reasonably perform the obligations under the contract and that Zambia corruptly awarded the contract to AVIC international to do the same works lodestar was contracted to perform.

“In the Defense the Zambian Government stared that there was no breach of contract because the conditions precedent to the fulfillment and enforcement of the Contract were not met and therefore there was no compliance with the legal requirements for the enforcement of the contract as required by Zambian law particularly, the Constitution of The Republic of Zambia and the Zambian Public ProcurementAct Number 12 of 2008 among other reasons,” Hon Kampyongo said.

Hon Kampyongo said that the Arbitral Tribunal found that there was insufficient evidence to prove any corruption allegations against Lodestar and against any official in the employment of the Zambian Government.

The tribunal went further to state that based on the evidence presented before it by Lodestar, it could not find any IOTA if the evidence in the subsequent award of the contract to AVIC International for Construction of the Housing Units.

“ Following this Tremendous decision, The Tribunal ordered Lodestar International LLC to pay the Zambian Government Two Million, Seven Hundred Thousand United States Dollars(US$2,700,000.00) in respect of Zambia legal and other costs and in excess of one Hundred and Ninety Seven Thousand United States Dollars(US$197,000) as reimbursable expenses incurred by the Republic of Zambia for the Hearing if the Matter at the London Court of International Arbitration” Hon Kampyongo said.

Zambian Government was represented in the London court by a team of both internal and external lawyers comprised of lawyers from MESSRS DLA Piper of the United Kingdom, the Solicitor General Mr. Abraham Mwansa, SC, Mrs Kaumbi Ndulo Mundia, Principle State Advocate and Mrs Diana Majokwe Shamabobo, Principle State Advocate of the Ministry of Justice in Zambia

16 COMMENTS

  1. Yeh! this is very BAD NEWS for some people i wont mention but they will as usual puke insults here because Zambia has gained some money. Am sure the only source of information for the said company must have come from a well known opposition.

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  2. Any details about this contract? awarding a Police Housing Project to China’s AVIC International . Is this about construction of houses? And where is this construction or hasnt it yet taken place? If so where will this be? How much is it worth? And I see our govt has been awarded nearly 3,000000 dollars.

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  3. We are also waiting for the mukula case where tasila and lubinda sued the environmental investigative journalists for exposing their stealing of mukula together with lungu………..

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  4. The article doesnt say anything about opposition but i wonder why some people’s focus is always on those who try to hold the government accountable. Since when did it become wrong to try and hold GRZ responsible & accountable for its actions? Reminder to PF die hards, GRZ is a office that becomes vacant every 5 years. Dont think you have been permanently employed. A time will come when u will be back in opposition and u will dance to the tune of regret in prisons

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  5. I wonder why PF die hards always talk about opposition even when the article is about something entirely different. Since when has it become wrong for people to try & hold GRZ responsible & accountable for its actions? Be reminded PF, GRZ is a office that becomes vacant every 5 years, Citizens decide with votes who becomes govt. You had your chance, instead of using it to do good, you have showed us your arrogance, allowed criminals to walk free & continued to harass the people that put you there. A time is coming when you will be kicked back to opposition where you will fade away in prison.

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  6. It was good that this case was handled by the international community because if it was handled by the Zambian courts the usual critics of government were going to say the Zambian courts were influenced by the government to reach that verdict.

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  7. I am a UPND die-hard but this time around I am mau-less. Kudos to the lawyers representing GRZ. If this was held in our local courts, I was going to scream corruption. This time, on behalf of Bally, I congratulate GRZ for showing that they did right in awarding the contract to the right company.

  8. And I will say it again, corruption is a tool used by western opposition funders to undermine African leaders. 5 years since the Lungu administration ascended to power, not a single case of corruption has yielded a guilty verdict or conviction. Yet the opposition funded media cries corruption and thieves daily ever since. That’s why Paul Kagame arrests and brutalizes journos and opposition characters, they are an impediment to development. Like the Mwanawasa anti-corruption circus that only targeted particular individuals, the current upnd charged corruption allegations are definitely failed as well. ECL is on track in his fight against corruption and was right to point out that ACC is being used to fight political battles. 2021, ECL nafuti!!!

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  9. The courts have adjudicated. The fewer implications and convictions we have the lower our perceptions of being corrupt. Let’s move on now. There is much to be done.

  10. WHAT ABOUT THE CASE BETWEEN ZAMBIAN GOVT AND VETANDA OF INDIA WHICH AS TAKEN ALMOST A YEAR IN THE ARBITRATION COURT IN SA AND RUMORS AS IT, IT AS BEEN FERERED TO UK.CARDER 1 ANY COMMENT ON THIS PLZ.

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