By Daily Star Reporter
Assistant Director in the Ministry of Finance has told Court that all the procedures were followed during the variation of K108.4 million regarding the matter involving former Foreign Affairs Minister Joe Malanji and former Secretary to the Treasury Fredson Yamba.
In this case, the two are charged with willful failure to comply with procedure relating to procurement, and being in possession of property reasonably suspected to be proceeds of crime.
Yamba is accused of having failed to follow procedure relating to the buying of an estate in Turkey while Malanji is accused of being in possession of properties and assets suspected to be proceeds of crime.
When the matter came up for continuation trial before Magistrate Irene Wishimanga who is sitting under the Economic and Financial Crimes Court, Percy Musonda said there was nothing wrong with varying funds from the Ministry of Foreign Affairs to the Ministry of Finance.
“Between September to October 2020, we had made a provision to release overseas allowance. We did have historical areas of the money we owed as the ministry of finance in 2019 and in 2020, we (the ministry of finance) had started liquidating those areas. For the month of September, we had planned to liquidate the remaining balance in the month of September which as a ministry we did undertake,” he narrated.
“I was privileged to be in the office of the secretary to the Treasury Mr Fredson Yamba in which I was informed and thereby instructed that there was need for finances purchase a property in Turkey…”
He added that “given our cash position at a time as a country, the only available recourse was to do a variation of funds of K108.4 million. Thereafter, I instructed an officer by the name of Mr Wezi Chishala to formalise the transaction and have it documented that the ministry of finance was going to seek approval from the office of the secretary to the treasury for what we call the variation of funds from the ministry of foreign affairs to loans and… for the procurement of the….”
During cross examination, the witness admitted to have lied about receiving instructions from Yamba.
When asked why he was in court, the witness said “my understanding is that acquisition of property …certain procedures were not followed …”
Another witnesses who testified yesterday, an economist from the Bank of Zambia who at the time the matter in question occurred work at the Ministry of Finance also indicated that all the necessary procedures were followed in the matter.
“I was a desk officer in charge of the ministry of housing and infrastructure, transport and communications and Northern Province…There was an officer Patrick Hara I charge of the ministry of finance. He had exams. I was called by my boss who was the assistant director…. Percy Musonda…I was told that there were some funds funded by the Ministry of Foreign Affairs for oversees allowances…I needed to generate a memo seeking for approval to vary funds from the Secretary to the Treasury. The holder of the office was Mr Fred Yamba…,” said Webby Chishala.
“It was a verbal communication… I went on and generated three memos as per procedure. One was addressed to Jonathan Phiri. That memo was signed by me to him. I needed to write the memo to the secretary treasure under the signature of the acting director to the Secretary to the Treasury…I needed to generate another memo under the seal of the budget and economic affairs PS.”
Trial in the matter continues today.