THE ROMANIAN DEBT. TOTAL DEBT OUTSTANDING US$ 2.4 MILLION AS AT 31ST DECEMBER 1998.
The Romanina debt was incurred under the UNIP era for the supply of Arrow Vehicles and IFA Trucks for the Police and Defence forces.
In the course of time the UNIP government found itself in a debt trap and unable to service the debt which remained outstanding until MMD took over in 1991.
Immediately upon take over MMD embarked on a robust Debt Management Program and Engaged Donors world bank and the IMF to dismantle Zambia crippling debt which stood at a staggering 7.1Billion dollars at end of December 1991.
One of the schemes that MMD and the IMF came up with was a DEBT BUYBACK OPERATION to dismantle ALL NON PARIS DEBT AND PRIVATE DEBT. A settlement of 10cents in a dollar was agreed as a fair price for the debts as most of the debts were considered worthless and did not amount to the book value.
Warberg was appointed to carry out operation and liquidated the debts with funding provided by the donors.
One such debt was the Romanian debt which was to be addressed in this manner which stood at US$2.4MILLION as at 31st December 1998. but due to the situation in Romania before removal of Nicola Chessesiko the debt was not addressed under the buyback operation. The new government that came in power after chessesiko was very eager to accept the payment of 10cents in a dollar and such a meeting was arranged at which it was agreed with ministry of finance staff that the payment of US$240,000 was to be paid as FULL SETTLEMENT of the debt.
However there were some people who had come up with a plan to swindle the Zambian government out of millions of dollars by PURPOTING that the Romanian government had refused the payment of US$240,000.
The master minder was Fisho Mwale who used his brother in Law Ricahard Chizyuka who was a Deputy Director in the Loans and Investment Department. In collarboration with Stella Chibanda and friends at OP this scenario was presented to the Minister of Finance as the position with Romaninan government. The officer who agreed with the Officials from the Ministry of Finance in Bucharisrt in Romania was BOOTED out of the Ministry.
This is how the ministry of finance was swindled out of millions.
The same money was used by Fisho Mwale to set up His FISH COMPANY! As an investment.