FIC Money laundering report shows how Kapyongo, Soko stole millions in firetenders scam

FIC Money laundering report  shows how Kapyongo, Soko stole millions in firetenders scam

The 2017 Financial Intelligence Centre Trends Report, or money laundering report, has just vindicated us by formalising what we have always been reporting on corruption and collusion among ministers, lawyers and private businesses. Readers will recall how we have been exposing the corruption perpetuated by a company called Grandview International owned by lawyer Bokani Soko. We explained this company and minister Steven Kapyongo and others defrauded the country of millions of dollars by supplying extremely fire brigade machines at extremely exorbitant prices.

Now the Financial Intelligence Centre, a government institution has just given detailed insight into this daily light robbery of national recourses. The trends report was launched by PF Attorney General  Likando Kalaluka  on 31st May 2018.

Using information in our possession and this latest Intelligence we shall now analyse how Minister of local government Steven Kampyongo colluded with Bokani Soko of Grandview International and some dubious law firms to defraud the people of Zambia out of hundreds of millions of kwacha through the supply of 42 fire trucks at a cost over 300% higher than the true value of the fire trucks.

HERE IS A STEP BY STEP EXPLANATION OF THE FRAUD WAS COMMITTED AND HOW THE MONEY WAS USED:

1:The ministry of local government issued a tender for the supply of 42 fire trucks, a number of companies submitted bids for the supply of the fire tenders. All of them submitted significantly lower bids than Grandview International, the eventual winner. Grandview, a company owned by Bokani Soko, a personal friend to President Edgar Lungu and Stephen Kampyongo was only incorporated as a company in April 2015, a few months before it won the tender. Before this deal the company was dormant and hadnot done any business or supplied anything on this scale to any government or private institution. The tender was skewed in Grandview’s favour because Grandview was givenspecific tender documentation that was not availed to other bidders, that meant that at the time of bid evaluation, only Grandview met the criteria and was therefore awarded the tender. The tender price was now set at a total of K500 Million ($42 Million). The FIC determined that Grandview lacked the capacity to purchase the fire trucks and relied solely on payments from the Ministry of Local Government to make payments to the supplier of the trucks in Europe.

2:The Ministry of local government transferred K150 Million to an offshore account controlled by Grandview, this K150 Million was immediately transferred to an anonymous company in Europe, suspected to be a conduit that was used to pay the supplier of the fire trucks. This was the only payment made to the European supplier of the trucks which means that this was the true cost of the fire trucks. The balance of the K350 Million was
pure profit or loot for Grandview and those who had colluded with them to defraud the Zambian people.

3: In 2017, after the fire trucks were delivered to the Ministry of Local government, a further payment of K200 Million was made to Grandview International, this time the fundswere paid to Grandview’s bank account in Zambia. This is where it becomes interesting because the whole amount was utilised within Zambia and shared among a number of people like vultures feeding off the dead carcass of an animal.

THIS IS HOW THEY USED K200 MILLION :

1: K17 Million was used to purchase a hotel, presumably Courtyard Hotel on Thabo Mbeki Road, now owned by Bokani Soko.

2: K5.6 Million was transferred to Lusaka Dynamos Football Club owned by Bokani Soko.

3: K350,000 was used to buy a FAW 30 Tonne truck for Andrew Kampyongo, Stephen Kampyongo’s younger brother. The truck was purchased using a Grandview cheque andregistered in the name of Andrew Kampyongo. The truck registration number at RTSA is BAA 6144.

4: K49 Million was used to purchase United States Dollars.

5: K5 Million was transferred to a media broadcast organisation.

6: K52 million was transferred to a shareholder of Grandview, presumably Bokani Soko, this was used to purchase several properties and land.

7: K2 Million was transferred to a car dealer, who transferred these funds to a second unregistered car dealer who then purchased a luxury vehicle for Stephen Kampyongo.

8: K2 Million cash was withdrawn over the counter at the bank, no one knows who the beneficiary of this hard cash was.

9: K19 Million was transferred to a sister company of Grandview.

10: K1.5 Million was transferred to a law firm, this money was immediately withdrawn as cash at the bank, the ultimate beneficiaries of this money remain anonymous.

11: Millions more were used to purchase several motor vehicles for government officials who held strategic positions and were required for the deal to go through.

It is not yet established when Grandview was paid the balance of K150 Million remaining from the K500 Million.

It is worth noting that the ministry of local government insured the fire tenders at ZISC for $250,000 each which was the true cost of the fire tender. Which means that the balance of K350 Million was pure theft of public funds by Grandview and a cabinet minister in collusion with others.

We do this not because we hate anyone but to protect our meagre national resources.

 

 

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