Plot No. 4080
C/O P.O.Box 33066
20th December 2011
The Honourable The Chief Justice
The Supreme Court of Zambia
Supreme Court Building
RE: COMPLAINT AGAINST HON. GEORGE KUNDA, MEMBER OF
PARLIAMENT AND FORMER MINISTER OF JUSTICE AND
ATTORNEY GENERAL AND CONSEQUENTIAL APPOINTMENT OF
TRIBUNAL TO INVESTIGATE HIM
My name is Dennis Mumba, I am a Zambian Citizen and I reside at Plot number 4080 Tanzania Road, North rise, Ndola.
2 I was Chief Executive of Zambia National Oil Company (ZNOC) Limited at the time the company was purportedly put in Receivership by Zambia National Commercial Bank (ZNCB) which was later followed by a purported voluntary liquidation that allegedly transformed itself into creditors’ liquidation. See Appendix 1 – 6
3 As Chief Executive, I was responsible for the affairs of ZNOC, a multibillion dollar oil company business and I owe a fiduciary duty to the people of Zambia who are the ultimate beneficiaries of ZNOC.
4 In discharging my fiduciary duties to the people of Zambia in respect of ZNOC, I wish to lodge in a complaint under Section 13 (3) of the parliamentary and ministerial code of conduct Act, Chapter 16 of the Laws of Zambia against Hon. George Kunda, when he served as Minister of Justice and Attorney General, that the said Hon. George Kunda breached part 11 of the Parliamentary and Ministerial Code of Conduct, Chapter 16 of the Laws of Zambia, for the role he played in the so – called ZNOC Liquidation, which resulted in fraud on ZNOC and the Zambian Government.
5 Section 13 (1) of Chapter 16 of the Laws of Zambia, under which I make this Complaint, states:
“13(1) An allegation that a Member has breached Part 11 may be made to the Chief Justice by any person, in writing giving particulars of the breaches or breaches alleged, signed by the complainant and giving the complainant’s name and address”
6 My Complaint is based on the fact that Hon. George Kunda had breached section 4 (d) of the Parliamentary and Ministerial Code of Conduct, which states:
”4(d) A Member shall be considered to have breached the code of conduct if he knowingly acquires any significant pecuniary advantage, or assists in the acquisition of pecuniary advantage by another person, by- (a)…..
(C )………………(d) directly or indirectly converting Government property for personal or any other unauthorized use”
7 As Minister of Justice and Attorney General,Honorable George Kunda must have given legal opinion to the government when:
i. On 27th February 2002, Minister of Energy and Water Development Mr. Kaunda Lemba Lemba purported to dissolve ZNOC board, a day before commencement of trial in cause number 2001/HP/0073 in which the ZNOC Board of Directors had challenged ZNCB appointment of a Receiver of ZNOC. See Appendix 7.
ii. On 4th April 2002, Then Minister of Finance and Economic Planning, Mr. Emmanuel G. Kasonde and the then Secretary to the Treasury Mr. Boniface Nonde purported to pass members special resolution to put ZNOC in voluntary liquidation. See Appendices 8 to 13. In actual fact ZNOC members or shareholders were Mr. Brian Musonda a Liquidator of ZIMCO and Professor Ben Mweene. See Appendices 16 – 18
iii. On 27th June 2002, Miss Josephine Mapoma, then Permanent Secretary in the Ministry of Energy and Water Development, made a statutory declaration as a Director / officer under section 289 of companies Act, that the ZNOC deficit was 838.645 billion. See Appendix 14
iv. On 4th April 2002, Mr. Bornface Nonde, then Secretary to the Treasury wrote a letter to Mr. George Sokota advising him on his appointment as ZNOC liquidator, and indicated in the same letter that Ndola Terminal (all the tanks) and the Dead stock in the pipeline were not part of Zambia National Oil Company property. See Appendix 19
v. On 5th April 2002, Miss Josephine Mapoma, then Permanent Secretary in the Ministry of Energy and Water Development wrote a letter instructing the ZNOC liquidator to transfer management of ZNOC Fuel Terminal to Indeni Petroleum Refinery. See Appendix 20
vi. On 8th November 2002, then Minister of Finance Mr. Emmanuel Kasonde signed a letter of intent and Technical Memorandum of Understanding and addressed it to the Managing Director of the International Monetary Fund (IMF). See Appendix 21
vii. The then Minister of Finance Mr. Emmanuel Kasonde told parliament that Government took over Zambia National Commercial Bank’s (ZNCB) $51.5 million debt owed by ZNOC to enable the bank to operate efficiently. See Appendix 22
viii. When the Zambian government issued a K250 billion bond in favour of ZNCB on behalf of ZNOC. See Appendix 21, clause 22
ix. The government transferred ZNOC Oil business and profits to third parties starting with Total Outré’ mer at Indeni Refinery, Trans Sahara Trading Company (TST) among others. See Appendix 23 and Appendix 24
8 As result of the above actions by government leaders and civil servants, institutional arrangements that ensured efficient and cost effective delivery of petroleum products in Zambia were deliberately compromised so that there was no transparency, accountability and control of how oil is procured, transported, refined and marketed in Zambia, with the resultant effect being massive losses reported by all entities that were used to procure oil, after ZNOC demise, which losses have all been absorbed by the Zambian government.
9 As if what is stated above is not enough, there has been a claim of US$ 65 million on the Zambian government by Absa Bank in respect of a Zambian Government guarantee that was issue to Absa on behalf of TST, when TST was importation oil to Zambia.
10 The above losses would not have been absorbed by the Zambian government and neither would have the US $ 65 million claim by ABSA been made on the Zambian government if the ZNOC was not illegally liquidated with the full knowledge of Mr. George Kunda as Minister of Justice and Attorney General
11 As Attorney General, Hon. Mr. George Kunda, was joined as a second defendant in course number 2002/HP/0419 when I challenged the ZNOC liquidation against the ZNOC voluntary liquidator and the Attorney General and all the documents that I submitted to court were served on Mr. George Kunda as Attorney General. See Appendix 25 -29
12 Hon. George Kunda wastherefore aware of all the irregularities’ surrounding the ZNOC liquidation, through which liquidation scheme and sham resulted not only fraud on ZNOC and also on Zambian Government through absorption of massive fictitious losses incurred by entities that illegally took over ZNOC oil business, claims by ABSA on Zambian government of over $ 65 million and the illegal issuance of K250 billion by the Zambian government to ZNCB on behalf of ZNOC, all of which resulted because Hon. George Kunda as Attorney General knowingly assisted in the acquisition of pecuniary advantage by other persons, thereby directly or indirectly converted Government property for personal or any other unauthorized use, as prohibited by Section 4 (d) of the Parliamentary and Ministerial code of Conduct, quoted above.
I pray that as The Honourable The Chief Justice of the Republic of Zambia, you will appoint a Tribunal in accordance with section 13(3) and 14 of the Parliamentary and Ministerial Code of Conduct, Chapter 16 of the Laws of Zambia.
Contact: Margaret Mumba