The Zambia State Insurance Corporation Limited (ZSIC) has paid out more than K6, 000, 000 (Six Million Kwacha) to repair two partially damaged fire tenders.
This money is more than enough to acquire 3 new fire tenders from Toyota Zambia or from any other genuine supplier.
The cash has been paid directly to the ministry of Local government. According to documents seen and data from government insiders, the ministry and ZSIC General Insurance agreed to pay cash to the ministry instead of the company that will repair the fire trucks. The Watchdog is reliably informed that this is to enable fraud, for senior officials at the ministry of local government and ZSIC to share the money. An insider has told the Watchdog that the repairs needed to the two fire tenders cannot be more than K500, 000.
As can be seen from the attached documents, repainting one truck will cost K346, 000 while labour will go up to K855, 000, for one truck.
Surprisingly, the total for repairing each truck is slightly above K3 million , as if the trucks were involved n the same accident.
Genuine insurance contracts state that money shall be paid directly to suppliers of spare parts and garages that would have repaired the trucks.
But in Insurance contracts, like this one, which are written with a view of fraud in future have options of paying cash to the insured party.
The Watchdog is informed that 17 more fire trucks are damaged and will soon need to be repaired at same amounts.