PF to close Diamond insurance for refusing to donate cash for by-elections

Shareholders of Diamond Insurance were on Tuesday last week were called to State House and told to contribute KR 5,000,000 for bye elections in Mpongwe and Livingstone.

Insiders says the state house ‘meeting’ attended by president Sata’ assistants threatened Diamond officials with dire consequences for not contributing to the PF.

They were told that the PF is aware that Diamond was funding MMD in 2011.

They denied funding MMD in 2011 and expressed their inability to contribute any amount to PF and left State House.

The next day (Wednesday) a call came from the Road Development Agency (RDA) demanding prompt payment of KR14, 000,000. This is the amount that Diamond Insurance had guaranteed to pay to RDA if B Y Mwila’s Company that was awarded contract to tar the road under the MMD did not do the job as allotted.

As soon as RB lost elections RDA squeezed it by not releasing payment towards construction of the road.

‘It failed to perform and now Diamond is being squeezed to pay or face the consequences,’ said a source.

George Chellah, Sata Special Assistant for Press who has so far built two mansions in Lusaka 9in 18 months) phoned and directed RDA to ensure that the money is paid within two weeks failure to which they shall move in and revoke licence of the company for failing to meet its obligations.

Insiders say a scheme has been hatched to close Diamond Insurance in early March.

See the board members of Diamond Insurance here

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