Secretary to cabinet Fredson Yamba claims that the Sovereign Guarantee of US$500 million which president Lungu gave his friend Nathan Mosho operating as Stag African Investments Limited has been cancelled.
Yamba claims that Mosho did not give the money to Zesco.
‘The Ministry of Finance facilitated the issuance of the Sovereign Guarantee accordingly. The Guarantee was issued in line with the Loans and Guarantees (Authorisation) Act, Chapter 366 of the Laws of Zambia.
The Sovereign Guarantee was signed on 9th September 2016 by His Excellency the President of the Republic of Zambia exercising the functions of the Minister of Finance pursuant to Article 91 of the Constitution of Zambia (as amended by Act No. 2 of 2016), as read together
with Section 4 of the Statutory Functions Act, Chapter 4 of the Laws of Zambia, due to the critical need for electricity power imports. It should be noted that this happened before the
President appointed his Cabinet.
Since the issuance of the Sovereign Guarantee, all the conditions were fully met by Zesco but no disbursements were made by Stag African Investments Limited over a prolonged period and consequently, the Ministry of Finance made recourse to other financing options in support of Zesco’s need for the critical electricity power imports.
‘In view of these developments, on 24th April 2018, the Minister of Finance, Hon. Margaret Mwanakatwe, MP recalled and cancelled the Sovereign Guarantee issued in favour of Stag African Investments Limited.’