Zambeef extorts $18m from Zambian govt using non-productive liability

Zambeef extorts $18m from Zambian govt using non-productive liability

Veteran crook Lawrence Sikutwa strikes again

Dictator Edgar Lungu, Jacob Mwanza, veteran crook Lawrence Sikutwa and other minions are in the process of stealing USD16 million from taxpayers to save ZAMBEEF’ from losing millions of US dollars it poured into an ill-conceived, nonproductive project to produce palm oil. In 2009, Zambeef created Zampalm Ltd to produce palm oil and invested more than $20 million.

But after realizing that producing palm oil in Zambia is a non starter or can only be done at huge costs with no profit, Zambeef has conspired with the PF regime to pass on this loss to the Zambia tax payers.

This is how they have done it:

Zambeef has disposed of 90% of its shareholding in Zampalm Ltd, a producer of palm oil, to the Industrial Development Corporation of Zambia Ltd, an investment company wholly-owned by the Zambian government. Zambeef will retain the insignificant remaining 10% stake.

Zambeef has sold the shareholding for USD16 million, cash once the deal is signed but will receive an additional USD2 million between 2018 and 2020. Note the timing; Just before the presidential elections.

Remember that the Industrial Development Corporation is wholly owned by the Zambian government. It was incorporated in early 2014.

Its sole shareholder, to which it distributes dividends, is the Minister of Finance. Edgar Lungu chairs all board meetings and has the power to appoint, reappoint, or remove Board members.

The Board is accountable to the President. The Board comprises [3] Cabinet Ministers of Finance, Commerce Trade and Industry, and Agriculture; [2] civil servants, the Secretary to the Treasury and Permanent Secretary for Commerce Trade and Industry; [7] private sector members and [3] Executive Directors of the IDC as ex-officio members.

Remember also that the same IDC and Madison a few months ago took over Intermarket Banking Corporation. Lawrence Sikutwa, the owner of Madison is a board member of Zambeef. Margaret Chalwe Mudenda is a board director of both Zambeef and Madison.

The Zambian climate is not conducive fro growing palm oil so what the Zambian people have paid for through Lungu’s IDC is a liability that will be closed by 2018. But Zambeef has regained the money it wasted in this project. Lungu and other politicians have received their kickbacks.

 

Below are some comments by Zambians on this latest crime by Lungu and his colleagues:

IDC has no capacity to run Zampalm and Zambeef is selling because they have realized that it was a bad investment decision for them and CDC the new shareholders want out. It is interesting to note that Dr Lawrence Sikutwa who sits on Zambeef Board also sits on IDC Board and is behind the transaction just as he was the lead man in the IDC-Intermarket Bank transaction together with Robinson Zulu. Experts have advised Zambeef that Zambia is not favourable to growing of Palm which can yield profitable returns hence their decision to sell. The is definitely a state capture that is underway through IDC with the likes of Lawrence Sikutwa and Robinson Zulu and Mutati as the lead players. Government has to explain this corrupt deal!

 

 

 

I am equally bemused by this deal…back in 2015 ZAMBEEF invested over $20million for a project they launched in 2009 fast forward 2017 they offload it for $16 million….this is too risky for taxpayers funds.

 

 

This transaction needs to be investigated by the ACC as it smells of corruption there is too many related parties. First Lawrence Sikutwa sits on IDC and Zambeef Board, then Robinson Zulu and Jacob Mwanza sit on Investrust Board, then Mateyo Kaluba IDC CEO is Felix Mutati’s right hand man since Mutati’s days as Minister of Commerce. How did IDC agree to buy 90% of a company for which they have no expertise? Who is going to manage Zampalm until it starts production and where is IDC getting the US$16 million to finance Zampalm when they have failed to revamp the Zamtels, NCZ, Times of Zambia, Daily Mail, Mulungushi Textiles and many others. This transaction is corrupt and the people of Zambia deserve answers from Mutati and IDC CEO!!!

 

 

Share this post