Tough-talking Sata orders probe into deals

Zambia President Michael Sata on Friday ordered investigations into suspected corrupt deals by the previous regime.

Also to be investigated will be the privatisation of a phone company to Libyans and sale of a bank to South Africans.

President Sata, 74, elected to office last week, also barred the export of copper without the central bank’s approval and dissolved the board of the regulatory body – the Energy Regulation Board (ERB) – over corruption allegations.

Addressing a gathering that witnessed the swearing in of his Cabinet and deputy ministers at State House in the capital Lusaka, President Sata directed his Minister of Justice to investigate the controversial sale of 75 per cent of fixed phone line operator — Zamtel — to Libya Africa Investment Portfolio (LAP) for $257 million last year.

“Zambians suffered to build Zamtel so it cannot just be given away for nothing,” President Sata said.

The President also ordered the an inquiry into a deal between the National Pension Scheme Authority (NAPSA) and Zambia National Building Society (ZNBS) worth $98 million for the latter’s expansion projects.

President Sata ordered an investigation into the sale of privately-owned Finance Bank Zambia to South Africa’s FirstRand for $5.4 million.

“We want to see the sale of Finance Bank; was it transparent or was it fraudulent?” said President Sata about the bank sold earlier this month.

The sale of Finance Bank had attracted public outcry and accusations that there was inside trading because the Bank of Zambia had contracted FirstRand to manage the company during troubled times but the South African firm ended up buying it.

Mr Sata had warned during campaigns that he would reverse the sale.

In fuel sector, President Sata appointed his Patriotic Front (PF) party secretary general, Wynter Kabimba – a lawyer, and five others to investigate corruption at the energy regulator.

“We have been buying fuel which has been bought without tender... I have with immediate effect dissolved the Energy Regulation Board. We want to bring transparency.”

He indicated that he would extend investigations to state-run power utility– Zesco, saying there was corruption at the mega firm.

President Sata said he wants the reports on all the investigations within 30 days in line with his campaign promise to initiate development programme within 90 days.

Separately, former president Kenneth Kaunda says he is “greatly touched and honoured” that President Sata renamed the main international airport after him and appealed for the renovation of the facility.

President Sata on Tuesday renamed Lusaka International Airport after Dr Kaunda – Zambia’s first post-independence president – and two other international airports after liberation heroes.

Dr Kaunda, 87, said President Sata had recognised freedom fighters’ contribution to the fight for independence and development of Zambia.

The renaming came as a surprise to me, he said.