Transparency International Zambia (TI-Z) is astonished by the content of an audio recording making rounds on social media in which the Bank of Zambia (BOZ) governor, Mr. Christopher Mvunga and Mr. Chishimba Kambwili, a private citizen and member of the former ruling Patriotic Front party, allegedly discussed an arrangement for the issuance of a USD$30 million Bond. If authentic, this conversation gives an insight into the scale and complexity of grand corruption that was taking place under the previous government.
TI-Z has analyzed the contents of the audio recording in which Mr. Kambwili allegedly requested BOZ to issue a bond in order for him to collect USD$30 million for unknown use. In this regard, the Zambian people would be the ones to bear the cost of paying back the funds and interest to the investors. The recent statement from Mr. Kambwili to the effect that he was only making an innocent enquiry as to whether or not domestic arrears could be converted into government bonds is inconsistent with the recording and highly illogical. Government issues bonds in order to borrow money or influence money supply and cannot therefore trade a bond for domestic arrears, especially in the current economic situation. We call upon the Bank of Zambia governor to clarify his involvement and whether it is now BOZ policy to use Open Market Operations in liquidating domestic arrears. Beyond this, we also demand an update on whether the governor went ahead to write a complaint letter to the Chief Justice as he indicated, or indeed to inform then President Edgar Lungu as he indicated he would. If these steps were taken, it would be good to inform the Zambian public about the outcomes thereof.
In light of this, TI-Z also calls upon relevant law enforcement agencies to take interest and investigate this matter in order to establish the facts and where necessary, bring any culprits to book. The Zambian people have the right to know whether or not Mr. Kambwili eventually got this bond and whether others also used this facility in the past.
Lastly, we also call upon the new UPND administration to urgently address the corruption risks at both the Bank of Zambia and the Ministry of Finance. Public debt should not be accumulated on the basis of personal favors or political gain. Zambia is currently in a debt trap and it is appalling to note that some of this debt may have been on account of grand corruption.
