WITNESS FURTHER EXONERATES YAMBA, MALANJI
WITNESS FURTHER EXONERATES YAMBA, MALANJI
…as Ex Accountant General says contrary to DEC investigations officer’s allegations, procurement of property in Ankara didn’t exceed the budget line
Lusaka… Tuesday February 25, 2025
FORMER Secretary to the Treasury Fredson Yamba was not involved in the procurement process of property in Turkey, a witness has told the Economic and Financial Crimes Court.
Kennedy Musonda who served as Accountant General at the Ministry of Finance until March 2024 said Yamba’s role as Secretary to the Treasury ended when he approved funds disbursement to Controlling Officers.
He also told the court yesterday that contrary to allegations by senior investigations officer at the Drug Enforcement Commission (DEC) Kwaleyela Mukelabai, there was no supplementary budget in the purchase of property in Turkey as the budget line under financial restructuring had adequate resources.
This is in a case in which Yamba and former Foreign Affairs Minister Joseph Malanji are jointly charged with wilful failure to comply with applicable law and procedure relating to procurement of government property in Turkey, and being in possession of property reasonably suspected to be proceeds of crime.
It is alleged that between January 1, 2020, and August 31, 2021, Yamba being Secretary to the Treasury, abrogated the law relating to the management of public funds when he approved the transfer of K154, 201, 197 to the Zambian Mission account for the purchase of a chancery in Turkey.
In cross examination by a state prosecutor in the matter before Lusaka Principal Resident Magistrate Ireen Wishimanga, Musonda said the Secretary to the Treasury is not responsible for procurement procedures as his only duty is to appoint Controlling Officers and approving funds disbursement in the ministries.
“The role of the ST (Secretary to the Treasury) in this and in all funding transactions ends at him funding the respective heads and in this case, his (Yamba’s) role ended when he approved the disbursement of funds to head 21,” Musonda said.
“The moment the funds went to head 21, the controlling officer for head 21 was responsible in accordance with his letter of appointment.”
He said Dr. Emmanuel Mulenga Pamu was the Controlling Officer for head 21.
Asked what role Malanji played in the whole transactions, Musonda responded: “the Foreign Affairs Minister is not involved in the activities of the treasury.”
When asked by one of Yamba’s lawyers, Luckson Mwamba, to react on Mukelabai’s assertions that the funding for procurement of property in Ankara exceeded the budget line for 2020 and that the transactions needed parliamentary approval, Musonda said: “the transaction did not need parliamentary approval. It is like asking the ST to be requesting parliament to disburse funds to the ministries. Cash management is a treasury function on a day today basis, varying funds to needy areas.”
Musonda also said contrary to Mukelabai’s allegations, the budget line under financial restructuring had adequate resources and did not need a supplementary budget.
“There was no need for a supplementary budget. You only ask for a supplementary budget if the budget line is inadequate.”
He added: “The funds were initially disbursed to the Ministry of Foreign Affairs but the Director of Finance at the Ministry of Foreign Affairs reversed the funds which were sited in the Treasury Single Account (TSA) as a suspense and unallocated.”
Musonda explained that the TSA is an account controlled by the Ministry of Finance where all funding to ministries and agencies are funded from, adding that the money sits in this pool account allocated to individual ministries.
Musonda said when he was acting PS, Jonathan Phiri who was acting director for budget briefed him that there were some funds that were unallocated in the TSA which could be channelled towards the purchase of property in Turkey.
“Before the minutes were brought to me, the Director informed me that there were unallocated funds in the TSA, and we had a need for the procurement of properties in Turkey. And based on that, I endorsed my signature. I agreed with the proposal,” Musonda said.
On why there was no details on the procurement of property in Ankara in the budget line under financial restructuring, Musonda said: “the way the budget is done is that you won’t see all the details provided for under a budget line. You will notice that under this same financial restructuring, we have procured vehicles for DEC, Ministry of Home Affairs, Ministry of Health, the Anti-Corruption Commission etc but you will not see those appearing.”
Musonda is a Chartered Accountant and Consultant with 29 years of experience in Public Financial Management.
“I started work in 1995, as Assistant Internal Auditor in the government. I moved on to a number of ministries as senior Internal Auditor in the Ministry of Foreign Affairs, Ministry of Defence, and as Senior Internal Auditor on the Copperbelt,” Musonda narrated.
“I was elevated to the position of Chief Accountant at Ministry of Finance. Then I was moved to the Ministry of Education as Head of Accounts, then Ministry of Sport, and then Ministry of Home Affairs in the same capacity.
“Then I was elevated in 2009 to the position of Accountant General up to 2012 when I retired. I joined Investrust Bank for a few years before resigning. I then took up my consultancy. I worked in Malawi under a framework contract funded by EU, then Sierra Leone, where I did two assignments.
“Locally, I worked as a consultant on a number of projects and with the European Union on a number of projects. In 2019, I was reappointed as Accountant General, a position I held until March 2024.”
