16:30 04.07.2008 | All news from "Top Legal News"
Zambia: State Intelligence Used AFS for Property Purchases, Faustin Kabwe Tells Court
He said in all the transactions, AFS acted on behalf of the ZSIS as directed by Mr Chungu who was then at the helm of the intelligence service.
Kabwe was testifying in the case in which he is jointly charged with former president Fredrick Chiluba and AFS director, Aaron Chungu, for allegedly stealing money from the Zamtrop intelligence account.
On property on Cheetah Road in Kabulonga, he said it was used by ZSIS soon after being bought, but he did not know why the Law Development Commission was currently occupying it.
Kabwe said when buying the property, he dealt with Mr Chungu and two other officers and that money was paid to Messrs Chilupe and Company.
He said US$65,000 was initially paid followed by more than US$70,000 and US$3,000.
He said ZSIS engaged AFS to expand Mulungushi Service Club and K1 billion was paid to Sinetec, the company contracted to do the work, while US$13,900 was paid to a South African company - Spectrum Limited - for the supply of furniture to the club.
The same company was paid US$13,800 and later US$25,966 while another South African company, Gabmans, was paid US$8,000.
Kabwe said AFS bought a guesthouse in Kalundu from Finance Bank Zambia and looked after it until the intelligence service took over and transferred ownership to Insurance Properties, a special purpose company.
The company was also directed to buy Poly Packers which has now changed to DGH Poly Products.
It also provided an K800 million lease financing that was a business agreement separate from that of the ZSIS.
Motor City in Lusaka was also bought at K1 billion while AFS also paid for Plot 35 on Lilayi Road although at that stage it dealt with a Mr J. Lungu who was an assistant to Mr Chungu.Kabwe added that on Plot 33 on Lilayi Road, which has now been turned into a senior police officers' mess, the involvement of AFS ended at buying the property and ZSIS dealt with the transfer formalities.
Defence continues today.
http://allafrica.com/