MMD IMPLICATED IN OPEN LOOTING OF PUBLIC RESOURCES

The embattled former ruling party, MMD allegedly externalised billions of kwachas to foreign companies.

This is amid current investigations into alleged embezzlement of public funds by some members of the MMD.

Lusaka businessman, Rajan Mahtani has alleged that the MMD externalised 50 billion kwacha through Finance Bank Zambia at the time the financial institution was shut down.

The Rupiah Banda regime, through the Bank of Zambia, had taken possession of Finance Bank on reasons of the institution’s alleged breach of the financial sector regulatory framework.

Speaking in the capital, Lusaka, Dr Mahtani has stated that the money was externalised to some named South Africa and United Kingdom-based companies.

In details, Dr Mahtani explained that the previous regime separately externalised 17 billion kwacha to a London-based company and 7 million dollars to South Africa in contractual obligations.

The payments were for an audit into Finance Bank as well as to investigate Dr Mahtani, however the respective financial institution’s board chairperson said steps had been taken to recover the money.

Meanwhile, Credit Suisse, which has a 40 per cent stake in Finance Bank, has resolved to withdraw its legal challenge against government over the takeover and planned subsequent sale of the institution.

The Swiss-based global financial entity and partners have resolved to fund and act as agents for the 500 million Euro bonds, government intends to float next year.

And Dr Mahtani has also said Finance bank has planned to commence the process of listing on the Lusaka, London and Johannesburg stock exchanges and that 40 per cent shares would be off-loaded by 2014.