Yamba orders ZRA to reinstate Bradwel, the ‘corrupt’ company Sata stopped payment of K4b for supply of scanners

Secretary to the Treasury Fredson Yamba has instructed Zambia Revenue Authority to reinstate the company that President Michael Sata accused of corruptly supplying scanners to ZRA.

Just after assuming power in late 2011, the PF government appointed a commission of enquiry headed by Kingsley Chanda to investigate the various corrupt activities and contracts at ZRA at a very high cost to the nation.

Among the many issues handled was the concession agreement between Bradwell Global Corporation Limited for the operation and maintenance of relocatable containers/vehicle inspection scanners.

This followed President Michael Sata’ s action to  stop payment to Bradwell in the amount of K4 billion.

The Commission of Enquiry recommended the cancellation of the concession and cabinet approved the cancellation.

But sources within the ministry and ZRA have revealed that Secretary to Treasury Fredson Yamba has  instructed  ZRA to reinstate Bradwell and without tender and without cabinet approval.

ZRA has just issued a tender for the Onsite Acceptance Test for the 8 scanners to which a company is selected after the competitive bid.

‘We have been left wondering why Bradwell has been imposed on ZRA without going to tender.

‘This is a company that has a share capital of only £2.00 and has been making losses since inception with no international references. Their losses in 2011 are to the tune of £600,000.

‘We wonder what the British Embassy has to say to this as this is a one man show company involved in corruption. What does the law say in Britain regarding company’s involved in corruption. It would be interesting to know what the British Ambassador has to say seeing that two weeks ago he was officiating at the Worlds Anti Corruption Day’, said one source.

Sources believe that someone in government has been bribed to reinstate Bradwell?

‘Remember a Mr. Chipoya was fired from State House on allegations that Bradwell paid him US$2000 to set up a meeting with the President,’ said a source.

The sources explained  that Bradwell is a loss making company. See the attached financial statement for Bradwell.

‘How do you expect this company to perform? Bradwell is not even among the top 10 companies in the world in relation to scanner services.

‘Please help bring sanity to ZRA as we are about to go backwards. This is not professionalism at all. Even legally how do you explain this? Where is the fight against corruption? This is not professionalism at all’, said one source.

The sources further asked: ‘what was the purpose of holding the commission of enquiry and cabinet approving its findings if you are going to throw out everything that they recommended. If this is the case then ZAMTEL should be given back too. So should Finance Bank to FNB.’

Background

One of the earliest actions of President Michael Sata in office was to order the law enforcement agencies to stop a K4 billion payment by the Zambia Revenue Authority (ZRA) to a company that managed their scanners on the Zambia/Tanzania border.

He said that the company should not be paid because it was fake and was owned by someone who previously occupied his (Sata’s) office and that the company was registered under fake names “This morning, the Zambia Revenue Authority (ZRA) was supposed to pay K4 billion to a front of somebody who was in my office. This should not be done. The company was supposed to receive K4 billion as a result of a bogus agreement made with ZRA,” he said. He said the scanners at the border post belonged to the government but they were given to “conmen” to manage. He said the ZRA should hire its own people to manage the scanners and not a bogus company.  He instructed then inspector-general of police, Martin Malama, to ensure that no payment was made.

Subsequently he dissolved the ZRA board of directors, suspended the director-general and the head of customs.

He appointed a commission of inquiry.

Later, Finance minister Alexander Chikwanda issued the following statement:

Chanda ZRA enquiry: Government accepts all findings

Lusaka: Cabinet at its sitting on Wednesday 25th January, 2012 accepted without reservations the report on the findings of the Commission of Inquiry into the operations of Zambia Revenue Authority.  Cabinet has deemed it desirable and expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts with Bradwell International, and Cargo Scan.

Further, Cabinet has directed the reversal of the concession of the borders namely; Kasumbalesa, Nakonde, Jimbe, Kipushi, Mwami and Chanida and the reversal of tax concession offered to Varum Beverages Limited, the promoters of the Pepsi Zambia Project. In addition, Cabinet has directed the implementation of other administrative measures incidental to the same as recommended by the Commission of Inquiry.

Consequently, Cabinet has ordered with IMMEDIATE EFFECT:

a)    That the Cargo Scan contract on the operations and maintenance of Smith Detection scanners be terminated;

b)   That the Bradwell contract on the operation and maintenance of Nuctech scanners be terminated;

c)    That Nuctech be compelled to perform their contractual obligations of installation, operation and maintenance of eight scanners;

d)    That the pre-requisites for the installation and operations of scanners be met by government

e)    That ZRA assumes ownership of the scanners and work out appropriate measures for loan repayment for the scanners;

f)     That the Government takes over the Kasumbalesa border project and reverses the concession of the border;

g)    That five border concessions of Jimbe, Nakonde, Chanida, Kipushi and Mwami to one concessionaire be cancelled and that government takes up the responsibility of development of infrastructure at those borders;

h)    That Government immediately takeovers the Nakonde Border infrastructure development project which was concessioned under a PPP arrangement when it had reached 75 percent completion (roof level) worth K23 billion of certified works using government resources;

i)     That all policies and pieces of legislation that deal with awarding of public contracts be revised in particular the PPP policy and its Act is defective and at variance with the Public Procurement Act;

j)     That the role of the Council of Ministers under PPP Act should be reviewed and reduced to policy guidance while awarding of contracts should be retained by ZPPA in consultation with the Attorney General’s office;

k)    That the PPP Unit in the Ministry of Finance be  immediately restructured and administratively re-organised to pave way for its directiveness and effectiveness;

l)     That the tax deferment for Varum Beverages Zambia Limited be revoked and company be made to pay outstanding tax arrears and criminal investigations be instituted on persons found wanting for unlawful conduct;

m)  That the Hallmark contract on the management and maintenance of the border infrastructure at Chirundu be cancelled and the Ministry of Transport, Works, Supply and Communication hands over the management of the Chirundu Border infrastructure to ZRA;

n)    That an urgent review of the ZRA revenue collection strategy and organisational structure be made;

o)   That appropriate action be undertaken based on the Commission findings with regards to the role played by some individuals whose names, positions and reasons are provided for in the report.

While Government will act with requisite expedition to put into effect the recommendations of the Commission of Inquiry in the conduct of ZRA, every conceivable measure will be taken to ensure that all actions are strictly in conformity with the law. Government has no scores to settle but there will be no sanctuary given to those who have committed crimes against society through fragrant abuse of office and trust which the people of Zambia reposed in them.

  • Issued by Hon. Alexander B. Chikwanda, MP,  Minister of Finance and National Planning, 26th January, 2012


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26 Responses to "Yamba orders ZRA to reinstate Bradwel, the ‘corrupt’ company Sata stopped payment of K4b for supply of scanners"

  1. prisonwarder  December 16, 2012 at 18:33

    Oh dear Bishop Mpundu@Catholic Church. Are you just going to sit back and watch while your people are deprived off a decent living conditions by the corruption of this Govt? During MMD reign Bishop Mpundu you were a very strong speaker on injustices. Where are you now? Jesus once rebuked his own blood brothers. Why can’t you rebuke your brother in law? Have you suddenly assumed blindness? I really would like you to answer all these questions because Susane Matale and Frank Bwalya have failed to provide me with answers.

  2. Kachenjela  December 15, 2012 at 20:01

    As a Catholic, I ma disgusted that the president not only said that he is allergic to corruption but that he shall rule by the ten commandments.
    It is a pity we cannot excommunicate him.
    Kachenjela

  3. Zomela  December 15, 2012 at 18:14

    I just wonder who is playing to the gallery between the Oasis Forum and Sata-nyoko with all this corruption going on.

  4. CHARLES  December 15, 2012 at 17:51

    AWE SURE,LORD HAVE MERCY ON US

  5. "THE SILENT MAJORITY"  December 15, 2012 at 17:37

    The fight against corruption is just a “smoke screen” placed on the Zambian people as there is no genieune fight against corruption. The people behind all this “rhetoric” are trying to hide btheir own misdeeds by instilling fear in the Zambians. But it shall not work as we have already seen through them. The only and right effort that was supposedc to be placed was the fight against “poverty and hunger” of which is the root cause of corruption. How do put a hungry man to guard against a room full of nyama-steak on bone when his family is crying of njala? The PF where hungry when in opposition so do not expect them to come in and truly fight the vices that are to feed them

  6. Menemene  December 15, 2012 at 17:34

    The truth always wins and lies are exposed.Innocent people were fired at ZRA over non existent corruption propagated by the so called president himself.SATA is truly a lier together with his vuvuzela fred Mmmebe. God will deal with you.The two of you were bitter against clean souls being RB and MMD Govt.

  7. Umupondo  December 15, 2012 at 15:36

    I will continue to make the same mistake of voting Sata and P.F come 2016 Ni Pamaka nakabili………

    • Fitiball  December 16, 2012 at 10:11

      Suit yourself. After all you are within your right to even elect a frog to lead you, kapoli we.

  8. chita duncans  December 15, 2012 at 15:05

    one really wonders where we are headed as a nation. Zambians lets arise and do something about this. Talk about being allegic to corruption when you’re speerheading it. We can not sit and watch this plunder. while others are working hard to do an honest day’s job others want to do things the easy way with the use of brown envelopes. there are many more reputable companies that can do a far much better job than this bradwell.

  9. Mubanga  December 15, 2012 at 11:41

    There is really a lot of corruption under the PF government!!! Something must be done immediately!

  10. kk  December 15, 2012 at 09:51

    we told you pipo.

  11. Mansa  December 15, 2012 at 09:50

    Corruption a’m sorry

  12. tafiguras  December 15, 2012 at 09:44

    Even Varun Beverages who mentioned in the report has continued with the concession.Varun is still on deffered Taxes as regards excise duty.RB was removed from power on deceit,lies and jealous.Where is the corruption of RB.Compare Mathani verses Sata’s corruption with tht of RB.Corruption surrounds Fred mmembe,Mutembo nchito,kabimba,GBM and many others.Really sad if we thought there was corruption in zambia,it has just arrived.you are yet to learn more.I pity church leaders who didnt read signs of the time.

  13. CASSANDRA  December 15, 2012 at 08:43

    CORRUPTION IS OUR BREAD AND BUTTER

  14. Uzionele weka  December 15, 2012 at 08:07

    Koma we r finished i dont know what next will come out of this gvt, the foolish pipo are the ones who vote pf, what a mischief MAWEE!!!

  15. concernedcitizen  December 15, 2012 at 07:46

    Combine Grade 7 logic, stubbornness, violence ,lack of respect, lack of morals ,thieving and lying tendencies.This the end result, what a total package we have in State House.

  16. pakudya salimbana  December 15, 2012 at 07:41

    it was too quick and unreasonable the way it all began. RB Gold, RB new state house, RB lexus, RB extension of Lusaka airport, RB scanners, RB boarder contracts…..it was all too quick to be true. Speaks volumes about the calibre of leadership we have and now the company allegedly created by RB is being brought back, the case of Boz plundering plundered resources and an unlawful justice minister who says Zambians want a one party state! In my assesment we are yet to see worse. Mukalibe. RB will be remembered. No fuel, no mealie meal, no beer…..thank God for the WatchDog, the post is plundering with the ruling party and where there is no man God will raise a donkey!

  17. THE OBSERVER  December 15, 2012 at 07:20

    Are we really fighting corruption?

  18. Jack  December 15, 2012 at 07:20

    Bradlwel is Henry Banda company, so I can see him coming back since he has made peace with sata through his friend, satas son mulenga! PF for you!

  19. THE OBSERVER  December 15, 2012 at 07:17

    Are we really allergic to corruption?

  20. emmanuel kalebela  December 15, 2012 at 07:16

    it is not suprising because this is the same govt that has reinstated George siame a person convicted of a GBV crime. This person has been promoted to Director Investigations.

  21. linso  December 15, 2012 at 07:13

    YAMBA AND SATA ARE BROTHERS IN MARRIAGE. YAMBA ONCE LEFT THIS COUNTRY TO STAY AWAY FROM CORRUPTION PERSECUTION.ZAMBIANS ARE MAKING A BIG FIRE AS THEY SIT AND WATCH.FOR THE SAKE OF US AND OUR CHILDREN LETS STOP THESE GUYS.

  22. One Zambia One World  December 15, 2012 at 07:12

    If this is true,where are we going as a nation?

    • concernedcitizen  December 15, 2012 at 07:48

      would have been better if we were going no where but we stuck in reverse, in just a year we back in the UNIP era.

  23. Ulemu ni Wabwino  December 15, 2012 at 07:11

    Does this government know what it is doing? Why so many contradictions

  24. Mpangula Mputyu  December 15, 2012 at 07:09

    CNP. we were warned but we turned a blind eye. we were able to see but chose not to see.

    This is the result. SATA must be stopped. Wynter Kabimba must be stopped.

    PF must rise up against these two or risk being booted OUT. SATA in not in control of his Govt.,

Comments are closed.