The rot at Zambia’s IFMIS project

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Dear Editor

The government of Zambia embarked on a project called IFMIS to automate the government’s financial, supply chain and human resources reporting. This is a management information system that should have been implemented in a reasonable period to ensure public financial management and accountability. However there are a number of issues that arose and impacted the project:

·         This project was awarded to Soluziona S.A. of Spain.

·         Soluziona was sold and bought out by Indra Sistemas S. A.

·         This change in ownership was not communicated to the Government, being the other party to the contract at the time of the event.

·         When Government became aware of this fact, a decision was taken to put the IFMIS project implementation on hold and seek legal opinion on the matter from the Ministry of Justice.

·         While the matter was being reviewed, Indra Systemas withdrew its staff from the project pending resolution of the matter.

·         The legal opinion from the Ministry of Justice was that Soluziona S. A. was in breach of the contract and that the Government was at liberty to either terminate the contract if it was not satisfied with the firm’s performance or reactivate the contract if they were happy with the work done so far.

Another irregularity was:

·         The former Ministry of Finance permanent secretary the late Dr. Lewanika appointed new managers to implement the Integrated Financial Management Information System (IFMIS) contrary to the memorandum of understanding (MoU) signed between the government of Zambia and cooperating partners.

·         The civil servants appointed to replace the staff that was employed through the World Bank were Mr. Joel Ukwimi, Mr. Innocent Mututa and Mr. Francis Mwale, as IFMIS managers.

·         Guidelines and proper approach such as advertising for the vacancies, and informing the cooperating partners for their consent on approach and selected candidates were not adhered to.

From our investigations, we discovered the following:-

The initial budget for the entire project was $24 million.

According to some parliamentary debate, the Government expected to spend about K192 billion equivalent to US$42.7 million.

The source of funding for IFMIS was through pooled funding from various co-operating partners who have been supporting the Public Expenditure Management and Financial Accountability (PEMFA) Programme.

The co-operating partners committed 90 per cent equivalent to K172 billion of the total IFMIS budget while the Government committed 10 per cent equivalent to K20 billion.

But the question is who, who is running this IFMIS and why?

We have discovered the following facts:  Indra Project is the contractor after taking over from Soluziona.

The project manager is Raphael Njoroge a Kenya national and a very corrupt fellow.

This Kenyan crook works with other people in government from the Ministry of Finance to the Head of Information Technology (IT) in the Red Brick (OP) – Francis Mwale.

Their collaborator from the private sector is the infamous and once upon a time spokesperson for Maureen Mwanawasa’s Community Initiative NGO, Francis Mwanamuke the group CEO of TechNet Group.

He is the same gentleman that Dora Siliya named as the local businessman introduced R.P. Capital of Cayman Islands to the MMD government.

International lawyer Robert Amsterdam has continued to question Michael Sata and Wynter Kabimba why Zambia is pursuing Henry Banda when the entire deal for ZAMTEL was started by someone else.

Raphael Njoroke, the Kenyan is a teacher by profession.  He went to some Kenyan University. He has no formal IT training and that partly explains why he has messed a good project – for personal gain.

He managed to get rid of highly qualified locals and foreign experts through the golden hand of Francis Mwanamuke when the Late President Levy Mwanawasa was in office under the influence of Maureen Mwanawasa.

Mwanamuke also set up a private company called Penta Training Institute which he gave an order to train GRZ personnel on running SAP

During the Mwanawasa regime, he was untouchable as any wrong committed by him and reported would just die a natural death.

The situation is the same to date.

Mwanamuke even brags that the law can’t visit him because whatever report goes to intelligence still lands on his desk – compliments of Francis Mwale at OP.

Many people have tried to report the rot on IFMIS but one risks being eliminated, we are told by sources within the Ministry of Finance.

Former Disc Jockey at Radio Christian Voice, former spokesperson for MCCI, Mr. Francis Mwanamuke CEO of TechNet Limited brought misery to the IFMIS project with the help of his colleague at IFMIS working for Soluzonia then Indra.

The same gentleman is the one that also got ZAMTEL into various problems including him having brought RP Capital to Dora Siliya an issue that Robert Armsterdam keeps referring to as to why Henry is being pursued and the gentleman who brought the idea is still free.

Sources say that when Late President Mwanawasa died.  Mwanamuke quickly handed over the ZAMTEL deal to Henry when his father took up as Acting President. Mwanmuke continued to work in ZAMTEL during Hans Paulsen and he was at the time stationed in Uganda.

He knows how to play politics and dangling the carrot to the politicians who are not there to serve their people but amass as much wealth as they can. Records at one parastatal financial institution also shows that Francis Mwanamuke is involved in Kifco the company that got David Matongo fired when he refused to award grain bags for FRA. The company has a failing debt with DBZ, and the debt is not being pursued by DBZ.

 

It is believed by sources in the Ministry of Finance that Francis RPC Data Zambia and a PS at the Ministry as shareholders with RPC Data of Botswana as the other partner and were awarded a contract by Soluziona as a sub contractor for local services and equipment. This was the beginning of Raphael, Francis and Francis (OP). They have controlled and awarded themselves contracts worth millions of dollars and no one to date can dislodge this married. After the demise of the PS, RPC Data Zambia went into liquidation and was dis-registered. This is the style that he operates on, just like the Techmines which exisited during Mwanawasa was de-registered and its website quickly cleaned out. Techmines was registered in Zambia and Italy and was selling high grade copper.

The news reaching us that Sata is now pursuing and dismantling the IFMIS corrupt project is the greatest but must be warned that it’s deeper that what meets the eye. The dismantling must therefore be extended to all companies and individuals that have caused the project to fail and result in Zambia spending millions of foreign exchange that was meant for development. The IFMIS Project has become a vehicle of siphoning money out of government by individuals in government, Indra project manager and some unscrupulous private sector companies.

It is said Corruption distorts markets, damages economies and creates unfair competition.

Companies often pay bribes or rig bids to win public procurement contracts. Many companies hide corrupt acts behind secret subsidiaries and partnerships. Or they seek to influence political decision-making illicitly. Others exploit tax laws, construct cartels or abuse legal loopholes. Private companies have huge influence in many public spheres. So it’s easy to see how corruption in business harms taxpayers’ interests.

Comments Closed

34 Responses to The rot at Zambia’s IFMIS project

  1. #positive zambian, you are right, besides the story is 95% correct except where they say Mwanamuke opened Penta House, its actually Raphael otherwise is very correct. the idea of the story is good and we know that whites are chewing and trust me its coming out in a week’s time in part 2 baba. Am told its the first Series story that ZWD will carry out as 13 episodes. The idea is to get to the bone of it. First lets fix the GRZ financial management and then supply chain’s rules, processes and procedures. Bravo ZWD we love you. Sorry Francis as some said Trees do not grow into Heaven, nothing lasts forever especially if you cheat.

    Zed is ours - November 18, 2012
    19:09

  2. But u Zambians and your PHD! Bazungus are busy stealing and mutamba chabe! Mu zambian abeko mwayamba kuchaya ma one! This project is donor funded 90%! Let a zambian steal and keep the money here! Expose the whites as well! IDIOTS! You all sound like you were dribled or he chewed your hule! Atase! And then u decide to go personal! The man has money, let him chew who ever he wants! He can afford! So what if he chills at Serena! So what if he bypassed u! Chikala u just jealous! U would do worse if u had a chance. I have all the data on this issue. I must say its 65% true. I just hate the part when u goons go personal!

    positive zambian - November 17, 2012
    21:34

  3. Mmm,this story is something to follow up,someone told me a story about IFMIS and one Indian company. Apparently equipment meant for IFMIS was exempted from TAX, the Raphael character gave the supply of desktops to some Indian guys,who brought in the double the number they were supplying,and half of the consignment was for sale. They didn’t pay TAX on them and made huge profits.

    It seems this is something the authorities should look at seriously,why are these foreigners coming here and doing bad things like this? Are there no qualified Zambians who can handle Raphael’s job? Indeed,there is a group of criminals operating with foreigners to enrich themselves. This IFMIS project should have been concluded many years back!!!

    What a shame!

    Seeza - November 17, 2012
    19:41

  4. When UPND is in power, we will clean up.
    Do not worry.

    kolwe monkey - November 17, 2012
    12:30

  5. I have googled this Mwanamuke, shows company in London. Do you mean they have survived to live this far with such fraudulent activities. I am writing from Airtel and we will expose them further. We know they are fraudsters but bosses were blind on them. I have colleagues at Zanaco and it’s the same. They have messed MTN, Airtel and ZANACO we do not know where else.

    Mugshots - November 16, 2012
    15:37

  6. Ok ba ZWD, give us your email address we send you more information if you seriously want to expose these culprits

    PS Finance - November 16, 2012
    15:33

  7. This is a good story, but i hope it doesn’t end just as a good story. It doesnt make any sense that tax payers money is been stolen by these mafias and relevant authorities are silent. Not to be personal, but Raphael Njoroge sited in this story has strong links to Technet, he is actually taken on a position in that organization, isn’t that in conflict with what is expected of a project manager in the IFMIS project? If this man is in Bed with Technet, isnt resigning from his IFMIS position the most noble thing expected of him? Technet did a huge portion for the network in the IFMIS project, am sure that was awarded dubiusly by Njoroge for personal gains. Dear editor please ensure this matter is investigated and that the long arm of the law visits these people who are destroying our economy

    Spartan - November 16, 2012
    15:03

  8. People, I phoned a few friends at the Ministry and we are told that this story is even mild. The plunder is even bigger than this. We really thank ZWD for helping Zambia save poor souls. These people that are plundering resources must not be jailed but must be for life and some must be excuted as they have debrived people resources to good living standards.

    SADC Secretariat - November 16, 2012
    14:38

  9. The same Raelly woman ended up being assaulted at ZRA, what goes round comes around! Just as she made her colleague jobless, she now also has no job-thanks to her mindset!

    mailoni beda - November 16, 2012
    12:26

  10. This project should have not gone on for this long.
    This Raphael Njoroge the Kenyan national who is very corrupt has now left the IFMIS project after ammasing so much loot and has been given a job at Mwanamuke’s Technet (z) Ltd. He has replaced another Kenyan by the name of Mike Njuki who was Technical manager at the same Technet.

    Silver Fox - November 16, 2012
    12:21

    • I work for a Telco company and closely worked with technet engineers last year. I have friends in technet as well. Mike Njuki was the best unix and server engineer i have ever met. I hear they summarily dismissed him at Technet and he went on to start his own enterprise which i hear all technet engineers and customers want to migrate. My friends at technet are furious with Raphael Njoroge has has been brought in and since he has no IT understanding at all, its all meant to repay his ‘good’ deeds at IFMIS. He has one leg in IFMIS/Indra and the other in Technet (paymaster). He is a ‘politician’ and causing distress to innocent staff at the sinking firm.
      I know deals technet has done here including double invoicing that can be disclosed if anyone is willing to listen.

      ConcernedEmployee - November 17, 2012
      17:28

  11. I have heard the IFMIS and PEMFA story before. Its really sad. Ba Mwata, I work at PEMFA under Ministry of Finance so I know what wilila is saying actually its true. Mrs Raelly went too far in plotting the dismissal of Ba Regina Mulenga. Her dismissal has left a big gap at PEMFA. Whatever she was up to together with Dr. Lewanika, will soon be know. Another person will write on PEMFA and the truth wil come out. so ba mwata if you dont know why by regina came back from AU shut up. That woman is hard working and has scored success at AU. she was recalled bu govt that is why she came back.

    gloria - November 16, 2012
    12:09

  12. this sounds like a Mafioso type of ring……….it’s interesting because it goes right back to late Mwanawasa’s reign……

    eagle's eye - November 16, 2012
    11:29

  13. Guys lets just commit the wrong doers god to sort them out. Prayer does miracle better than all the human tools you can employ

    Tonga Bull - November 16, 2012
    11:12

  14. BA KATEKA PLEASE,

    (OR HON MILES SAMPA AT MINISTRY OF FINANCE)YOU DON’T HAVE TO BELIEVE THIS ARTICLE. JUST SEND A SMALL TEAM TO INVESTIGATE THIS PROJECT. YOU WILL HAVE ANSWERS WITHIN TWO WEEKS OR LESS BECAUSE ALL THE FILES AND PLAYERS ARE THERE. YOU WILL BE SHOCKED HOW CORRUPT PEOPLE RULED AND CLEAN PEOPLE WERE CRUSHED.

    PEOPLE LIKE DR KUNDA, HARRY PELEKELO AND KASARO SUFFERED SO MUCH BECAUSE THEY SAID NO TO CORRUPTION. IT IS NOT FAIR AND WE CANNOT BUILD A NATION LIKE THAT!

    Patriot - November 16, 2012
    10:24

  15. I am a Zambian working in Uganda. I met Mwanamuke once at Kampala Serena though i knew him before in Lusaka. He brushed me aside since he was in company of beatiful ladies from Uganda. One of these ladies he bough a car and she disappeared with it. This particular day, a friend of mine asked me if i know Mwanamuke from Zambia. I told him i know him though we are not friends. We went and met them at the hotel and my friend asked me to excuse them since he saw Francis was uncomfortable. I guess its since i said hi in Bemba he was scared i might report back in zambia.

    I know Francis Mwanamuke very well. The guy is a crook to the tooth. He is always pretending to be a christian to get into women’s skirts. He has alot of cases with being caught in funny hotels in Zambia. He is also a very big liar, always talking lies about even his closest friends. Am told he lied to a lady in malawi that he divorced and used the woman to the point of her helping him open a branch their. The lady discorvered and ran away.
    This is the same fellow we have been hearing since scandal by R.P Capital in Zamtel. There is more scandals even in private companies that i can disclose for free. He lied to my friend in Uganda who left his well paying job and moved to work there in zambia for technet. Three months later he was sacked as he could not play ball of helping francis fetch women when he visits Kampala Serena. I have room numbers etc of all clandestine missions i observed here. My friend could not tell francis’ wife the source of the beef since he thought she will be broken.

    Ishmael - November 16, 2012
    10:08

    • So?
      What’s the point?
      Why do you guys like to go personal?
      Who talks about your sex life?? If he has the energy and appetite how does it affect you?

      Mambala we we!

      makhani - November 17, 2012
      12:27

  16. Actually bloggers do you know that the IFMIS Project is run by UPND guys. Here is the evidence. Magande was UPND, Lewanika was UPND, Shakafuswa was UPND, alot of people at Ministry of Finance is full of Tongas. We are not being tribal but this is a fact fellow bloggers. Even this Mwanamuke is currently MMD and UPND.

    SADC Secretariat - November 16, 2012
    09:22

    • But its Bembas then all is well? Not that am agreeing or disagreeing to your opinion about M.o. Finance being Tongalized, bet they are there on merit else they would have been hounded out by now!

      Am a proud Tonga by the way.

      zambia1 - November 16, 2012
      11:51

    • What’s the point?
      To gas are most educated people in this country and that is a fact and evidence is in govt …
      PF is surviving on the brilliance of the To gas and the Lozis.
      You must be a kolwestan ++++ masupa hao

      whats the point - November 17, 2012
      12:43

  17. You started your article well, with some good data, then you decide to go personal with some irrelevant data! That’s where you lost credibility. This is personal. Obviously banakunyunya!

    Positive Zambian - November 16, 2012
    09:18

  18. This is just one of so many failed projects in government ministries in which huge sums of money has been embezzled.Hope the powers that be, can thoroughly get to the root cause & bring the culprits to book.

    Cety - November 16, 2012
    08:42

  19. Seems this country is being ruled by the Mafioso after all!

    GMT - November 16, 2012
    08:34

  20. This is are serious matter,
    How can a government perform like this?

    Kuloleshafye?

    non partizani - November 16, 2012
    08:32

  21. Zambia, we have being reading about IFMIS for a while now. We are aware the Late Dr. Lewanika was a shareholder of RPC Data with Francis Mwanamuke who was Chairman and abused the GRZ funds through dubious contract awards. This also saw Oracle Directors like Taroon get fired because of the US$1m that Francis and Lewanika got as an inducement from SIL of Mauritius. Francis has blood on his hands, he pretends to be a christian and not long ago he was banging a chick in a five star hotel and the wife was told and he found them. He sold ZAMTEL, he took the Huawei fibre project for ZAMTEL and ruined it. Ba Sata this boy born in the mid 70′s cant ruin this country at all. Fire all the chaps at IFMIS who are making this project fail. Bring back Dr. Kunda, Harry Pelekelo, etc. Zambia shall be served. These guys forgot a simple saying that “Trees do not to heaven.”

    SADC Secretariat - November 16, 2012
    08:00

  22. Dont worry coz all the ills wil b corrected by my govt

    Nikuv - November 16, 2012
    08:00

  23. its the smooth crimanal at it in zambia, the mafia style

    babayalo - November 16, 2012
    07:58

    • OUR ACC IS TOOTHLESS. THEY ARE PART OF IT. THEY WERE EMPLOYED TO CHECK ON US JUNIOR OFFICERS. BIG SHOTS CAN’NT BE TOUCHED.

      BY THE WAY, HOW FAR HAVE THEY GONE WITH PRELIMENARY INVESTIGATIONS ON GBM AND KABIMBA SINCE ALL THE INFORMATION AND DOCUMENTS WERE IN PUBLIC DORMIN?

      KK - November 16, 2012
      08:22

  24. Mrs R Mulenga is the right person with the right qualification.These thieves will continue becase there are not qualified ,they intrest is to protect they job since they dont av papers .

    karika - November 16, 2012
    07:46

  25. This is very sad. these projects at ministry of finance are always abused. they dismiss people anyhow, those who they think cannot support them so as to enable them plunder money. It is almost the same with the PEMFA project where a Mrs Raelly with the blessing of Dr Lewanika managed to send away a very competent and qualified personnel Mrs. Mulenga all for selfish gains. the president should look into this also. Mrs. Mulenga is a very qualified accountant unlike Mrs Raelly whose qualifications are questionable. this is why after this scandle,Mrs Raelly was taken to ZRA. She saw Mrs Mulenga as a threat. We cannot as a country continue losing qualified personnel for selfish reasons.

    wilila - November 16, 2012
    07:20

    • Its the same Mrs Mulenga who couldnt work at the AU when she was appointed Director for Finance..PEMFA was a ‘soft’ landing but she couldnt stop her ‘investigating’ instead of working..so she lost a 20,000 dollar job….failed to hire a great team thought she knew better let her try private practice.

      mwata - November 16, 2012
      10:18

      • do you know why she couldn’t work for AU. Get you facts right dear before you write anything.

        wilila - November 16, 2012
        12:03

  26. This makes a sad reading indeed. I hope, should the decision be made to clean up the system, it will not be replaced with another rotten one by filling it with PF cadres.

    Zomela - November 16, 2012
    06:58

  27. Al capone

    bwala - November 16, 2012
    06:58