AN investigations officer at the Anti-Corruption Commission has told the Lusaka Magistrates’ Court that Minister of Health Dr Chitalu Chilufya’s net worth was in excess of K22 million between 2013 and 2019.
Chipampe Manda said Dr Chilufya’s earnings from the National Assembly were over K7 million, K3 million from Payroll Management Establishment Control while Henry Courtyard had an excess of K12 million.
Manda also disclosed that Dr Chilufya acquired Spark guesthouse, now Henry Courtyard, when its intended purchaser Benjamin Kabamba failed to pay K1.5 million to Dr Chilufya which he had borrowed in order to pay his (Kabamba) creditors.
Kabamba, who had placed Spark guesthouse as collateral, asked Dr Chilufya to purchase the property at K3 million when he defaulted to pay the money and it was agreed that the minister would top up K1.5 million.
This is in a matter where Dr Chilufya is facing four counts of possessing property suspected to be proceeds of crime involving more than US$200,000 which was used to purchase shares in the Samfya Marines, land on which Spark guesthouse is erected, including a boat for transportation.
When the matter came up before chief resident magistrate Lameck Mwale, Manda narrated that on December 17, 2019, ACC received a report from an anonymou source bordering on allegations of property suspected to be proceeds of crime involving Dr Chilufya.
Manda said the source had alleged that Dr Chilufya owns Samfya Marines lodge located in Samfya in Luapula Province, including boats and several other properties in Samfya and Mansa districts suspected to be proceeds of crime.
He said a team was assigned to institute investigations in the matter after ACC acting director general Rosemary Kuzwayo authorised investigations against Dr Chilufya.
Manda told the court that he went to Patents and Companies Registration Agency (PACRA) with a quest to establish the directors and shareholders of Samfya Marines and Tourism Services limited and he discovered that Dr Chilufya was involved in the said company which was incorporated in 2006 and the shareholders were Den Daas Investments Zambia limited, Toptech Enterprises Zambia limited and Leo Jonas Ngosa Investments Zambia limited.
Manda said there were changes made to the shareholding of Samfya Marines and Tourism Services limited as Dr Chilufya became a shareholder in the company and owned 8,000 shares while 2,000 shares were held by Toptech Zambia limited.
“I discovered that Den Daas had transferred 6,000 shares to Dr Chilufya and according to the form of transfer of shares document from PACRA, it indicated that the 6,000 shares were purchased at US$200,000,” Manda said.
He told the court that he went to Zambia Revenue Authority to inquire if tax was remitted with regards to the transfer of shares, he discovered that a sales agreement was filed with ZRA for the said transactions.
“Den Daas was the vendor and Dr Chilufya was the purchaser. US$50,000 of the agreed sum was to be paid by Dr Chilufya on or before December 21, 2016 with a balance of US$150,00 to be paid in six installments and Dr Chilufya and a representative from Den Daas signed to the said agreement and ZRA issued a property transaction certificate for the transaction indicating that Den Daas had sold its shares in Samfya Marines to Dr Chilufya,” he said.
Manda told magistrate Mwale that Dr Chilufya had also purchased the 2,000 shares owned by Leo Jonas Ngosa limited belonging to a Mr Daniel Chisala at K270,000 and tax was paid at ZRA for the transfer of the shares and that Toptech had signed that Leo Jonas Ngosa had sold its 2,000 shares in Samfya Marines to Dr Chilufya.
The witness said during the course of investigations, he further discovered that Dr Chilufya owned Spark guesthouse, which belonged to Mansa Batteries and during the liquidation process some of the assets were disposed of by the administrator general.
Manda said five bidders had submitted their bids and the successful bidder was Kimula General Dealers, which was offered to purchase the guesthouse at K2,150,000 and the company was to pay 10 per cent of the offer within seven days from the date of offer and K215,000 being 10 per cent of the total amount was deposited in Mansa Batteries’ account domiciled at Zambia National Commercial Bank.
“In March 2017, Rogers Musukwa, a representative of Spark guesthouse wrote to the administrator general requesting for the extension of payment for the purchase of the guesthouse. Simon Mwale and Benjamin Kamba agreed to put their resources together to finance the purchase of Spark guesthouse and K750,000 was paid to the account of Mansa Batteries,” Manda said.
“In October, K400,000 and K650,000 was paid to the account of Mansa Batteries and K89,000 was deposited by Kimula General Dealers for the purchase of the said guesthouse and after completing payment, the property was handed over by the administrator general and the directors and shareholders were Rogers Musukwa, Benjamin Kamba and Simon Mwale.”
Manda said Kamba had borrowed resources and the money lenders demanded that he pays back the money when the credits fell due to which he approached Dr Chilufya to lend him K1,500,000 in December 2018 which would be paid back in cash installments of K800,000 and K700,000 and placed Spark guesthouse as collateral.
He said when Kabamba defaulted to pay back the money, he approached Dr Chilufya and proposed that the latter purchases the guesthouse at K3 million and since Kabamba owed Dr Chilufya, it was agreed that the latter would only top up K1.5 million.
The investigations officer said in June 2018, Musukwa wrote to the administrator general suggesting that tittle of Spark guesthouse be issued in the name of Henry Courtyard limited belonging to Dr Chilufya and his wife Dr Mutinta Mudenda and that the two were directors together with Julian Chilufya.
“The property was registered in the evaluation roll of Mansa Municipal Council under Dr Chilufya’s name,” he said.
Manda narrated further that an Arabian Craft transporter, 32-seater was imported from Dubai in United Arab Emirates by Bellchiz General Dealers supply limited belonging to Chizengu Lukamama, popularly known as (Chizmetal) and Ali Mulangu on behalf of Dr Chilufya and a US$52,000 was transferred to Smartown’s account at ZANACO belonging to Ali Mulangu, a director of Bellchiz and in May 2020, the boat was registered under the name Henry Courtyard at the Ministry of Transport and Communications.
He added that he further investigated whether Dr Chilufya had financial capacity to acquire such property through his genuine business to which he wrote to the National Assembly and Payroll Management Establishment Control (PMEC) for the emoluments paid to Dr Chilufya from November 2013 to December 2019 and to February 2020 for the National Assembly.
Manda said it was discovered that Dr Chilufya had interest in several companies as he was a shareholder and director in Henry Courtyard limited, Henry Courtyard Construction and Hardware, Henry Courtyard farms and Henry Courtyard Travel and Tours and he was a shareholder in Samfya Marines and Tourism Services limited.
“Having looked at the earnings of Dr Chilufya from information obtained at the National Assembly, the earnings totalled to over K7 million and from PEMC, the earnings were over K3 million. I assessed Banks statements of Henry Courtyard limited from ZANACO, Cavmont, Atlas Mara and Investrust Banks and a statement of Dr Chilufya’s account from INDO Zambia Bank and discovered that an excess of K12 million was owned by Henry Courtyard from 2016 to 2019,”Manda said.
“There was no information received about earnings relating to the subsidiaries of Henry Courtyard because only Henry Courtyard had accounts with different banks.”
At this point, state advocate Clifford Moonga applied for and adjournment in order to retrieve documents relating to the statements of accounts belonging to Dr Chilufya.
But defense lawyer Tutwa Ngulube objected, demanding that the matter be stood down for 30 minutes to allow the state to retrieve the same documents as the state was given enough time in the morning when the matter was stood down for two hours.
Moonga in his reply said the state had made progress and standing down the matter again would be impossible. He wondered why the defense was in a hurry when there were preset dates.
However, Ngulube said “on the argument that we are rushing, we are not in a hurry, it is not us who arrested and charged our client in a hurry.”
In his ruling, magistrate Mwale adjourned the matter to August 6 in the interest of justice as it was almost close of day.