THE K27BILLION SCANDAL AT MINISTRY OF HEALTH
The Forces at Play
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When corruption allegations against Henry Kapoko and Minister of Health officials came to the fore, other serious beneficiaries of the fraud were keen that it remains centered around Kapoko only. However investigations have engulfed many including powerful political forces. The forces are attempting to frustrate and stall the investigations so that the allegations start and stop with the ‘rogue-boy’ of the scam - Henry Kapoko. Will President Rupiah Banda let the others scot-free, even when he has publicly pledged to bring all those involved to book and make no one a sacred cow? Why are some officials helping to make this a cold case? Like the Zambia Airways case was made to turn into coldness?
THE K27 BILLION SCANDAL AT MINISTRY OF HEALTH- THE FORCES AT PLAY
The joke is hilarious but it attempts to illustrate the sheer scale of how systemic and institutional corruption has become.
It goes like this;
During the government of First Republican President, Dr. Kenneth David Kaunda, corruption was done with ‘dignity’ and under the table.
During the government of Second Republican President, Dr. Frederick Chiluba, corruption was done in a ‘liberal manner’ and above the table!
Under Third Republican President, Dr. Levy Patrick Mwanawasa corruption was done by even stealing the table of transaction! And everyone was chased out of the room except for the inner circle.
Under Fourth Republican President, Mr. Rupiah Bwezani Banda, corruption is done in an awkward manner as there is no table to hide or transact from. Corruption is being done at owner’s risk. It is occurs in an open and empty room in a strange and cock-tail manner, but the risk of exposure is high. BE WARE!
BACKGROUND
What started as a personal tiff between Henry Kapoko and his workmate and girlfriend Rudo Tukuza Chitengu, has opened Zambia to a worst can of worms. Kapoko has a child with Rudo.
In a fateful fight, Kapoko broke her arm. She accused him of having numerous girlfriends besides her and his wife. He also accused her of having recent flirtations with their boss Dr. Simon Kamwendo Miti.
She made him pay K25 million for the assault charges leaving an agreed balance of K50million. When he finally paid the balance, she withdrew her compliant and the assault charges against Kapoko dropped.
She however was not satisfied. She proceeded to unravel to the Anti Corruption Commission (ACC), Zambia’s worst corruption case that has implicated, Simon Miti, Former First Lady, Dr. Maureen Kakubo Mwanawasa and First Alliance Bank and its Chief Executive Officer, Suresh Gupta.
At the centre of the scandal is the theft of over K27 billion in 2008-2009 and over K64billion since 2006.
The ACC has since restricted assets worth over K3billion from Kapoko, and assets worth K700 million from Rudo Chitengu and an undisclosed amounts from other officials.
Simon Miti’s expanse assets remain untouched. He has given to the authorities over the years, an attested declaration of his assets most of them acquired when he was Director of Public Health for Ndola City Council, Executive Director Ndola Central Hospital and Provincial Health Director.
But he sold most of the declared assets and has acquired more valuable assets in Lusaka and the assets have enjoyed massive renovations and constructions.
The scandal has rocked the country to the bottom. Many are disgusted with the extent of the fraud and the brazen nature in which perpetrators conducted it.
BUNGLING OF THE INVESTIGATIONS
The Anti Corruption Commission (ACC) received the complaint in March 2009. It acted with speed and restricted Kapoko’s stolen assets in an Executive Lodge, Best Home Lodge and 12 various motor vehicles. Of the 12 vehicles, 7 were retrieved from Kapoko’s female acquaintances!
It is at this stage that when the full extent of the fraud was emerging and names of who was involved began to emerge, investigations began to stall.
A combined team of investigators from the Drug Enforcement Commission (DEC), Zambia Police and the Anti-Corruption Commission was formed to meet the various sophisticated forms of crimes.
The exposure was however, later done and 6 officials from Ministry of Health were named as perpetrators of the scam. Kapoko became the rogue- boy of the scandal. But should he be?
Sweden and Norway immediately suspended aid to the Ministry of Health demanding that aid will only be restored after investigations were done and culprits brought to book.
During the 6th Zambia International Business Advisory Council (ZIBAC), in Livingstone, President Rupiah Banda complained that persons involved in the K10billion scam were still working and no action had been taken against the 6 suspected persons in the scam.
The President wondered why Secretary to Cabinet, Dr. Joshua L. Kanganja had not suspended persons so far under investigations even when assets suspected to be proceeds of the theft had been restricted.
In an apparent defiance of the presidential directive, Kanganja was quoted stating that no official would be suspended until investigations were completed!
This is the attitude that has strangely taken root.
Task-force prosecutor and Zambian Airways Chief Executive Officer Mutembo Nchito has not been suspended from his official duties even when a warn and caution statement was recorded from him and his colleague, newspaper editor and shareholder Fred Mmembe. A warn and caution statement precedes an arrest.
Officers being investigated are allowed to sit in their offices even when there is fear that they will tamper and destroy evidence.
Kanganja must have quickly realised the folly of his statement and was later quoted that he was unable to act only because he has not been furnished with official details. He stated he had only learnt of the scandal from press reports.
President Rupiah called for an immediate forensic audit to ascertain the extent of the scam.
Anna Chifungula came up with startling revelations. The theft was more than K10billion! It was over K27billion and the suspects were higher than the 6 initially announced.
On Wednesday 27th May 2009, Police sealed Ministry of Health headquarters ‘to hand out suspension letters from the Secretary to Cabinet – Dr. Joshua Kanganja.’
23 health workers were picked up.
And all pointed fingers at Simon Miti!
But the forces and persons accused are working frantically to frustrate or sabotage the investigations.
Despite the public assurances and directives from President Rupiah Banda that there will be no sacred cows and that he will not shield anyone, it is clear that there are sacred cows and certain officials are being shielded.
It looks like certain strong quarters are determined that the scam begins and ends with Kapoko.
Kapoko stands scandalised and the revulsion from citizens against him is very strong. Donors are disgusted that the trail of the theft appears to be similar to that occurring in Malawi, Uganda and Kenya where millions of dollars granted for the fight against HIV/AIDS, Malaria, Tuberculosis and maternal and child care, are systematically stolen by officials and leaders.
And an industrial strike action in the Health sector could not come at a worse time than this one. It seems to snugly fit into the larger activities of political schemes happening in the country.
A unity pact has been concluded between the United Party for National development (UPND), and the Patriotic Front (PF) that forms the single but most serious political and electoral threat to the MMD.
The action to freeze aid is a dent in good governance initiatives. The calls for early elections send a dangerous signal that Banda’s government is in a serious political crisis even when this is not the case.
Clearly, how President Rupiah Banda handles the corruption allegations at the Ministry is important as it will have far reaching political implications if bungled.
His enemies have managed to create public perceptions that his administration is corrupt, by repeating constant allegations of corruption and accusing Banda of interfering in major cases of expenditure.
BUNGLING AND WRANGLING IN THE INVESTIGATIONS
The investigations in the scam have reached an advanced but critical stage.
Other beneficiaries of the scam are keen to promote that this was a mere case of financial indiscipline by a few junior officials. But how could juniors steal so much money for many years without detection or scrutiny? And the annual exposures by the Auditor General of misuse and theft of public money at the ministry have been ignored.
ACC officers have been accusing officers from Zambia Police of corruption and that some received bribes from Kapoko and Miti, when they conducted earlier investigations.
DEC officers have stated that earlier investigations at the Ministry of Health against Miti and other officers were always frustrated by interference from suspended DEC Chief, Ryan Chitoba but they stated that they don’t understand why anyone would frustrate the investigations now in his absence.
Police officers are also accusing ACC officials of dragging their feet and pretending to be conducting a thorough investigation they seem to be ‘serving outside interests’.
Although all investigators insist that the preliminary report from the Auditor General establishing the theft of K27 billion should be the primary foundation for cases against Miti and others. They are wondering why some forces are promoting the notion that investigations should commence from scratch even in the face of the audit report.
The wrangling is not innocent or is mere professional differences among officers. It appears to be undermining investigations from inside.
And the wrangling has put investigations in jeopardy and disarray as it attempts to turn these investigations into a cold case.
Similar divisions nearly bungled the Zambian Airways case.
It is clear that, any moves against some powerful people and persons connected against the past administration are stalled as the infrastructure and fabrics Mutembo Nchito sew, remain intact.
One senior officer remarked that the damage done to Law Enforcement Agencies and the Judiciary by Nchito and the powerful cartel will haunt Zambia for a long time. The institutions are sacred, and are expected to enjoy autonomy. They should be a natural place of Justice and a Sanctuary for the falsely accused persons. But the institutions have instead become a place of refuge for the ‘empire’ as they enjoy a literal ‘Mafia protection’.
THE SUSPECTS
DR. SIMON KAMWENDO MITI
Miti is a medical doctor who early on began his career as an administrator.
He was Director of Public Health for Ndola City Council.
He was later made Executive Director at Ndola Central Hospital and was promoted to sit on the Central Board of Health (CBOH).
He became a prominent player under Mwanawasa when he was appointed Health Permanent Secretary.
He was the chief proponent calling for the abolition of Central Board of Health (CBoH).
He succeeded to abolish CBoH. All resources and control under the ministry came to be under his direct and single authority. And it remain is so to date.
The rot at the Ministry is rooted in this single policy shift to abolish CBoH.
After Mwanawasa suffered his first stroke in April 2006, Miti played a key role in evacuating him to his doctors in the United Kingdom.
A month later Miti in his capacity as Mwanawasa’s Physician, held a Press conference with a team of doctors to declare President Mwanawasa, fit to hold office and participate in the coming elections of 2006.
This spelt imminent death for Mwanawasa who was clearly not fit to hold office and after suffering poor health for many years, had deteriorated after the stroke. Concerns from his family and well wishers who quietly demanded that the President should stand down were ignored. Their pleas for Mwanawasa to take a deserved rest and allow his doctors to manage his illness were shut out.
The decision to urge Mwanawasa, to continue his work as president, was fatal as he was already plaqued by other serious diseases such as hypertension, epilepsy and diabetes.
Political pressure prevailed and Mwanawasa stood for his second term. He died 2 years on 29th June 2008, when while on duty at the African Union (AU) meeting in Sharm El Sheik, Egypt, he suffered a fatal stroke.
Staff officials at ministry of Health are reporting strange transactions that took place during the illness and death of President Mwanawasa.
Miti has been a subject of numerous audit and police investigations.
Previously audit concerns against him, which were also subject of criminal investigations, were shelved every time the investigations became serious. For example Miti was accused of overpaying Interhealth Technologies of South Africa. Interhealth handles all Zambia’s patients sent to South Africa for specialised treatment.
It funds the medical bills under local insurance and later makes inflated claims to the Ministry of Health. This has been a subject of constant audit concerns that even reached President Mwanawasa. After Mwanawasa’s intervention the audit concerns were ‘successfully concluded’ with the Auditor General in favour of Miti.
At one time, internal auditors at the Ministry, even with-held K1.6bilion payments to Interhealth Technologies until thorough audits and reconciliations were done. Miti enjoy and Leslie Mbula enjoys a good relationship with Kelvin Thomas the proprietor of Interhealth Technologies.