Ministry of Health Diary 2009

June 13, 2009

6 Health officials nabbed

By JOSEPH BANDA and ANTHONY MULOWA

Investigative agencies have arrested six senior Ministry of Health employees in connection with the K27 billion theft, as former permanent secretary in the ministry, Simon Miti, was asked to declare his assets. The six, who are jointly charged with theft by public servant were arrested and detained June 12, 2009.
Four of them have been detained at Woodlands police station while three are at Kabwata station.

Those arrested from the Ministry of Health are Able Kasongo, head of procurement, Zukas Kaoma, principal accountant, Anthony Mwila, senior procurement officer and Loyd Onge, internal auditor. Others are Justin Phiri, accountant, Nobert Peleti, assistant deputy director for administration.

And Best Home Lodge operations manager, Fred Chileshe has been charged with theft.
Lawyer representing Chileshe and Kaoma, Kelvin Bwalya confirmed yesterday that his clients had been arrested and jointly charged with five other people.
He said six officials from the Ministry of Health had been charged with theft by public servant while Chileshe had been charged with theft.

Bwalya said his clients had been charged in connection with the theft of K1.9 billion and would appear in court on Monday. He said the police refused to grant the seven police bond, adding that he would apply for bail for his clients on Monday.
The arrest of the seven comes in the wake of intensified investigations by a joint team of investigative agencies comprising the Drug-Enforcement Commission (DEC), Anti-Corruption Commission (ACC) and Police Service.

Meanwhile, Dr Miti June 12 gave investigative agencies an inventory of his properties following a warn and caution statement that was recorded from him on June 11. Dr Miti who has been sent on forced leave, was transferred to the Ministry of Science, Technology and Vocational Training. This is in connection with the financial scam at the Ministry of Health involving more than K27 billion belonging to the Government.

Dr Miti’s lawyer, Rabson Malipenga said in Lusaka yesterday that his client went to the ACC offices where he was given a form to list his properties. Malipenga said his client had not been charged and only did a routine exercise as required by investigative agencies. Dr Miti is the first senior Government official to have been warned and cautioned in connection with the investigations currently underway at the Ministry of Health. (Times of Zambia)

June 9, 2009
Kapoko’s lodge chief summoned

The Anti-Corruption Commission (ACC) yesterday interrogated and recorded a statement from Best Home Lodge operations manager, Fred Chileshe in connection with the K27 billion scam at the Ministry of Health. Chileshe was summoned to the ACC offices and arrived in the company of his lawyer, Kelvin Bwalya, at 14:15 hours. He was questioned from 14:30 hours to 16:45 hours.

Bwalya said afterwards that ACC had recorded a statement from his client in a friendly atmosphere based on mutual trust regarding the operations of Best Home Lodge. He said Chileshe gave ACC officers information on the history of Best Home Lodge and its directors.
“It was a friendly interview and we agreed with the ACC that my client can still come back if there is need,” he said.

Bwalya said it was his hope that the interview would help clear the air on the issue of Best Home Lodge.

Meanwhile, 27 employees at Best Home Lodge have been asked to stay away from work by their management without any payment almost five weeks after the ACC raided the premises. Although the lodge remains open, no single client has been there since the ACC’s visit, resulting in the workers seeking legal guidance and an explanation from the management. The workers had been reporting for work until a few days ago when management advised them to stay away.

Some employees said since all the bank accounts for the lodge had been frozen, it became difficult to even get their salaries.
“Some of us have worked for a long time at the lodge and we cannot just leave like this. We need to be paid something for us to find our way out,” one of the workers said.

Former Ministry of Health senior human resource officer, Henry Kapoko owns Best Home Lodge located in Lusaka’s Roma Township. Kapoko was arrested for obtaining money by false pretences involving over K1.9 billion. He appeared in court and remains in custody after the magistrate’s court denied him bail.

And four people in Lusaka are registered as the owners of ESU Nursing School Limited, believed to have benefited from the K27 billion scam at the Ministry of Health.

The shareholders of the school of midwifery in Lusaka’s Kalundu area include Barbara Ushibantu, Dorcas Siafwa of Kaunda Square, Miriam Phiri of Longacres and Edwin Ushibantu who was registered as secretary.

According to a search at the patents and companies registration office, the school started with a nominal capital of K400,000,000 in 2003 and 50,000,000 shares. (Times of Zambia)


June 4, 2009
Kapoko denies K1.9 bn charge

By DELPHINE ZULU
Ministry of Health human resources manager, Henry Kapoko yesterday pleaded not guilty before a Lusaka magistrate’s court to one count of obtaining money by false pretences amounting to K1.9 billion.

Kapoko was led into the dock by two plain-clothed police officers and chief resident magistrate, Charles Kafunda, immediately re-allocated the matter to magistrate Kenneth Mulife where plea was taken. Kapoko, 36, between January 22 and February 28, this year while acting with other persons unknown, with intent to defraud the Ministry of Health, allegedly purported to have ordered and shipped 50,000 mother baby kits worth K1, 989,000,000 when, in fact, not.

After he denied the charge, Kapoko’s lawyers Nicholas Chanda and Kelvin Bwalya applied for bail. They said their client was a Zambian who was married with fixed abode, still employed by the Ministry of Health and entitled to bail.
But divisional prosecutions officer, Frank Mumbuna objected to the bail application, saying Kapoko could not be trusted as police officers only managed to arrest him a few minutes before he was about to leave the country.

Mumbuna said that one of the conditions to sustain the bail application was the possibility of Kapoko availing himself to the court but this was not the case because the accused could not be trusted.
“It took 10 days for the police to locate Kapoko and it is a pity that the defence are not aware about this. The investigations team went to his home in Woodlands but nobody knew his whereabouts. Even his uncle expressed ignorance,” he said.

Mumbuna said the arresting officer only traced Kapoko when the accused made a telephone call to his best friend.

But Chanda said there should be no fear of fleeing because Kapoko’s passport had been submitted to the investigations officers and he would abide by the instructions set by the court.
“Our client is merely facing allegations until proven guilty by a competent court. Our prayer is that you proceed with your discretion since Kapoko is innocent as at now unless the State proves that he is guilty,” Mr Chanda said. He said the police had no difficulties in locating Kapoko who would always avail himself when needed.

Chanda said it was not true that the State had difficulties in locating Kapoko but that it was police who were not ready to arrest his client as he had been detained since Saturday last week and was only charged on June 9. He said police officers only charged Kapoko under pressure from somewhere and challenged them to start trial and not to concentrate on incarceration.

Mulife reserved ruling for Kapoko’s bail application to tomorrow to allow him time to look at the submissions by both the State and the defence lawyers, which he said, were lengthy.

And after court proceedings, Kapoko was whisked away in a police vehicle to Kamwala remand prison. Kapoko’s relatives immediately descended on journalists accusing them of being unprofessional while others assaulted Zambia Daily Mail photo-journalist, John Ngoma. Kapoko’s uncle Robert Kalimi later apologised. The matter has been adjourned to June, 17, for mention. (Times of Zambia)


June 1, 2009
23 health workers detained

By Sylvia Mweetwa
Ministry of Health employees linked to the theft of about K27 billion from the Government have been detained in various police stations in Lusaka to assist with investigations.
The investigators had also agreed with commercial banks to freeze bank accounts of all the 23 suspects as the embezzlement probe continued.
Police spokesperson, Bonnie Kapeso said in an interview that 23 officers were detained for interrogation but were yet to be charged.
Mr Kapeso said investigations were progressing well and the detained suspects were soon likely to be charged with offences ranging from forgery to obtaining money by false pretences.
“We have detained 23 officers from the ministry of Health who are assisting us with investigations and the number is likely to increase following the addition of more names to the list of suspects,” he said.
Those detained were picked up between Thursday and Friday and were taken to different stations including Lusaka Central, Emmasdale, Kabwata and Bennie Mwiinga for interrogations.
Mr Kapeso assured that the probe team, comprising the police, Drug Enforcement Commission (DEC) and Anti-Corruption Commission (ACC), was committed to conducting a thorough probe and ensure that those involved faced the law.
Other sources close to the investigation, who spoke on condition of anonymity, revealed that the bank accounts of the 23 officers under interrogations had been frozen, pending investigations.
“The investigators met the heads of commercial banks last Tuesday and it was agreed that the suspects would only be allowed to draw their salaries this month while the rest of the money would remain frozen,” a source said.
The source said the investigations had been extended to more suspects who previously worked for the ministry of Health as contract workers and a few of them were on the run.
There was anxiety at some police stations after relatives who had gone to check on those detained found that the suspects had been moved to other stations.
On Saturday, police picked up former ministry of Health permanent secretary, Simon Miti who was questioned for over six hours on the same matter.
Dr Miti becomes the first senior public service officer to be picked up since the probe into alleged misuse of public funds at the ministry started.
Secretary to the Cabinet, Joshua Kanganja announced on Friday that the number of those implicated in the matter had shot up to 32 from the initial 23 Government workers and all had since been sent on forced leave to pave way for investigations.
President Rupiah Banda recently called for a thorough probe into the ministry of Health scandal and punishment of all involved.
Sweden and the Netherlands have withheld US$33 million aid to the ministry of Health because of the scandal, leaving the Government with a monthly financing gap of K24 billion and placing health service delivery at risk. (Times of Zambia)


May 30, 2009
Nine more suspended
••• As Health ministry scam probe scam intensifies

THE number of employees being investigated at the Ministry of Health for the alleged theft of K10 billion from the Government has now shot up to 32, Secretary to the Cabinet Joshua Kanganja has said.

Initially, 23 Government workers were implicated in the scam, in which the Anti-Corruption Commission (ACC) placed some property on restriction.
Dr Kanganja said nine more employees at the Ministry of Health had been sent on forced leave pending investigations into the K10 billion financial scandal, bringing the total number of those being investigated to 32.

Dr Kanganja said in Lusaka yesterday when he addressed journalist that the nine employees had since been issued with suspension letters.
“I was given the first report which contained about 20 suspects but I received an updated report on Thursday and this indicates that the number of suspects under investigation has risen to 32,” he said.

The Ministry of Health earlier this week sent on forced leave 23 members of staff named in the investigation into the financial scandal involving the theft of more than K10 billion from the Government. He said currently he could not take further measures against the suspects because the Anti-Corruption Commission (ACC) was still investigating the matter.

Dr Kanganja said the ACC was on the ground investigating the allegations and after the commission completed its findings, he would take appropriate action.
Dr Kanganja said administrative action against those who would be found wanting would be taken adding that some of them would be dismissed and prosecuted.

Meanwhile, Dr Kanganja has directed ministries in-charge of the implementation of the decentralisation process to hasten the process. Speaking when he opened the decentralisation implementation policy (DIP) meeting for permanent secretaries held at Chrsimar Hotel, Dr Kanganja said the successful implementation of the policy would improve the responsiveness to the needs of the people.
“In the light of the importance of this policy towards the attainment of Zambia’s development objectives in general and the public service reform programmes in particular. I direct each and every ministry that will be devolving some of their functions to accord issues of implementation of decentralisation the seriousness they deserve,” he said.

He said implementation of the DIP would empower communities and contribute significantly towards the fight against poverty and improve governance issues.
Dr Kanganja however said the implementation of the DIP would encounter challenges like resistance to change from a centralisation system to a decentralised one.
Her said the policy was expected to be achieved within the stipulated time frame saying critics would be proved wrong.

Dr Kanganja urged the permanent secretaries to deal with such challenges, as it was their task to ensure that the Government overcame setbacks like that of change.
He said the Government had prepared a sensitisation strategy for dissemination of the policy and had used it extensively to engage different stakeholders to inform them about the decentralisation process as well as its implications.

Dr Kanganja said some of the stakeholders engaged include all the 13 sector ministries, provincial and district administrations, and members of Parliament, media institutions, trade union leaders, cooperating partners and the civil society.
He said these stakeholders would devolve some of their current functions to their members.

At the same function, German Technical Support programme leader, Peter Dineiger said the preparation of the DIP’s roadmap by the Government indicated that it was committed to decentralising its operations.

Dineiger said as cooperating partners, they were confident that the DIP would foster intergovernmental cooperation and encourage coordination between ministries.
Earlier Local Government and Housing Permanent Secretary Coillard Chibbonta said by June or July, DIP would be implemented. (Times of Zambia)


May 14, 2009
ACC smashes K10bn scam

By SYLVESTER MWALE
The Anti-Corruption Commission (ACC) has smashed a racket in Lusaka in which more than K10 billion was stolen from the Ministry of Health and restricted K3 billion worth of property suspected to have been bought from the proceeds.

In another development, the ACC on Tuesday summoned former Clerk of the National Assembly, Mwelwa Chibesakunda on charges of corruption. ACC public relations manager, Timothy Moono said the K10 billion racket was masterminded by a former Ministry of Health official who has since been moved to the Ministry of Local Government and Housing.
“The official has not yet been arrested but investigations have continued,” he said.

Moono said the official drew the money from the Ministry of Health account and diverted it to personal businesses. Twelve vehicles, among them a Hummer H3 and two Mercedes Benz cars, believed to have been purchased using public funds, have been seized. Other vehicles recovered were two Toyota Lexus, an X5 BMW, a Mitsubishi Challenger, a Ford Ranger, a Mazda Pickup and a 30-tonne Nissan UDI tipper truck.
T
he ACC has also placed Best Home Lodge in Roma Township and a house in Olympia Park under restriction pending the conclusion of the investigations. Moono, who led journalists to view the lodge yesterday, said the vehicles were seized from different people who revealed that they had been given by the former Ministry of Health official.

The syndicate, which has been going on since last year, was believed to have involved many people at the Ministry of Health apart from the official in question.
Moono said even after the suspect had been relocated to the other ministry, he had continued to influence some members of staff at the Ministry of Health to siphon more money. (Times of Zambia)