Disciplinary proceedings against a Bank of Zambia lawyer who tried to conceal the theft of billions of kwacha from accounts held by the defunct task force on corruption have started at the Law Association of Zambia.
Dr. Leonard Kalinde was summoned by the association in connection with the mismanagement of assets of the liquidated Access Financial Services (AFSL) and Access Leasing Limited (ALL).
During the hearing which took place at LAZ last Friday lawyer representing Dr. Kalinde, Nchima Nchito of Nchito & Nchito told the committee that it could not proceed with the matter because it was before Supreme Court.
Mr Nchima Nchito in his objection claimed that the matter was in court and therefore it would be prejudice if the committee proceeded with the case.
But one of the directors for AFSL Faustin Kabwe told the committee that there was no such a case before the Supreme Court. He explained that what was in court was the case in which the BoZ wanted to expunge the documents in which the BOZ wanted to cover up.
He said to the contrary, the matter concerning the mismanagement of assets was not in any court.
And a source from the LAZ told the Daily Nation that there was no such matter before the court as claimed by Mr Nchito.
The source said the stay that was before court had completely nothing to do with the stay in the other matters.
“What is in court is the memo that does not qualify for privilege protection because it contains improper purpose in which the court ruled the evidence will stay on the court record. “During the same meeting, Mr Kabwe wanted to know in which capacity Mr Nchito represented Dr. Kalinde because he was lawyer for the BoZ and asked him to declare interest in the matter.
“And surprisingly Mr Nchito could not clearly explain his role in the matter apart from being there with Dr. Kalinde. The other two Kabwe and Aaron Chungu had no lawyers to represent them,” source said.
The source said the committee then asked Mr Nchito to produce evidence to show that there was a stay against ruling and the matter is expected to come up on date to fixed in
April. Mr Kabwe lodged a complaint to LAZ after an internal audit report by BoZ indicated that there was mismanagement of AFSL and ALL assets which BoZ wanted to cover on recommendations of Dr Kalinde.
The report by the Internal Audit of BoZ admits that in certain instances the mismanagement of the assets at the two companies bordered on theft and fraud. But in the report Dr Kalinda is reported to have failed to take disciplinary action against a Mr Marshall Mwansompelo who was appointed BoZ Liquidation manager from January 13, 2003 when the Central bank took possession of AFSL and ALL.
Mr Mwansompelo was charged with a number of disciplinary offenses pursuant to the provisions of the disciplinary code and grievance procedure which included incompetence, sub-standard work output, inefficiency and gross negligence of duty.
The risk associated with charging Mr Mwansompelo included the possibility of a lawsuit against the man, loss of credibility and reputation to the Bank of Zambia for mishandling the matter by charging Mr Mwansompelo alone leaving out his supervisors who may also be culpable.