CONTROVERSY has erupted at the Bank of Zambia (BoZ) over the retention of Nchito and Nchito as legal advisors to the Central Bank over the liquidation of Access Financial Services Limited (AFSL) and Access Leasing Limited (ALL) when the two institutions were solvent.
The Bank of Zambia legal department has been thrown into a fray and accused of perpetrating a questionable arrangement of retaining Nchito and Nchito, formerly NMB Legal Practitioners who were predominantly involved in the defunct Task Force on Corruption.
Sources within Bank of Zambia have disclosed that Mutembo Nchito and his brother Nchima had never been in a position to advise the Central Bank objectively as the Nchito brothers were deeply conflicted as they were the investigators, prosecutors and BoZ lawyers in all the matters involving AFSL and its directors.
Ironically, the Nchito’s whom are still lawyers for Bank of Zambia despite clear evidence that they were conflicted, have advised the Central Bank against entertaining the proposed consideration of settling the AFSL matter outside court unless its shareholders abandoned the court challenge over the liquidation schedule of AFSL and ALL.
Recently, the Supreme Court chastised the Bank of Zambia and its lawyers for deliberately failing to discipline Marshall Mwansompelo, the liquidation manager of AFSL and ALL who had been charged with serious offences because they were worried that he (Mwansompelo) would ‘spill the beans’.
The BoZ lawyers used the legal professional privilege to attempt to conceal evidence of the mismanagement of liquidation of AFSL and ALL by the Central Bank.
The source said the Nchitos were actively involved in the Task Force on Corruption which was nothing but a failed political tool created by the Levy Mwanawasa regime to selectively target perceived enemies under the guise of fighting corruption at the time.
The Nchitos who are still the legal counsels of the Bank of Zambia were the same people who were involved in the investigations and prosecution of AFSL directors used the Task Force on Corruption to ransack AFSL in connivance with the Bank of Zambia.
The Central Bank has been told that the retention of Nchito and Nchito who are deeply conflicted by the Bank of Zambia was but a case of abuse of position and should not be allowed to continue.