A RELATIONSHIP Manager First National Bank (FNB) has testified that Konkola Copper Mines (KCM) provisional liquidator Milingo Lungu applied for the opening of two bank accounts at FNB.
Natasha Mutatabowa said the documents which were submitted to the bank for the opening of KCM bank accounts; one a dollar and another a kwacha account, were signed by Lungu.
She testified before Lusaka magistrate Felix Kaoma that after the bank accounts were opened, the kwacha account received K4.4 million from KCM, which money was later transferred to Muya and Company, a law firm based on the Copperbelt.
Mutatabowa confirmed to the court that all KCM accounts held at FNB had been frozen together with those for Lungu Simwanza, but added that only one was currently operational.
In this matter, Lungu, 43, is charged with theft and money laundering.
In count one, it is alleged that Lungu between May 22, 2019 and September 28, 2021, being a provisional liquidator for Konkola Copper Mines, stole K4.4 million, the property of Konkola Copper Mines PLC.
In the second count, it is alleged that during the same period, Lungu transferred K4.4 million, knowing or having reasons to believe the same to be proceeds of crime.
When the matter came up for continued trial yesterday, Mutatabowa testified that sometime last year, some Drug Enforcement Commission (DEC) officers went to her office with a search warrant, requesting for the mandate and transactions on the KCM accounts.
She told the court that she was assigned to give the officers the documents they requested for and she prepared them.
The witness said the request was for dollar and kwacha accounts, and she handed over the documents to DEC.
Mutatabowa identified before court the mandate file which comprised a letter from KCM of a request to open the accounts, documents in support of the request, and the letter was signed by Lungu and had a bank stamp on it.
She also said the mandate file contained the certificate of incorporation and a court order that appointed Lungu as a provisional liquidator for KCM.
Mutatabowa said the first transaction money from KCM was K4.4 million, which money was later transferred to Muya and Company.
She said USD410,000 was also transferred from the dollar account to the kwacha account and that another amount of USD 5 million was received from Moxico Resources Limited Zambia into the KCM dollar account.
The witness said the bank was instructed to transfer the money by KCM and the instructions to transfer were signed by Lungu.
Mutatabowa told the court that there was a further transfer of USD 410,000 from the KCM dollar account to the kwacha account and the instructions were issued by Lungu.
During cross examination, Mutatabowa said the date of the court order was May 21, 2019, which allowed DEC to visit the bank.
She also agreed that Lungu used a court order to apply for the opening of the KCM bank accounts as such he had the authority to do what he did to operate the accounts.
Mutatabowa also confirmed that the account names for the KCM accounts were Konkola Copper Mines PLC Liquidation (dollar) and Konkola Copper Mines PLC (Kwacha).
Trial continues on April 11, 2022.
One Response
Only one man signatory to accounts with such huge amounts? Temptations