The Bank of Zambia (BOZ) Governor Dr. Denny Kalyalya has hinted that the central bank is willing to provide government [and the public] with all the information it has on the $33 million FTJ University payment details if the government [Ministry of Finance] who is the client in this case gives a go ahead.
Kalyalya stated that the central bank cannot disclose any information concerning the US$33 million payment that was made towards the construction of FTJ University in Luapula province because of the principal-agent relationship with government [in this case the ministry of finance].
This follows revelations by Ex-finance deputy minister and Matero Member of Parliament (MP) Miles Sampa that BOZ has exact details and a paper trail of who exactly got paid and to which accounts the funds were remitted.
Sampa revealed that “before forex payments are sent out on behalf of their client the Ministry of Finance or Zambia, the central bank would need to append their signatures”
The ex-Deputy Minister of Finance said the BOZ Governor Dr. Denny Kalyalya or his office should have also gone through this payment with its various support documents and approvals before the payment was initiated or done so they have the details of who was paid. He further confirmed that the current BOZ Governor Dr. Denny Kalyalya was occupying the same position when the payment was initiated.
And when asked by the Zambian Business Times-ZBT, what role the central bank or the Governor’s office played in this matter, Dr. Kalyalya said “yes we do that for the government but it’s the principle [Ministry of Finance] who can tell you where they took the money. This is an authorized person who has procedures on how to use the money they withdraw on behalf of government”.
Speaking when asked by ZBT during the Monetary Policy Committee announcement and press briefing, Dr. Kalyalya said the central bank has a principal-agent relationship with government therefore it cannot reveal matters that affect its customers which in this case is the government.
He explained that the central bank only ensures that the authorized person withdraws money on behalf of government and advises the client on whether or not they have sufficient funds to meet their withdraw request.
The Governor added that it is not up to the bank to ask their client what they intend to use their money for or follow up on what the money was used for as their interest ends at ensuring the right person has access to the money.
The Governor did not however clear the air as to whether the funds were withdrawn as cash or a funds transfer was made. More details to follow as ZBT follows up this matter with the Ministry of Finance to give BOZ the necessary go ahead to reveal on what actually transpired.
