The oversight role of the board of director of the Development bank of Zambia – DBZ has come under question after the Anti-Corruption Commission – ACC arrested the banks Managing Director Samuel Bwalya.
A check at the website of DBZ reveals that the board has a distinguished persons as directors who were expected to supervise and have oversight over the development bank activities and its managing director.
The board has distinguished individuals serving as directors that include Prof Pinalo Chifwanakeni as Chairman, Mpho Kubelo, Sanjay Chaudury, Linda Mazokera and Kafula Mwila. These directors on the DBZ board have the requisite experience, qualification and international experience to have prevented the reputational damage that the bank has taken.
The questions that are arising is how the MD managed to pay out all these amounts acting alone as this should have involved other senior staff such as the Finance Director and accounts department staff to facilitate initiating and approving payments without support documentation.
It also raises further questions on the Board of directors risk responsibility to implement financial controls as the Finance Department seems to have continued to process these payments over time when there seems to have no contract or terms of conditions of Servince to warrant such payments which are reported to have been made over a period of time.
The anti-corruption investigative agency – ACC arrested the Development Bank of Zambia (DBZ) Managing Director Samuel Bwalya for Abuse of Authority of Office involving K780,000 relating to suspected amounts paid or drawn from the development bank as education and school fees allowances.
Bwalya aged 51, of New Avondale, Lusaka, has been charged with 12 Counts of Abuse of Authority of Office contrary to the Anti-Corruption Act.
ACC Spokesperson Queen Chibwe said details of the offence are that on multiple occasions between 1st May 2020 and 30th July 2021, Bwalya whilst working as a public officer in his capacity as Managing Director for the named bank arbitrarily directed the payments of school fees for his children abroad using public funds.
“Bwalya, using public funds, made 12 separate payments of £15, 980, equivalent to K417, 900.97; R106, 324, equivalent to K132, 435.09; and R90, 205, equivalent to K130, 709.94,” Chibwe disclosed.
“Other payments were R35, 160.61 equivalent to K39, 028.28; K10, 540, K9, 000; K8, 111.50; K8, 420; K6, 980; K6, 840; K6, 560; and K4, 670.” She said the funds were paid to different schools in the United Kingdom, South Africa, and Zambia.
The DBZ MD Bwalya has since been released on bond and will appear in Court soon. ACC has not confirmed whether Bwalya acted alone, forged his contract as no other officer or director at DBZ has been jointly charged with him.
