Economy

Corruption Questions Surround First Lady’s Company

A company owned by President Michael Sata’s wife Christine Kaseba, his two children and his son in law may be profiting from lucrative contracts with the state, according to information provided by a well placed source.

According to documentation obtained by Zambia Reports, a company titled “Kasachi Logistics Limited” was founded on August 11, 2013 by the first lady along with the president’s children Mwango Sata and Chilufya Sata, as well as Chimwemwe Sichinga, who is married to Chilufya and the son of the Commerce, Trade, and Industry Minister Bob Sichinga.

Sources tell Zambia Reports that Kasachi Logistics, which provides automotive trading and repair services, was formed to take over large contracts to provide transportation services to the Food Reserve Agency (FRA) that had formerly been operated by Arizona Marketing, the company owned by the erstwhile Minister of Defence Geofrey Bwalya Mwamba (GBM).

First Lady Dr. Christine Kaseba is the largest shareholder in the company with 2,500 shares, followed by 900 shares owned by Mr. Sichinga, and the two children of the president each owning 800 shares a piece. A well placed source tells Zambia Reports that Kasachi Logistics is earning millions of dollars from a preferential no-bid contract to the Food Reserve Agency, which if proven to be true, would represent a significant conflict of interest and abuse of power on behalf of the first family.

In addition to providing and repairing autos, Kasachi Logistics is also said to provide services in “Transportation and Storage, General Trading and Passenger, Road and Rail transport.”

According to documents obtained by Zambia Reports, the company was registered almost two years into President Sata’s term. The address used is their former residence at House Number 3 Omelo Mumba Road in Rhodes Park Lusaka.

According to a source, Kaseba and his children and son in-law moved quickly to form a company when GBM’s downfall began. Once the former defence minister was ousted from the party, the contract with his company, Arizona Marketing, was terminated by the FRA.

In addition to the first family, the source also alleges that other PF government officials are benefiting from the front company, including State House Spokesperson George Chellah and former State House Permanent Secretary Kaizer Zulu, who are said to operate trucks under the Kasachi Logistics company.

“The company registration documents should raise serious questions,” the source says. “Why is it that the Food Reserve Agency would choose to hire this company when none of the people involved have any experience in the transportation sector? How much is the family earning from this contract, and was the contract awarded thanks to political influence?”

The PACRA company registration for Kasachi Logistics is not the first time the first family has been seen to be involved in the private sector. Sata along with PF Secretary General Wynter Kabimba registered a company called Ilunda Chalo Investments which is said to be involved in state business, while his son, Lusaka Mayor Mulenga Sata, is alleged to be involved in RDA contracts. Other relatives of President Sata are alleged to be involved in a fertiliser scam.

4 Comments

  1. Bob

    The reason these people don’t learn and stop the nonsense is because there are no serious lessons to learn from the past presidents. We need examples of a serious fight against corruption at the presidential as well as at ministerial level. At this rate, corruption and abuse of authority shall never end.

  2. chakuti chako !

    Let them pray that they don’t loose 2016 Elections . Its their time , our time will come . Investigations always come when one leaves office .

  3. pf cadre

    We going to investigate ZRA documents when they leave office . Satan is aware of this …come 2016

  4. Bemba Bimbo

    So this is how Sata is “allergic to CORRUPTION” !!!

    Maybe that is why he is VERY SICK now!

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