By PERPETUAL SICHIKWENKWE –
FORMER Commerce Minister Felix Mutati has told the court that a Memorandum of Understanding (MoU) on investment that the Zambian Government signed with a Chinese mining firm had nothing to do with bicycles.
This is in a matter in which former Mines minister Maxwell Mwale faces charges of abuse of authority of office and being in possession of 5,000 bicycles worth more than K1 million, property suspected to be proceeds of crime.
Mwale is jointly charged with Charles Shi, a director at the Chinese mining company, Zhongui International Mining Industry Group Limited.
Testifying before magistrate Lameck Mwale yesterday, Mr Mutati, 55, said the agreement signed between the Government and Zhongui International Mining Industry Group Limited did not state anything about bicycles.
He said the MoU was about Zhonqui’s investment in mining and other sectors but, however, said other sectors could have involved dealing in bicycles because the agreement was broad.
Mr Mutati of Chila Road in Kabulonga said as far he was concerned, the issuance of the investment licence to Zhongui was part of Investment Promotion Protection Agreement (IPPA) and its issuance was in compliance with the MoU.
He explained that from 2006 onwards, the Government embarked on ambitious and extensive programmes and business reforms with the aim of reducing the cost of doing business with emphasis on addressing various pieces of legislation.
Mr Mutati said that they also undertook a number of investments to promote business from 2006 to 2011 and one of the investments was the hosting of a specific promotion forum in China where it invited a number of investors.
He said a number of investors from China requested for a one-to-one discussion on issues regarding investment, among those companies was Zhonqui Mining.
Mr Mutati said that Zhonqui made an attractive investment presentation where it was ready to invest up to US$5 billion in various sectors, including mining.
He said an MoU was drawn, which defined the various obligations of the two parties and Zhonqui promised creation of jobs and to support businesses, while the Government was to facilitate processes such as the issuance of licences and permits.
Mr Mutati said he later met late president Levy Mwanawasa and briefed him about the investment which he was happy about, as it was difficult then to find such an investor since the world was going through a financial meltdown.
It is alleged in the first count that Mwale, between May 1, 2009 and August 31, 2011, abused the authority of his office by facilitating the issuance of mining licences to Zhongui International Mining Industry Group Limited.
Particulars indicate that this was in breach of the issuance of mining licences’ procedure.
In the second count, particulars are that between July 1 and August 31, 2011, Mwale allegedly imported 5,000 bicycles valued at more than K1 million suspected to be proceeds of crime.
Trial continues today.
