Questions Continue To Be Raised of ZESCO STAG Debacle

In the wake of international concern over Zambia’s true debt, more worrying rumours have begun circulating. It has been reported that President Lungu has signed a $500 million loan to ZESCO when in fact it only needed $350 million – begging the question where is this extra money going?

UPND Leader HH questioned: “If ZESCO only wanted a loan of $350 million who took the extra $150 million and why did it take the President to sign the loan which should have been signed by the Minister of Finance?”

Secretary to the Treasury Fredson Yamba insists that there was no illegality in the US$500 million Sovereign Guarantee that was personally signed by President Edgar Lungu and issued in favour of Stag African Investments Limited to finance Zesco, adding that the guarantee was cancelled by Minister of Finance, Margaret Mwanakatwe in April.

But National Democratic Congress leader, Chishimba Kambwili, has described the loan guarantee saga as “an awkward act of corruption.”

He further pointed out that there were clear links between Stag Africa and Lusaka-based lawyer, Lewis Mosho.

“Stag head office is at Mosho’s company; the famous PF government lawyer. For a fact, that is where their head office here in Zambia is. And where people like Mosho are involved, obviously, one can smell a rat. That’s why Amos was trying by all means to try and say that this is a South African company because he knew that when certain names start popping up and being connected, the Zambian people will see that this issue is an awkward act of corruption,” Kambwili narrated.

The controversial Stag loan was originally unearthed by an Africa Confidential report where Zesco would acquire and service a US $500 million loan, but that only US $350 million would be transferred to the utility.