By Patson Chilemba
The Ministry of Finance has confirmed that the Zambian government has been making payments to Zambian businessman of Indian origin Shashikant Patel, but avoided mentioning the $50 million payment made to him under the UPND administration.
But activist Brebner Changala said President Hakainde Hichilema must answer to Zambians if he is a close associate of Patel and if the Zambian people are being shortchanged on account of the same.
Impeccable sources in the UPND administration have told Daily Revelation that $50
million was paid as compensation to a company Patel owns. Patel is said to have close links to State House and the UPND administration, something he of course denies.
Patel was contacted in the earlier story, but said he could not discuss the question of payment as it was a matter of arbitration between two parties and would not comment on it.
However, Daily Revelation sent a press query to the Ministry of Finance to understand the circumstances under which this payment was made, as the newspaper had information that the huge payment was made through the office of the former permanent secretary Mukuli Chikuba, who was appointed under the Edgar Lungu administration but carried on into Hakainde Hichilema’s administration.
Responding to the query, Secretary to Treasury Felix Nkulukusa indicated that the payments to the businessman have been ongoing since 2020 following a consent order that was issued, but did not respond on the huge $50 million payment done under the UPND administration.
“We are grateful for your effort to reach-out for information on payments made by the Ministry to Mpulungu Harbour Management Limited, represented by Mr. Shashikant Patel,” Nkulukusa stated in part, giving a bit of background concerning the award of the concession of the Mpulungu Harbour port and estates to Patel’s company in July 2000 for a period of 25 years.
He stated however, that the concession was cancelled in 2012 by the government with the port being handed over to Mpulungu Harbour Corporation (a state enterprise) to manage on behalf of the government, an action which resulted in a claim for loss of revenue.
Nkulukusa argued that in view of the foregoing, a consent order was granted and it was followed by an arbitration process, pursuant to the Arbitration Act No.19 of 2000, and that following the arbitration, the government started making payments to Mpulungu Harbour Management in 2020 and has been making payment as and when resources are available.
“The public shall be given an update, at an appropriate time, after consultation with other state organs on arbitral rules, terms and procedure required before making comprehensive public statements,” stated Nkulukusa.
But Changala demanded for answers from President Hichilema.
“First and foremost, he must answer publicly. Is he a close associate of Shashi patel? Has he ever acted on behalf of Shashi Patel? Did he know about the court cases that were being handled by the Republic of Zambia? … Is it the more reason that he is given the TAZAMA pipeline for other business?” Changala asked. “Is it payback time? Is the country being short changed by an elected top servant? Those are questions which I want you to put on record and Mr Hakainde must answer.”
Changala gave a background on how current Anti-Corruption Commission (ACC) chairperson Musa Mwenye fought the court battles involving the government and Patel during the time he served as Attorney General in the Michael Sata administration.
“I am giving you critical information. This is a matter that Musa Mwenye personally prosecuted or indeed acted on behalf of the Republic of Zambia against Shashi Patel,” he said.
He said the judgment that was obtained then never went to as far as $50 million.
“So the $50 million if it has been paid did State House influence the payment to Shashi Patel? These are the legitimate questions,” said Changala.
