Africa-Press – Zambia. Lusaka… Friday May 16, 2025 — CONTRARY to allegations by the Drug Enforcement Commission (DEC), the K10 million loan obtained from the First National Bank (FNB) was cleared in October 2020 by Gibson Power Systems way before former minister of Foreign Affairs Joseph Malanji’s trip to Turkey, the Economic and Financial Crimes Court has heard.
And Malanji has clarified that a loan that Gibson Power Systems had applied for at FNB to facilitate the development and renovations of the Gibson Royal Hotel was disbursed nine months later after the company had already mobilised some funds from other sources, thereby using the given loan in other business ventures.
In cross examination by the state in the matter before Lusaka Principal Resident Magistrate Ireen Wishimanga, Malanji maintained that Gibson Power Systems, a company in which he is one of the directors and shareholders, had liquidated the loan obtained from FNB before his trip to Ankara, Turkey, as testified by a state witness from FNB.
It is alleged that the K10 million loan obtained in 2015 was liquidated after Malanji returned from Turkey in December 2020, but a senior manager at FNB, Biggy Trywell Banda, testified that the said loan was cleared in October 2020 by Gibson Power Systems way before Malanji’s Ankara trip.
When asked to confirm that the loan was only settled after his Turkey trip, Malanji responded in the negative.
“It is not true that the loan was cleared after my return from Ankara. It was cleared way before my Ankara trip as evidenced by the bank deposits that I presented before this court. In fact, even a senior manager at FNB, Biggy Trywell Banda, also told this honourable court that the loan was cleared in October 2020 by Gibson Power Systems way before my Ankara trip,” Malanji said.
Malanji also explained that Gibson Power Systems had delayed to settle the bank loan because there were some contentions, and after serious negotiations with the FNB in South Africa, the loan was cleared in October 2020.
Meanwhile, Malanji has also clarified that a loan that Gibson Power Systems had applied for at FNB for purposes of renovations of the Gibson Royal Hotel was disbursed nine months later after the company had sourced some funds from somewhere else and already renovated the hotel.
“The loan was overtaken by events as the money came in late. But when the loan was disbursed after renovations were already done, the company decided to channel the money to other businesses,” he said.
This is a matter in which Malanji, is charged of being in possession of property reasonably suspected to be proceeds of crime, while his co-accused, former Secretary to the Treasury Fredson Yamba is charged with wilful failure to comply with applicable law and procedure relating to procurement of property in Turkey.
Malanji is particularly accused of possessing two helicopters BELL430 and a BELL 206 Jet Ranger, Gibson Royal Hotel and houses in Chongwe’s Silverest Gardens, deemed to be proceeds of crime.
On the two helicopters, Malanji maintained during cross-examination that the source of funds for purchase of helicopters came from Gibson Power Systems and Gibson Air Charter.
He said it was shocking that he was charged with possession of the aircrafts when he did not personally purchase them.
Malanji further stated that the companies associated with him had the capacity to procure a Bell 430 helicopter and Bell 206 jet range as evidenced by the over USD 5.950 million turnover bank statement between 2010 and 2020 from FNB and Stanbic Bank.
On the houses in Chongwe’s Silverest area, Malanji maintained that his income—comprising allowances, salaries and gratuities as a Member of Parliament and later Minister of Foreign Affairs, as well as the rentals collected from tenants were channelled towards the purchase of the properties.
The matter was adjourned to Monday, May 19, 2025 to allow the defense to bring witnesses.
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