draining development.pdf - Khazar University

444 Draining Development?authorization forms was introduced. Thereafter, transfers were madeunder payment authorizations bearing only Stella Chibanda’s signature.Over US$1.2 million of the money paid out of the account went tothe president’s tailor in Switzerland for expensive suits. The presidentwas well known for his smart clothing. 30 Other payments were simplycash payments for the president or to Chungu to pay off Chungu’s creditcard debts and school fees or to purchase jewelry. A “charitable donation”of US$180,000 was made to “churches in America” at the directionof the president.The Zambian conspirators were aided and abetted in all their activitiesby two London-based firms of solicitors, Meer Case & Desai andCase Malik & Co., respectively, the first and second defendants. 31 Bothfirms acted for Access Financial Services Limited and Access Leasing Ltd.The judge found partners in both firms to be coconspirators in the Zamtropconspiracy.In the judgment, Chiluba, Chungu, Chibanda, and two other coconspiratorswere found liable to repay US$25.75 million, and Chungu wasto pay an additional US$600,000 in damages for conspiracy. The partnersin the two firms of solicitors were found liable for sums of US$7million and US$2 million, respectively, for conspiracy and dishonestassistance. Sums were awarded against various other individuals, includingUS$1.2 million against Basile, Chiluba’s Geneva tailor, for dishonestassistance and conspiracy.The BK conspiracyA letter of intent dated April 1999 was initially signed by Chungu onbehalf of Zambia and appointing a Mr. Soriano, also known as EmmanuelKatto, a close associate of Chiluba and Chungu, as a consultant to actfor Zambia in negotiating and purchasing arms, ammunition, andequipment. In August 1999, an agreement was supposedly entered intobetween a company called Teraton of Sofia, Bulgaria, and Zambia for theprocurement of four helicopters, two fighter aircraft, arms, and equipment,at a price of US$81 million.A facility agreement dated September 1999 was purportedly madeunder which Soriano, as lender, agreed to make available to Zambia, asborrower, a 10-year facility of US$100 million to provide financing forspecific select projects and institutions for the purposes of provision of