It takes one person to make a difference

While walking along Samfya beach, a GRZ civil Servant retired elderly wise man – Ba Shi Mwansa Mwaume saw someone in the distance leaning down, picking something up and throwing it into the Lake Bangweulu.

As he got closer, he noticed that the figure was that of a young boy, picking up barbell fish one by one and tossing each one gently back into the water.

Elderly wise Shi Mwansa came closer still and called out, “Good morning! May I ask what it is that you are doing?”

The young boy paused, looked up and replied, “Throwing barbell fish back into the Lake.”

The elderly man smiled and said, “I must ask then, why are you throwing the fish back into the Lake. I thought FISH is the only relish around here?”

To this, the young boy replied, “The sun is up and the tide is going out. If I don’t throw them in, they will die.”

Upon hearing this, Ba Shi Mwansa commented, “But, young boy, do you not realise that there are kilometres and kilometres of beach stretching from Kapata Peninsular all the way to Lubwe and Kasaba there are all types of fishes all along every kilometre? You can’t possibly make a difference!”

The young boy listened politely. Then he bent down, picked up another fish, threw it back into the Lake past the breaking waves and said, “It made a difference for that one.”

This reminds me of one Michael Chilufya Sata (MHSRIEP) and how HE and Dr. Guy Scott started the PF. There are so many beneficiaries now. Same with MDD and the Garden House meeting. The rest as they say is History. Most often especially in Zambia, we often think we are too insignificant or too unimportant to make a difference. We couldn’t be further from the truth. Take an example of KEEP ZAMBIA CLEAN and GREEN Campaign. What has happened to that very noble National Program?

So, can I encourage you to take the time to do something that will make a difference to someone else’s life and it doesn’t have to be much and they don’t need to know. Just take a moment, do something special, the God Almighty our Creator of the Universe will know and that’s enough.

I am only one; but still I am one. I cannot do everything, but still I can do something; I will not refuse to do something I can do. – Helen Keller

One is not born into the world to do everything but to do something. – Henry David Thoreau.

Have a nice day God’s people. KKK999

FAREWELL and GOOBYE – Standard Chartered Bank Family – 31/08/2015

The date is 31st August 2015. The Day is a Monday. Time is 6.11pm. A short silent prayer of thanks to my Creator, family and colleagues always does a trick for me. It is time-up. On my marks, get ready,  pack and go! I logged-off, shut-off/down and power off the Official laptop. Unplug it from the power socket within my Official work  station. That’s it. Done and dusted. Together with other Company Assets, I religiously handed them over to my Global Line Director. This official handover process signified the end of yet another Professional Epic journey with Standard Chartered Bank Plc (SCB). Time had come to
formally leave the services of Bank to pursue other personal interests outside the Bank. How time flies. 31/08/15 – 6.11pm marks version 6.11 information and data overload. It has been 6 years and 11 months of dedicated, selfless, diligent and professional service of Financial Crime Compliance work within Legal and Compliance Function of SCB ever since I joined on 01/10/2008.

As I bid farewell, adieu and move on, I would like to take a moment to especially thank you and say goodbye as I remember and cherish our times together. It has been great interacting and knowing each one of you. I have enjoyed working for Standard Chartered Bank. I greatly appreciate having had this wonderful opportunity to work with you all within the Country, Region and Global role. It has been both an enjoyable and learning professional experience and growth. During these last 6 years and 11 months, you all have provided me support and through your coaching, encouragement and guidance. With many of you, I have shared a unique camaraderie which I hope will continue in the years to come.

My colleagues and Seniors have been unfailingly supportive and professional, and I have learned a great deal about several Countries, Regions, Group Functions, Client Segments and Products – not forgetting the famous Acronyms and great Corporate Politics of this great Standard Chartered Bank.

To my colleagues I worked with within the Africa (COMESA & SADC Region, Southern, Central, Eastern and West Africa), Middle East, Asia Pacific and ASEAN Region, the European and Americas Regions, I will miss your enthusiasm, perseverance, and the ‘never say die’ spirit and of course the talent that you brought to our groups and various
Projects and Assignments. I sincerely thank you for all your support throughout and hope you continue to extend your cooperation to the current MANCO leadership teams and the succeeding managers. I wish you all, my fellow partners and everyone in the larger SCB family, all the very best.

This is not a goodbye, only “hasta luego” or “see you later”. Goodbyes are not forever. Goodbyes are not the end. They simply mean I’ll miss you. Until we meet again! ~Author Unknown. The world is round and the place which may seem like the end may also be the beginning. ~Ivy Baker Priest

The word thank you may not be enough to actually thank you but I wish nothing more for you but your personal realisation, growth, success and that of Standard Chartered Bank every success in all its future endeavours.

Stay well and be blessed. Many thanks and kind regards.

China signs deal with Africa’s richest man, Aliko Dangote

ALIKO ZOONA. He will die BUILDING more Plants. Goal Getter.

Welcome to Barbrah Musamba Chama Mumba's Blog

A Chinese state-owned engineering company has signed a deal worth $4.3bn (£2.8bn) to build factories for a Nigerian cement company run by Africa’s richest man, Aliko Dangote.
China’s Sinoma will build seven plants across the continent and one in Nepal.
The new factories will add around 25 million tonnes to the firm’s existing cement capacity of 45 million tonnes.
Mr Dangote’s company also produces food, fertiliser and is investing in oil refineries.
He is keeping a close eye on China’s economic problems and the ensuing lower oil price.
“Of course we are affected,” he said, “but we are not badly affected because we are not 100% in oil.
“We are a fully diversified company. So today if oil is doing [badly] it doesn’t mean we are doing [badly] and that’s the good thing about diversification.”
Africa’s economies have been hit hard by the fall in commodity prices but many are…

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The Village Girl, Factory Worker Who Grew Up to Be a Billionaire

Welcome to Barbrah Musamba Chama Mumba's Blog

Zhou Qunfei is the world’s richest self-made woman. Ms. Zhou, the founder of Lens Technology, owns a $27 million estate in Hong Kong. She jets off to Silicon Valley and Seoul, South Korea, to court executives at Apple and Samsung, her two biggest customers. She has played host to

President Xi Jinping of China, when he visited her company’s headquarters.

But she seems most at home pacing the floor of her state-of-the-art factory, tinkering.

She’ll dip her hands into a tray of water, to determine whether the temperature is just right. She can explain the intricacies of heating glass in a potassium ion bath. When she passes a grinding machine, she is apt to ask technicians to step aside so she can take their place for a while.

Ms. Zhou knows the drill. For years, she labored in a factory, the best job she could get having grown up in…

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Ex-Gratia “Mwabombeni” or Gratuity

Others call it ex-gratia, others call it gratuity, yet others, call it iya “mwabombeni” or mwagwila nchinto. Whatever language used, the money employers decide to give/share with employees as they part company has raised a lot of questions and the amounts, percentages and calculations have depended on so many factors which may be advanced and justified by the type and capacity of Employers. Recently, the Zimbabwean Supreme Court ruled that the issue of GRATUITY is never covered by their law and this inevitably has created some negative ripple effect in many organisations and Institutions all sizes across the Nation. This was as a result of two local employees having sued their former employers for allegedly having been UNDERPAID their well deserved Gratuity or ex-gratia. The resultant effect has been disastrous to say the least. Employers have now taken advantage of such a ruling. All they are doing now and can do is to let employees work up to Friday afternoon or evening, when they are about to knock off, they are handed letters of separation/dismissal and told to pack their personal belongings and stay away from the offices. Staff are assured that they would be paid their leave days and 1,2,or 3 months termination notice. That”s it, NO gratuity, no ex-gratia, no relocation allowance etc. About 90,000 will be impacted and the matter is almost turning POLITICAL unless the Republican President one Robert Gabriel Mugabe intervenes and comes to the employees rescue.
This is not far fetched and it can happen anywhere else including Zambia and indeed any Country. It can happen to anyone, anywhere. In fact it happens in Zambia and several other Countries. It happened within several of the Financial Institutions, the Insurers Companies, the Revenue Authorities, the Mines, the Parastatals, NGOs and the Private Sector.

Admitted I’m neither a Lawyer nor an HR practitioner. The issue of gratuity has been controversial in Zambia. I know Four big Financial Institutions which have been dragged to the courts of law for alleged “divide-and-rule”” type of administering the “Voluntary separation packages” and gratuity whereby some Unionised employees have been paid 3 to 4 months pay for each year served whilst Managers have been paid 2, or 2.5/3 months pay for each year served. Interesting enough, HR staff administer/and advise both Employees and Employers alike. Ex-staff are represented by Lawyers and Employers are represented by other crop of Lawyers as well. Initially both sides claim to have the right citations of the Law as the either side are paid. The case is dragged to Court before another Lawyer to interpret the same Law drafted by the Lawyers and passed in Parliament and assented to by the President who in case of (H.E. Levy Mwanawasa and Edgar Lungu) were/are equally Senior Lawyers and State Counsels for that matter.What the NATION would expect from Human Resources Practitioners/GURUS and Lawyers advising on HR matters is a clear interpretation of the Labour Law which talks of “Minimum 2 months pay for each year served”. I believe most of you have come across this INFAMOUS clause somewhere, somehow. When does it apply and to WHOM does it apply? Please guide. The expectation by lesser mortals from ALL HR GURUs and Labour Laws Learned people is create a forum to clearly debate, discuss, agree and share the position so that workers, employees and Managers alike including employers and Labour Officers are all and operate on the same page thereby moderately regulating reliance and great expectations from either side. My loud thoughts. Just to anticipate and avoid the “ZIMBABWEAN” Landmark ruling spilling-over across the mighty Zambezi River and Victoria falls into Zambia. We can also further abate the temptation for ALL Zambians to vie for Political Positions and fight to become Members of Parliament as Zambian MPs are allegedly paid handsomely and good “gratuity” pecks at the end of serving their five year Parliamentary term/seats. 2016 is around the corner. Before we all rush into Politics. Stay well and be blessed.

Kunda Kalaba

The birth and Origins of St, Clement’s Old Boys Association (SCOBA)

  THE GENESIS OF SCOBA

This is the vivid re-collection of the momentous occasion in the history of our beloved and most envied St, Clement’ s Old Boys Association (SCOBA). This is the genesis. In the early morning of a Saturday cold winter month of June 1988, some Senior citizens residing in Lusaka gathered at the University of Zambia Main Campus along Great East Road. Venue was the then New Educational Lecture Theatre 1 (NELT1) located within the School of Humanities. Time was 09.00hrs and the Purpose was the burning desire to consolidate the initial ideas, collate the input from key stake holders, crystallise and actualise the formation of an association with a common purpose. On that day of 25th June 1988, the pregnant cloud of passion and vision gave birth to the formation of St, Clements Old boys Association (SCOBA).

That group of people, representing many others and other generations to come hence made a life time commitment by the following acclamation; “We, the Former Students of St, Clement’s Secondary School situated in Mansa District of the Luapula Province of the Republic of Zambia, having solemnly resolved to constitute ourselves into an Association desirous of promoting a sense of togetherness amongst ourselves on the one hand and the pupils enrolled at the School (St Clement’s Secondary School in Mansa ) on the other; keen to help in collaboration with the school administration and authorities to maintain the high level of academic standards for which the School is known for and contribute to the welfare of the pupils there” adopted the constitution and agreed the name of the Association shall be ST CLEMENT’S OLD BOYS ASSOCIATION (SCOBA).

Ever since, the OBJECTIVES have been and will inevitably continue to be

(a)        To bring together all St Clement’s Secondary School Old Boys for the purpose of promoting and fostering the spirit of togetherness and provide a forum for networking.

(b)        To supplement the efforts of the Government and or the school authorities whenever possible for the betterment of the school.

(c)        To promote and enable access to sharing and dissemination of information, ideas, experiences and resources among SCOBA members;

(d)       To do all things necessary and incidental to, as well as any other activities not inconsistent with, these objectives.

Present on that one cold morning among them were the following;

1.      Hon. Clever M. Musumali ( Late Zambian High Court Judge – as Chairman)

2.      Mr. N. Kataya was Secretary

3.      Mr. C.T. Lukangaba was Treasurer

4.      Mr. G. Mayondi was Vice Secretary

5.      Dr. Kalombo Mwansa – UNZA Law Lecturer, later to become Permanent Secretary – Home Affairs, Hon. Minister Home Affairs, and Foreign Affairs and Ministry of Defence in the MMD Government. Now Dean of the School of Law at Lusaka Open University and Legal Consultant.

6.      Mr. Xavier F. Chungu – Later to become Director General of the ZSIS and Business Consultant based in Lusaka

7.      Faustine Kabwe – Later to become shareholder in several Businesses in the USA and Zambia

8.      Mr. Samuel Musonda – Later to become ZANACO London Branch Manager and Managing Director of the said Bank.

9.      Mr. Chriticles P. Mwansa – UNZA Student who later became Director of World Customs Organisation, ZRA Commissioner and later Commissioner  General, Permanent Secretary in the Ministry of Science Vocational and Technical Education and now Revenue Authority Advisor to the Government in Sierra Leon

10.  Mr. Moses Nkandu – UNZA Student who later became scientist, Banker, Accountant – ACCA & CIMA, Tax Advisor, ZRA Deputy Commissioner/Director and President of SCOBA

11.  Mr. Henry Chisha – who was one of the high ranking Zambia Police Commissioners in the Zambia Police Service having served in various portfolios. Now Retired.

12.  Mr. Daniel Mumba – UNZA Student who later worked for Export Board of Zambia, Zambia Development Agency as a Deputy Director, Travelled the globe extensively, did his Masters Degree and PHD in the USA and Canada respectively. Dr. Mumba is a Lecturer in Canada

13.  Mr. Ackims Kapekele Musonda – UNZA student who later worked for Zambian Parliament up to the Post of Chief Editor – Parliament Drafts

14.  Mr. Adolf Musonda – UNZA Agricultural Science Student who later worked at   Kawambwa Tea Company in Kawambwa and later formed his own company based Lusaka. The Company is co-owned with another SCOBA – Mr. Jeff Kalembe

15.  Mr. Patrick Maipose – UNZA Engineering Student who later worked for Caltex and now shareholder of a Petroleum Company based in Botswana

16.  Mr. Kennedy Mwelwa Mulenga – UNZA Student who later worked with Chontamalinga in Lusaka before migrating to Los Angeles in the USA where he and the wife are running businesses and working for a Global Logistics Company as a Consultant.

17.  Mr. Mwenya Patrick Musonda – UNZA Student who later went to Poland to study IT and Computers. Came back to set up his business before migrating to Botswana where he worked and later set up his own IT and Computer Business Consultancy work and married a Motswana lady.

18.  Mr. Edward Chungu – UNZA student who later became a Senior Banker with ZANACO in Lusaka and the current SCOBA Treasurer.

19.  Mr. Caristo Chitamfya – UNZA Student who later worked for ZNBC TV as Head of Programs, briefly at Red Cross/Red Crescent, for Eco Bank and now at the Zambia Tourism Board.

20.  Mr. Linus Chanda – UNZA Engineering Student who later worked for Kariba North Bank in Siavonga for many years, had a 7 year contractual assignment in Jinja in Uganda before National duties called him back to take up position as Director in Charge of Generations at ZESCO based in Lusaka.

21.  Mr. Kawesha Edward Chipampe – UNZA Engineering Student who later worked for ZESCO in Luapula based in Mansa and later Ndola on World Bank Project before relocating to Windhoek in Namibia where he is working.

22.  Mr. Charles Mukamba Mukuka – UNZA Engineering Student who worked for ZESCO in IT and later as a Project Manager involved in the construction of itezhi tezhi dam.

23.  Mr. Gregory Muyeye Mululuma – UNZA VET student who was later to work as first and only Veterinary Doctor in ZRA, Ministry of Agriculture and Livestock in Mazabuka and Lusaka. Now running the Livestock Project in the show ground under MAFF.

24.  Kunda Emmanuel Kalaba – UNZA student who later worked for ACC, Barclays Africa, Chemonics International/USAID, Standard Chartered Bank in Several African Countries, Europe and now based in Asia.

25.  Dr. Emmanuel Pensulo – BENG Lecturer who consulted and constructed the power sub-station on Great North Road between Serenje and Tuta Turn – off at a place named after him by the locals who fondly call at ati pa “PENSULO” sub Station.

26.  Mr. Bernard Mwansa Nchindila – UNZA Student who later became a professional Teacher at Lake Road, had assignments in the UK and now PHD holder. Dr. Nchindila is an academician, researcher and Lecturer at UNISA based in Pretoria RSA. A distinguished Professor based in South Africa

27.  Mr. Mwape Donald Kasanda – UNZA student who was to later work as Trained Teacher in Ndola, District Commissioner for Mufulira and Kitwe for 12 years and now Deputy Director of HRA under the Ministry of Spot, Youth and Child Development and pursuing his dream to become a Lawyer

28.  Mr. Peter Chishimba Mulenga – UNZA Student who later became a Secondary School Teacher in Luapula Province, before becoming Deputy and now Principal for Mansa Teachers Training College next to St, Clements.

29.  Mr. Phillip Chate Mbolela – UNZA Student who later became a Mansa based Businessman and Commercial Livestock and Fish Farmer.

30.  Luckson Kayombo – UNZA Student who later became a Teacher in Zambia and now based in Swaziland with Mr. Michael Simulala.

The meeting attracted key stake holders from across a spectrum of various sectors of the Zambian Society with different professional backgrounds and pursuing diverse academic faculties. The only common denominator which brought all of their insatiable desire to uplift the welfare of the St, Clement’s Secondary School.

One amazing and conspicuous fact about this meeting was the commitment of Senior citizens who had to wake up very early over the weekend and the decision to arrive and assemble at UNZA by 09.00hrs on a cold morning of June 1988 (before the global warming phenomenon came in, this part of the earth used to be very cold and rains almost always started on time i.e. 24th October every year) is but one great lesson of vision, selfless sacrifice by the founding fathers of SCOBA. Let us all learn to keep and financially support the vision these founding Fathers of SCOBA had. It is important, cardinal and paramount that we give an unflinching support to the School in whichever way we all collectively can.

“Even in years of serenity, memories are for those who keep them”. You can imagine that some 27 years later (same number of Years late President Nelson Madiba Mandela spent in Prison at the Robben Island and RSA Mainland) after SCOBA held its Second General meeting in Lusaka, Chaired by the late High Court Judge Hon. Clever Musumali, the Minutes of that meeting have been faithfully kept intact by the author of this article.

It is during that meeting in which SCOBA Executive Committee was “EMPOWERED” to co-opt any members of the SCOBA by acclamation. The SCOBA constitution which we have now updated was drafted shortly after the meeting in 1988.

One most important and cardinal action point and way forward of this ground breaking meeting was a firm resolution by SCOBA to assist our beloved school which gave most of us a strong foundation of personalities and good character to be very useful Citizens of the World. This sample collection of fine brains and minds met the specific responsibilities of drawing up a SCOBA constitution, rules of engagement and registering the Association with the Registrar of Societies.

As SCOBAS are no doubt fully aware, “we have successfully put together a Constitution, registered the Association, we have delivered our mandate in full, and we can only thank and congratulate ourselves for the excellent work done. In normal Associations similar to ours, all the above should be “Honoured” with at least life “HONOURALY” membership of the SCOBA for being pioneers and Founding Fathers of SCOBA. It is not too late to ask or consider.

This is the best way we can honour and say excellent and or job well done for your selfless sacrifice and unflinching support for the great vision and commitment coupled with hard work which ensured that the desired result of formation or creation of SCOBA is established and flourishes in its operations. I just thought of putting the record straight for the new generation and generations to come.

It is our ardent hope and prayer that one day, some younger Generation and upcoming SCOBAs would be more involved, passionate and committed to the course and vision and do great wonders to this School more than what we have done so far given the limited resources availed by few committed SCOBAs . That would be fundamental and adequate reward for our work if in the future, the Younger generation will pick up and continue to “aspire to inspire before we all expire”. It will be better than adequate if all our collective actions can assist to motivate the current crop of pupils and all those who passed through until one day the President of the Republic of Zambia would proudly announce that he passed through that great School. It sounds farfetched but it is doable. We have had number 3, 4 and 5 in the Land. We want a number 1. May Jehovah God Almighty Bless all SCOBAs wherever they are in corners of this Earth.

Kunda Katwishi Kalaba ( SCOBA – Form 5 in 1985)

The birth and Origins of the Institute of Directors (IoD) – Zambia Chapter.

This is the vivid re-collection of the momentous occasion in Zambia. This is how it all started.  In the cold winter month of June 1998, Zambia – Commonwealth Programme on Corporate Governance and the Commonwealth Association for Corporate Governance in collaboration with the Commonwealth Fund for Technical Co-operation and the Institute of Chartered Secretaries and Administrators (Zambia Association) oragnised a 3 day workshop at Intercontinental hotel in Lusaka. The workshop attracted key stake holders from across a spectrum of various sectors of the Zambian Society with different professional backgrounds. Government of the Republic of Zambia Officials, Businessmen and women, Parastatal Companies, Commissions, Agencies and Civil Societies were present.

Mr. Michael Gillibrand was a Special Adviser – Management and Training Services Division at Commonwealth Secretariat. Mr. Mohan V. Thomas was Chairman of the Institute of Chartered Secretaries and Administrators whereas Mr. Geoffrey Bowes was the Executive Director for Commonwealth Association for Corporate Governance. The three day interactive and power point slide presentation (remember that Microsoft PowerPoint slide presentations using projectors with fancy animations sounding like type writers or emergency car breaks had just been introduced in Zambia) was both educative and enlightening!

Among the notable presenters who inspired the audience (workshop participants) was a fine gentleman by the name of Boyman Mankama from the neighbouring Country Zimbabwe. The man was so passionate about Corporate Governance not only in Companies but Government Institutions. This was the time Comrade Gabriel Mugabe – His Excellency the President of the Republic of Zimbabwe had just passed a law on Land reforms in that Country and the “Zimbabwean White Farmers” had started trooping away from that Country to neighbouring Countries including Zambia. The resounding round of applause was phenomenal. The author of this article has kept notes from various presenters of the workshop for posterity and future generations to be inspired as well.

One most important and cardinal action point and way forward of this ground breaking workshop was a firm resolution to assemble a “TASK FORCE” on the formation of the INSTITUTE of DIRECTORS (IoD) in Zambia. This collection of fine brains and minds was established in June 1998 by the Institute of Chartered Secretaries in Zambia with the specific responsibilities of drawing up a Code of Ethics/Code of Conduct (COE/COC), the constitution, rules for the IoD of Zambia and incorporating the Organisation.

The work of the Task Force was studied and debated extensively by the panel of professional Lawyers, Accountants, Bankers and those from the Law Enforcement who distilled the thoughts, drafts, and recommendations into the Code of Conduct and Corporate practices in Zambia.

The Chairman recoded his thanks and appreciation for the Work done by the Task Force Team members and the Committee. The task Force among others had an enviable task of studying the Codes of Best Practice, the various constitutions which were received from the Institutes of Directors in New Zealand, Zimbabwean and South Africa. Hundreds of Hours went into the wading of physical papers, files, reports, documents, the Studies of the Literature, the Codes of Conduct, the Codes of Ethics, Corporate Governance and what it entails. Various research papers and journal publications, constitutions from the republics of South Africa, Zimbabwe, The United kingdom, Australia and New Zealand were reviewed with the asp rational recommendations from which the Code of Ethics, Code of Conduct and the ultimately the Constitution to form IOD in Zambia evolved. Just to confirm that there were no effective Internet browsing and bandwidth was not broad enough to Google search on such subjects. Hence, there was heavy reliance on some paperwork, published articles, magazines, journals, land telephone lines and physical letters moving correspondence through the Post Offices and messengers to communicate with others in-country and our colleagues who were outside the Countries.

  • Some Salient Lessons learnt was that corporate governance in South Africa was institutionalised by the publication of the King Report on Corporate Governance (“King Report 1994”) in November 1994. Mervyne E. King (S.C.) was the Chairman of the Committee.
  • The King Committee on Corporate Governance was formed in 1992, under the auspices of the Institute of Directors, to consider corporate governance, of

increasing interest around the world. You will recall or read the History of South Africa that this coincided with profound social and political transformation at the time with the dawning of democracy and the re-admission of South Africa into the community of nations and the world economy.

  • The purpose of the King Report 1994 was, and remains, to promote the highest standards of corporate governance in South Africa. Unlike its counterparts in other countries at the time, the King Report 1994 went beyond the financial and regulatory aspects of corporate governance in advocating an integrated approach to good governance in the interests of a wide range of stakeholders having regard to the fundamental principles of good financial, social, ethical and environmental practice.
  • In adopting a participative corporate governance system of enterprise with integrity, the King Committee in 1994 successfully formalised the need for companies to recognise that they no longer act independently from the societies and the environment in which they operate.
  • A distinction was clearly made between accountability and responsibility: One is liable to render an account when one is accountable and one is liable to be called to account when one is responsible.
  • We learnt that the modern approach is for a board to identify the company’s stakeholders, including its shareowners, and to agree policies as to how the relationship with those stakeholders should be advanced and managed in the interests of the company.
  • Corporate discipline is a commitment by a company’s senior management to adhere to behaviour that is universally recognised and accepted to be correct and proper. This encompasses a company’s awareness of, and commitment to, the underlying principles of good governance, particularly at senior management level.
  • Transparency is the ease with which an outsider is able to make meaningful analysis of a company’s actions, its economic fundamentals and the non-financial aspects pertinent to that business. This is a measure of how good management is at making necessary information available in a candid, accurate and timely manner – not only the audit data but also general reports and press releases. It reflects whether or not investors obtain a true picture of what is happening inside the company. Remember that the Zambia Privatisation Program was at its peak during that period.
  • Independence is the extent to which mechanisms have been put in place to minimise or avoid potential conflicts of interest that may exist, such as dominance by a strong chief executive or large shareowner. These mechanisms range from the composition of the board, to appointments to committees of the board, and external parties such as the auditors. The decisions made, and internal processes established, should be objective and not allow for undue influences. This reminds me of the Once Mighty Director General of the ZIMCO Group of Companies and the Mighty Chairman and Chief Executive Officer of the once Mighty ZCCM who were very powerful in Dr. Kenneth David Kaunda’s era
  • Individuals or groups in a company, who make decisions and take actions on specific issues, need to be accountable for their decisions and actions. Mechanisms must exist and be effective to allow for accountability. These provide investors with the means to query and assess the actions of the board and its committees.
  • With regard to management, responsibility pertains to behaviour that allows for corrective action and for penalising mismanagement. Responsible management would, when necessary, put in place what it would take to set the company on the right path. While the board is accountable to the company, it must act responsively to and with responsibility towards all stakeholders of the company.
  • The significance of corporate governance is widely recognised, both for

National development and as part of international financial architecture, as a lever to address the converging interests of competitiveness, corporate citizenship, and social and environmental responsibility.

  • Corporate Governance is also an effective mechanism for encouraging efficiency, fighting financial crime, corporate fraud, abuse of official positions, combating bribery and corruption. By the way Anti-Corruption Commission (ACC) was invited to this workshop and Mrs. Agnes Kayobo Ngandu – The Director of Corruption Prevention and Community Education Division and the Senior Manager and Head of The Corruption Prevention Department then Kunda Emmanuel Kalaba were among those present. Their contribution during the workshop was very useful.
  • Communities and countries differ in their culture, regulation, law and generally the way business is done. In consequence, as the World Bank has pointed out, there can be no single generally applicable corporate governance model. Yet there are international standards that no country can escape in the era of the global investor.

Thus, international guidelines have been developed by the Organisation for Economic Co-operation and Development (OECD), the International Corporate Governance Network, and the Commonwealth Association for Corporate Governance. The four primary pillars of fairness, accountability, responsibility and transparency are fundamental to all these international guidelines of corporate governance.

  • Boards must apply the tests of fairness, accountability, responsibility and transparency to all acts or omissions and be accountable to the company also but responsive and responsible towards the company’s identified stakeholders. The correct balance between conformance with governance principles and performance in an entrepreneurial market economy must be found, but this will be specific to each company.
  • The board is the focal point of the corporate governance system. It is ultimately accountable and responsible for the performance and affairs of the company. Delegating authority to board committees or management does not in any way mitigate or dissipate the discharge by the board and its directors of their duties and responsibilities.
  • The board must give strategic direction to the company, appoint the chief executive officer and ensure that succession is planned.
  • The board must retain full and effective control over the company, and monitor management in implementing board plans and strategies.
  • The board should ensure that the company complies with all relevant laws, regulations and codes of business practice, and that it communicates with its shareowners and relevant stakeholders (internal and external) openly and promptly and with substance prevailing over form.
  • The board should define levels of materiality, reserving specific power to itself and delegating other matters with the necessary written authority to management. These matters should be monitored and evaluated on a regular basis.
  • The board should have unrestricted access to all company information, records, documents and property. The information needs of the board should be well defined and regularly monitored.
  • The board should consider developing a corporate code of conduct that addresses conflicts of interest, particularly relating to directors and management, which should be regularly reviewed and updated as necessary.
  • The board should have an agreed procedure whereby directors may, if necessary, take independent professional advice at the company’s expense.
  • Every board should consider whether or not its size, diversity and demographics make it effective.
  • The board must identify key risk areas and key performance indicators of the business enterprise. These should be regularly monitored, with particular attention given to technology and systems.
  • The board should identify and monitor the non-financial aspects relevant to the business of the company.
  • The board should record the facts and assumptions on which it relies to conclude that the business will continue as a going concern in the financial year ahead or why it will not, and in that case, what steps the board is taking to remedy the situation.
  • The board should ensure that each item of special business included in the notice of the annual general meeting, or any other shareowners’ meeting, is accompanied by a full explanation of the effects of any proposed resolutions.
  • The board should encourage shareowners to attend annual general meetings and other company meetings, at which the directors should be present. More particularly, the chairpersons of each of the board’s committees, especially the audit and remuneration committees should be present at the annual general meeting.
  • A brief CV of each director standing for election or re-election at the annual general meeting should accompany the notice contained in the annual report.
  • Every board should have a charter setting out its responsibilities, which should be disclosed in its annual report. At a minimum, the charter should confirm the board’s responsibility for the adoption of strategic plans, monitoring of operational performance and management, determination of policy and processes to ensure the integrity of the company’s risk management and internal controls, communications policy, and director selection, orientation and evaluation.
  • Non-executive directors should be individuals of calibre and credibility, and have the necessary skill and experience to bring judgment to bear independent of management, on issues of strategy, performance, resources, transformation, diversity and employment equity, standards of conduct and evaluation of performance.

The board should meet regularly, at least once a quarter if not more frequently as circumstances require, and should disclose in the annual report the number of board and committee meetings held in the year and the details of attendance of each director (as applicable).

  • The company secretary, through the board, has a pivotal role to play in the corporate governance of a company.
  • The board should be cognisant of the duties imposed upon the company secretary and should empower the company secretary accordingly to enable him or her to properly fulfil those duties.
  • In addition to extensive statutory duties, the company secretary must provide the board as a whole and directors individually with detailed guidance as to how their responsibilities should be properly discharged in the best interests of the company.
  • The board is responsible for the total process of risk management, as well as for forming its own opinion on the effectiveness of the process. Management is accountable to the board for designing, implementing and monitoring the process of risk management and integrating it into the day-to-day activities of the company.
  • Every company should engage its stakeholders in determining the company’s standards of ethical behaviour. It should demonstrate its commitment to organisational integrity by codifying its standards in a code of ethics.
  • “Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals…the aim is to align as nearly as possible the interests of individuals, corporations and society.” Sir Adrian Cadbury – ,Corporate Governance Overview, 1999 -World Bank Report .
  • It is now generally accepted by multinationals operating in various jurisdictions that “demonstrating concern creates an atmosphere of trust and a better understanding of corporate aims, so that when the next crisis comes (and these are inevitable for big companies) there will be a greater goodwill to help the company survive”

As a younger man then (with full of energy and eager to learn from the Elders and Chief Executives sitting for the first time in one of the posh Board Room recently refurbished), I was personally inspired to work on this Task Force Committee by the fact that so many prominent Zambian with very prominent positions obviously with very busy work and social schedules to attend to, gave of their precious and valuable time on honorary basis. Meetings were held at Zambia Privatisation House (ZPA) now Zambia Development Agency (ZDA) near the New Government Complex House offices after official working hours. Meetings would run from 18.30hrs running all the way up to and beyond 22.hrs depending on the agenda items on a bi-weekly basis. None of the Task Force members even attempted to claim or recover their personal disbursements in drafting the Zambian COE, COC and the Constitution of the IOD. Those days “sitting allowances” in workshops and meetings was in the in thing during the Frederick Titus Jacob Chiluba’s rule as the President of the Republic of Zambia. We all proudly sacrificed and did it for the love of mother Zambia.

As of September 14th 1998, the Interim Task Force members who used to meet at Zambia Privatization Agency Board room after 18.00hrs and worked tirelessly to ensure IOD was created were; Mr. Patrick D. Chisanga – Chairman, Mr. Kenneth Chibesakunda, Ms. Joyce Muwo, Mrs. Mary T. Ncube, Mr. Mohan Thomas, Mr. Kunda E. Kalaba, Mrs. Elizabeth Jere

  1. Mr. Michael Daka
  2. Mr. Stephen Ndhlovu,
  3. Mr. Charles Mate
  4. Mr. Satish Gulati
  5. Dr. Herrick Mpuku
  6. Mr. Luke Mbewe
  7. Mr. Robert Mwambwa
  8. Mr. Mumba Kapumpa
  9. Mr. Isaac Ponde
  10. Mr. Fabian C. Lukashi (Secretary).

As Zambians are no doubt fully aware, “we have successfully put together a Constitution for the IOD of Zambia and we have also incorporated it as a Company limited by guarantee under the Companies Act. In short, we have delivered our mandate in full, In thanking you for the excellent work done, I think that it is also appropriate that I should announce the formal dissolution of the Task Force, In consequence, I am by copy of this letter advising the Chairman of the ICSA (Stephen Ndhlovu, FCIS) to proceed with the appointment of an interim Board of Directors of the Institute so that it can commence functioning” stated Mr. Patrick D. Chisanga (FCIS) who was Chairman – Task Force on the formation of the Institute of Directors in Zambia on 10th February 2000.

In normal societies similar to ours, all the above should be “Honoured” with at least life “HONOURALY” membership of the IOD Zambia for being pioneers and Founding Fathers and Mothers of IOD Zambia which was established in the new millennium – January 2000 to be specific. It is not too late to ask or consider. This is the best way we can honour and say excellent and or job well done for your selfless sacrifice and unflinching support for the two (2) year long period of hard work which ensured that the desired result of formation or creation of the IOD is established and flourishes in its operations in Zambia. I just thought of putting the record straight for the new generation and generations to come.

Corporate governance is at the heart of most of the issues that have arisen thus far in Zambia and beyond. The Task Force members were very passionate about this subject. In the information age everyone, willingly or not, is a member of the global market place: concepts like Globalisation were just reaching Zambia and proponents like Messrs. Elias Chipimo Junior and the late Mebelo Mutukwa argued that as members of this global club, everyone lives in a borderless world, not one as envisaged by the World Trade Organisation with no geographic trading borders but one where information crosses borders with the “click of a mouse”. Relying on this information, capital flows across geographic borders as if they were nonexistent. Zambia just has to play her part.

In more than 70 Countries I have visited globally in my life, I have come to conclude that any information being channelled out from any Country must be trustworthy before an investor can convince other partners and before arriving at any life changing decision to move money and invest the same somewhere else on this earth. The measurement for this trust and confidence is the quality of the governance of the company imparting the information. The implications for companies are profound. Simply by developing good governance practices, Chief Executive Officers, Chief Financial Officer, Risk Director, Legal and Compliance Managers, Corporate and Company Secretaries and other Senior Managers can potentially add significant shareowner value. It should be apparent to the Policy makers and regulators in recognising that the creation of a good governance climate can make countries, especially in the developing and emerging markets, a magnet for global capital. Companies not only need to be well-governed, but also need to be perceived in the market as being well governed. We surely need more Zambian Companies to be listed at International markets. They can start at Lusaka Stock Exchange (LUSE) and go further on other International Markets.

If there is a lack of good corporate governance in a market, capital will leave that market with the click of a mouse. The recent Foreign Exchange rates speak volumes.

As Arthur Levitt, the former Chairperson of the US Securities and Exchange Commission has said, “If a country does not have a reputation for strong corporate governance practices, capital will flow elsewhere. If investors are not confident with the level of disclosure, capital will flow elsewhere. If a country opts for lax accounting and reporting standards, capital will flow elsewhere. All enterprises in that country – regardless of how steadfast a particular company’s practices may be – suffer the consequences. Markets must now honour what they perhaps, too often, have failed to recognise. Markets exist by the grace of investors. And it is today’s more empowered investors that will determine which companies and which markets will stand the test of time and endure the weight of greater competition. It serves us well to remember that no market has a divine right to investors’ capital”

The collective desire for each and every company registered and incorporated in Zambia by the Patents and Company Registration Agency (PACRA) is that each company (including Small and Medium Enterprises (SMEs) should demonstrate its commitment to its code of ethics by communicating with, and training, all employees regarding enterprise values, standards and compliance procedures; creating systems and procedures to introduce, monitor and enforce its ethical code; assigning high level individuals to oversee compliance to the ethical code; assessing the integrity of new appointees in the selection and promotion procedures; exercising due care in delegating discretionary authority; providing, monitoring and auditing safe systems for reporting of unethical or risky behaviour; enforcing appropriate discipline with consistency; and responding to offences and preventing re-occurrence.

It is our ardent hope and prayer that one day, some International Organisations, major investors and institutions would come to Zambia and say Zambia has the best governance of listed companies in emerging economies. That would be fundamental and adequate reward for our work if in the future, Zambian Directors of our Lusaka Stoke Exchange (LUSE) listed Companies and those unlisted companies continue to be recognised as practitioners of good corporate governance. It will be better than adequate if all affected companies including the SME implemented the Code of Corporate Practices and Conduct their Business in accordance with vision of the Task Force Committee. It sounds farfetched but it is doable.

Professional Ethical Moral dilemmas for Investigators on the African Continent.

How ethical are African Investigators, those working in  both the private sector as well as the Public institutions? Let us do some soul searching and introspection as we consider some of the practical challenges Investigators may face or have faced in real life as illustrated in the paragraphs below.  How will you as someone assigned to deal with such scenarios act under the circumstances?

• You have been assigned to investigate a very Senior Politically Exposed Person (PEP) in an African Country/State. According to the Association of Certified Anti-Money Laundering Specialist (ACAMS) training materials, PEP is a natural person who is or has held an important, influential, prominent and/or senior public or political position(s) with substantial authority over policy, allocation or use of governmental resources e.g. Head of State, Prime Minister, Judges, Senior Military personnel, Member of Parliament etc. PEPs include immediate family members and known close associates of such a person: The most Senior and Highest PEP in the African appoints many PEPS in an African setting, whether ratified, endorsed or rubber stamped by Parliament is another story.

This Senior PEP has close allegiance to Senior & HIGHEST PEP in the Land. The PEP you have been assigned to investigate who is alleged to be a corrupt OFFICIAL is at Cabinet Minister Level. You can’t find the bribe allegedly taken. Is it OK to ask your former classmate at Makerere University and girlfriend at the Bank next door to have a look to see if she can find any “round amount” deposits in the PEPs account?
• You are an AML/ KYC/CDD/sanctions advisor and Money Laundering Reporting Officer for an International Financial Institution like a Bank listed on several Markets in USA, Europe and Asia. You come across several suspicious transactions and activities for the first family, their associates and other very Senior PEPS who are actually sanctioned by OFAC and HMT, UN and EU.

Among those customers are infact the Central Bank Governor and Minister of Finance who are also responsible for regulating and issuance of Banking licences and annual renewals for your Banking license. The Country AML law says you must raise and file a Suspicious Activity Report (SAR) and file it with Regulators or Financial Intelligence Unit (FIU). At the same time the supreme law of the land the constitution says the President enjoys immunity from criminal prosecution and therefore can’t be investigated whilst in the Office.

The Head of FIU where you are supposed to report is infact a relative to the powers that be and was actually appointed by the people you want to file a report on! What do you do before you damage your MD/CEO and the Company’s good reputation and image in the eyes of the regulators?

• You are investigating a Fraudster. Your line manager thinks you are not quick in your turn around time and since it is year end, your BONUS may be affected or reduced by your inertia to conclude this case as you are also struggling to trace the fraudster. Is it OK to use a contact at Telkom/MTN/Vodacom/Airtel mobile Company to establish the suspect’s address? What do you do since you work in a private sector and you are not allowed to obtain warrants of search from the Courts of Law unless you formally report the case to the Law Enforcement Agency which the Board of Directors and Senior Management are not of the idea because of negative publicity and therefore bad for the business, corporate image and Company?

• You are interviewing a murder suspect number 2, he is exercising his Constitutional right to remain silent and he does not want to confess, but you know he did it. Is it OK to call the bluff by telling him that Suspect number 1 has confessed and provided incriminating evidence about him? Remember the limited resources for the African Investigator, no CCTV cameras, enough transport, surveillance equipment and record keeping, etc.

• You are conducting a Fraud Risk Assessment in a Publically Listed Company (PLC). Management gives you insight to some sensitive information and it is clear that they may be going insolvent anytime soon. Your father –in-law holds 600 000 shares in this company. Is it OK for you to advise your wife to tell her father to sell his shares due to market conditions before he makes a loss and loose through inheritance since everything has been bequeathed to your wife as the only daughter?

• Your MD/CEO had given you an assignment to investigate the net worth assets of one of the Executive management Committee members. A few days later the suspect approaches you and asks whether you are investigating her. Is it OK to tell her that you are not doing an investigation, but just doing a procurement review or do you go back and establish whether the MD/CEO had breached levels of confidentiality and shared with the suspect the investigations instituted but instigated by him against her?

• Your uncoordinated and laziest friend who is also facing several disciplinary cases asks you if you would be her referee as she is applying for a new well paying big job. The recruitment company calls you. What do you tell them?

• You ordered a brand new surveillance and recording gadget from an internet-vendor based in the USA. The package contains 2 gadgets, but you only ordered one and you are based in Southern Africa. What do you do?

• The colleague sitting at the desk next to you does not log-off from his e-mail before he leaves for lunch. You have been suspecting that he is having an affair with a married senior manager within the Company who has caused professional hell in your life before. What do you do?

• The boss calls you in and praises you for a very good investigations and compiling an excellent report. In the heart of your hearts, you know you did not compile this report. The report was actually written by your subordinate. What do you say to your boss and who takes the credit for the promotion and Bonus?

We can go on and on with such practical and real life ethical and moral temptations and dilemmas in our Professional careers. Be that as it may, is it ETHICALLY correct to bend the rules in the game against criminal suspects?

Ethics comes from the Greek word “ETHOS” which means “character”. Socrates posited that people will naturally do what is good if they know what is right. He further correlated knowledge with virtue and similarly equated virtue with happiness. Is it true that “the truly wise man will know what is right, do what is good, be content and therefore be happy?” That would be good for the ears of some of our fine Religions of the World, but that is another dimension for another day.

Last time I checked on Wikipanion, ETHICS were being referred to as moral philosophy, a branch of philosophy that involves systematising, defending and recommending concepts of right and wrong conduct.

According to Richard Paul and Linda Elder of the Foundation for Critical Thinking, they define ethics as a “set of concepts and principles that guide us in determining what behaviour helps or harms sentiment creatures”. The Cambridge Dictionary of Philosophy states that the word ethics is “commonly used interchangeably with “morality”,,, and sometimes it is used more narrowly to mean the moral principles of a particular tradition, group or individual”.

Whether you deal with Anti-Money Laundering (AML), Counter-Terrorism Financing(CTF), Anti-Bribery and Corruption (ABC), Financial Crime Risk (FCR), Drug Enforcement Commission/Agency (DEC/A), Financial Intelligence Centre/Unit (FIC/U), Fraud Risk Management and Investigations, public or Private Sector, Private Eye type of investigations and surveillances, Clandestine Operations and mercenary work, for the Professional and qualified African investigators, Ethics can be said to be a set of personal rules (above and beyond the laws or policies that govern our industry that ensure that we do what is right in all circumstances, with our family, friends, suspects, witnesses, staff, company, shareholders, suppliers, customers, and competitors).

Good ethics I believe and strongly so should enable all of our decisions to stand up to scrutiny over the long term, by a person of the highest integrity, common sense, the Constitution and humanity.
The African collection of a person’s beliefs and morals makes up a set of principles known as ethics. Ethics could be the sound judgments about what is right and wrong or, more specifically, a person’s moral obligations to society that determine a person’s actions.

In the African Political setting however, determining ethical rights and wrongs is complicated by the fact that moral standards and generally accepted social behavior change with time, modernization, global influence and they vary from one section of society to another, Country to Country, Province to Province, District to District, Town to Town, Constituency to Constituency, Tribe to Tribe, Clan to Clan and maybe from profession to profession etc.

In addition, different groups in the same society or a Country may have conflicting ideas of right and wrong. For a instance, a perceived dangerous criminal and robber ready to be burnt alive with a tyre ring on his neck by an instant mob justice suspected to be hard core criminal by investigators and prosecutors may be perceived by defense Lawyers and Law firms as a good client whose human rights is being infringed upon by his uncalled for, inhuman and unlawful incarceration by the state.

A common fallacy which may arise in discussing ethics is “If it’s legal, it’s ethical.” A common defense to charges of unethical behavior is to invoke the law. This legalistic approach to ethics mistakenly implies that actions that are not explicitly prohibited by the law are ethical. Very wrong dimension of looking at ethics.

The main error in this approach is that legal standards do not establish ethical principles. Although abiding by the law is a part of ethical behavior, laws themselves do not describe how an ethical person should behave. In an African setting, one can be dishonest, gay, unprincipled, untrustworthy, unfair, lesbian and uncaring without breaking the law depending on which Country you are referring to.

Moral philosophy deals with choices between what is good vs. evil and right vs. wrong. There are two basic approaches to this debate:
(a) “moral absolutism” requires morals and values to be universally accepted, and not even change over time
(b) “moral relativism” this behaviour is acceptable as long as your specific industry or society condones it, regardless of what other societies think.

Kindly allow me to insist that with African Professional Investigators and I’m using this term very broadly and loosely to encompass many specialised fields in various predicate and serious offences, “Integrity means doing the right thing, even if nobody is watching”.

Ethical dilemmas occur when
• a situation of conflict of interest arises. Refer to Wife and father in law scenario above.
• Alternatives and other options are available with different outcomes
• The correct decision is not clear in terms of:
• Moral principles,
• the potential prejudice to one/some,
• the potential benefit to the decision-maker (Bonus and Promotion),
• whether the truth will eventually become known (You or subordinate wrote a report).

As African Professional investigators we should at all times:
• Consider the facts and the evidence as being more important than suspicions or perceptions and other prejudices we may hold.
• Conduct all investigations with integrity and professionalism;
• be honest in all professional interactions;
• and strive to report those engaging Money Laundering, Bribery, Corruption, Plunder, embezzlement, skimming, phishing, theft, misappropriation, fraud or deception to appropriate authorities.

One may ask how can an ethical behaviour by the Anti-Corruption Commission/Bureau Investigator hurt or destroy a bribery case. Others have argued that “It can’t”. Officers may use all available means, including excessive force and unethical behaviour, to resolve an investigation.

While in an interview room for example, if you are uncooperative like what one Minister of Justice did in a Southern African Country where he went with Party cadres and demanded that the Anti-Corruption Commissioner interview him in public, in full view of the National Television and his Party cadres/supporters, professional investigators are put in a very awkward moral and ethical dilemmas. That is for another day.

In Africa, if the suspect is a lesser mortal, Investigators may utilize things such as unconventional “Guantanamo bay” type of interrogation depending on the severity of the case such as those leading to economic sabotage and treasonable offences. Tactics such as hanging from the rope or swing upside down or some “shock therapy” and talking about doing things with your mother and/or sister to ensure that you talk.

If you ask for an attorney, investigators are only obligated to comply with that request if an officer is present in the room with his official uniform hat on.” Some African Investigators with limited resources and gadgets at their disposal are known to have used fear, stress, deception and their networks (illegally) and Religion, etc.

Coming to institutional and organizational arrangements, these values and ethics of an individual are reflected in their actions as employees. There are four factors that generally affect the ethical decisions of employees:
* The law and other government regulations
* Industry and organizational ethical codes
* Social pressures
* Tension between personal standards and organizational needs

One of the easiest ways to establish a strong moral tone for an organization is to hire morally sound employees. Too often, the hiring process is conducted in a slipshod manner. Organizations should conduct thorough background checks on all new employees, especially managers. In addition, it is important to conduct thorough interviews with applicants to ensure that they have adequate skills to perform the duties that will be required of them.

* Fraud prevention requires a system of rules, which, in their aggregate, minimize the likelihood of fraud occurring while maximizing the possibility of detecting any fraudulent activity that may transpire. The potential of being caught most often persuades likely perpetrators not to commit the fraud. Because of this principle, the existence of a thorough control system is essential to fraud prevention. It is cheaper to drain the swamps than fight the alligators and crocodiles.

No control environment will be effective unless there is consistent discipline for ethical violations. Consistent discipline requires a well-defined set of sanctions for violations, and strict adherence to the prescribed disciplinary measures. If one employee is punished for an act and another employee is not punished for a similar act, the moral force of the company’s ethics policy will be diminished.

Remember Laws were established from the outset of civilization as people will always “push the boundaries.” All Staff in an organization without exception therefore need to know what those boundaries are.

Those who have been long in this field when carrying out investigations or disciplinary process have heard sometimes from those being interviewed that “I didn’t know that was wrong – where does it say I cannot do that?”
It is imperative for every institution to set out in black and white exactly what is acceptable and not. Staff will be put on notice that certain behavior is unacceptable. The key is to prevent the staff that has been recruited from straying from the “straight and narrow” and go off the rails.

The aim of a Code of Ethics policy is to demonstrate to both employees and the outside world that the Organisation is taking the threat of AML, CTF, FCR, dishonesty, fraud, and theft seriously. By issuing a detailed policy, it clearly sets out what is considered to be dishonest and warns any potential wrongdoers that the consequences of being caught will be serious. The effect therefore will be to deter any potential wrongdoers thus resulting in reduced losses from any wrongdoing and reduced costs in respect of investigating any wrongdoing.

As a polite reminder to all those involved in investigations on the African Continent, it is professionally acceptable to respect the wishes of witnesses, colleagues, and professionals; and you should safeguard confidentiality and privacy of people, documents and companies.

The African Investigator is encouraged to continue to study, apply and advance scientific knowledge; to observe the precepts of accuracy and
prudence; and to make relevant information available to colleagues and the public when permitted by law.

We just as investigators must strive to always respect the law and legal
authority. We must not reveal any confidential information obtained during a professional assignment without proper authorisation.

Inevitably, when we are called upon by law, like during the trial by the courts of law, we must reveal all material matters discovered during the course of an investigation, which, if omitted, could cause a distortion of the facts and lead to a miscarriage of justice by Magistrates and Judges setting the guilty free on the basis of technicalities. We should also continually strive to increase the ethical content of services performed under our jurisdictions and direction.

Some of our relatively new comers to the calling may wish to know how to tell and know whether their actions are right? The following questions can be applied as a guideline of whether it is acceptable or not:

Does the conduct comply with legislation?
Does the conduct comply with the Professional and universally Code of Ethics?
What would the public think if this action is reported in the newspaper?
What would your superiors say about this action?
Does the result of this action feel right and fair?
Some guidance and constant reminders to all of us may not be a bad idea. Treat the suspect the way you would have liked to be treated, consider the perception of third parties (Courts of Law, Defence Counsel, Superiors, Press and Labour Laws, Workers Union and HR Policies). Always stay within the law

The ethical key for us is to keep emotions and feelings of anger and betrayal towards all suspects in balance. None in the field of investigations can afford to let personal fears and hatred of crime control the situations with such suspects. If allowed to become unprofessional or unethical, it opens a whole new set of problems in the cases worked and may in fact allow criminals to not be convicted of the crimes they commit. That can lead to even more crimes, being committed by the same offenders. Care must be taken to ensure the situation does not arise to free such suspects from the hands of justice.

The thankless noble calling and Professional African Investigators in all fields are being encouraged to continue to “Always be honest, tell the truth about everything, never exaggerate or misrepresent what you know or what you are doing during your investigations”

The Little Devils lurking in a Christian Country called Zambia

The Little Devils lurking in a Christian Country called Zambia

The Little Devils lurking in a Christian Country called Zambia

Although Government of the Republic of Zambia (GRZ), Ministries, Departments, Agencies (MDAs), Parastatals, and other Institutions like the Zambian Banking Sector would like a situation where fraud and financial crime could happen to other financial institutions like the Pensions and Insurance, Mining and Retail Sectors, Agricultural and Tourism Sectors, it is an undeniable fact that all GRZ, commercial and financial sectors in Zambia are potential victims. Fraud is among the oldest human occupations.

Ever since Jacob obtained Isaac’s (his father’s) blessings by impersonating his brother Essau, the efforts and energies spent by some human beings to get something for nothing has been a recurring theme in literature.
For this Christian Nation of Zambia, those who went to Sunday and Sabbath Schools or have read the Holy Book called the Bible, are reminded that the oldest fraud is told in the Book of Genesis Chapter 27.

Under modern Zambia and using the current Statutes, Jacob and his mother Rebecca depending on so many factors including political will at the top could have been charged with conspiracy, impersonation with intent to defraud and indeed obtaining blessings by false pretences. Other professional colleagues may also argue that under the current Zambia penal and judicial system the duo would have been acquitted due to unending court gymnastics, adjournments, legal technicalities and political inclines.

Fraud is a generic term for behaviour, which involves deception by one party of another. Although the law relating to fraud differs in separate jurisdictions there are common threads, which identify behaviour as fraudulent. These will include the practising of a deception, the dishonesty of the person practising the deception, the obtaining of property and/or the intention of interfering with another person’s lawful right to deal with property as he wishes.

The number and variety of legal definitions of fraud and like criminal offences are too voluminous to repeat here and those can be discussed later.

Fraud involves deliberate criminal intent and deception. Fraud is any intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving a gain. Some of the salient elements in Fraud are;

1. Knowing submission of false representation or concealment (knowledge)
2. Specific intent to deceive (deception)
3. Detrimental reliance (losing money or assets)
4. Potential/Damage/loss to the Bank or financial institution or organisation.
Fraud is defined as any loss or attempt to cause loss involving deception.
The nature of the deception may include, inter alia:
• verbal or written statements which are false or misleading in
 applications for personal/corporate credit or current/savings account facilities;
 Letters of Credit, Bills of Lading or other trade documents;
 Supporting documents (e.g., audited/management accounts); or
 Internal vouchers or other documentary records such as Local Purchase Orders.

A deception can also involve the deliberate input, alteration or destruction of data on any computer or communication systems and/or involve the use of forged documents. A deception can assist in perpetrating a fraud and also to conceal a fraud or simple negligence.

Some of the practical examples of Fraud experienced in Zambia have been broken down into the following categories:
• Sheer Theft of cash. Deeping fingers in the till or cash box
• Internet Fraud (on customer’s accounts)
• Customer Identity Thefts. Details from the epitaph
• Card Fraud (credit/Debit/ATM)
• Loan Application Fraud
• Card Merchant Fraud
• Funds Transfer Fraud
• Lending Fraud
• Advance Fee Fraud

This involves fraudsters persuading innocent victims to part with funds in advance of securing what appear to be attractive jobs or investment opportunities, or loans, which never materialize.
• Account Fraud
This includes false entries on accounts, fraudulent applications including loan applications and
fraudulent instructions.
• Card Fraud
This includes card skimming, counterfeiting and disputed transactions.
• Cheque Fraud
This includes counterfeits, alterations, forgeries, raising, cheque- kiting.
• Trade Fraud
This includes forged, altered or fake trade documents.
The list goes on and on. Fraud involves deliberate criminal deception and is committed by people of all shapes, sizes, heights, hues and from all walks of life. Pastors, Bishops, Clerks, Ministers and Presidents (of clubs and Associations or for the Republic) have been accused of committing financial crimes such as corruption, fraud, money laundering etc.

I wish to submit that just like in corruption cases sheer dishonesty and greed, not necessarily the amount of salary or wages one gets per month counts. When it comes to the question of money, do not trust anyone, and not even yourselves. This is the reason we can have a very honest and trustworthy Government Office orderly and or messenger but have a greedy, craft and dishonest Church Bishop and Government Minister. In Zambia, we have heard of several high ranking people involved in what my grandmother would only term as embarrassing and shameful activities.

Why would such a situation arise? In white – collar crime, the potential rewards are much greater than in blue collar crime. The risk of detection is lower, successful prosecution is more difficulty as one is able to summon the whole mighty platoon of the best Legal brains in the Country, state counsels and Senior Legal men and women to raise preliminary issues in courts of law, apply a dozen of injunctions, a couple of Legally challenging objections and adjournments for years on end whilst the loot is diminishing and being shared. The resultant effect is that the penalties are less severe.

What do you expect with “deliberately ill equipped and with no adequate logistical, technological and financial resources” and largely ALLEGED and presumed to be often corrupt Law Enforcement Agencies and Officers who would rather have a drought and poverty stricken but hungry villager who has stolen a cob of maize or a village chicken (free-range chicken) be convicted for five years in prison with hard labour than let the twit swindler of colossal sums of money go scot-free under the pretext of the case being technical?

These are all sound “business” propositions and reasons for fraudsters to put their efforts into fraudulent activities. Those engaged in such criminal activities are many. It is BIG business.
Loses through fraud in all GRZ MDAs and financial institutions have increased significantly over the years. There are many changes which have impacted adversely on the socio-economic wellbeing of the Country including;

• fluctuation and falling world price of copper which is Zambia’s main export,
• high population growth from 3million to more than 13million within 50 years,
• Unsupported population drift from rural to urban areas putting strain on public utilities
• Unplanned mushrooming of squalor and squatter compounds with very few social amnesties
• Exponentially rising unemployment levels as more GRZ and Private Universities and colleges channel out thousands of graduates on the streets with no assurance or promise of jobs insight
• Mismanagement, abuse of office, power, authority and corruption in the echelons and corridors of power starting from the 20 year MMD rule
• High poverty levels (60 to 70%) of Zambian population live below poverty datum line.
• Steep decline in traditional values/morals leading to all nature of vices;
• Unexplained failure by Government workers and authorities to make meaningful stand against crime. If there are some, the general populace see those as Empty rhetoric.
• Those failing to be transparent and accountable (according to numerous Auditor General’s annual reports) since they are alleged or suspected to be actively taking part in economic plunder themselves.
• The wrong notion of hero-worshipping and admiration of the fraudsters and the corrupt means used to acquired assets and money through dubious means.

Suffice to state that control systems and framework in various institutions are generally satisfactory, but they are not fool proof against attack from the Little Devils in this Christian nation called Zambia. The “enemy within” – members of staff and their outsider ca-hoots and collaborators. Those who predominantly perpetrate these types of crime can be profiled among many others in one of the following categories;
• Intelligent and Inquisitive but misdirected energies for wrong intentions​
• Too Friendly and charming – familiarity breeds contempt
• Hardworking, Very confident and convincingly capable of coning
• Too much exaggerations of their perceived achievement
• Knows the systems and procedures well but for bad intentions
• Articulate and may be able to speak in tongues.
• Risk takers and rule breakers
• They think they are sophisticated and appears to be wealthy but there is no way to trace their source of wealth
• They pose as big spenders, (Zambian musician Mozegator would call them “BIG BUYER” in Social Clubs). If the big buyer support Manchester United Football club, all followers would support “Man U” on that day.
• Portray an expensive life style​ and show-off with perishable assets like cell phones, ipads, galaxy, Nokia and expensive cars.
• Aggressive; in a hurry ; Greedy or has genuine financial needs
• Name dropper – smart and wearing expensive perfumes, Brazilian or Peruvian wigs, designer clothes, shoes etc.
• Disgruntled at work, a complainer – chief complainants
• Friendly and charming. Very confident and convincing
• Thrive in an office with no segregation of duties
• They rarely take vacation or off sick days. Even with a running nose/flu/fever, headache, coughing uncontrollably, they are still on Company desk.
• They work excessive Over Time – late at night or weekends
• They make excessive adjusting entries/ white-outs
• They Request excessive deadline extensions during monthly closeouts or other accounting cycles
• They will usually exhibit a drastic change in life style, throwing parties and drive expensive cars
• Will go to great extents to disguise their ill-gotten gains
• They refuse promotions, job rotations or changes
• Excessive debt, Alcohol or drug abuse; Gambling in casinos, Clubbing; Zenon, Chez Ntemba,
• Sudden change in lifestyle and spending habits
• Failed outside business ventures – kantemba/taxis
• Sense of despair over current ‘life experiences’ e.g. severe illness in family
 Change in behavior; Constantly working late alone
 Unusual occurrences of mistakes
 Returns to work even on sick leave
 Unusually close relationship with certain customers giving them special service

Third party crime has been perpetrated by various types of fraudsters, ranging from unemployed ex-officials (armies of these were created by the closure of several major local banks like Meridien, Commerce, Union, ACB etc), whose number has swelled by constructive dismissals and downsizing by the remaining Banks, GRZ, MDAs, and Government wings through Voluntary separations and resignations to professional gangs and cartels with connections outside the Country.

De-regulation of foreign exchange Controls, abolishing of SITET, Liberation of the economy, even with the Balance of Payment (Statutory Instrument – S.I. 55) in place has made it possible for criminals to remit fraudulently obtained money, which hitherto had been prevented under the exchange control regulations.
In Government Ministries, Parastatals, Departments and Agencies, including private sectors, Internal and external Auditors, Internal Investigations teams have been able to identify, apprehend and effect a “citizens’ arrest” of the culprits in most of the criminal cases.

Whilst some of the demoralised and frustrated Police Officer’s action has been lethargic, institutions have had no problem in getting them to the scenes of the crime (often by cajoling, providing transport and lunch allowances). Culprits have been surrendered to the Zambian Law enforcement Agencies, the Director of Prosecutions and his team members and subsequently to the Courts of Law.

However these three arms of Government are increasingly failing to inspire the Zambian people, failing to deliver or are painfully slow to reform and administer justice and subsequently fraudsters are left scot-free. Clearly the penal system has not moved with times and the Patriotic FRONT (PF) government which assured the general populace should not fall into the trap of paying a lip service to resolving the numerous Law Enforcement Agencies, DPP and Judicial ills Zambians have been crying over since independence.

Fraud prevention is like running a race with no finishing line. As criminals become more sophisticated in their attempts to steal money from financial institutions and Government Coffers, so must the effort to create better security features and prevention strategies increase thereby slowing fraud proliferation.

We all as Zambians need not sit on our laurels and wait for a fraud to occur within our work places and then we start calling on Law enforcement Officers or the Auditor General’s Office to investigate and establish what was happening within our sphere of influence. We can avoid the proverbial closure of the pain when the horse has already bolted.
It is a zero option, we just have to painfully realise sooner rather than later that in Zambia, punishment of fraudsters and recoveries of stolen funds are so rare that prevention is the only viable course of action. Effective preventative measures are much cheaper and far less painful than post-fraud investigations and litigations. It is better to drain the swamps than to fight the alligators. The extent of preparedness for this growing challenge to all Zambians cannot be overemphasized.

Never stand aloof, whenever you smell a fraud or whenever a fraud occur, take keener interest in reading the red flags in staff members activities, and taking appropriate remedial steps to either pre-empty or sanction any untoward actions part of staff and fraudsters, take positive action. SPEAK UP, Whistle blow, Tell the Transparency International. Call Anti-Corruption Commission, Phone the Police Station. Inform your boss. Decline to authorise. Take keen interest in reading the red flags in your staff and customer behaviour, conduct and take appropriate remedial steps to either pre-empt or sanction any untoward actions on the part of staff and fraudsters.
While it may be difficult to prevent all incidences of fraud, it is possible to reduce their impact by performing a fraud risk assessment within your branches. You should aim to understand the methods of frauds which can be perpetrated by and applicable to each job function. We have lessons learnt from other colleagues and institutions in Zambia. They are usually reported in the media both electronic and print media. Learn Lessons and avoid being defrauded.
Let us realize that fraud is a big industry and there is specialization of labour. Those who specialize in forging of signatures, skimming and cloning Visa Cards, stealing of blank cheques, in impersonating others and masquerading as bonafide customers, known agents etc. Fraudsters are busy scheming, planning and submitting project proposals on which institution, which Agency or Ministry with weaker controls they can penetrate and attack.
Fraudsters have needs and wants. Fraudsters are planning to celebrate the Christmas and the New Year – 2014 in style. They want to throw big and lavish parties. They have a long list of invited guests to attend their wedding or party celebrations. Fraudsters have ZESCO, Water bills, DSTV, Ground rent, Rates, House rentals, school going children and dependants to look after; they have increased school fees for the year 2014 and probably house construction in Chalala or Meanwood to be completed, a big car to import etc. Fraudsters have to project cash flows and devise means and ways of fund-raising. Fraudsters with misdirected energy and intelligence are smart people who know that Money is in the Road Sector, Construction, Tourism, Agricultural Sector, Revenue Collections and Authority, money is kept in Bank accounts and the Big Banks. They will carefully plan and identify the weakest link among the staff and strike. You obviously do not wish to be the weakest link.
There is no honour in committing fraud. Do not connive and collude with fraudsters, they will damp you and leave you in deep trouble because they can’t keep their word. That is their nature. Be alert! Be vigilant! Wake up and speak up! Defend your territories from the yoke of impostors, conmen and conwomen masquerading as bonafide customers and middle men.
All organizations are subject to fraud risks. Large frauds have led to the downfall of entire organizations, massive investment losses, significant legal costs, incarceration of key individuals, and erosion of confidence in capital markets. Publicized fraudulent behaviour by key executives has negatively impacted the reputations, brands, and images of many organizations around the globe.

Reactions to recent Institutional and corporate scandals have led the public and stakeholders to expect organizations to take a “no fraud tolerance” attitude. Good governance principles demand that an organization’s board of directors, or equivalent oversight body, ensure overall high ethical behaviour in the organization, regardless of its status as public, private, government, or not-for-profit, NGOs and NGIs (Non Government Individuals); its relative size; or its industry.

The board’s role is critically important because historically most major frauds are perpetrated by senior management in collusion with other employees. Vigilant handling of fraud cases within an organization sends clear signals to the public, stakeholders, and regulators about the board and management’s attitude toward fraud risks and about the organization’s fraud risk tolerance. What we heard about Zambia Railways Limited was never inspiring.

In addition to the board, personnel at all levels of the organization — including every level of management (CEO/Managing Directors and Executive Management Committee members), staff, and internal auditors, as well as the organization’s external auditors — have responsibility for dealing with fraud risk. Particularly, they are expected to explain how the organization is responding to heightened regulations, as well as public and stakeholder scrutiny; what form of fraud risk management program the organization has in place; how it identifies fraud risks; what it is doing to better prevent fraud, or at least detect it sooner; and what process is in place to investigate fraud and take corrective action.

This guide is designed to help address these tough issues.
This guide recommends ways in which boards, senior management, internal auditors, Fraud preventions/Fraud Risk Management teams, Fraud investigators can fight fraud in their organization. Specifically, it provides credible guidance from leading professional organizations that defines principles and theories for fraud risk management and describes how organizations of various sizes and types can do the same.

Given the alluded to shortcomings, Zambians need to take concrete steps to arrest the scourge of Financial crime risks in all sectors of the economy. We need to learn lessons and have a deeper understanding of the concepts and theories or typologies of money laundering, terrorism financing, corruption and various operations of fraudsters so that knowledge acquired can further enhance our capabilities to review systems and controls which are breached and recommend remedial measures resulting in tighter controls being adopted which will subsequently thwart further fraud attempts in many organisations. We need to develop comprehensive and coherent strategies to address various forms of malpractices by all stakeholders.

I strongly believe in mother Zambia and the great people of this Country. I’m very confident that if managerial accountability and transparency is embodied in the financial sector coupled with good corporate Governance, MDAs, law enforcement, the DPP and Judiciary, the corporate governance of such institutions would be easier thereby reducing criminal activities which inevitably bring about lack of investor confidence, capital flight, closures of companies and industries and consequently create untold misery on the already helpless citizenry who will have little to do apart from engaging themselves in criminal activities.

The Little Devils lurking in a Christian Country called Zambia

Although Government of the Republic of Zambia (GRZ), Ministries, Departments, Agencies (MDAs), Parastatals, and other Institutions like the Zambian Banking Sector would like a situation where fraud and financial crime could happen to other financial institutions like the Pensions and Insurance, Mining and Retail Sectors, Agricultural and Tourism Sectors, it is an undeniable fact that all GRZ, commercial and financial sectors in Zambia are potential victims. Fraud is among the oldest human occupations.

Ever since Jacob obtained Isaac’s (his father’s) blessings by impersonating his brother Essau, the efforts and energies spent by some human beings to get something for nothing has been a recurring theme in literature.
For this Christian Nation of Zambia, those who went to Sunday and Sabbath Schools or have read the Holy Book called the Bible, are reminded that the oldest fraud is told in the Book of Genesis Chapter 27.

Under modern Zambia and using the current Statutes, Jacob and his mother Rebecca depending on so many factors including political will at the top could have been charged with conspiracy, impersonation with intent to defraud and indeed obtaining blessings by false pretences. Other professional colleagues may also argue that under the current Zambia penal and judicial system the duo would have been acquitted due to unending court gymnastics, adjournments, legal technicalities and political inclines.

Fraud is a generic term for behaviour, which involves deception by one party of another. Although the law relating to fraud differs in separate jurisdictions there are common threads, which identify behaviour as fraudulent. These will include the practising of a deception, the dishonesty of the person practising the deception, the obtaining of property and/or the intention of interfering with another person’s lawful right to deal with property as he wishes.

The number and variety of legal definitions of fraud and like criminal offences are too voluminous to repeat here and those can be discussed later.

Fraud involves deliberate criminal intent and deception. Fraud is any intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving a gain. Some of the salient elements in Fraud are;

1. Knowing submission of false representation or concealment (knowledge)
2. Specific intent to deceive (deception)
3. Detrimental reliance (losing money or assets)
4. Potential/Damage/loss to the Bank or financial institution or organisation.
Fraud is defined as any loss or attempt to cause loss involving deception.
The nature of the deception may include, inter alia:
• verbal or written statements which are false or misleading in
 applications for personal/corporate credit or current/savings account facilities;
 Letters of Credit, Bills of Lading or other trade documents;
 Supporting documents (e.g., audited/management accounts); or
 Internal vouchers or other documentary records such as Local Purchase Orders.

A deception can also involve the deliberate input, alteration or destruction of data on any computer or communication systems and/or involve the use of forged documents. A deception can assist in perpetrating a fraud and also to conceal a fraud or simple negligence.

Some of the practical examples of Fraud experienced in Zambia have been broken down into the following categories:
• Sheer Theft of cash. Deeping fingers in the till or cash box
• Internet Fraud (on customer’s accounts)
• Customer Identity Thefts. Details from the epitaph
• Card Fraud (credit/Debit/ATM)
• Loan Application Fraud
• Card Merchant Fraud
• Funds Transfer Fraud
• Lending Fraud
• Advance Fee Fraud

This involves fraudsters persuading innocent victims to part with funds in advance of securing what appear to be attractive jobs or investment opportunities, or loans, which never materialize.
• Account Fraud
This includes false entries on accounts, fraudulent applications including loan applications and
fraudulent instructions.
• Card Fraud
This includes card skimming, counterfeiting and disputed transactions.
• Cheque Fraud
This includes counterfeits, alterations, forgeries, raising, cheque- kiting.
• Trade Fraud
This includes forged, altered or fake trade documents.
The list goes on and on. Fraud involves deliberate criminal deception and is committed by people of all shapes, sizes, heights, hues and from all walks of life. Pastors, Bishops, Clerks, Ministers and Presidents (of clubs and Associations or for the Republic) have been accused of committing financial crimes such as corruption, fraud, money laundering etc.

I wish to submit that just like in corruption cases sheer dishonesty and greed, not necessarily the amount of salary or wages one gets per month counts. When it comes to the question of money, do not trust anyone, and not even yourselves. This is the reason we can have a very honest and trustworthy Government Office orderly and or messenger but have a greedy, craft and dishonest Church Bishop and Government Minister. In Zambia, we have heard of several high ranking people involved in what my grandmother would only term as embarrassing and shameful activities.

Why would such a situation arise? In white – collar crime, the potential rewards are much greater than in blue collar crime. The risk of detection is lower, successful prosecution is more difficulty as one is able to summon the whole mighty platoon of the best Legal brains in the Country, state counsels and Senior Legal men and women to raise preliminary issues in courts of law, apply a dozen of injunctions, a couple of Legally challenging objections and adjournments for years on end whilst the loot is diminishing and being shared. The resultant effect is that the penalties are less severe.

What do you expect with “deliberately ill equipped and with no adequate logistical, technological and financial resources” and largely ALLEGED and presumed to be often corrupt Law Enforcement Agencies and Officers who would rather have a drought and poverty stricken but hungry villager who has stolen a cob of maize or a village chicken (free-range chicken) be convicted for five years in prison with hard labour than let the twit swindler of colossal sums of money go scot-free under the pretext of the case being technical?

These are all sound “business” propositions and reasons for fraudsters to put their efforts into fraudulent activities. Those engaged in such criminal activities are many. It is BIG business.
Loses through fraud in all GRZ MDAs and financial institutions have increased significantly over the years. There are many changes which have impacted adversely on the socio-economic wellbeing of the Country including;

• fluctuation and falling world price of copper which is Zambia’s main export,
• high population growth from 3million to more than 13million within 50 years,
• Unsupported population drift from rural to urban areas putting strain on public utilities
• Unplanned mushrooming of squalor and squatter compounds with very few social amnesties
• Exponentially rising unemployment levels as more GRZ and Private Universities and colleges channel out thousands of graduates on the streets with no assurance or promise of jobs insight
• Mismanagement, abuse of office, power, authority and corruption in the echelons and corridors of power starting from the 20 year MMD rule
• High poverty levels (60 to 70%) of Zambian population live below poverty datum line.
• Steep decline in traditional values/morals leading to all nature of vices;
• Unexplained failure by Government workers and authorities to make meaningful stand against crime. If there are some, the general populace see those as Empty rhetoric.
• Those failing to be transparent and accountable (according to numerous Auditor General’s annual reports) since they are alleged or suspected to be actively taking part in economic plunder themselves.
• The wrong notion of hero-worshipping and admiration of the fraudsters and the corrupt means used to acquired assets and money through dubious means.

Suffice to state that control systems and framework in various institutions are generally satisfactory, but they are not fool proof against attack from the Little Devils in this Christian nation called Zambia. The “enemy within” – members of staff and their outsider ca-hoots and collaborators. Those who predominantly perpetrate these types of crime can be profiled among many others in one of the following categories;
• Intelligent and Inquisitive but misdirected energies for wrong intentions​
• Too Friendly and charming – familiarity breeds contempt
• Hardworking, Very confident and convincingly capable of coning
• Too much exaggerations of their perceived achievement
• Knows the systems and procedures well but for bad intentions
• Articulate and may be able to speak in tongues.
• Risk takers and rule breakers
• They think they are sophisticated and appears to be wealthy but there is no way to trace their source of wealth
• They pose as big spenders, (Zambian musician Mozegator would call them “BIG BUYER” in Social Clubs). If the big buyer support Manchester United Football club, all followers would support “Man U” on that day.
• Portray an expensive life style​ and show-off with perishable assets like cell phones, ipads, galaxy, Nokia and expensive cars.
• Aggressive; in a hurry ; Greedy or has genuine financial needs
• Name dropper – smart and wearing expensive perfumes, Brazilian or Peruvian wigs, designer clothes, shoes etc.
• Disgruntled at work, a complainer – chief complainants
• Friendly and charming. Very confident and convincing
• Thrive in an office with no segregation of duties
• They rarely take vacation or off sick days. Even with a running nose/flu/fever, headache, coughing uncontrollably, they are still on Company desk.
• They work excessive Over Time – late at night or weekends
• They make excessive adjusting entries/ white-outs
• They Request excessive deadline extensions during monthly closeouts or other accounting cycles
• They will usually exhibit a drastic change in life style, throwing parties and drive expensive cars
• Will go to great extents to disguise their ill-gotten gains
• They refuse promotions, job rotations or changes
• Excessive debt, Alcohol or drug abuse; Gambling in casinos, Clubbing; Zenon, Chez Ntemba,
• Sudden change in lifestyle and spending habits
• Failed outside business ventures – kantemba/taxis
• Sense of despair over current ‘life experiences’ e.g. severe illness in family
 Change in behavior; Constantly working late alone
 Unusual occurrences of mistakes
 Returns to work even on sick leave
 Unusually close relationship with certain customers giving them special service

Third party crime has been perpetrated by various types of fraudsters, ranging from unemployed ex-officials (armies of these were created by the closure of several major local banks like Meridien, Commerce, Union, ACB etc), whose number has swelled by constructive dismissals and downsizing by the remaining Banks, GRZ, MDAs, and Government wings through Voluntary separations and resignations to professional gangs and cartels with connections outside the Country.

De-regulation of foreign exchange Controls, abolishing of SITET, Liberation of the economy, even with the Balance of Payment (Statutory Instrument – S.I. 55) in place has made it possible for criminals to remit fraudulently obtained money, which hitherto had been prevented under the exchange control regulations.
In Government Ministries, Parastatals, Departments and Agencies, including private sectors, Internal and external Auditors, Internal Investigations teams have been able to identify, apprehend and effect a “citizens’ arrest” of the culprits in most of the criminal cases.

Whilst some of the demoralised and frustrated Police Officer’s action has been lethargic, institutions have had no problem in getting them to the scenes of the crime (often by cajoling, providing transport and lunch allowances). Culprits have been surrendered to the Zambian Law enforcement Agencies, the Director of Prosecutions and his team members and subsequently to the Courts of Law.

However these three arms of Government are increasingly failing to inspire the Zambian people, failing to deliver or are painfully slow to reform and administer justice and subsequently fraudsters are left scot-free. Clearly the penal system has not moved with times and the Patriotic FRONT (PF) government which assured the general populace should not fall into the trap of paying a lip service to resolving the numerous Law Enforcement Agencies, DPP and Judicial ills Zambians have been crying over since independence.

Fraud prevention is like running a race with no finishing line. As criminals become more sophisticated in their attempts to steal money from financial institutions and Government Coffers, so must the effort to create better security features and prevention strategies increase thereby slowing fraud proliferation.

We all as Zambians need not sit on our laurels and wait for a fraud to occur within our work places and then we start calling on Law enforcement Officers or the Auditor General’s Office to investigate and establish what was happening within our sphere of influence. We can avoid the proverbial closure of the pain when the horse has already bolted.
It is a zero option, we just have to painfully realise sooner rather than later that in Zambia, punishment of fraudsters and recoveries of stolen funds are so rare that prevention is the only viable course of action. Effective preventative measures are much cheaper and far less painful than post-fraud investigations and litigations. It is better to drain the swamps than to fight the alligators. The extent of preparedness for this growing challenge to all Zambians cannot be overemphasized.

Never stand aloof, whenever you smell a fraud or whenever a fraud occur, take keener interest in reading the red flags in staff members activities, and taking appropriate remedial steps to either pre-empty or sanction any untoward actions part of staff and fraudsters, take positive action. SPEAK UP, Whistle blow, Tell the Transparency International. Call Anti-Corruption Commission, Phone the Police Station. Inform your boss. Decline to authorise. Take keen interest in reading the red flags in your staff and customer behaviour, conduct and take appropriate remedial steps to either pre-empt or sanction any untoward actions on the part of staff and fraudsters.
While it may be difficult to prevent all incidences of fraud, it is possible to reduce their impact by performing a fraud risk assessment within your branches. You should aim to understand the methods of frauds which can be perpetrated by and applicable to each job function. We have lessons learnt from other colleagues and institutions in Zambia. They are usually reported in the media both electronic and print media. Learn Lessons and avoid being defrauded.
Let us realize that fraud is a big industry and there is specialization of labour. Those who specialize in forging of signatures, skimming and cloning Visa Cards, stealing of blank cheques, in impersonating others and masquerading as bonafide customers, known agents etc. Fraudsters are busy scheming, planning and submitting project proposals on which institution, which Agency or Ministry with weaker controls they can penetrate and attack.
Fraudsters have needs and wants. Fraudsters are planning to celebrate the Christmas and the New Year – 2014 in style. They want to throw big and lavish parties. They have a long list of invited guests to attend their wedding or party celebrations. Fraudsters have ZESCO, Water bills, DSTV, Ground rent, Rates, House rentals, school going children and dependants to look after; they have increased school fees for the year 2014 and probably house construction in Chalala or Meanwood to be completed, a big car to import etc. Fraudsters have to project cash flows and devise means and ways of fund-raising. Fraudsters with misdirected energy and intelligence are smart people who know that Money is in the Road Sector, Construction, Tourism, Agricultural Sector, Revenue Collections and Authority, money is kept in Bank accounts and the Big Banks. They will carefully plan and identify the weakest link among the staff and strike. You obviously do not wish to be the weakest link.
There is no honour in committing fraud. Do not connive and collude with fraudsters, they will damp you and leave you in deep trouble because they can’t keep their word. That is their nature. Be alert! Be vigilant! Wake up and speak up! Defend your territories from the yoke of impostors, conmen and conwomen masquerading as bonafide customers and middle men.
All organizations are subject to fraud risks. Large frauds have led to the downfall of entire organizations, massive investment losses, significant legal costs, incarceration of key individuals, and erosion of confidence in capital markets. Publicized fraudulent behaviour by key executives has negatively impacted the reputations, brands, and images of many organizations around the globe.

Reactions to recent Institutional and corporate scandals have led the public and stakeholders to expect organizations to take a “no fraud tolerance” attitude. Good governance principles demand that an organization’s board of directors, or equivalent oversight body, ensure overall high ethical behaviour in the organization, regardless of its status as public, private, government, or not-for-profit, NGOs and NGIs (Non Government Individuals); its relative size; or its industry.

The board’s role is critically important because historically most major frauds are perpetrated by senior management in collusion with other employees. Vigilant handling of fraud cases within an organization sends clear signals to the public, stakeholders, and regulators about the board and management’s attitude toward fraud risks and about the organization’s fraud risk tolerance. What we heard about Zambia Railways Limited was never inspiring.

In addition to the board, personnel at all levels of the organization — including every level of management (CEO/Managing Directors and Executive Management Committee members), staff, and internal auditors, as well as the organization’s external auditors — have responsibility for dealing with fraud risk. Particularly, they are expected to explain how the organization is responding to heightened regulations, as well as public and stakeholder scrutiny; what form of fraud risk management program the organization has in place; how it identifies fraud risks; what it is doing to better prevent fraud, or at least detect it sooner; and what process is in place to investigate fraud and take corrective action.

This guide is designed to help address these tough issues.
This guide recommends ways in which boards, senior management, internal auditors, Fraud preventions/Fraud Risk Management teams, Fraud investigators can fight fraud in their organization. Specifically, it provides credible guidance from leading professional organizations that defines principles and theories for fraud risk management and describes how organizations of various sizes and types can do the same.

Given the alluded to shortcomings, Zambians need to take concrete steps to arrest the scourge of Financial crime risks in all sectors of the economy. We need to learn lessons and have a deeper understanding of the concepts and theories or typologies of money laundering, terrorism financing, corruption and various operations of fraudsters so that knowledge acquired can further enhance our capabilities to review systems and controls which are breached and recommend remedial measures resulting in tighter controls being adopted which will subsequently thwart further fraud attempts in many organisations. We need to develop comprehensive and coherent strategies to address various forms of malpractices by all stakeholders.

I strongly believe in mother Zambia and the great people of this Country. I’m very confident that if managerial accountability and transparency is embodied in the financial sector coupled with good corporate Governance, MDAs, law enforcement, the DPP and Judiciary, the corporate governance of such institutions would be easier thereby reducing criminal activities which inevitably bring about lack of investor confidence, capital flight, closures of companies and industries and consequently create untold misery on the already helpless citizenry who will have little to do apart from engaging themselves in criminal activities.