Saturday, March 29, 2008

Loan revelations embarrass Mulela

Loan revelations embarrass Mulela
By Mwala Kalaluka
Saturday March 29, 2008 [03:00]

FORMER foreign affairs deputy minister Davison Mulela has said he is extremely embarrassed by revelations made to the Parliamentary Public Accounts Committee (PAC) that he is failing to offset a furniture loan. Ministry of Foreign Affairs Permanent Secretary Tens Kapoma told PAC last Wednesday that his office had referred the matter in which Mulela was failing to liquidate a balance for a furniture loan amounting to K13, 690, 000.00 to the Attorney General’s office.

Kapoma, who said the furniture was procured by the government, but was converted into a personal loan at the time Mulela was dropped, said Mulela paid K5 million and that his office had sent constant reminders to him to offset the balance of K8.6 million.

Kapoma explained that the items in question were bought for Mulela at the time ministers and deputy ministers were told to vacate Mulungushi Village Complex, as their stay there was proving to be too costly to government.

He said the furniture was procured by the Ministry of Foreign Affairs because the house which they rented for Mulela subsequently had no furniture.
But Mulela charged yesterday that Kapoma and his officers were not being truthful on the matter and that some of the assertions they have made over the issue have brought his integrity into question. “The permanent secretary Ministry of Foreign Affairs is misleading the Parliamentary Public Accounts Committee and the nation at large,” Mulela said in an interview.

He said he procured the items in question through a personal loan.
“The items were purchased by the Procurement Unit of the ministry and the receipts were retained by the officials and items were delivered to our shop at Arcades,” Mulela said.
“I never stayed in a rented house apart from Mulungushi Village Complex from where I moved to my own house in Roma.”

Mulela said he was surprised that the issue of him not paying for the loan in contention surfaced seven months after he left office.

“Nobody gave me the answer why this amount was not recovered from my gratuity,” he said. “I am not a fugitive to be pursued.”

Mulela said seeing that the matter could turn into an embarrassing situation, he decided to pay the K5 million and committed himself to offset the balance.

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