Explain your motive for investing in off-shore accounts, HH challenged

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Green Party President Peter Sinkamba says UPND leader Hakainde Hichilema should give a better explanation on why his name is in the Paradise Papers.
Mr Sinkamba said being legal does not make tax avoidance or evading tax by investing in off-accounts right.
He said there is need for Mr Hichilema to properly explain his motive for investing in off-shore accounts.
Below is the statement as issued by Mr Sinkamba.
PARADISE PAPERS HAKAINDE HICHILEMA EXPOSÉ: MY VIEW
The leak this week of paradise papers has exposed complex ways how wealthy people and corporations have legally generated and protected their wealth through off-shore havens. The leak has documented how the world’s biggest businesses, heads of state and global figures in politics, entertainment and sport have sheltered their wealth in 19 secretive tax havens.
A 2006 off-shore investment for my colleague Hakainde Hichilema was among that was captured in the leaks.
The revelation appears to have generated great controversy in the country.
Like has done most figures across the world, HH has defended himself that the investment is legal.
I totally agree with him on the legality of the investments, but I think that argument is beside the point for the Zambian case. The apartheid system, for example, was a perfectly legal system. However, that does not make the system right for the victims of the apartheid system. What is legal is not always right.
Therefore, in my view, HH ought to have given better reasons. And indeed, there are more examples, and better reasons, to make a case for off-shore investment by Zambia and Zambian business corporations.
For example, prior to privatization in 2000, ZCCM Ltd was a partnership which was majority-owned by the Government of the Republic of Zambia with a 60.3% shares being state-owned. Other shareholders of ZCCM Ltd were Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc, which held 27.3% of shares, with the balance of 12.4% of shares held by private investors.
ZCI and other private investors that owned ZCCM Ltd, were registered in Bermuda and Cyprus, some of the most popular off-shore investments destinations.
GRZ was in partnership with Bermuda and Cyprus registered companies from 1970 when it nationalized Nchanga Consolidated Copper Mines (NCCM) and Roan Consolidated Mines (RCM).
Even after privatization, GRZ has been in business with private investors registered in off-shore destinations, not only in the mining but banking sector as well. For example, GRZ invests most treasury bills in companies registered in off-shore havens. The motive for GRZ before privatization and after was, and remains, to attract foreign capital into the country.
Put simply, therefore, it is not wrong to invest in off-shore havens if the motive is to attract capital from those havens into the country.
What is wrong is where the motive of investment into those havens is to hide stolen funds from the country; to evade or avoid tax; to launder inappropriately acquired wealth; and several other motives that deprive the State or nationals what is lawfully due to them.
Perhaps, instead of focusing on the legality of the investment, my colleague would better have demonstrated how he used the off-shore investment to attract foreign capital; how he invested it locally to grow his business empire to what it is; and how without it, he could not have been as wealthy.
He could have been even figurative about it, because as they say: “figures don’t lie!”
Otherwise in my view, with proper explanations backed by empirical evidence, there really ought not to be any fuss about it.
Peter Sinkamba
President,
Green Party
9th November, 2017

14 Responses to Explain your motive for investing in off-shore accounts, HH challenged

  1. What really are you talking about? That when one invests overseas, then others are deprived? How can one be deprived of what they didn’t have?

    Mbita Chikala
    November 9, 2017 at 9:14 am
    Reply

  2. Mr Peter Mabange,

    What are you talking about? Is it a crime to invest where you do not pay tax? I would do that immediately, given a chance!

    You invest in Chisokone, cooking Nshima and your wife is nyammed by small boys? Is that what you want?

    Achiever
    November 9, 2017 at 10:08 am
    Reply

  3. Let HH tell us where he got the money and how much for the initial investment. If there is proof the money was genuinely earned then there is absolutely no reason to victimise him. It is time for him to clear his name on aligations of him having benefited from the privatisation of the mines.

    Gift Nyangu
    November 9, 2017 at 10:30 am
    Reply

    • When we are telling you to say this man his a thief and not trustworth u could”t belive, Here you go now. Stole money from zambian during privatisation and hide it in a foregn account kept tax free, when us with small nthembas are busy paying tax so that they can build roads for him to use. and this is the person you want to take to the state house. shame on him. What more if we take him to state house?. Zambian lets work up and open our ayes.

      PRIVATISATION
      November 9, 2017 at 11:11 am
      Reply

  4. if you hear or read about someone insulting in response to a question, just know that that person is a cadre without reasoning capacity. Zambians lets learn to discuss issues devoid of these bad vices lest we are all labelled as shallow minded people.

    magaba
    November 9, 2017 at 10:38 am
    Reply

  5. The hate towards HH bwana Sinkamba and others who envy his achievements won’t add anything to your life. Just work hard and stop this malicious discussion thinking that us his followers will abandon him, no sir, talk of real issues. The privatization matter has been discussed over and over. Let us talk of something that will build us as a nation. If you feel he needs more explanation then make appointment with him than scandalising his name in public for simple political gain.

    Having one line of thinking is what has made us poor today. Your Lubanje idea is perfect example of thinking outside the box which I wholly support but taking us to think HH is not good for presidency, God knows that my friend you’re wrong and I can only urge you to put your efforts where they will count.

    Mainza
    November 9, 2017 at 1:10 pm
    Reply

  6. i agree with President Green Pary, HH has to simply state, how he has developed his business & how his investment resulted in off shore tax haven – and benefits accruing to Zambia as a result.

    He can only be coy, if the money was fraudulently obtain from the privatization process or he had to sleep with devil to make his money period. And notwith- standing the forensic audit PF has already done on him –

    Tonga Chief
    November 9, 2017 at 2:54 pm
    Reply

  7. Purely speaking those offshore banks are mostly used to launder money.for HH we leave to God wither the motive was really to do business or meant to hide proceeds from privatisation transactions. Secondly that also explains the patriotism of such people who hide money there and not in their own countries.

    Kg
    November 9, 2017 at 3:33 pm
    Reply

  8. bafwaka..that’s HH’s money not government money..talk about the Auditor general’s report

    intelligence
    November 9, 2017 at 3:45 pm
    Reply

  9. If it was his money he wouldn’t have hidden it , besides it is a criminal offence to evade tax .
    If HH is a Zambian he should have loved zambians who are depraved of taxes by him and some mines .
    We keep on accusing foreigners stealing from us , yet we have money launderers in our our nation.
    Some of them even want to rule us.
    It is a great shame.

    nshilimubemba
    November 9, 2017 at 5:12 pm
    Reply

  10. THERE IS NOTHING WRONG WITH ANY PERSON INVESTING ANYWHERE IN THE WORLD.wHY DO WE HAVE AMERICAN COMPANIES LIKE NIKE,REEBOK, APPLE AND SO ON INVESTING THEIR MONIES IN CHINA? WITH MY MONIES I CAN PUT IT IN MY HOUSE OR BURY IT IN THE FIELD OR TAKE IT TO ZIMBABWE, OR UK. WHY WOULD MY ACTION TROUBLE ANYONE AS IF YOU HAVE A CUT IN SPENDING IT. MUSIYENI NI NDALAMA ZAKE.OOOO MWANYALA.

    Wiseman from the East
    November 9, 2017 at 5:29 pm
    Reply

  11. HH is rich due to his good sense of entrepreneurship. Who would not want to invest where his returns are significant? Business is all about profit.We as Zambians are just lazy and rumor mongers. If there is any evidence HH stole, let him be probed and be arrested. At the same time let us probe the scourge that is going on in government right now. It is an affront to the citizens.the AG report year in year out is talking about misuse of governments fund, we have overinflated government contracts yet you still talking about HH investing in offshore accounts. He can invest anywhere he likes, just like you and me if we have the money. Read the report. HH challenged you to read it. Please get a life

    James Badoo
    November 10, 2017 at 12:51 am
    Reply

    • It is gridiness, selfishness, heartless to keep your money in offshore account when your children are suffering in your own country. if that money was kept in this country it was going to be used by other people through the bank but it was going to remain the same as HHs money. You can only keep money in that account if its the stolen money or satanisim money. This guy is a crock. Try to take him to state house, I can asure you another zamtrop is coming and all our money will go straight to his offshore account since his got experience to do that already.

      PRIVATISATION
      November 10, 2017 at 5:58 am
      Reply

      • My friend you are sick.Get help before you go mad…Which children are suffering…?Keep on suffering and crying as long as your Lungu will be the President.It is his money so!Jealousy and envy…kikikikik.gues you dont even sleep because of this man HH…

        Musonda
        November 11, 2017 at 7:14 am
        Reply

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