Former Foreign Affairs Minister Joseph Malanji has told the Economic and Financial Crimes Court that his wealth, including properties and assets under scrutiny, was accumulated through his long-standing business ventures.
Malanji, who is jointly charged with former Secretary to the Treasury Fredson Yamba, is facing allegations of willful failure to adhere to public resource management guidelines and possession of property suspected to be proceeds of crime.
Before Principal Resident Magistrate Ireen Wishimanga, Malanji detailed his business journey, asserting that his success was built over decades of entrepreneurship.
He stated that he started JM Bus Services in 1987 and was able to acquire multiple buses within a year.
By the early 1990s, he claimed to have owned 46 large buses, similar to modern Marcopolo models.
According to Malanji, the growth of his transport business enabled him to expand into other sectors, leading to the establishment of Gibson International in 1995.
This company focused on auto-fix services, power automation, and switchgear supply, capitalizing on growing demand from the mining industry.
He further explained that Gibson International’s revenue exceeded $3 million, allowing for further expansion.
By 2001, the power automation business was separated into an independent entity, and in 2003, a retail outlet was established in Kitwe.
Malanji testified that in 2011, his company, Gibson and Gibson Limited, acquired a commercial property from the Workers Compensation Fund Control Board for K2 billion, following an official offer and payment process.
He claimed the property was later developed into the Royal Gibson Hotel, which operated as a hospitality business.
To finance hotel expansions, Malanji stated that his businesses secured a $1 million loan from First National Bank (FNB), with Gibson and Gibson Limited acting as a guarantor. He emphasized that all loans were backed by collateral, and no bank funds were used to purchase property.
Malanji also statedthat his involvement in power automation, instrumentation, and the supply of transformers to the mines.
He stated that his company obtained a franchise for Merlin Gerin, a French switchgear brand, further strengthening its financial position.
Meanwhile, Yamba is accused of breaching public finance regulations by authorizing the transfer of K154.2 million for the purchase of a chancery in Turkey.
Malanji faces allegations of possessing two helicopters (BELL 430 and BELL 206 Jet Ranger), the Gibson Royal Hotel, and houses in Silverest Gardens, all suspected to be proceeds of crime.
Yamba concluded his defence last month.
