$21 Million Zambian Military Contract Scandal Sucks in Kenyan Tycoon Stanley Livondo

A company linked to Nairobi businessman Stanley Livondo is at the center of a growing controversy over a lucrative military hospital upgrade contract in Zambia. The scandal revolves around a $21 million tender awarded by Zambia's Army and Ministry of Defence for enhancing a military hospital in Lusaka. Initially appearing straightforward, the deal has now sparked serious concerns regarding alleged kickbacks, questionable financial transactions, and the involvement of high-profile individuals. The $21 million contract was awarded to DLS International Group Ltd., a Kenyan company with close ties to Stanley Livondo. This deal was intended to facilitate the procurement and installation of medical equipment at a military hospital in Lusaka. However, what initially seemed like a routine government contract has evolved into a full-blown scandal. Central to the controversy is a $5.3 million payment made to DLS International in August 2023. The Financial Reporting Centre (FRC) in Nairobi flagged this transaction, leading to an investigation into its purpose. Allegations soon emerged that a portion of these funds was funneled into personal accounts of Zambian business owners and Army officials, raising suspicions of corruption and money laundering. The Anti-Corruption Commission (ACC) in Zambia has launched an investigation, questioning how a newly established company with no prior experience in construction or security contracts managed to secure such a substantial government deal. The ACC's inquiry is also probing the absence of essential contract guarantees, such as a bank guarantee or insurance bond, which are typically required in government contracts of this magnitude. DLS International Group Ltd., founded in February 2023, was awarded the military hospital contract just months after its incorporation. Despite the company's lack of a track record in similar projects, it managed to secure the deal, raising eyebrows among industry observers. Stanley Livondo, the majority shareholder of DLS International, has vehemently denied any wrongdoing, dismissing the corruption and money laundering allegations as baseless. Livondo maintains that his firm fulfilled its contractual obligations, delivering the necessary medical equipment to the Zambian Ministry of Defence. Government officials, alongside DLS representatives, conducted a tour of the hospital, insisting that all equipment had been successfully delivered despite the contractor receiving only a fraction of the owed payment.
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