Poly Technologies provides $163.99 million supplier credit for Supply, Delivery, and Installation of Security Equipment Project

In 2015, Poly Technologies Inc. provided a $163.99 million supplier credit (loan) to the Government of Zambia for the Supply, Delivery, and Installation of Security Equipment Project. The terms of the loan are unknown. The proceeds of the loan were to be used to pay for the acquisition of security equipment for police, the immigration department, prisons and the drug enforcement commission. This loan was shielded from public scrutiny in early 2015, prompting controversy in May 2015 when it was uncovered by journalists and civic monitors. In March 2019, the Zambia Police Service reported that it had received a first batch of security equipment — including 16,000 combat uniforms, 15,000 tactical and stab-proof vests, 50,000 raincoats, and 16,000 rack sacks — from Poly Technologies Inc. The consignment was delivered to Lilayi Police Training College in Lusaka. The second consignment comprising uniforms and communication equipment started arriving in the country in October, 2019 and this would go on up to January, 2020. The first batch of the third consignment arrived in Dares-salaam on Tuesday 21st January, 2020 en route to Zambia and consisted of uniforms and protective equipment. A second batch had been dispatched from China and was due to arrive in Dar-es-salaam by mid-February, 2020 en route to Zambia. This batch consisted of radio communication equipment, agricultural equipment and generators, among others. The third consignment comprising weapons and ammunition, anti-riot cartridges, 225 utility and heavy duty vehicles as well as heavy duty agricultural equipment was due to arrive by end of March, 2020 in Dar-es-salaam and thereafter would be dispatched to Zambia. The fourth and last consignment comprising 191 pick-up vehicles for the Zambia Police Service, Zambia Correctional Service, Immigration Department and Drug Enforcement Commission were due to arrive in Dar-es-salaam by end of April, 2020 en route to Zambia.

Additional details

1. According to several media sources, the face value of the loan was $192,924,047; however, Zambia’s Ministry of Finance records the face value of the loan as $163.99 million in its 2015 Economic Report. The face value of the loan may have been downwardly revised (to $163.99 million) after Zambia’s Cabinet approved a proposal to contract a $192,924,047 loan from Poly Technologies Inc.

Number of official sources

3

Number of total sources

10