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NAPSA deal must be stopped - Chongwe

NAPSA deal must be stopped - Chongwe
By Chibaula Silwamba and Ernest Chanda
Sat 14 May 2011, 04:01 CAT

NAPSA’s US$98 million deal with bankrupt Zambia National Building Society (ZNBS) is a shameful scam which must be stopped, says Lusaka lawyer Dr Rodger Chongwe. And President Rupiah Banda says if The Post has to accuse someone, it is usually him.

Dr Chongwe, a former minister of legal affairs, said the National Pension Scheme Authority (NAPSA) was supposed to consult workers and employers, who own the money it keeps, before transacting in US$98 million with ZNBS, which he said had no capacity to repay.

“NAPSA is owned by the workers of this country because every month out of their salaries there is deduction of their contributions to NAPSA.

The workers have not been asked by the government or by NAPSA whether it is prepared to loan to a company, which is almost bankrupt and will be unable to pay US$98 million if loaned to it,” Dr Chongwe said.

He said NAPSA did not consult the employers and all key stakeholders.
“It is not good enough to say the board of directors of NAPSA has agreed to loan US$98 million. Who gave them the permission? The government doesn’t own NAPSA. The workers of this country own NAPSA,” Dr Chongwe said.

“This deal is a scam and it must be stopped. It has no support of the workers who contribute their little ngwees towards their pension scheme.” Dr Chongwe said it was shameful that NAPSA had decided to give ZNBS US$98 million when in fact many pensioners had not been given their money.

“As I speak now, there are so many people in Zambia who have retired and who have applied to NAPSA to have their retirement benefits under the scheme paid to them, which has not been paid on the basis that (a) there is no sufficient money, (b) because of bureaucratic ineptitude.

But this organisation now has US$98 million to waste by paying it to a company which is bankrupt, which cannot even repair its own building, Society House. It’s shameful!” Dr Chongwe said.

He accused President Banda of involvement in the NAPSA-ZNBS questionable deal.
“If the head of state were not involved in this scam, he would be the first one to stop them but because he has not stopped, there is a reason for that. It is because either he or his colleagues are involved in it,” Dr Chongwe said.

“He is the head of state and NAPSA is run as a parastatal although it’s not a parastatal, it’s owned by the people. But the President is the custodian of the people’s wealth, including their pension scheme. He is failing in discharging that duty out of personal interest.”

Dr Chongwe said the MMD government had neglected ZNBS leading to the parastatal’s failure to perform its functions to provide loans for people to build houses and even repair Society House.

Dr Chongwe said since 1997 when Society House was gutted, the government that wholly owns ZNBS had not released money to refurbish the building.

“The government has failed to invest in its own organisation, ZNBS, by providing it with money so that it is able to build houses in Zambia at low cost for the Zambians to buy,” said Dr Chongwe.

And responding to questions from journalists on arrival from Turkey on Thursday evening at Lusaka International Airport, President Banda said he does not participate in tender procedures.

President Banda was responding to a question on whether or not he ordered NAPSA to fund the renovation of Society House which was gutted by fire in 1997.

“I don’t participate in tender procedures; it is illegal for anyone to interfere with the tender procedures just like it is illegal to interfere with the judiciary, as it is illegal to interfere with the Parliament. So, it’s not correct. You know, that’s life; if they have to accuse somebody it’s usually me,” said President Banda in apparent reference to The Post.

“I don’t do it that way. You know in this country we’ve got procedures on how you order things. But of course as President they come to tell you that we are planning to do this and that; and then I look at it.

“And if I tell them that it’s okay with me, the rest of the procedure is theirs. I don’t even know; I saw it already. I received the press statement here; I’ve nothing to do with that. And I’ve also seen today that there was a reply from them NAPSA, that is the truth.

Well-placed sources disclosed that President Banda pressurised NAPSA to provide US$98 million to ZNBS for refurbishing the latter’s building in Lusaka.

However, NAPSA and ZNBS have failed to convincingly explain the transaction in which a Kenyan firm was allegedly single-sourced to carry out the works.

Labels: CORRUPTION, NAPSA, PENSIONERS, ROGER CHONGWE

posted by MrK @ 4:40 AM