Maravi

NAPSA deal raises Lubinda’s eyebrows

NAPSA deal raises Lubinda’s eyebrows
By Chibaula Silwamba
Fri 13 May 2011, 04:01 CAT

NAPSA’s US$98 million deal with Zambia National Building Society is highly suspicious and raises eyebrows, says Given Lubinda. Lubinda said NAPSA must instead prudently manage pensioners’ funds as mandated by law.

“NAPSA being a pensions fund is keeping money that belongs to pensioners directly and its management of the funds must be in public interest,” he said.

“This matter has raised so much controversy because of the bad timing for K500 billion about US million of people’s funds to be subjected to a very suspicious investment portfolio in an election year is not wise judgment,” Lubinda said.

Lubinda, who is PF member of parliament for Kabwata and chairperson of African Network of Parliamentarians Against Corruption, urged NAPSA to hold back on this investment decision and subject the issue to further public debate.

He called for a public presentation of the proposed US $98 million investment.

Lubinda advised that the Zambia Institute of Chartered Accountants (ZICA) should, on behalf of pensioners, assess the viability of NAPSA’s investment and determine whether or not this investment decision made economic sense.

Lubinda urged parliamentarians to take keen interest in the matter because the funds involved were for the public and that the investment was illiquid.

“This investment will certainly affect NAPSA’s ability to pay pensioners. It will affect the cash flow position of NAPSA,” Lubinda said.

“There is no one who would be allowed by Bank of Zambia to borrow in excess of their balance sheet and especially using the so-called special vehicle. Why would one want to commit themselves to such a huge loan and not manage it themselves but give it to another entity to manage it?”

He said it raised a lot of eyebrows that NAPSA and ZNBS decided to establish a company, whose ownership was unknown, to manage huge funds.

“The other reason why this issue raises eyebrows is that it comes too soon after a similar transaction involving NAPSA and Meanwood. Also, it raises a lot of questions because this is coming after President Rupiah Banda issued instructions that properties belonging to parastatals, including NAPSA, should be sold on the market for a song. It shows that there is no will on the part of President Banda to protect public institutions and finances,” he said.

Lubinda also demanded that NAPSA makes public its investment portfolio in the Levy Junction, the residential and commercial development project located opposite the Lusaka Central Police Station.

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, GIVEN LUBINDA, NAPSA

posted by MrK @ 4:42 AM