Maravi

Inquiry to summon experts on refurbishment of Society House

Inquiry to summon experts on refurbishment of Society House
By Gift Chanda
Thu 01 Dec. 2011, 13:20 CAT

THE commission of inquiry probing the operations of the Zambia National Building Society says it will summon experts to ascertain if the US $98 million for refurbishment of Society House can be substantiated.

In an interview shortly after the commission concluded the phrase one hearing in Lusaka, commission chairperson Mwila Lumbwe expressed satisfaction over the quality of submissions received so far.

"We have received a number of submissions from the management team, the public and the employees," Lumbwe said.

"It is quiet apparent from the submission that we have received that the public is concerned with the quality of management and also the financial condition of the Zambia National Building Society ( ZNBS). They are also concerned about the applications of the resources of the building society."

Lumbwe said out of all the submissions received, the building society project and the compensations to senior management stand out in a "glaring fashion".

He said the commission would summon contractors, engineering professionals, and associations that regulate the building industry to try and ascertain whether the value of the Society House contract could be substantiated.

He said the employees were concerned about the future viability of the ZNBS and was looking to the government to ensure that the institution survived.

"From what I have read so far, there is a dedicated pool of employees who are keen, enthusiastic and keen, about the building society," he said.

"They have made an earnest appeal that if they are given the tools that they require, that is capital and a dynamic management, they believe they can take the competition to other financial institutions in the industry."

The National Pensions Scheme Authority (NAPSA) US$98 million transaction with the ZNBS was to refurbish the latter's Society House.

NAPSA took over ZNBS House and Central Arcades under the build, operate and transfer (BOT) scheme.

According to the agreement on the re-development of Society House and Central Arcades by concession arrangement, NAPSA would put in $98.2 million into the project and would thereafter claim its profit and interest within 12 years.

An additional eight years would be given to the institution as a bonus to run the building. The agreement also states that NAPSA would be paid an additional exit fee, which might see it walk away with more than $300 million from the deal.

Labels: CORRUPTION, NAPSA

posted by MrK @ 4:15 PM