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(LUSAKATIMES) Government may not compensate the Railway Systems of Zambia (RSZ)-Attorney General

Government may not compensate the Railway Systems of Zambia (RSZ)-Attorney General
TIME PUBLISHED - Wednesday, September 12, 2012, 11:49 am

GOVERNMENT may not compensate the Railway Systems of Zambia (RSZ) following the termination of the concessioning of Zambia Railways, citing breaches and massive damage to the railway link, Attorney General Mumba Malila has said.

And Zambia Railways managing director Knox Karima says RSZ will not be allowed to take assets away until the matter is resolved, Zambia National Broadcasting Corporation reported last evening.

In an interview yesterday, Mr Malila said there are a myriad of contentious issues the government will consider before it can agree on whether or not to compensate RSZ.

“Remember RSZ may be guilty of breaching the concession agreement,” Malila said, “and so that is the issue that has to be considered…”
Finance Minister Alexander Chikwanda on Monday cited deterioration, damage, loss of property including life, as part of the reason the government decided to cut the concession.

Mr Chikwanda said the takeover was necessary, “because any additional delays would result in further destruction of the railway assets, making it more expensive for the planned upgrade of the railway to meet regional and international standards.”

Former Vice-President Enoch Kavindele – citing a study – says Government may need between US$150 million and US$200 million to get Zambia Railways back on track before more money can be invested into the venture.

Mr Kavindele said, in an interview, that the expenditure would be necessary if Zambia Railways was to meet modern standards.

“I don’t see why Government cannot raise these funds,” Mr Kavindele, who is promoting the North-West Railway project, said as he joined others in supporting the repossession.

And some political parties have welcomed the move by Government to repossess the company. Forum for Democracy and Development (FDD) president Edith Nawakwi said Government should consider signing a public-private partnership agreement with China Railways, among others, to revamp Zambia Railways.

Ms Nawakwi said there is need for Government to partner with the private sector to make the railway system viable.

“We desire to see bullet (efficient) trains that will move our people from Kitwe to Livingstone in a short space of time, unlike the current situation,” Ms Nawakwi said.

She called on people who were leased land or are squatting along the railway track to vacate the land and pave way for expansion works.
The FDD leader said Government should also categorically state that the land along the railway track is an asset of Zambia Railways which should be protected for future expansion of the railway track.

The United Party for National Development (UPND) has also welcomed the repossession of the company “with caution”.
UPND spokesperson Charles Kakoma said the issue of Zambia Railways has been problematic but Government should have reviewed the concession agreement in an amicable manner.

“The review of the concessioning of Zambia Railways is what Parliament actually recommended but I think the manner in which it has been repossessed raises some questions. The approach, rather than the decision, is the issue,” Mr Kakoma said.

On Monday, Government terminated the freight and passenger concession agreement between Zambia Railways and RSZ.

The railway line was put up to a 20-year concession in 2003 but its growth grid has been down from the concession period, according to the government.

RSZ has declined to comment on the development which has cheered many Kabwe residents, who believe the fortunes may turn in their favour, once the government recapitalises the venture.

“I am in Kabwe right now (yesterday) and Kabwe residents are openly basking in the news of the government takeover and the prospects new money may bring to the now economically-depressed city,” Ms Muleya Mwananyanda, a Zambian working abroad, said.

Meanwhile, ALEX NJOVU reports that the Zambia Congress of Trade Unions (ZCTU) in Kitwe has welcomed Government’s decision.

In an interview yesterday, ZCTU Kitwe district chairman David Mwamba commended Government for its decision to terminate the concession, which the union feels will enhance job security.

He said it is unfortunate that the RSZ failed to operate to expectation and allowed railway infrastructure to be run down without taking the necessary steps to safeguard property.

“Infrastructure was dilapidated and it was clear that there was something wrong. Now that government has taken Zambia Railways back, things might improve,” Mr Mwamba said.

[Zambia Daily Mail]

Labels: MUMBA MALILA, PRIVATISATION, RAILWAY SYSTEMS OF ZAMBIA

posted by MrK @ 2:19 PM