Maravi

(LUSAKATIMES) Nevers Mumba condemns RSZ reversal

Nevers Mumba condemns RSZ reversal
TIME PUBLISHED - Monday, September 10, 2012, 5:27 pm

MMD President Dr. Nevers Mumba has condemned the decision by the PF government to nationalize the Railway Systems of Zambia. Addressing Journalists in Lusaka, Dr. Mumba said the policy of grabbing private enterprises will hurt the Zambian economy.

He said the decision to target some private businesses by the state will also erode investor confidence. Dr. Mumba also observed that some of the decisions being reversed today were initiated during the time that President Michael Sata served in the MMD government.

He said reduced investor confidence will negate government’s efforts to create jobs and reduce employment.

This morning, in a national address on ZNBC TV and Radio, Finance Minister Alexander Chikwanda said cancellation of the RSZ concession agreement with immediate effect.

Government terminated the freight and passenger Concession Agreement with the Railway Systems of Zambia, and reaffirmed commitment to making Zambia, a destination conducive for genuine investment…

Finance Minister Alexander Chikwanda announced the Zambian Governments’ decision to compulsorily acquire the Concession Rights that were granted to the Railway Systems of Zambia in 2003.

He said the acquisition has been necessitated by mismanagement of Zambia Railways infrastructure and rolling stock, leading to deterioration of assets and resultant loss to the nation as a whole.

In a statement read on national television, Mr. Chikwanda affirmed that Government would ensure that it complied with the labour laws of Zambia in relation to the welfare of RSZ employees and will meet the obligations in relation to suppliers, customers, and other stakeholders.

“I would like to assure the nation and our partners in development that the Government remains committed to ensuring that Zambia remained a destination which is conducive for genuine investment whilst ensuring that the interests of the nation are not undermined by impropriety,” said Mr. Chikwanda.

The Minister listed the following shortcomings by RSZ;

a) Abandonment of the inter-mine railway network resulting in heavy inter-mine cargo moving by road;

b) High railway transportation costs resulting in excessive road usage for heavy cargo, and minimal or non-utilization of railway transportation;

c) Failure to meet minimum service levels for passenger freight despite being a beneficiary of a substantial Government subsidy;

d) Unacceptably high levels of derailments, loss of life and property leading to enormous cost to Government; and

e) Blatant disregard of the provisions of the concession agreement and unsatisfactory performance, resulting in great risks to the sustainability of railway transport in Zambia.

“The measure is necessary because any additional delays would result in further destruction of the railway assets, therefore making it more expensive for the planned upgrade of the railway necessary for it to meet regional and international standards,” said the Minister.

The Government has prepared resources for the continued operations and rehabilitation of the railway line, assured the Minister.

And Railway Systems of Zambia Managing Director Benjamin Even said his firm is still studying the turn of events and will respond in due course.

Labels: NEVERS MUMBA, PRIVATISATION, RAILWAY SYSTEMS OF ZAMBIA

posted by MrK @ 2:18 AM