We are not persecuting RSZ owners-Chikwanda
TIME PUBLISHED - Saturday, September 15, 2012, 8:59 am
Finance Minister Alexander Chikwanda has said that Government is not persecuting the owners of Railway System of Zambia (RSZ). Commenting on the interception of RSZ chief executive officer, Benjamin Even and his Managing Director, Pelossor Yair, Mr Chikwanda said there was no persecution of the two as alleged by some opposition leaders. He
advised opposition leaders not to glorify foreign company owners even when they had failed to perform to expectations as enshrined in agreements.
“There is no persecution, we want them to stay, a little longer for accountability and smooth handover. Why should they want to run away? In mature countries, in matters like this, Government and the opposition usually work together because the issue is of national interest.
But in the case of our opposition, who’s interests are they serving? That is why they will continue to be in the opposition. They want to play to foreign gallery when it doesn’t even work for them. How can they lead people against their interest?” Mr Chikwanda said.
And Home Affairs deputy minister in-charge of Immigration, Stephen Kampyongo the interception of Mr Even and Mr Yair was meant to have the two officials help with a smooth and transparent handover of the railway assets.
Mr Kampyongo said there was nothing sinister with the interception of the two who wanted to exit the country at Lusaka’s Kenneth Kaunda International Airport on Thursday.
Alert Immigration officers intercepted Mr Even and Mr Yair at the airport when they tried to leave for South Africa.
The two were scheduled to leave the country on an early morning flight to Johannesburg through the airport when they were blocked.
“There is nothing sinister about intercepting them. What we want, is to ensure that the two hand over RSZ assets to Government in a smooth and transparent way,” he said in an interview yesterday.
He said Government would promote transparency in the manner RSZ would be handled and that it wanted Mr Even and Mr Yair to be around as Government took over operations.
“We want to ensure there is a proper hand-over of all assets so that there exit is also smooth. We don’t to see a situation where they go while certain issues remain pending because it will be difficult to call them,” he said.
He appealed to Mr Even and Mr Yair to remain patient and cooperate with Government.
On Thursday, Home Affairs Permanent Secretary, Maxwell Nkole said the duo was found with RSZ employment permits which have since been withdrawn and their passports withheld.
Mr Nkole said it was important that a full audit of all assets was thoroughly undertaken with the assistance of the former management.
Labels: ALEXANDER CHIKWANDA, RAILWAY SYSTEMS OF ZAMBIA
Read more...
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
Read more...
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
Read more...
RSZ deal the worst - Hachipuka
By Moses Kuwema and Chiwoyu Sinyangwe
Tue 11 Sep. 2012, 10:29 CAT
Emmanuel Hachipuka says the concession agreement that the government signed with the Railway Systems of Zambia (RSZ) is the worst. And the government has decided to compulsorily acquire all the concession rights that were granted to RSZ.
Hachipuka, a former Zambia Railways managing director who is also former UPND Mbabala member of parliament, said
the concession agreement was very badly negotiated by the government.
"I cannot understand how that kind of an agreement can be done by technocrats and approved by government. I have never seen anything in all my working life similar to that concession agreement. It has been very painful to me. I have visited Zambia Railways and there is nothing to write home about. The state of Zambian Railways is very sad compared to our days. We were running daily trains, two passenger trains a day. We were carrying over five million tonnes per annum. Look at what has happened now? I don't think they are doing more than 500 tonnes per annum, it is very sad," he said.
Hachipuka said amongst the privatisation processes that the country had undertaken, the concession agreement was the worst and supported the government's move to terminate the agreement.
"I have never seen anybody run an entity of this magnitude the way it has been run. I fully support that," he said.
And Hachipuka called on the government to publish the concession agreement to enable those who were critical of the government's stance understand the issues surrounding the agreement.
On the way forward after the termination of the agreement, Hachipuka said: "I think the government will position itself to privatise it again properly. If they choose to take the route of running the railway line, just as is the case world over, they can do it. The tax payer should pay for the railways and there is nothing wrong with that. Whatever route they can take is okay, provided they don't go back into another concession similar to the current one."
In his address to the nation at ZNBC studios yesterday, finance minister Alexander Chikwanda said Cabinet had decided to acquire the concession rights that were granted to the Railway Systems of Zambia Limited in accordance with its mandate to safeguard the interest of Zambians.
"As a consequence of the compulsory acquisition, the freight and passenger concession agreement (CA) with the Railway Systems of Zambia (RSZ) has been terminated and Zambia Railways Limited will with immediate effect take over the operations and management of the railway network that was the subject of the concession agreement," he said.
Chikwanda said the compulsory acquisition of the concession rights was necessitated by the RSZ's consistent acting in a manner that was prejudicial to the interest of the nation through mismanagement of Zambia Railways infrastructure and rolling stock.
He said this in turn had led to the deterioration of Zambia Railways assets and resultant loss to the nation as a whole. Chikwanda said the objectives of the concession had been abandoned and those included the inter-mine network, resulting in heavy inter-mine cargo moving by road.
He said other objectives that had not been met include, a reduction in the cost of railway transportation, saying under RSZ, railway transport had become costly to use as compared to road transport and that this had resulted in minimal or non-utilisation of rail transportation.
RSZ head of corporate affairs Charles Phiri refused to comment over the government's decision to terminate the concession agreement.
The concession of Zambia Railways assets and operations was awarded to RSZ in 2003 for a period of 20 years in respect of freight business and seven years for the passenger business.
The concession covered the whole inter-mine railway network on the Copperbelt as well as the long haul railway from the Copperbelt Province to Livingstone.
Among the objectives of the concession was to ensure that RSZ contributed towards the efficient transportation of goods and passengers at affordable rates.
This in turn would have transferred heavy cargo from road to rail, thereby reducing congestion by trucks on Zambia's high ways as well as reducing the road maintenance costs.
The concession agreement stated that in the event that government and/or ZRL terminates the agreement as a result of a RSZ event of default, then RSZ shall hand back the railway estate and moveable assets on the date of the termination pursuant to government and or ZRL offer for sale to government and/or ZRL, on the basis of a first right of refusal.
The agreement stated that any other RSZ assets not referred to above surrender the Railway permit, assign the contracts to GRZ or its designees, and RSZ shall, without limitation to GRZ and or ZRL's rights under the bank guarantee or guarantor's guarantee but at no time allowing GRZ and/or ZRL to recover the same loss twice pay GRZ the RSZ default amount and the total of unpaid arrears of the concession fees.
"The exercise of the right of a party to terminate this agreement as provided herein does not include the party from exercising other remedies that are provided herein or area available under the laws of Zambia," according to the agreement. "Remedies are cumulative, and the exercise of, or failure to exercise one or more remedy by a party shall not limit or preclude the exercise of or constitute a waiver of any other remedies by that party, provided that no party shall have any right to terminate this agreement other than in accordance with the express provisions of this agreement."
The agreement stated that the notice of intent to terminate shall specify in sufficient detail to RSZ the grounds for termination of the contract.
"The notice of intent to terminate shall specify in sufficient detail to RSZ event of default or GRZ and or ZRL event of default as the case may be given to raise such notice," the concession agreement read in part.
"Upon the occurrence of a GRZ and/or ZRL Event of Default or a RSZ Event of Default, as the case may be that is by its nature not capable of remedy (and where the effects cannot be compensated for by the payment of money) or which, if it capable or remedy, is not cured within the applicable period, the non defaulting party may, at its option initiate termination of this agreement by delivery a notice of its intent to terminate this agreement."
Labels: CORRUPTION, EMMANUEL HACHIPUKA, PRIVATISATION, RAILWAY SYSTEMS OF ZAMBIA, UPND
Read more...
Finance Minister, Alexander Chikwanda announces the grabbing of RSZ by Government
TIME PUBLISHED - Monday, September 10, 2012, 2:01 pm
Government has finally announced its compulsory acquisition of the concession rights that were granted to the Railway Systems of Zambia (RSZ) Limited.
Finance Minister, Alexander Chikwanda, made the disclosure when he addressed the nation on the National Broadcaster saying the compulsory acquisition of the concession rights has been necessitated by the consistence of RSZ acting in a manner prejudicial to the interests of the Zambians.
Mr Chikwanda said the compulsory acquisition of the concession rights has been done due to high unacceptable levels of derailments, loss of life and property.
He stated that the decision has been arrived at in accordance with cabinet’s mandate to safeguard the interest of the people of Zambia, adding that to this effect Zambia Railways Limited takes over the operations and management of the railway network which was the subject of the concession Agreement in 2003.
The Finance Minister cited mismanagement of the Zambia Railways infrastructure and the rolling stock which in turn led to the deterioration of the Zambia Railways assets and resultant loss to the country as a whole.
Mr Chikwanda further noted that government observed, among other concerns, that the objectives of the concession had not been met and such as the exorbitant railway transport costs as compared to road transport which had for some time now led to non utilization of rail transportation.
He assured that government remains determined to safeguard the safety and interest in the country%u2019s railway sector and to ensure sustainability for the Zambian people.
The minister explained that government is committed to ensuring that there are sustainable and cost effective measures in place to manage the railway infrastructure.
QFM
Labels: ALEXANDER CHIKWANDA, PRIVATISATION, RAILWAY SYSTEMS OF ZAMBIA
Read more...
RSZ directors, shareholders should be arrested - Nawakwi
By Moses Kuwema and Allan Mulenga
Sun 09 Sep. 2012, 10:30 CAT
FDD president Edith Nawakwi (left) says the directors and shareholders of the Railway Systems of Zambia should be arrested for theft of public property. But the RSZ says only Zambia Railway Limited can explain Nawakwi's alleged stripping of assets and sale of land belonging to the rail line.
And Ngandu Magande says the documents surrounding RSZ concession agreement were taken to his office when he served as finance minister and he only signed the papers.
In an interview, Nawakwi alleged that since getting the concession on both the passenger and freight transport network, the RSZ had engaged in unauthorised disposal of Zambia Railways property.
"This is direct in relation to, the rail siding, old bridges which have been sold as scrap metal. When the concession was undertaken, we expected them to improve on the facility to be part and parcel of a complimentary investment for the process of industrialising this country. Unfortunately, they have reduced the tracks to a one-way traffic by their deliberate efforts in selling the rail sidings and old bridges. In the past, you could have four, five trains going in different directions, because we used to have places where trains could exchange, if you are going north you exchange, if you are going south you exchange," she said.
"They actually ask you to park. Now today if you go to Mazabuka, you will find that there is no siding at Nega Nega, there is no siding at Nalwama. There is no siding anywhere where you can say if a train has a problem, you park it and fix it. They have literally taken the steel slippers and sold as scrap metal."
Nawakwi further alleged that the RSZ had sold the land near the rail line on the fly over bridges in Lusaka and wondered where new land would be found for improving the track.
"They paid a concession of US $1.5 million, they took over a rolling stock with newly refurbished wagons, which wagons were refurbished at half a million dollars each. I want to know because I have not seen them, where are these new wagons? This was over US $15 million of investment. They should point out where the sidings are, the old bridges, they should tell us and who authorised them to sell these. They got this asset not to improve it but for their own personal benefit. They came in caravans and they are going out flying and this is not acceptable. I want them arrested for theft of public property," she said.
On the RSZ's complaints about vandalism, Nawakwi wondered where the rail police were.
"Why did the Zambians not vandalise the lines in 1964 and 1980? That statement is meant to cover their theft, what I am telling you…Have the public vandalised the bridges? It is themselves who have been selling. Who has sold the land by the rail line at flyover bridge? It is themselves. They want to engage in the polemics of the politics of theft. They should just keep quiet, own up and report themselves to the police for theft of public goods," she said.
Nawakwi said instead of instituting investigations, the directors and shareholders of RSZ should be arrested so that they could explain from Chimbokaila what happened to the Zambia Railways property.
And Magande said he was not involved in the negotiation of the sale of Zambia Railways.
"According to the law, the person who signs all the decisions on assets of government is the minister of finance under Cap 349 and that is the law. But he does not negotiate, even when ZCCM was being sold, the people who were negotiating were different. We don't go into detail to say there were two million tonnes of copper, why did they write one million? That the minister of finance does not get involved in," he explained.
Magande said issues surrounding RSZ required technical decisions and not political ones.
Commenting on President Michael Sata's directive to justice minister Wynter Kabimba to examine the Freight and Passenger Concession Agreement between the government and Zambia Railways Limited (ZRL), RSZ and New Limpopo Bridge Projects Investment Private Limited, Magande, who is president of the opposition National Movement for Progress, said the cost of running a railway line was huge.
"We have a railway line from town to Chilenje and during the campaigns, we were told that it would be worked on but up to now we have not heard anything. Now what more a railway line that stretches from Chililabombwe to Livingstone? So this issue requires technical decisions and not political ones," he said.
Magande said the infrastructure on the railway line from Chililabombwe to Livingstone kept deteriorating on a daily basis.
"I have heard of plans to connect the TAZARA railway line to the Chipata-Mchinji railway line, and I was saying to myself there is a railway line which is in a terrible state which needs to be worked," he wondered.
Magande said in the event that the government took over the running of the railway line, a lot of works needed to be done.
"Help can be found but we must know what you are looking for," he said.
On Wednesday, after swearing in Kabimba, President Sata emphasised the need for the government to look into the Concession Agreement with RSZ in order to preserve the national railway infrastructure from further deterioration given that RSZ had failed to invest in the railway assets and improve operations, and to allow government to reposition itself in improving the railway sector which was critical to the country's economic development.
And the RSZ plans to meet President Sata over his directive to Kabimba. RSZ chief executive officer Benjamin Even said during the time of concessioning, the rail company had performed well under very difficult conditions.
Even also said the concession process was done in the most transparent manner as proved by the World Bank.
"We are also respecting and fully appreciating the fact that the railways we are operating is a Zambian asset, which belongs to the Zambian nation," Even told journalists.
"Our obligation as concessioners is to operate and improve the infrastructure and to hand it back to the government at the end of the concessioning period in better condition. The company has its responsibilities, the company needs to do the utmost and we are in the field. We need to do the utmost. If anyone thinks we didn't do enough, or we could do something which we didn't do, we are very much open to discuss and clarify."
Even said RSZ shareholders who included NPLI, whose shareholders were Nedbank, Sanlam, Old Mutual and NLP, were currently studying the matter and had not decided to seek legal redress over the possible revocation of the rail line.
On the President's statement that some officials from RSZ had indicated that they might sue the government if the rail was repossessed, Even said: "It's definitely not as the title is in the papers this morning. The shareholders still be studying the situation and we have not received any formal communication. We have never said it. I am not aware of any statement from anyone in this company."
And Even said RSZ, which had invested over US$50 million in the main economic activity of Kabwe, had not stripped any of the rail's assets.
"RSZ is not allowed to dispose any of ZRL assets or Zambia's assets regarding this concession," said Even to Nawakwi's allegations.
"We are not allowed to perform any of such transactions whether it scrap or real estate and we have never done it obviously and even the title deeds are not with us. We have not done so. I can't tell you who did it or why and how. I can only confirm that RSZ has nothing to do with whatsoever and disposal of assets."
Labels: BENJAMIN EVEN, EDITH NAWAKWI, NG'ANDU MAGANDE, RAILWAY SYSTEMS OF ZAMBIA, ZAMBIA RAILWAYS
Read more...
Sata warns diplomats - Diplomats interfering in domestic politics will be expelled
By Chiwoyu Sinyangwe
Sat 08 Sep. 2012, 10:30 CAT
ZAMBIA will expel foreign diplomats accredited to the country if the government finds that they are interfering in domestic politics, says President Michael Sata.
President Sata yesterday warned "some ambassador", who was in the habit of going directly to State House without seeking appointment from the Ministry of Foreign Affairs, to respect Zambia's territorial integrity.
President Sata said this at State House when he received credentials from newly-appointed German Ambassador to Zambia Bernd Finke, Somalia
Ambassador to Zambia Mohammed Hassan Daware and Nigeria High Commissioner Sitemu Inu-Umoru Momoh, and conferred justice minister Wynter Kabimba as State Counsel.
"Remove this habit, you can speak to me on the phone but don't make a habit to see me," President Sata said.
"Go through foreign affairs. I am not going to mention the names of those ambassadors who have the habit of thinking 'I can go to State House'. Even if in your own house, if your own son or your own daughter is in the toilet, you can't go in. Please go to foreign affairs and foreign affairs will clear you but we will always like to exchange… and you ambassadors and high commissioners, find time to tour Zambia."
President Sata said some ambassadors accredited to Zambia were interfering in the country's domestic politics because natives were indolent.
"Because you are being so lazy, you are being idle, that's why some of the embassies are trying to entertain or interfere in our internal politics. I am sure you know what I mean by that," President Sata told Ambassador Finke.
"If you want to interfere in our internal politics, you are under the Geneva Convention, and it will be very embarrassing for His Excellency or Her Excellency to be expelled from a country where they have gone for tour of duty. Please stay away. Leave our internal politics to ourselves and because some are boasting that we are going to be funded by such and such…at the moment, we have our intelligence within your own missions; before they report to you, they have already told us what's happening."
President Sata told foreign diplomats accredited to Zambia to visit beyond Lusaka.
"Go to all the 10 provinces. Go to all the districts so that you know all our difficulties," he said.
And Sata said Zambia was happy that the Nigerian government was helping Zambia to probe an oil deal in which Rupiah Banda's regime allegedly paid for oil to Nigerian dealers although the commodity was never delivered.
"Please convey to His Excellency President Goodluck Jonathan; we are very grateful that without the current government in Nigeria, we would have not known for the oil which we paid for which has never arrived in Zambia and with the help which we are getting from you country, we are very grateful and we are always," President Sata told High Commissioner Momoh.
And President Sata said the government was ready to be sued for the planned cancellation of the concession agreement of the Zambia Railways from Railway Systems of Zambia.
President Sata told Kabimba to work with the government's legal team to ensure the country's interest in the running of Zambia Railways was protected.
"Yesterday, some man was threatening to take me to court and I am waiting for him to come and serve me with the writ of summons," he said.
"Some man from Zambia Railways, you have a number of people who will assist you with that. There are so many things which…Zambia is our country and we only have one country and we have no any other country. You have capable hands to work with. Some of them are very radical, some of them are very radical. Like the Attorney General is very gentle like a pastor."
He also urged Kabimba to help in justice delivery system in the country with a focus on improving conditions of service for judiciary officers.
"Prisons are for poor and illiterate people. Let's bring justice to the people…people working in justice are working in deplorable conditions," said President Sata. "We have shortages of courtrooms, manpower. I have seen your predecessor asking me to fire a judge for failing to write judgment. The conditions, we still have some retired judges who have gone without writing judgments."
Kabimba replaced Sebastian Zulu as justice minister.
Labels: JUDICIARY, MICHAEL SATA, RAILWAY SYSTEMS OF ZAMBIA, WYNTER KABIMBA
Read more...
'Concessioning of railway line was a raw deal'
By Moses Kuwema in Lusaka and Roy Habaalu in Sesheke
Fri 07 Sep. 2012, 10:29 CAT
THE Railway Systems of Zambia says it is fully committed to discussing and clarifying any issues related to the concession agreement for Zambia Railways for the sake of the nation and the company's employees. And an expert says the concessioning of Zambia Railways Limited to New Limpopo Project Investment was a raw deal for the country.
Responding to a press query following President Michael Sata's directive to justice minister Wynter Kabimba to examine the Freight and Passenger Concession Agreement between the government and Zambia Railways Limited (ZRL), RSZ and New Limpopo Bridge Projects Investment Private Limited, RSZ deputy general manager for corporate affairs Charles Phiri said his company would always respect Zambian laws and the president.
"So far RSZ has received conflicting reports on the actual content of the press conference and is now in the process of studying the information received.
However, suffice to mention that RSZ has been and will always respect the Zambian President and leadership, Zambian laws and the Zambian nation and will therefore be fully committed to discuss and clarify any issues which are related to the Concession Agreement for the sake of the nation and company employees," Phiri said.
He said the authorities in the country have over the years been misled on the concession agreement.
Phiri said there have been attempts by various interested parties and individuals to reverse the government's decision to privatise the Zambia Railways through a Concession Agreement.
"In the course of these attempts, these parties and individuals have misled the authorities in Zambia with unfounded allegations and misrepresentations. Many of these attempts to undermine the Concession Agreement were made by parties who formerly enjoyed unrealistic commercial terms from Zambia Railways for its transportation services. In addition, following the privatisation process and signature of the Concession Agreement, other parties and individuals felt under pressure because they could no longer act freely and treat the Zambia Railways' assets their own, by, for example, stripping the company of its assets for their own gain at ridiculous prices," Phiri said.
Phiri said the situation prior to the Concession and the establishment of RSZ led to the bankruptcy of Zambia Railways and its inability to pay employees' salaries.
He said furthermore, pensions and social benefits for railway employees were non-existent and basic rights were not being fulfilled and as a result, the authorities came to the conclusion that they could no longer run the railway independently and decided that the solution lay in privatising Zambia Railways.
"The bidding process was managed by the World Bank, with the willing participation of ZPA and all other official stakeholders. RSZ won this bidding process and started its activities. RSZ negotiated the Concession Agreement on the basis of putting in place acceptable and normative commercial terms. As a result, RSZ were able to run the railway successfully without the need of government subsidies. Furthermore, the Company's employees and their related salary benefits such as pensions were now secured and respected," he said.
Phiri said RSZ inherited a very old rail network, which had been neglected for many years.
He said RSZ had invested in renewing and upgrading the railway network in a long-term, cost-effective programme of works.
Phiri said the company had approached the relevant authorities on numerous occasions with appeals to support its services but that this was met with limited success.
"The company's competiveness has been further damaged by vandalism to the railway line and equipment and ineffective policing where trouble-spots are identified. Furthermore, the RSZ has been hampered by non-competitive terms when required to pay a Road Levy in its fuel costs, thereby subsidising its competitors," he said.
Phiri said despite the fact that the passenger service should have been handed back to the government under the Concession Agreement, RSZ accepted the government's request to continue operating it.
He said if the government was now seeking a more rapid pace for railway sector infrastructure improvements to meet its own and the country's needs, they would have to cooperate with RSZ in sourcing additional finance to support a faster and expedited cost-effective upgrade plan.
In March 2000, the MMD government decided to concession the freight and passenger services of Zambia Railways to the private sector.
After a process of competitive bidding, the then Zambia Privatisation Agency (ZPA) awarded the concession to Railway Systems of Zambia.
And on February 14, 2003, the MMD government signed a Freight Concession Agreement with RSZ and on August 18, 2003 signed the Passenger Concession Agreement.
RSZ took over operations of Zambia Railways Limited on December 3, 2003. The concession covered the whole inter-mine railway network on the Copperbelt as well as the long haul railway network from the Copperbelt to Livingstone.
On Wednesday, after swearing in Kabimba, President Sata emphasised the need for the government to look into the Concession Agreement with RSZ in order to preserve the national railway infrastructure from further deterioration given that RSZ had failed to invest in the railway assets and improve operations; and to allow government to reposition itself in improving the railway sector which was critical to the country's economic development.
But Phiri could not address the concerns raised by the head of state regarding RSZ's failure to invest in the railway assets and improve operations.
Meanwhile, Ernest Silwamba, a railway engineer, said in the nine years that RSZ had been operating the railway line, it had deteriorated to unbelievable standards.
He said during its time, RSZ had not done any maintenance on the tracks and abandoned the main workshops in Kabwe, the former headquarters of the railway company.
"In the last years before concessioning in 2002, Zambia Railways used to move 1.8 metric tonnes of goods but from the time RSZ took over, this declined to about 700,000 metric tonnes. The train speed has reduced from 65 kilometres per hour to 20 kilometres per hour for both goods and passenger trains because of a deteriorated railway track because there was no maintenance. Traffic volumes have gone down," said Silwamba.
He said the concessioning of the railway line did not add value to the country as RSZ was using machinery left by Zambia Railways.
According to documents obtained by The Post, RSZ had stopped servicing the local industry but was moving goods from the Democratic Republic of Congo.
In the concessioning agreement among its many objectives, RSZ was supposed to inject fresh capital to enhance service delivery and ensure workforce is adequately motivated and well remunerated.
But documents reveal that the workforce had reduced from 1,500 to about 500 employees.
"RSZ is no longer servicing the local industry like the mines, Chilanga (Larfage) Cement, Ndola lime and the government through products like fuel, maize and cattle, instead, they are now moving their own products like sulphur, coal bought from South Africa. Sometimes coal is bought from Wange in Zimbabwe but by agreement they are not supposed to do that. RSZ only paid US$150,000 as entry fee in the first quarter and stopped paying concessioning fees to the government," the document read in part.
Meanwhile, the Southern Africa Railway Association (SARA) said Zambia under RSZ was the worst performing in the region.
The association according to its submission to the government under MMD stated that there was need to repossess the railway line because the country had not benefited economically.
"Tanzania and Mozambique got back their railway lines after they realised that the countries were not benefiting while Zimbabwe refused to concession its line to the private sector. The government under MMD was under pressure from the World Bank to concession Zambia Railways to the private sector which is now a failed project. Under ZRL rehabilitation works had started and by now works would have ended by now. All RSZ did was to get and enjoy the money. After take over, they got all ZRL coaches, wheels and kept them elsewhere and when ZRL demanded for them there was no explanation and for now the coaches are vandalised and reduced to scrap," read another document submitted to the ministry of transport and communication then.
The concessioning was to last for 20 years according to the agreement.
Labels: PRIVATISATION, RAIL, RAILWAY SYSTEMS OF ZAMBIA, WYNTER KABIMBA
Read more...
President Sata dares RSZ to sue him , confers State Counsel (SC) title on Wynter Kabimba
TIME PUBLISHED - Friday, September 7, 2012, 3:12 pm
President Michael Sata has dared Railway Systems of Zambia to go ahead and serve him with writs of summon.
On Wednesday, President Sata directed Justice Minister Wynter Kabimba to use all legal means at his disposal to return Zambia Railways to the rightful owners the Zambians.
President Sata says he is aware of the threats and is patiently waiting for the writs of summons.
And President Sata has instructed Justice Minister Winter Kabimba to ensure that problems being faced by prisons in the country are addressed.
He notes that it is difficult for justice to prevail when the Justice department is operating in a deplorable condition.
President Sata says there is need to ensure that citizens do not fear the law but instead need to be protected by the law.
He was speaking at Statehouse this morning when he bestowed Justice Minister Wynter Kabimba with the honor of State Counsel.
And speaking when he received letters of credence from three foreign envoys accredited to Zambia, President Sata cautioned diplomats in the country not to interfere with the country’s internal politics.
President Sata has also advised diplomats to change their habit of visiting him at Statehouse without following the right procedure of going through the ministry of foreign affairs.
The three envoys that presented their letters of credence are Somalia’s Mohamed Hassan Daware, Sifamu In-umoru Momoh of Nigeria and German’s Bernd Finke.
And speaking when he presented his credentials, Germany Ambassador to Zambia, Bernd Finke disclosed that a group of German businessmen is in the next few months expected in the country to explore more investment opportunities.
QFM
Labels: MICHAEL SATA, RAILWAY SYSTEMS OF ZAMBIA, WYNTER KABIMBA
Read more...
'Concessioning of railway line was a raw deal'
By Moses Kuwema in Lusaka and Roy Habaalu in Sesheke
Fri 07 Sep. 2012, 10:29 CAT
THE Railway Systems of Zambia says it is fully committed to discussing and clarifying any issues related to the concession agreement for Zambia Railways for the sake of the nation and the company's employees. And an expert says the concessioning of Zambia Railways Limited to New Limpopo Project Investment was a raw deal for the country.
Responding to a press query following President Michael Sata's directive to justice minister Wynter Kabimba to examine the Freight and Passenger Concession Agreement between the government and Zambia Railways Limited (ZRL), RSZ and New Limpopo Bridge Projects Investment Private Limited, RSZ deputy general manager for corporate affairs Charles Phiri said his company would always respect Zambian laws and the president.
"So far RSZ has received conflicting reports on the actual content of the press conference and is now in the process of studying the information received.
However, suffice to mention that RSZ has been and will always respect the Zambian President and leadership, Zambian laws and the Zambian nation and will therefore be fully committed to discuss and clarify any issues which are related to the Concession Agreement for the sake of the nation and company employees," Phiri said.
He said the authorities in the country have over the years been misled on the concession agreement.
Phiri said there have been attempts by various interested parties and individuals to reverse the government's decision to privatise the Zambia Railways through a Concession Agreement.
"In the course of these attempts, these parties and individuals have misled the authorities in Zambia with unfounded allegations and misrepresentations. Many of these attempts to undermine the Concession Agreement were made by parties who formerly enjoyed unrealistic commercial terms from Zambia Railways for its transportation services. In addition, following the privatisation process and signature of the Concession Agreement, other parties and individuals felt under pressure because they could no longer act freely and treat the Zambia Railways' assets their own, by, for example, stripping the company of its assets for their own gain at ridiculous prices," Phiri said.
Phiri said the situation prior to the Concession and the establishment of RSZ led to the bankruptcy of Zambia Railways and its inability to pay employees' salaries.
He said furthermore, pensions and social benefits for railway employees were non-existent and basic rights were not being fulfilled and as a result, the authorities came to the conclusion that they could no longer run the railway independently and decided that the solution lay in privatising Zambia Railways.
"The bidding process was managed by the World Bank, with the willing participation of ZPA and all other official stakeholders. RSZ won this bidding process and started its activities. RSZ negotiated the Concession Agreement on the basis of putting in place acceptable and normative commercial terms. As a result, RSZ were able to run the railway successfully without the need of government subsidies. Furthermore, the Company's employees and their related salary benefits such as pensions were now secured and respected," he said.
Phiri said RSZ inherited a very old rail network, which had been neglected for many years.
He said RSZ had invested in renewing and upgrading the railway network in a long-term, cost-effective programme of works.
Phiri said the company had approached the relevant authorities on numerous occasions with appeals to support its services but that this was met with limited success.
"The company's competiveness has been further damaged by vandalism to the railway line and equipment and ineffective policing where trouble-spots are identified. Furthermore, the RSZ has been hampered by non-competitive terms when required to pay a Road Levy in its fuel costs, thereby subsidising its competitors," he said.
Phiri said despite the fact that the passenger service should have been handed back to the government under the Concession Agreement, RSZ accepted the government's request to continue operating it.
He said if the government was now seeking a more rapid pace for railway sector infrastructure improvements to meet its own and the country's needs, they would have to cooperate with RSZ in sourcing additional finance to support a faster and expedited cost-effective upgrade plan.
In March 2000, the MMD government decided to concession the freight and passenger services of Zambia Railways to the private sector.
After a process of competitive bidding, the then Zambia Privatisation Agency (ZPA) awarded the concession to Railway Systems of Zambia.
And on February 14, 2003, the MMD government signed a Freight Concession Agreement with RSZ and on August 18, 2003 signed the Passenger Concession Agreement.
RSZ took over operations of Zambia Railways Limited on December 3, 2003. The concession covered the whole inter-mine railway network on the Copperbelt as well as the long haul railway network from the Copperbelt to Livingstone.
On Wednesday, after swearing in Kabimba, President Sata emphasised the need for the government to look into the Concession Agreement with RSZ in order to preserve the national railway infrastructure from further deterioration given that RSZ had failed to invest in the railway assets and improve operations; and to allow government to reposition itself in improving the railway sector which was critical to the country's economic development.
But Phiri could not address the concerns raised by the head of state regarding RSZ's failure to invest in the railway assets and improve operations.
Meanwhile, Ernest Silwamba, a railway engineer, said in the nine years that RSZ had been operating the railway line, it had deteriorated to unbelievable standards.
He said during its time, RSZ had not done any maintenance on the tracks and abandoned the main workshops in Kabwe, the former headquarters of the railway company.
"In the last years before concessioning in 2002, Zambia Railways used to move 1.8 metric tonnes of goods but from the time RSZ took over, this declined to about 700,000 metric tonnes. The train speed has reduced from 65 kilometres per hour to 20 kilometres per hour for both goods and passenger trains because of a deteriorated railway track because there was no maintenance. Traffic volumes have gone down," said Silwamba.
He said the concessioning of the railway line did not add value to the country as RSZ was using machinery left by Zambia Railways.
According to documents obtained by The Post, RSZ had stopped servicing the local industry but was moving goods from the Democratic Republic of Congo.
In the concessioning agreement among its many objectives, RSZ was supposed to inject fresh capital to enhance service delivery and ensure workforce is adequately motivated and well remunerated.
But documents reveal that the workforce had reduced from 1,500 to about 500 employees.
"RSZ is no longer servicing the local industry like the mines, Chilanga (Larfage) Cement, Ndola lime and the government through products like fuel, maize and cattle, instead, they are now moving their own products like sulphur, coal bought from South Africa. Sometimes coal is bought from Wange in Zimbabwe but by agreement they are not supposed to do that. RSZ only paid US$150,000 as entry fee in the first quarter and stopped paying concessioning fees to the government," the document read in part.
Meanwhile, the Southern Africa Railway Association (SARA) said Zambia under RSZ was the worst performing in the region.
The association according to its submission to the government under MMD stated that there was need to repossess the railway line because the country had not benefited economically.
"Tanzania and Mozambique got back their railway lines after they realised that the countries were not benefiting while Zimbabwe refused to concession its line to the private sector. The government under MMD was under pressure from the World Bank to concession Zambia Railways to the private sector which is now a failed project. Under ZRL rehabilitation works had started and by now works would have ended by now. All RSZ did was to get and enjoy the money. After take over, they got all ZRL coaches, wheels and kept them elsewhere and when ZRL demanded for them there was no explanation and for now the coaches are vandalised and reduced to scrap," read another document submitted to the ministry of transport and communication then.
The concessioning was to last for 20 years according to the agreement.
Labels: RAIL, RAILWAY SYSTEMS OF ZAMBIA
Read more...
RSZ to relocate its headquarters to Lusaka
By Justin Katilungu in Kabwe
Mon 11 Jan. 2010, 04:01 CAT
RAILWAY Systems of Zambia chief executive officer Benjamin Even has confirmed the intended relocation of the railway company headquarters to Lusaka but could not state when the move will be undertaken.
In response to a press query, Even assured yesterday that assuming the move is undertaken, there would be no job losses as some workers claimed.
Even said; “ Thanks for your query. I don't find this relevant to answer at the moment as the information you are presenting is far from being accurate and none of these employees had come to my office or other management members with the same.
“However, I did receive some queries from employees who are looking forward to this intended action should it happen, as they are aware of the advantages related to these plans, but unfortunately I could not indicate even to them when, how, if and who will be shifted.”
Even said he had also mentioned in the said meeting that assuming the questions above were answered positively there was no fear of job losses as the company was providing procedures for such transfers.
“Management decisions are taken in the best interest of the company, the business and its employees and so will be in this case. I would also appreciate if you could advise the same employees to see management of RSZ to find good response to their queries,” said Even.
Last Friday, some workers belonging to RSZ stormed the Post Newspapers offices in Kabwe to register their displeasure about the intended relocation of the railway company to Lusaka, fearing that most of them would lose their jobs.
The workers, who spoke on condition of anonymity, felt it was unwise and unnecessary to shift the RSZ headquarters to Lusaka, as its location in Kabwe was well intended.
“Shifting RSZ to Lusaka is something that should be unheard of as such a move would bring Kabwe town into oblivion. Besides, we should understand that there is a reason why Zambia Railways situated its headquarters in Kabwe.
“Relocating the headquarters entails that some of us will lose jobs while those that would move to Lusaka would find it difficult as the town is already congested,” a worker who spoke on behalf of others said.
The workers said that Kabwe town was slowly awakening from the economic downturn it suffered during the closure of the mines in 1994 as well as the defunct Zambia China Mulungushi Textiles (ZCMT) and relocating RSZ to Lusaka would therefore worsen the situation.
The workers claimed that Even addressed workers last week on Wednesday, informing them about the impending relocation and those that would move should find means of how to get to Lusaka.
Labels: BENJAMIN EVEN, RAIL, RAILWAY SYSTEMS OF ZAMBIA
Read more...
