Chirwa in court for abuse of office
By Moses Kuwema
Wed 11 Sep. 2013, 14:01 CAT
THE Anti-Corruption Commission has arrested former Zambia Railways Limited chief executive officer Professor Clive Chirwa for alleged corrupt practices involving over K280,000.00. In a statement, ACC corporate affairs officer Christopher Chibanku stated that Prof Chirwa was arrested yesterday and charged with two counts.
"In the first count, Prof Chirwa is charged with failure to disclose interest contrary to section 28 (1) of the Anti-Corruption Act No. 3 of 2012. Details are that Prof Chirwa, 59, between November 1, 2012 and December 31, 2012, as CEO of Zambia Railways Limited, recommended at the Zambia Railways Board meeting that Clavel Incorporated Limited, a company in which he is a shareholder be given a contract to train Zambia Railways employees without disclosing interest contrary to section 28 (1) of the Anti-Corruption Act No. 3 of 2012," Chibanku stated.
Chibanku stated that in the second count, Prof Chirwa was jointly charged with Regina Mwale, 50, a finance director of Zambia Railways Limited for abuse of authority of office contrary to section 99 (1) of the Penal Code Chapter 87 of the Laws of Zambia.
He stated that details were that between November 1, 2012 and April 30, 2013, Prof Chirwa and Mwale, whilst acting together, abused the authority of their office by authorising a total payment of K289,128.84 to Fallsway Apartments of Lusaka for accommodation for the benefit of Prof Chirwa without following laid down procedures.
Chibanku stated that Prof Chirwa and his co-accused, who have since appeared in the Kabwe Magistrates' Court, have pleaded not guilty to the charges.
And in a similar development, the commission has arrested and charged two public officers for Choma Municipal Council for abuse of authority of office and uttering a false document involving K91,000.00.
Chibanku stated that the two officers, namely Killian Chibbunu, 49, a chief community development officer and Gabriel Malata, 47, a draftsman are alleged to have acquired eight pieces of land in Choma without following laid down procedures, which land they sold to unsuspecting members of the public.
He stated that the two are facing eight counts of abuse of authority of office each.
Chibanku stated that the accused persons appeared for mention in the Choma Magistrates' court yesterday.
Labels: CHRISTOPHER CHIBANKU, CLIVE CHIRWA, CORRUPTION, COURTS, ZAMBIA RAILWAYS
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(LUSAKATIMES) There were some corrupt activities at ZRL involving Clive Chirwa and some board members-Chikwanda
Time Posted: July 18, 2013 8:17 am
MINISTER of Finance Alexander Chikwanda has told Parliament that his ministry is pondering to submit findings of an audit conducted at the Zambia Railways Limited to law enforcement agencies for scrutiny.
Mr Chikwanda says a team of auditors sent to the Zambia Railways Limited has revealed that there are some corrupt activities allegedly involving former chief executive officer Clive Chirwa and some board members.
He was winding up debate on the report of the Public Accounts Committee (PAC) on the report of the Auditor General presented to the House by Chipangali member of Parliament (MP) Vincent Mwale (MMD) on Tuesday evening.
“We have taken appropriate steps, and in some cases we may even refer some of these issues to law enforcement wings…We benefited from the controller of internal audit who looked at Zambia Railways Limited and brought a report,” he said.
Mr Chikwanda said his ministry is reinforcing audit committees because they play an important role in the fight against corruption in parastatal organisations where the scourge is suspected to be taking place.
He said corruption in parastatal bodies and other organisations should be stopped because it is retrogressive.
“One way of getting our country to run better is for us to put our heads together, and where we see impropriety we should condemn it without any reservations,” he said.
Mr Chikwanda said Government is trying to make the offices of the Accountant-General and Controller of Internal Audit in his ministry more effective so that they can detect corruption.
“These offices are independent, and it is important that they should not be fused into each other…the office of Controller of Internal Audit can even watch over the activities of the Accountant-General,” he said.
Mr Chikwanda said because of its work, the PAC has instilled fear into some officers and forced them to do things properly for fear of being summoned to appear before it.
He urged the committee to be firm in executing its tasks, saying public resources should not be abused.
Moving the motion, Mr Mwale said PAC is concerned about financial abuse in government ministries and appealed to the Secretary to the Treasury to tighten regulation.
Monze Central MP Jack Mwiimbu (UPND) said people who abuse public funds should be taken to task and that PAC should be reformed to include other expertise such as law enforcement officers.
Lupososhi MP Chungu Bwalya (PF) said issues raised in the PAC report should be addressed, failure to which the country may continue grappling with them for a long time.
He said the office of Accountant-General should be turned into a constitutional office and that powers of internal controls should be vested in its function.
Katombola MP Derick Livune (UPND) said officers who misapply funds should be dismissed from their jobs to deter intending wrongdoers.
Labels: ALEXANDER CHIKWANDA, CLIVE CHIRWA, CORRUPTION, JACK MWIIMBU, ZAMBIA RAILWAYS
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Corruption probe report on Chirwa, ZRL board with DPP - Mukanga
By Kabanda Chulu
Fri 28 June 2013, 14:01 CAT
PARLIAMENT has heard that a report on corruption allegations at Zambia Railways that were levelled against former managing director Prof Clive Chirwa and the board has been submitted to the DPP.
Responding to UPND Zambezi West member of parliament Charles Kakoma who wanted an update on the findings of the investigations at Zambia Railways, transport minister Yamfwa Mukanga confirmed that investigations had been concluded.
"The report has been given to the Director of Public Prosecution (DPP) who shall decide whether to prosecute or not," he said.
MMD Chembe member of parliament Mwansa Mbulakulima asked if the findings would be availed to the public but Mukanga responded that security investigations were usually not made public.
"But anybody found wanting will face the wrath of the law," he said.
Earlier, Mukanga presented a ministerial statement on the dissolution of the Zambia Railways Limited board and the retirement of the managing director.
Mukanga disclosed that Prof Chirwa did not recognise the authority of the board in that he disobeyed most of the instructions given to him.
He said Prof Chirwa never took the initiative to raise any complaints against the board to the ministry but opted to raise issues in the media.
"The board served him written warning letters whose messages he ignored, consequently the board charged him. Upon refusing to exculpate himself, the board informed the minister that Prof Chirwa should be dismissed but while the minister was still studying the matter, Prof Chirwa went to the media to attack the board, which later decided to release information to the media regarding Prof Chirwa's misconduct," Mukanga said.
But UPND Kalomo member of parliament Request Muntanga asked why the government had again appointed a managing director without constituting the board.
"Why appoint a CEO before the board is established? Is this the reason the managing director never respected the board and it has happened again?" asked Muntanga.
In response, Mukanga said there was no board at the time Prof Chirwa was appointed and that there was no anomaly when President Sata made the appointment.
MMD Mafinga member of parliament Catherine Namugala asked when the new board would be appointed while Vubwi's Eustarckio Kazonga wanted to know if the position of managing director would be advertised.
Mukanga responded that the board would be appointed soon.
"We are in control and people should not mislead the nation. Dr Atanga is the best person to resolve problems at ZRL since he understands the problems facing the company," he said.
"Also Dr Atanga is acting and cannot be confirmed without board approval and we are following his performance."
Labels: CHARLES KAKOMA, CLIVE CHIRWA, CORRUPTION, MWANSA MBULAKULIMA, YAMFWA MUKANGA, ZAMBIA RAILWAYS
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Chirwa's demands surprise Katele
By Godfrey Chikumbi in Kawambwa and Henry Sinyangwe in Lusaka
Mon 29 Apr. 2013, 14:01 CAT
DR KATELE Kalumba says he is surprised that Professor Clive Chirwa made demands that were beyond what Zambia Railways could afford to give him, especially that the company has not been productive for many years.
And the Institute of Directors (IoD) says appointing boards after a chief executive officer has been employed is a recipe for anarchy in some institutions as reporting lines are distorted.
Dr Kalumba, a former foreign affairs minister in the MMD government, said Prof Chirwa did not come to Zambia to amass wealth but to sacrifice a little in order to resuscitate Zambia Railways Limited (ZRL).
Zambia Railways is pending investigations following accusations and counter-accusations of abuse and corruption by the board and Prof Chirwa.
The board and Prof Chirwa have since been suspended indefinitely, pending investigations by the Anti Corruption Commission.
A week ago, five former Zambia Railways board members alleged several illegal and unapproved actions by Prof Chirwa, including an alleged attempt to shift company headquarters to Lusaka, staying in an apartment that costs KR72,000 per month as well as appointing himself chair of the tender committee of Zambia Railways Limited.
But Prof Chirwa dismissed the allegations as nonsense, and, on the other hand, alleged that board officials were claiming allowances whenever they called for a meeting with the permanent secretary and the minister.
Dr Kalumba said Prof Chirwa's demands had portrayed him as someone who only wanted to benefit from Zambia instead of using his knowledge and skills to contribute to the development of his home country.
Dr Kalumba said he and many Zambians expected Prof Chirwa to make sacrifices as a Zambian.
He explained that Zambians respected Prof Chirwa's technical competence, which was why President Michael Sata asked for his contribution in rebuilding ZRL.
"I don't think President Sata made a mistake to appoint Professor Chirwa as Zambia Railways chief executive officer. He respected his technical competence and many Zambians expected him to make some sacrifice. We are a poor country; if we had money, we would have asked a foreigner to help us rejuvenate ZRL. He is a Zambian and not a foreigner who would not care about the demands," Dr Kalumba said.
"I'm told he was holding a very lucrative position as a consultant but I don't think he came home rather to be richer than he was before. He came to Zambia because he wanted to make some sacrifice."
He said it was wrong for Prof Chirwa to think he was doing Zambia a favour by accepting to work as chief executive of ZRL because he owed to Zambia whatever he is.
Dr Kalumba, who described Prof Chirwa as an intelligent and gifted man, said the suspended ZRL chief executive officer had a wrong approach to work and that made him create enemies if he had any.
"It's like we are pleading for him; it is not a question of doing Zambia a favour because Zambia has already done them a favour. It is for them to give back to Zambia. We are not pleading helplessly; we are saying 'dear fellow Zambians, give back to Zambia what Zambia has given you. Help your brothers and sisters'," said Dr Kalumba.
And IoD president Julu Simuule stated that he was concerned that some state-owned enterprises did not have boards up to now.
"The Institute of Directors of Zambia wishes to raise concern on what has transpired in the recent case of Zambia Railways…in relation to corporate governance, it is our strongly considered view that boards and managements in these state owned enterprises (SOEs) once constituted are fully inducted in good corporate governance. The pace at which this is done is quite critical for timely decision making and enabling those charged with governance duties appreciate their roles and responsibilities and hence effectively and appropriately discharge them," he stated.
"It is also a concern to us as IoDZ that some boards are appointed way after the chief executive officers have been appointed, thereby making reporting lines not clearly defined. There is also a greater need to develop respective board charters for all SOEs which set out the role, composition and responsibilities of the board of directors."
Simuule stated that timely appointment of independent and competent directors in such institutions should be put as top priority.
Labels: CLIVE CHIRWA, KATELE KALUMBA, ZAMBIA RAILWAYS
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Chirwa moves out of Fallsway Villa
By Staff Reporters
Wed 24 Apr. 2013, 14:01 CAT
PROFESSOR Clive Chirwa has moved out of the luxurious Fallsway Villa Apartments in Lusaka where he was lodging and paying K72 million per month.
And President Michael Sata yesterday suspended Professor Chirwa as Zambia Railways Limited (ZRL) chief executive officer, pending investigations by the Anti Corruption Commission (ACC) on corruption allegations.
Meanwhile, the Ministry of Finance has threatened to withdraw the US$120 million Eurobond fund from ZRL if it is not quickly utilised.
And Prof Oliver Saasa says Prof Chirwa wants to live a lavish lifestyle.
A check at Fallsway Villa apartments where Prof Chirwa was lodged, established that he had since checked out to an unknown residence.
Sources at the apartments located on Thabo Mbeki Road said that Prof Chirwa had moved out around midday just after President Sata suspended him.
The sources said Prof Chirwa had been aware of his suspension because he spent most of the time at State House on Monday.
And in a letter to Prof Chirwa dated April, 22 2013, President Sata said that Prof Chirwa was suspended due to several corruption allegations levelled against him.
"I am suspending you from duty and you will be on half pay; and as part of other conditions, you will have to vacate the lodge and wait in the Zambia Railways Limited accommodation until the matter is completed," read President Sata's letter in part.
"By copy of this letter, the Anti-Corruption Commission has been instructed to carry out full investigations concerning the allegations of corruption."
And President Sata has appointed transport and communications permanent secretary Dr Muyenga Atanga to take charge of the company.
"...this will require you to take charge of the rail line including the inter mine rail, which is so critical to the running of the mining sector," said President Sata in a statement issued by his special assistant for press and public relations George Chellah.
Five former ZRL board members on Saturday alleged several illegal and unapproved actions by Prof Chirwa, including an alleged attempt to shift company headquarters from Kabwe to Lusaka, staying in an apartment that costs KR72,000 per month as well as appointing himself chair of the tender committee of ZRL, which allegations Prof Chirwa dismissed as nonsense.
On the other hand, Prof Chirwa alleged that board officials were claiming allowances whenever they called for a meeting with the permanent secretary and the minister.
The five members, Mark Chona, chairman, Prof Saasa, Geoffrey Mulenga, Irene Mbewe and Jonam Mwansa, dismissed Prof Chirwa's claims.
And Prof Saasa, who was vice-chairperson of the board, said Prof Chirwa's suspension was long overdue.
"If he was left out, that wouldn't have been fair; we just said he should step down to make sure that we, as individuals, do not interfere in the investigations," he said.
"The law should see to it that we are out to make sure that thorough investigations are undertaken. I think the charges that we levelled against him and the charges that he leveled against us are sufficient for the public to know the truth."
Prof Saasa urged the ACC to extend investigations to former board members of the company.
"I feel very happy when I realise that government has stepped in now to do the probe. That should not spare all of us, including Chirwa and myself, to be subjected to investigations," he said.
"To me, this is happy hour. The President is actually endorsing what the board has been saying about the man. He should not be there and there is no way we can justify him to continue at that place."
Prof Saasa said the probe instituted would make the public know the truth about the happenings at ZRL.
"We understand that he has also been ordered to move out of Fallsway apartments. For me, that means that as the board, we have been vindicated because that was only one of the many charges against many. He has also levelled a big charge against us too, where he claimed that we had so many board meetings," he said.
"I don't know how he defines board meetings; which is extremely unfair to us. That allowance paid to us, that is KR2,600, is below the standards allowances in other parastatals. But since it is in the public domain, it would appear as if we are just denying things. It is only the probe that will decide the truth."
And Transparency International Zambia (TIZ) president Lee Habasonda welcomed Prof Chirwa's suspension, saying it would provide an opportunity for both parties to exculpate themselves.
"The development will give Prof Chirwa and dissolved board members chance to clear themselves because the monies involved are too huge to go without proper explanation," said Habasonda.
And works and supply minister Christopher Yaluma said the suspension of Prof Chirwa and dissolution of the board would not affect the operations of ZRL.
Yaluma disclosed that the government would constitute another board soon.
He said the dissolution of the board was done to help the ACC carry out an effective investigation.
"There must be continuity, so the government has put in place contingencies to ensure that we sustain the continuity without at any given point derailing the plans that have been put in place for Zambia Railways Limited. We are going ahead; it is business as usual," Yaluma explained.
Asked to clarify whether the K248 million salary, K72 million per month in rentals as well as an offer of 25 per cent stake in Zambia Railways were part of the package given to Prof Chirwa, Yaluma, who could not disclose the actual contents of the contract, said that the emoluments agreed on were not as exorbitant as the ones claimed.
He, however, said that Prof Chirwa had bargained earlier for an adjustment to his salary and an offer of 25 per cent stake in the parastatal at the end of his contract earlier, which the government rejected.
And finance deputy minister Miles Sampa said the ministry was monitoring the recipients of the US$750 million infrastructure bond, which was sitting idle in some parastatals.
"Obviously, Zambia Railways by now should be implementing and utilising that money but they are more occupied on internal wrangles than implementing the programmes. Even the Ministry of Health, we allocated the funds for UTH and we haven't seen any construction going on there or that they have bought a new dialysis machine or a new CT scan. We haven't seen that happening and yet we have already indicated to them that they have US$29 million. We haven't seen that happen at Kitwe, Ndola or Livingstone General Hospital," he said.
Sampa said the government intended to reallocate the funds to other needy economic areas as opposed to leaving the money lying idle.
"We will be monitoring all the recipients, and if there is any recipient showing a sign of abuse or taking time to utilise the money... this money is not meant to be idle, it is supposed to be ploughed into the economy so that in the long run, we have the desired economic impact on the nation. That is how we will justify it and the spill-over facilities will be able to generate adequate income to meet the cost of this Eurobond. Where we will see recipients delaying or not using the money on time, we will not hesitate to recall those funds and reallocate them to other needy economic areas," he said.
Sampa said the road sector was utilising the money following a warning last year when some money was returned to the treasury.
"The road fund is running out, so they have moved pretty quickly. They have done well from last year when we warned that they were not using the money allocated to them. They are way ahead of schedule in terms of utilisation," Sampa said. "We will not hesitate as a ministry to recall these funds from these state-owned enterprises that are dragging their feet and reallocate them to other state-owned enterprises or projects that we believe can quickly have an impact on the economy."
And on his facebook page, Sampa posted: "As sang by Puff Daddy 'The More Money You Get: The More Troubles you See.' $120M into Zambia Railways, 'Things Fall Apart'. We are sending a boma Auditor to position there permanently. Pali Eurobond; Wina azamangiwa..."
And Zesco managing director Cyprian Chitundu recently said the utility had so far used $30 million of the US$255 million it benefited from the US$750 million Euro-bond for the construction of the 120 megawatts Itezhi-Tezhi power plant while Zambia Railways had not yet started using the US$120 million from the Eurobond as it was in the process of awarding contracts.
On the falling copper prices, Sampa said there would be no impact on Zambia's economy as most of the copper had already been sold at a higher price.
"So the impact on the international market is not instant on the Zambian market. The long-term outlook of copper is that the price will remain relatively stable-to-high, so this is only a short-term setback. We believe the kwacha will be stable and we expect it to strengthen more so with the Statutory Instrument that is coming up in the next few days," he said.
The Statutory Instrument to be signed by the minister of finance is a follow-up to the amended Bank of Zambia Act that would state specifics on the movements of foreign currency.
Sampa said the Statutory Instrument was expected to correct the current anomaly in the amount of money coming into local banks from the exports.
Labels: CLIVE CHIRWA, MUYENGA ATANGA, ZAMBIA RAILWAYS
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Board's claims are nonsense - Chirwa
By Allan Mulenga and Gift Chanda
Mon 22 Apr. 2013, 14:00 CAT
PROFESSOR Clive Chirwa yesterday dismissed as nonsense the dissolved Zambia Railways Limited board members' claims that he wanted to live a lavish lifestyle and was making corrupt undertakings.
And government has dissolved the Zambia Railways Limited board with immediate effect. But dissolved board chairperson Mark Chona hoped investigative wings would move in to investigate allegations the board levelled against Prof Chirwa.
In an interview yesterday, Prof Chirwa, who is Zambia Railways Limited (ZRL) chief executive officer, explained that he differed with the board members because he was opposed to misuse of company funds through unnecessary board meetings.
"Dissolved board members' claims are nonsense. What happened was that at the beginning, when I came from United Kingdom to take up this position, yes, I had a letter which I brought with from my lawyers to negotiate my contract. And that negotiation was carried out and that was the end," he said.
"There was nothing which I was claiming apart from what I was claiming at the beginning when the negotiations began. That was concluded and I am not claiming any more. We went into negotiations like any other CEO going into a contract, and that is all I did."
Prof Chirwa said board members had been getting unnecessary sitting allowances through unplanned board meetings.
"There were differences because I stopped the misuse of company money to actually have board meetings which are unnecessary in order to get sitting allowances…if somebody goes to see the minister or to see the PS (permanent secretary) and claim sitting allowances, that was nonsense. That is what led to that (differences)," he said.
"We had 28 meetings in total and it has accumulated to KR470,000 instead of spending, for this quarter, KR58,000, which is actually the money we are supposed to spend. Remember that we haven't had the meeting itself which is a scheduled board meeting which is on April 30, 2013. Per sitting, it is KR3,000 for the chairperson and KR2,600 for board members. When I stopped this, things started going bad."
Prof Chirwa explained that board members used to claim allowances whenever they called for a meeting with the permanent secretary and the minister.
He said allowances were necessary if someone had done some work.
"But if somebody wants to go and see the minister or the PS and claim sitting allowance, that is unacceptable," he said.
Prof Chirwa said it was shocking that Zambians had a culture of demanding unnecessary allowances.
"I am very surprised that people in Zambia have got this attitude of getting allowances. This thing should come to an end," he said.
"Perhaps this story of Zambia Railways will bring up some sanity within the allowance culture where without doing anything, you get allowances. This should be stopped once and for all."
Prof Chirwa said he was shaken about the manner in which former board members executed their functions.
"In fact, I am totally shaken. This is something that does not exist in Europe. If somebody is running a company, like a CEO, he is the one running a company, not the board chairperson who is non-executive. I am really surprised, very surprised," said Prof Chirwa.
On the shifting of ZRL headquarters from Kabwe to Lusaka, Prof Chirwa said it was not his proposal but it was a decision made by the previous administration.
"When I came to take up this position, I found that RSZ (Railway Systems of Zambia) headquarters offices were here in Lusaka. It is actually the board that proposed that we should actually move here. We just maintained the decision which was done by the board we inherited from the previous administration," he said.
On his stay at Fallsway Luxury Apartment, Prof Chirwa said it was not his intention to stay there, but it was management's decision.
"I am not the only one who is staying at the apartment, even some government officials stay there," he said.
On the claims that he had appointed himself board chair of the tender committee of ZRL, Prof Chirwa said it was procedural that the chief executive officer of the company assumed the position of the chairperson of the tender committee.
On the allegation that it rejected his demand of US$560,000 annual salary (or K248 million per month) and a 25 per cent shareholding in ZRL at the end of his five-year contract, Prof Chirwa said it was common practice and part of his contract.
Prof Chirwa also said the board was dissolved because some of the board members were unproductive.
"They have been holding meetings and meetings. They want to start throwing dirt at me. All these things are documented. I came here to do my work. I didn't come here to be bothered. These people are very unproductive. They have been saying Clive Chirwa here and there'. They are just peddling lies. There are only a few people who are doing this," he said.
And the government has dissolved the board of Zambia Railways in a bid to bring "sanity" to the institution.
Communications minister Christopher Yaluma told The Post in an interview yesterday that the board was dissolved on Thursday last week.
He said a new board would soon be put in place to propel the turnaround of Zambia Railways and a thorough forensic audit into the operations and expenditures of the company would be conducted.
"To revamp ZRL, we need to have a harmonised environment. The environment should be highly conducive to achieve what we want to achieve. We need to have a stable climate with sound relationship between all the stakeholders involved. In an event of having various discrepancies or perceived misunderstandings, it will make the challenge very difficult for the government to achieve our intended goals. So it is in this spirit of trying to ensure we achieve our goals of rehabilitating ZRL and bring it to what it once used to be that we have taken our first step as the government to dissolve the board of Zambia Railways," he said.
"The board in reality was dissolved on Thursday and the letters were written. The only thing that was remaining was to have the letters picked. I wrote the letters late on Thursday and I signed them but we left for Mongu with the President and so they couldn't be circulated."
Asked if the board was in any way hindering the turnaround of ZRL, Yaluma said was not quite so.
On the board's claims of public resources abuses by the rail firm and if any probes would be instituted, Yaluma said the government would definitely institute investigations.
During a press briefing yesterday, Chona, who served as board chairperson of the Task force on Corruption, said, he smelt corruption in the running of the ZRL.
"We have provided the information, it is up to our friends the investigating team to act," he said.
The members said they were not bitter with the decision taken by government to dissolve them but accused transport minister Christopher Yaluma of pulling a fast one on them.
Four members, Chona, vice-chairperson Professor Oliver Saasa, and members Geoffrey Mulenga and Jonam Mwansa said they had recommended to Yaluma that Prof Chirwa be fired following irregularities in the managing of the railway firm.
"He Yaluma agreed during the meeting we had with him and said he would inform State House to proceed with our recommendation but the next thing we hear is that he was going to see the head of state to fire us…," Prof Saasa said.
He said it was a pity that the board was at the mercy of politicians.
"Boards are supposed to be independent. Boards must hire and fire. The point we are making is that you find that the tail is wagging the dog when it should be the other way round [because it is the dog that wags the tail. But because there is someone holding on to that tail, giving it so much strength to be able to wag the whole dog, it was not the case," he said.
And Mulenga said the dissolved board officials were not bitter about being fired.
"We are very happy we are out of this problem, we can have peaceful sleep instead of thinking about what is going to happen next," Mulenga said.
"But the next board, who will replace us, if it has the people's interest at heart, will definitely not tolerate what Prof Chirwa was advancing. Good corporate governance demands that the CEO of the company is far away from tender processes."
The members maintained that Prof Chirwa's counter allegations that they were demands huge sums of money in sitting allowances were ridiculous.
"It is a heap of nonsense that we demanded to be paid K500 million," said Mwansa.
Five ZRL board members on Saturday alleged several illegal and unapproved actions by Prof Chirwa, including an alleged attempt to shift the company headquarters from Kabwe to Lusaka.
The five members, Chona, chairman, Prof Saasa, vice-chairman, and members Geoffrey Mulenga Irene Mbewe, Mwansa, dismissed Prof Chirwa's statements carried by the Daily Nation newspaper to the effect that they were demanding up to K500 million in sitting allowances.
Labels: CLIVE CHIRWA, MARK CHONA, ZAMBIA RAILWAYS
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Our rail system will surpass that of SA - Chirwa
By Henry Sinyangwe
Fri 18 Jan. 2013, 13:30 CAT
PROFESSOR Clive Chirwa says Zambia's rail system will surpass that of South Africa in the next five years owing to a strong strategy put in place for its resuscitation.
And a board for Zambia Railways has been constituted, with Mark Chona appointed as chairperson.
Professor Chirwa, who has been given a five-year contract to revamp the country's railway system following the failed concession between government and Railway Systems of Zambia, said yesterday during the announcement of the board that his team was determined to bring in new technology in the railway sector that would be better than that of South Africa.
"We will bring in better trains, better passenger coaches and everything else, perhaps even better than South Africa. South Africa has yesterday's technology. We are bringing in new technology which will enable us move this country forward," he said, adding that his desire was to work hard to meet the people's expectations.
"We have a vision which we have already presented to the board and we are presenting it to the nation on the 31st of January at an open forum where people will be able to listen on how we intend to build Zambia Railways.
"I would like to thank his Excellency President Sata for looking up to me, to say that 'okay, he is a son of Zambia who can do something for us' and I accepted that offer and I have come home and its good to come home and I want to do something for Zambia and I will try so hard to make sure that the expectations of the Zambian people are upheld and we will within three years see a railway system which we want to build together with the board."
And transport, communications, works and supply permanent secretary Dr Muyenga Atanga said the government was satisfied with the calibre of the appointed board members for Zambia Railways.
These include economic consultant Professor Oliver Saasa who is the board vice chairperson, commerce permanent secretary Stephen Mwansa, finance permanent secretary Pamela Chibonga, retired Zambia Railways employee Richard Chipanama, mechanical engineer Geoffrey Mulenga, private lawyer Ireen Dzeko Mbewe, business management consultant Jornam Mwansa, Solicitor General Musa Mwenye, and Road Transport and Safety Agency (RTSA) chief executive officer Zindaba Soko.
"Most people are saying that we have been quiet, especially after the announcement by our leaders that Zambia Railways was repossessed to do away with the concession and that government took the initiative to source for somebody who can steer this system to progress. Government first needed to put in place a board which was a very important initiative. There was need to ensure that a properly selected board was put in place and that board is very important…," said Dr Atanga who is part of the board as a representative of the government.
And Chona said those who may have encroached on Zambia Railways land should move to pave way for its rescuscitation.
"Those holding on to ZR assets and those who may have encroached on the land which belongs to the company, this property belongs to the Zambian people and farmers, if you don't produce, it will be a white elephant railway system unless it has something to carry, so you must produce," said Chona.
Prof Saasa observed that most sectors of the economy had lagged behind due to the poor transport infrastructure.
"We have a major challenge in the state of infrastructure and the degree to which that infrastructure compliments and supplements the growth that we have recorded. This is where the railway system and roads come in because without the infrastructure that feeds in and supports the growth we have recorded, you will discover that most of the sectors will not record higher gains in terms of growth. The railway system has hampered this growth in the last 10 years," said Prof Saasa.
Labels: CLIVE CHIRWA, OLIVER SAASA, RAIL, ZAMBIA RAILWAYS
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Chirwa needs enough space to revamp ZRL - Kavindele
By Chiwoyu Sinyangwe
Thu 06 Dec. 2012, 11:20 CAT
COMMERCE minister Robert Sichinga and other politicians should give Prof-essor Clive Chirwa enough leverage to execute his duties of revamping Zambia Railways (ZRL) without political interference, says Enoch Kavindele.
Kavindele, who is former Republican vice-president, warned that Prof Chirwa was bound to fail as managing director of the run-down ZRL if political interference was not tamed.
Kavindele was commenting on a meeting last week in which Korea Railroad Corporation, talking to Sichinga, had offered to help revive Zambia's rail network through human resource training and provision of locomotives "at no cost".
"Government should just leave him Prof Chirwa to come up with the plan to resuscitate Zambia Railways without political interference," Kavindele said. "Prof Clive Chirwa is bound to fail if political interference takes root. Government, having employed Chirwa, should give him free hand to resuscitate Zambia Railways."
He also said Sichinga was interfering with the work of the Ministry of Transport and Communication which was responsible for running of ZRL.
"The idea of Korea Railway talking to the Minister of Commerce and not the Minister of Transport and Communication means the Minister of Commerce Sichinga is tying Chirwa and minister of transport to an issue that hasn't been discussed fully or not aware of," he said.
"I have not been in government for a while now and I don't know how these ministries have been aligned or realigned but the issue of rail, let it be left to line ministries who have over the years done a lot on the issue of Zambia Railways and I know the Ministry of Transport has done a lot of study on this issue."
Kavindele said there were tangible records currently to show that services given to the country "at no cost" ended in costing Zambia billions of kwacha and also landing ministers involved at odds with the law.
"Bob should take cognizance of free services which have been offered to Zambia," said Kavindele. "There is no free lunch and Bob should know that. This is just a sweetener for Korean Railway to get into Zambia Railways without a competitive tender process. So, that is my friendly advice to my close friend, Bob. [If somebody tells you I am helping you at no cost, he Sichinga has to be very careful. There is nothing like that."
The Korean Railway which attended the Zambia Investment Forum (ZIIF) said it had a lot of locomotive engines which they could spare Zambia.
Last September, the government cancelled a 2003 concession agreement to a South Africa's New Limpopo Bridge Projects Limited (NLP) to run a state-owned railway under the local company - Railway Systems of Zambia.
And last November, President Michael Sata appointed Prof Chirwa as Zambia Railways Limited chief executive officer, replacing Knox Karima, who has been retired in national interest.
Labels: CLIVE CHIRWA, ENOCH KAVINDELE, ROBERT SICHINGA, ZAMBIA RAILWAYS
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Chirwa promises Zambia a 21st century rail system
By Kombe Chimpinde
Tue 20 Nov. 2012, 11:59 CAT
PROFESSOR Clive Chirwa says Zambia should have a 21st century rail system by the end of his tenure of office. But Charles Milupi says that Prof Chirwa must not only work towards modernising the rail system but also make it commercially viable.
Outlining his strategies for revamping the system currently in a state of disrepair, Prof Chirwa said his aim was to establish an electric-powered and high-speed railway system, typical of a 21st century nation.
"It has to electrified. If we do not electrify, then it will be too expensive for us. We don't have coal so we are going to electrify it. Electrification may not come from Zesco, we have to build our own electric system to maintain the running of the rail," he said.
Professor Chirwa said that his task would commence with a market research.
He said this would be followed by reviewing the conditions of service of workers and a budget estimate.
Prof Chirwa said at the end of his three-year-contract, the railway should making billions of dollars as well create jobs.
"This is a multi-billion dollar company and now it is doing a hundred thousand dollars. So if we revamp it, that is a hell lot of money we will be making and it is the greatest opportunity to employ as many people as possible for our young people and to make sure we take it forward," he said when he appeared on Muvi TV on Sunday.
"Our cargo unit is not bad but what we don't have is the passenger unit. We are going to bring in new coaches which will be manufactured here.
"ZRA will be at the nucleus of a cluster of different companies, which will be manufacturing goods that will go to the revamping of the railway system to build locomotives. ZAMEFA (Zambia Metal Fabricators) for example is the key part of our plan so we are creating a new industry era."
But Milupi, said in an interview that Prof Chirwa's plan were brilliant and achievable.
He however cautioned that consideration of the availability of the necessary resources was vital.
"I have no doubt he can do it. What I would advise him is to make an assessment of what the situation is. He has to sit down and find out the exact cost because I feel it will cost more than that and if we borrow, over how many years are we going to recoup that In terms of the volume of the business unit?" he said.
Milupi said in addition to modernising the rail, Prof Chirwa must ensure it was commercially viable and sustainable to produce a return on investment.
"He must understand that in Zambia, they are many other interested parties. He also needs government support to be able to borrow this money. He also needs expertise to work with?" he said.
Milupi said Prof Chirwa should not be tempted to work at the pace of politicians but according his own pace
Labels: CLIVE CHIRWA, ZAMBIA RAILWAYS
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Prof Chirwa must be given support, says Kashita
By Kombe Chimpinde
Mon 19 Nov. 2012, 15:50 CAT
ANDREW Kashita says Professor Clive Chirwa must be given the necessary support and space to transform the operations of Zambia Railways.
Commenting on President Michael Sata's appointment of Prof Chirwa as Zambia Railways chief executive officer, Kashita, who is also former works and supply minister, said he had no doubt that Prof Chirwa would deliver.
"I have no doubt that Professor Chirwa is an excellent and competent man for the job. I have confidence that he will transform the operations of the railway service which was destroyed by selfish people," Kashita said.
"It is also good that he is tied to a timetable (contract). I only hope that those people who have got their so-called favoured candidate, employee will not frustrate him. Let him sort out the problems that are there. I am quite sure that as he gets his job and sits in office, he will tell us the exact detail of what he intends to do."
Kashita hoped he would not experience the same disappointment he had when former Food Reserve Agency executive director David Matongo, whom he thought was the right man for the job was relieved of his duties within a short period of time.
"He went there, had a lot of competence but he never settled, he never sorted out the problems there and he never even told us what had happened. When Professor Chirwa comes on board, let us allow him to give us his plan. He is an engineer with drive and self-motivation," Kashita said.
"I am quite sure the communication and transport minister will be around to assist when he needs support in any particular area," he said.
He added that an effective and reliable railway service was vital in the country to reduce the cost of doing business that continues to rise.
Prof Chirwa has given himself three years to transform Zambia Railways.
Labels: ANDREW KASHITA, CLIVE CHIRWA, MICHAEL SATA, ZAMBIA RAILWAYS
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Chirwa gives himself 3 years to rebuild ZR
By Ernest Chanda
Fri 16 Nov. 2012, 13:00 CAT
PROFESSOR Clive Chirwa says his love for Zambia and patriotism have compelled him to come and help rebuild Zambia Railways. President Michael Sata yesterday announced the appointment of Prof Chirwa as chief executive officer of Zambia Railways.
"It gives me an opportunity now to offer my services to my country in a tangible manner whereby a product will be produced at the end of the day," he said in an interview.
"I'm sacrificing quite a lot to come back to my country and this is my patriotism which I want to show in order to build this thing up to the end. You can understand that I'm losing a lot in terms of overall revenue and in terms of my style of life, to come back and help my country."
Asked what vision he had for the company, Prof Chirwa responded: "We will From front page reconstruct the whole Zambia Railways from scratch because there's nothing there left. So, it's something which we are starting from ground stage to very highly technological railway which you're going to see in three years' time."
Asked if he would persuade other Zambians in the Diaspora to emulate his patriotism, Prof Chirwa answered in the affirmative.
"I'm going on what you call a recruitment spree in the Diaspora to actually bring some of the Zambians who are highly technologically advanced; not only in engineering but in all the fields, to come and help rebuild Zambia. We are going to create job opportunities," said Prof Chirwa.
"In the next three months, we'll start the recruitment, perhaps the biggest in Zambia, to start rebuilding the railway infrastructure which we have completely lost. I would like to say to the nation, 'thank you for bringing back your son'. And I would like to thank His Excellency the President for this opportunity to ring me and offer me this job. He has seen in me someone who can change the railway system in the country. On that account, I wish him well so that he can see what we can produce out of the railway system."
According to a statement released yesterday by President Sata's special assistant for press and public relations George Chellah, Prof Chirwa's five-year appointment is with immediate effect.
Prof Chirwa replaces Knox Karima, who has been retired in national interest.
"I have deemed it appropriate and opportune to appoint you Chief Executive Officer of Zambia Railways Limited. Your appointment is with immediate effect for a period of five (5) years," stated President Sata.
"Millions of tonnes of both our imports and exports which should have been transported by rail were diverted to road transport, in the process exerting a very severe toll on our roads. The cost to the economy has been and is unsustainable,"
President Sata expressed confidence in Prof Chirwa's ability to transform the country's railway infrastructure.
"Government has taken a positive move in this direction by allocating K640 billion for the rehabilitation of the rail line," stated President Sata.
Meanwhile, the head of state has given Karima a one-month notice in which to facilitate a smooth hand-over to the incoming chief executive officer.
Prof Chirwa is a lecturer at Bolton University in the UK and distinguished Professor of Automotive and Aerospace Structures and chairman of Automotive and Aerospace Engineering.
He is also editor-in-chief of The International Journal of Crashworthiness and adviser to UK, Australia, USA, EU, Japan, Canada and Singapore governments on trans-safety, among many other internationally recognised credentials and achievements.
Labels: CLIVE CHIRWA, ZAMBIA RAILWAYS
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Sata appoints Clive Chirwa as Zambia Railways CEO
By The Post
Thu 15 Nov. 2012, 13:40 CAT
President Michael Sata has appointed Professor Clive Chirwa as Zambia Railways Limited Chief Executive Officer. Prof. Chirwa replaces Mr. Knox Karima, who has been retired in national interest.
"I have deemed it appropriate and opportune to appoint you Chief Executive Officer of Zambia Railways Limited. Your appointment is with immediate effect for a period of five (5) years," read President Sata's letter to Prof. Chirwa in part.
The Head of State stated that the rail line has deteriorated beyond description during the concession to Railway Systems of Zambia, which the Government recently terminated.
"Millions of tonnes of both our imports and exports which should have been transported by rail were diverted to road transport in the process exerting a very severe toll on our roads. The costs to the economy has been and is unsustainable," President Sata stated.
President Sata further stated that it would take a lot of effort to sort out the country's rail line including the inter-mine rail, which is so critical to the efficiency of the mining sector.
"However, I have confidence in your ability to use your vast reservoir of knowledge to help our country to revamp the railway network that results in a rail system that will create the necessary economic impetus," President Sata stated.
"Government has taken a positive move in this direction by allocating K640 billion for the rehabilitation of the rail line."
Meanwhile, President Sata has given former Zambia Railways Limited Chief Executive Officer Mr. Knox Karima a one month notice in which to facilitate a smooth hand-over to the incoming Chief Executive Officer.
The President has thanked Mr. Karima for the services rendered during his tenure of office.
Prof. Chirwa is a distinguished Professor of Automotive & Aerospace Structures and Chair of Automotive & Aerospace Engineering. He is also Editor-in-Chief of The International Journal of Crashworthiness and Advisor to UK, Australia, USA, EU, Japan, Canada and Singapore Gov. on Trans Safety among many other internationally recognised credentials and achievements.
Labels: CLIVE CHIRWA, MICHAEL SATA, ZAMBIA RAILWAYS
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'Locals can run Zambia Railways'
By Moses Kuwema
Thu 13 Sep. 2012, 10:27 CAT
TRANSPORT expert Henry Chipewo says Zambians are capable of running Zambia Railways Limited efficiently as long as there is no political interference. And Chipewo has advised the government to consider investing massively in rail transport to avoid the huge costs involved in road maintenance.
Meanwhile, Railway Workers Union of Zambia general secretary Elias Mwila says his union will for now watch the happenings at Railway Systems of Zambia silently.
Chipewo, a former Tanzania-Zambia Railway Authority managing director said the country had people that were capable of running Zambia Railways Limited and that there was no need to look up to outsiders.
"We can run this rail line and more efficiently for that matter. Zambia Railways failed because of politics. Zambia Railways was over-bloated. Let us run this rail line professionally. We don't need whites to help us run this rail line, we can run it and I want to challenge government that Zambians can actually run this rail more efficiently provided they allow these technocrats to run the rail line. It is just that we don't trust each other as Zambians. Once we start having faith in our own people, and give them targets I can assure you that Zambians can grow this rail line," Chipewo said.
He urged the government to assemble a group of rail experts in Zambia whom he said would be ready to show everyone that they could run Zambia Railways Limited.
And Chipewo said Zambia had lost out since the time that the RSZ took over Zambia Railways.
He said RSZ had killed the training school in Kabwe, resulting in the country not having too many rail experts and train operators.
"The concession agreement was 90 per cent skewed in favour of RSZ. That agreement does not give RSZ any obligation to improve the rail systems…in terms of modernising the equipment, improving internal operations, both freight and passenger. It was more financial than operational. The Zambian people were looking for a rail line that would perform much better than Zambia Railways, that is to improve the infrastructure, the rail truck from what they were like. We were looking forward to a situation where traders could be able to consign their goods to the train as opposed to moving their goods through the road," he said.
Meanwhile, Chipewo said Zambia had the capacity to develop its rail transport which would significantly reduce the rate of accidents in the country, further pointing out that maintenance of railway lines is many times cheaper than maintaining roads.
"…For example, rehabilitating a kilometer of a tarred road costs about K2 billion while a kilometer of a railway line costs slightly over K100 million…," he said.
"And using railway transport can make us to have less accidents in this country. We need to have a mass transit system connecting people from one point to the other. These trains can move masses of people at a cheaper cost," said Chipewo.
"And we have plenty water which can generate electricity that can then power our trains, we can have electric trains linking people throughout the country. This is workable, all we need is a proper transport policy."
And when asked to comment on the government's decision to terminate the concession agreement with the RSZ, Mwila said RWUZ was following things silently.
"For the moment, the best we can do is to follow the issues silently.
We don't want to disturb anything. Our interest is not just a loose comment, we want to see what have we benefited as workers? When we answer all those questions then we say it is good. We cannot jump just because Mr President Michael Sata made the announcement. There are no ingredients in what he said, what is happening on the ground is something else so we will wait and see what is good for the workers," said Mwila.
Labels: HENRY CHIPEWO, ZAMBIA RAILWAYS
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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
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Magande ready to provide facts on RSZ Concession Agreement of 2003
TIME PUBLISHED - Friday, September 7, 2012, 7:22 pm
Former Finance Minister, Ng’andu Magande has called on President Michael Sata to constitute a commission of enquiry into the Zambia Railways Concession Agreement of 2003.
Magande who signed the agreement on behalf of government, says he is ready to give information regarding the concession, once called upon. He says as a former custodian of government property, he is obliged to put the record straight.
Mr. Magande has told ZNBC news that it is important for government and the public to know and understand issues surrounding the concession agreement.
And Railway Systems of Zambia Chief Executive Officer, Benjamin Even has said his organization is committed to discussing and clarifying the various issues over the concession agreement.
Mr. Even has told ZNBC in a statement that his organisation will respect the process to be determined by the government.
On Wednesday, President Michael Sata directed newly appointed Justice Minister Wynter Kabimba to revisit the Railway System Concession agreement.
ZNBC
Labels: DEVELOPMENT AGREEMENTS, MICHAEL SATA, NG'ANDU MAGANDE, ZAMBIA RAILWAYS
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COMMENT - The PF is getting serious about corruption in the previous privatisation process.
Get railways back – Sata
September 6, 2012
By YANDE SYAMPEYO
PRESIDENT Sata has directed Justice Minister Wynter Kabimba to use all legal means at his disposal to return Zambia Railways to the rightful owners—the Zambians. “Zambia Railways is the property of Zambians and should be returned through all possible means…that is your (Kabimba) number one task.
”Zambia Railways belongs to us and if we have to go to court let’s go,” President Sata said. Mr Sata feels
the concessioning of the railway company to Railway Systems of Zambia in 2000 was marred with corruption.
The President yesterday said the MMD administration surrendered the company to the concessioner through alleged corrupt means, which his PF administration will not tolerate.
He observed that the concession agreement does not state that Zambians are the sole owners of the railway company.
The President said this at State House yesterday when he swore in Mr Kabimba as Justice Minister and Dr Leonard Mulenga as Southern Province permanent secretary.
And in a statement released by his special assist for press and public relations George Chellah yesterday, President Sata instructed Mr Kabimba to examine the Freight and Passenger Concession Agreement between the Government and Zambia Railways Limited (ZRL), Railway Systems of Zambia (RSZ) and New Limpopo Bridge Projects Investment Private Limited.
In March 2000, the MMD government decided to concession the freight and passenger services of Zambia Railways to the private sector.
After a bidding process the then Zambia Privatisation Agency (ZPA) awarded the concession to the Railway Systems of Zambia.
On February 14, 2003, the MMD Government signed a Freight Concession Agreement with RSZ and on August 18, 2003 the Passenger Concession Agreement was signed.
The RSZ took over the 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.
Mr Sata emphasised the need for Government to look into the Concession Agreement with RSZ, to preserve the national railway infrastructure from further deterioration, given that the company has failed to invest in the railway assets and improve operations.
He said this will allow Government to reposition itself in improving the railway sector which is critical to the country’s economic development.
And Mr Sata has cautioned Mr Kabimba against interfering in the operations of the judiciary.
The President said Mr Kabimba should work with the Ministry of Home Affairs to ensure that justice prevails for all Zambians.
He also implored the new minister to ensure that the office of district attorney and legal aid be present in every district countrywide.
“So even if a chief is found poaching, he should get legal representation. We know there are some chiefs in Eastern Province who feel they don’t need a permit to hunt because they regard the animals in their chiefdoms as theirs,” he said.
The President also urged Mr Kabimba to address the issue of some chiefs imposed on subjects.
On Dr Mulenga, the President directed the new permanent secretary to ensure that the construction of Livingstone University starts next year.
And Mr Kabimba said in an interview with journalists that he will ensure that the justice system is accepted and affordable by all Zambians.
He said government desires to see a justice system which will bring about social change.
“So as Minister of Justice, I am committed to ensuring that the principles and commitments of the party as enshrined in our manifesto should be fulfilled through a policy framework and legislation that we are going to introduce.
“The other thing I want to make clear on judicial reforms is that we are not going to allow the reforms to be driven by the judiciary, but by the people,” he said.
He said he is not going to interfere in the constitution- making process by imposing his personal opinion on various issues.
Mr Kabimba also said he will maintain the position of secretary-general of the PF as he is a servant of the people.
British-based academic, Prof. Clive Chirwa, on Monday told the Daily Mail that the Zambian government had an opportunity to create one million jobs through railway investment.
Labels: MICHAEL SATA, PRIVATISATION, WYNTER KABIMBA, ZAMBIA RAILWAYS
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Cancel concession of Zambia Railways – TIZ
TIME PUBLISHED - Monday, February 6, 2012, 8:08 am
TRANSPARENCY International Zambia (TIZ) president Reuben Lifuka has alleged that the Zambia Railways concession was awarded in dubious circumstances and has proposed that the Patriotic Front government should consider cancelling the deal.
Mr Lifuka said it will not help to pretend that all is well with the Zambia Railways concession and the matter should be resolved.
“The PF government should seriously consider cancelling this concession and finding other ways of commercialising the railway sector,” Mr Lifuka said in statement released yesterday.
Recently, Government cancelled concessions and agreements on the operation and maintenance of Zambia Revenue Authority (ZRA) scanners at border posts and others related to operations of border points at Kasumbalesa and five other borders.
He said TIZ is aware that the railway concession has not proceeded as envisaged and “the company is now nothing but a cash cow for some people”.
Mr Lifuka challenged the Minister of Transport, Works, Supply and Communication to release the reports of the inspector of railways on the performance of the railway concession.
Mr Lifuka said his organisation welcomes the measures taken after the release of the ZRA commission report and prodded Government to thoroughly investigate the issues raised in the report and take legal or administrative action against all erring officers and public leaders.
He expressed disappointment that the Kasumbalesa concession was primarily an unsolicited bid for a project of high national security and importance.
“We find no justification why Government did not proceed to open up the tender to promote transparency in this particular transaction. The manner in which this bid was handled raises more questions than answers,” Mr Lifuka said.
He said it was worrying that Government gave the concessionaire a 14-year lease for 100 hectares of land at Kasumbalesa border and it is shocking that title deeds were issued to the concessionaire, in total contravention of the concession agreement.
Mr Lifuka said it is interesting that the border concession involved primarily one company which was using different names, as reported by the ZRA Commission of Inquiry.
The ZRA commission report revealed that the company used the name Baran for the dry ports and Kasumbalesa bids, and used Zambia (IP) Border Crossing Company Limited during the signing of the contract with Government for the Kasumbalesa concessions.
The company assumed another name – Zambia Kasumbalasa Venture Company during the commencement of operations.
The report says the company was called Zambia (IP) Border Crossing Company when bidding for the five borders but changed the name to Five Border Post Company at the time of signing the contract.
The name changed again to Five Border Post Group, after it took over the construction of Nakonde border post.
Mr Lifuka wondered why the people behind the projects found it necessary to keep changing names and why Government allowed itself to deal with a group of people who were not consistent.
Mr Lifuka advised President Sata to authorise the Minister of Finance to immediately make the ZRA Commission of Inquiry report public, in the same way he did for the Zamtel report.
“The Zambian people deserve to know the full contents of this report. There should be no sacred cows in this process,” he said.
Mr Lifuka said Government should not renege on its decision to cancel all border concessions and warned the PF government to guard against possible corrupt maneuvers by some unscrupulous individuals.
“TIZ is following this case keenly and we will not hesitate to expose and condemn any public officials who will support any unscrupulous activities which impact negatively on the lives of ordinary people,” Mr Lifuka said.
He called on Government to set in motion a process of overhauling the public procurement system, saying it is time loyal and dedicated men and women are given the responsibility of public procurement.
[Zambia Daily Mail]
Labels: REUBEN LIFUKA, TIZ, ZAMBIA RAILWAYS
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Sondashi smells corruption over dissolution of ZR board
Written by Patson Chilemba and Margaret Mtonga
Thursday, February 12, 2009 5:14:21 PM
Zambia Railways (ZR) immediate past board chairperson Dr Ludwig Sondashi yesterday charged that he smells corruption in the dissolution of the board. Commenting on communications minister Dora Siliya's dissolution of Zambia Railways board, including two others on Sunday, Dr Sondashi said the board was dissolved because it could not agree with her on the performance of Railway Systems of Zambia (RSZ).
“I am not against the dissolution of the board because the minister has legal authority,” Sondashi said. “But I have a feeling that the board has been dissolved because it was not cooperating with the minister on the performance of RSZ when the Zambian people are getting nothing out of the concession. Like the area of investment, even this US $30 million which was highlighted by the new Minister of Finance is insufficient. RSZ has invested US $30 million in repairs but what is needed is over US $80 million.
“Both Zambia Railways board and the inter-ministerial committee of the Ministry of Communications recommended that the concession agreement should be reviewed. The minister has rejected that. This concession agreement has been written in such a way that it advantages RSZ than government. Why does she refuse to meet us and yet she has been meeting with the RSZ board. ZR is the monitoring board. RSZ is not supposed to directly report to the minister according to the Concession Agreement. I smell corruption out of this.”
Dr Sondashi said there was a “rumour” that the government intends to sale TAZARA to RSZ.
He said due to Siliya's indifference to the Zambia Railways board, he was forced to write directly to President Rupiah Banda on December 5, 2008 on the need to meet over the Concession Agreement and the operations of Zambia Railways Limited.
In the letter to President Banda, Dr Sondashi stated that the negotiating team for the concession contract did not contain nor did it consult any railway or business experienced people.
“This has resulted in a Concession Agreement which is not balanced and with many strange conditions e.g. the change of circumstances conditions and also how to handle assets not used by the concessionaire,” he stated.
Dr Sondashi stated that the privatisation negotiations were done with total disregard of the business particulars of the railway company, railway industry and the resulting Concession Agreements that were one sided to the advantage of the concessionaire.
He stated that monitoring of the concessionaire had failed because of poor organisation and unwillingness by the government to enforce the Concession Agreements. Dr Sondashi stated that lack of competence, poor organisation and lack of investments had resulted in the poor performance of the concessionaire to date.
He stated that the concessionaire had prioritised their short-term cash flow.
“Therefore, it is fair to say that the overall project so far has been a failure as the railway system today is worse off than before concession. The rail freight volumes and the status of the assets have never been so bad as today,” Dr Sondashi stated.
As for the fixed concession fees which were supposed to be paid yearly from the gross profit, Dr Sondashi stated that RSZ has only paid once from its inception due to the 'change in circumstances clause' contained in the Concession Agreement.
He stated that Zambia Railways, despite being the monitoring agent, had not been in receipt of any concession fees to assist in its operations as these were paid directly to Ministry of Finance.
Dr Sondashi stated that an inter-ministerial committee appointed by government observed that the proposed US $30 million pledged by RSZ was inadequate for a complete recapitalisation and improvement of the railway operations.
“The board directed me and I have written twice to the Minister of Communications and Transport requesting for a meeting with her, but the minister has not found it fit to meet with us,” stated Dr Sondashi.
In response, Siliya acknowledged receipt of Dr Sondashi's letter to President Banda in which Zambia Railways board requested to have an audience with the President over the Concession Agreements and operations of Zambia Railways Limited.
Siliya stated that she agreed with the board's concerns regarding both concession agreements in freight and passenger services and that something needed to be done quickly to improve Zambia Railways efficiency to the economy.
She stated that her ministry had held several meetings with the shareholders and management of RSZ in an effort to resolve the contentious issues in the Concession Agreement.
Siliya stated that a stakeholders meeting was arranged and scheduled to be held on July 24, 2008 at which the late President Mwanawasa was to be present but was cancelled.
“His Excellency, the President is fully aware of the problems we have with the concession and very soon, all these matters will be followed up. I probably should mention that the late President did agree with me that canceling the concession might not be the best option but balancing the contentious issues for mutual benefit of both parties,” Siliya stated.
“Lastly, I agree with you that the Zambian negotiating team did not do a good job on the concession but that is all in the past. We should concentrate on finding a lasting solution to the problem at hand.”
On Monday Siliya dissolved the Zamtel, National Airports Corporation (NAC) and Zambia Railways boards.
And Federation of Free Trade Union in Zambia (FFTUZ) vice-president Charles Phiri said the directive by Siliya to dissolve the three boards clearly showed how shady her decision was.
In an interview yesterday, Phiri said Siliya's decision was made in bad faith and was characterised by shady thinking.
“Siliya has caused a lot of suspicion over the dissolution of the three boards - Zamtel board, National Airports Corporation and Zambia Railways Limited boards,” Phiri said. “Especially for Zamtel, because board members were supposed to meet a day before she dissolved the boards. Why did she act like that? It shows that there is something fishy going on.”
He said if the process was done in a transparent manner, Siliya would have taken a different approach of first waiting to have the board meeting whose agenda was to discuss the future of Zamtel.
“With the stories of late that we have being reading in the media about the alleged reports that Dora has awarded a US$2 million contract to a foreign company to value the assets of Zamtel makes the public to raise a lot of questions and believe that the boards were corruptly dissolved,” Phiri said.
He said the money in question was very little, so much that even a Zambian would manage to invest in Zamtel.
“The minister has not upheld the rules of corporate governance that are very clear in our country,” Phiri said. “You cannot be a shareholder and start awarding contracts at the some time.”
Phiri urged President Banda to stop supporting issues that he did not even understand.
“As the labour movement, we are very surprised that President Rupiah Banda is supporting Dora,” said Phiri. “The President should stay away from issues that he does not understand, he does not even know the truth about tender producers. Zamtel is a national institution. The money involved raises a lot of questions and clearly shows corruption.”
Labels: CHARLES PHIRI, CORRUPTION, FFTUZ, LUDWIG SONDASHI, PRIVATISATION, RSZ, ZAMBIA RAILWAYS
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