From The Post:
(THE POST ZAMBIA) It’s not taxes they’re after
By Editor
Updated: 11 Dec,2015 ,06:11:04
The Zambia Revenue Authority yesterday obtained a search warrant from the subordinate court to inspect, take possession or make copies of documents and ICT equipment, business records, purchase and sales daybooks, cash books and other account books, purchase invoices and sales invoices, annual accounts, bank statements and other banking records, VAT account, personal records, documents, diaries of directors, import documents, desktop computers, laptops, servers, etc, and any other such documents and ICT equipment related to the business or operations of The Post that they believe were used by the company to evade the payment of VAT and Income Tax.
It requires little intelligence, if a little is all one has, to realise that this is not a case of tax evasion but of something else. This company has been in existence for more than 24 years, paying its tax obligations. It is extremely malicious and unfair for the Zambia Revenue Authority to insinuate in any way that The Post is involved or could be involved in tax evasion. Tax evasion is a criminal offence and this newspaper, unlike some other newspapers in this country, is not run by criminals or ex-convicts. Tax evasion is knowingly breaking the law to reduce a tax liability by the deliberate concealing of income or the false claiming of allowances, deductible expenses and so on and so forth. This differs from tax avoidance, which is the process of arranging a taxpayer’s affairs in such a way that he can, within the law, reduce the amount of tax payable. And every taxpayer is entitled, if he can, to arrange his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure the result, then however unappreciative the revenue authority or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax. No taxpayer in this country is under the smallest obligation, moral or otherwise, so to arrange his legal relation to his business, or to his property as to enable the inland revenue to put the largest possible shovel into his stores. But The Post is neither involved in tax evasion nor tax avoidance.
Anyone looking for any evidence of tax evasion from The Post will never find any because there is none. We don’t engage in criminal activities. Mistakes, we can make but not criminal activities. If they want to find cases of tax evasion on the part of The Post, they have to trump them up. And we will not be surprised if they did this because they have shown strange desperation to fix The Post. It is not tax they are after, it is fixing The Post they aiming for. They simply want to paralyse the operations of The Post and consequently close it. Business came to a standstill yesterday. They paralysed the operations of the newspaper and no meaningful business could be conducted. Income was lost. They tried to search documents in files and look at computer records, but they were not making sense. They had made up their minds from the beginning to go away with the computers. What happens when they take away the computers of a business in today’s world? They have literally stopped the business from operating. That is the net effect. And the computers they are taking, what guarantee do we have that they will not tamper with them or even attempt to plant things on them? These are clearly acts of desperate people trying to do desperate things.
Why are they in such a hurry to fix The Post? There are matters in court which need to be resolved; why can’t they wait until these matters are completely resolved?
Again, we can say it with our heads high that The Post is not a criminal organisation run by criminals. And whatever has been done here has been done with sufficient honour and integrity. Yes mistakes, we can make but not criminal acts of evading taxes.
And what is also shocking is that the Zambia Revenue Authority team yesterday came with a video camera trying to film the proceedings. For what? Just when did tax investigations become an issue of Zambia Revenue Authority publicity? But this is exactly what the Zambia Revenue Authority has been doing to The Post. Every communication with The Post has ended up into some newspapers working with the Zambia Revenue Authority. Which other taxpayer is Zambia Revenue Authority treating in this way other than The Post?
Of course, pronouncements on the issue of The Post have been made by senior ministers of this government and officers of the ruling Patriotic Front, including President Edgar Lungu himself. They have all threatened The Post with closure using the Zambia Revenue Authority. They have not hidden their intentions. The Zambia Revenue Authority is not an independent institution; it is a government agency that takes instructions from those in power. And if this government can manipulate and coerce people holding constitutional offices with security of tenure, what more Zambia Revenue Authority officers, whom they can hire and fire at will?
But the bells tolling for The Post today, if not silenced, will tomorrow toll for many others and eventually for the whole country.
As for The Post, they should not deceive themselves that we can be coerced into submission by acts like these. To silence The Post, they first have to close it. We are not criminals or wrongdoers who can be easily blackmailed into submission. We have seen what they have tried to do to the Director of Public Prosecutions with trumped-up charges after they failed to force him to resign. Let them come up with trumped-up charges of tax evasion against us and see where it will take them.
Again, it is not tax money they are looking for. It is The Post’s soul they are searching for. Look at the composition of the team that came to our offices yesterday! Were all those officers from the Zambia Revenue Authority? The answer is a categorical no. They were from some other offices, some other state agencies - ZICTA, the Drug Enforcement Commission and the intelligence services. What are they looking for that they could not tell us? They never told us what they are looking for! Why? But it is not very difficult to guess what they are looking for and what they are up to.
- See more at: http://www.postzambia.com/news.php?id=13795#sthash.WdK9U8GT.dpuf
Labels: CORRUPTION, EDGAR LUNGU, MEDIA, PF, PRESS FREEDOM, ZRA
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(STICKY) Chikwanda wants govt to pay mines $600m in VAT refunds
Edited by Chiwoyu Sinyangwe
COMMENT - So the state borrows $1 billion through a Eurobond, and they don't know what to do with it? And they have the gall to say we need another Eurobond, because 'we need something for agriculture'? If they ran out of ideas, I have few ideas that not only spend the money well, but would create massive returns to the state - a concept that seems to elude the present government. And no, I don't trust the UPND, let alone the MMD who had 20 years to develop the economy. Giving borrowed money to the mines! Outrageous. - MrK
FINANCE minister Alexander Chikwanda wants the government to pay mining companies the disputed US$600 million (about K3.6 billion) in value-added tax repayments over a staggered period.
ZRA has withheld over US$600 million in value-added tax repayments to mining companies that have failed to provide importer documentation required to qualify them for VAT reclaim on the zero-rated copper exports.
“The minister [Chikwanda] says our current fiscal space is severely constrained for us to refund these mining companies of their VAT but that we can only clear the huge backlog by negotiating staggered repayments with the mining companies after we have instituted a more prompt VAT refunds regime,” according to the sources within Ministry of Finance.
The sources said the government currently did not have sufficient funds to offset the VAT refunds being claimed by mining companies.
“The minister says the only way for the government to clear this backlog promptly is to allow Treasury access some funds from the recently-acquired US$1 billion which currently was ‘sitting’ at the Bank of Zambia. Of that US$1billion Eurobond, only US$300 million has been disbursed so far and remaining the US$700 million is still with the Central Bank.”
The sources also said that Chikwanda contended that VAT General Administration Rule Number 18, which required ZRA to obtain information from importers outside Zambia’s jurisdiction had proved impractical and was blamed for delayed processing of VAT refunds for the mines.
VAT Rule 18 was aimed at assisting the government collect more accurate trade statistics.
In line with VAT general administration Rule Number 18, for any exporter to qualify for VAT zero rating of its exported goods, they must satisfy requirement which included copies of export documents for the goods bearing a certificate of shipment provided by ZRA, copies of import documents for the goods bearing a certificate of importation into the country of destination provided by the customs authority of that country.
Rule Number 18 also required exporters to provide proof of payments by the customer for the goods, tax invoices for the goods exported, documentary evidence, proving that payment for the goods has been made by the customer into the exporter’s bank account in Zambia [as introduced in January 2013], and such other documentary evidence that might reasonably be required by the authority.
But according to sources, Chikwanda had proposed that ZRA should amend Rule Number 18 to limit it to regulation and verification of exports and bank certification of receipt export proceed in order to clear the uncertainty and restore the confidence in the economy that was undermined by adjustment to Rule 18.
Last year, the government streamlined administration of the VAT refunds for the mining sector which included introducing rules requiring provision of documents from importers of copper to authenticate the final destination of copper being exported out of Zambia and the export revenue needed to be paid directly to a Zambian bank although some mining companies were paid through foreign accounts.
Konkola Copper Mines (KCM) has taken ZRA to the Lusaka High Court over a K3.2 billion tax bill relating to a retrospective 16 per cent VAT charge on exports from January 2011 to March 2013.
Some companies, including those in the mining sector, found to be complying with Rule Number 18 include KCM, Mopani Copper Mines and Zambezi Portland.
“The problem is that some mining companies and even other exporting companies allude that ‘they sell their products mostly to international traders who take ownership of the product either at the mine/factory gate or as soon as they are put in a ship at Dar es Salaam, Dubai or Durban,” the sources within ZRA said. “For purposes of VAT, a sale at the mine/factory gate is a local sale and should therefore be standard rated sale at 16 per cent of the sale and not zero-rated.”
Labels: ALEXANDER CHIKWANDA, CORRUPTION, EURBONDS, MINING, TAX EVASION, TAXATION, ZRA
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Online tax payments will mitigate opportunities for corruption - ZRA
By Kabanda Chulu
Sat 21 Dec. 2013, 14:00 CAT
ZAMBIA Revenue Authority says implementation of online tax payment systems will minimise physical interaction and mitigate opportunities for corruption among stakeholders in the clearance process.
ZRA has started implementing robust web-based systems called AsycudaWorld that allow customs administration and traders to handle transactions through the Internet.
So far, ZRA has launched the facility at KK International Airport, Lusaka Port Office, Chirundu and Kariba and will next week launch the Livingstone site, while the rest of the customs offices will implement the system in the first quarter of 2014.
According to a statement issued by ZRA, the system will enable stakeholders to conduct business with customs services at anytime.
"The AsycudaWorld system enables paperless e-commerce through electronic declaration and submission of supporting documents to customs services such as invoices, parking list, certificates of origin, among other requirements," it stated.
"The system will enable anyone to search applicable tariff rates and regulations for goods of interest. It will also enable taxpayers to track status of the customs clearance process for their goods, including taxes assessed through their emails or sms notices."
It stated that creation of central processing centres (CPC) would enable ZRA to streamline the clearance process and provide the service in an efficient way.
"The CPCs will initially be set up at Lusaka, Kabwe and Ndola and all customs declarations submitted by imports/exporters electronically from different locations at anytime will be processed at the three CPCs which will equally operate for extended hours even after borders have closed," it stated. "The CPCs will also enable ZRA to provide a uniform service to the public, standardisation in the application of the law and procedures regardless of which borders one uses."
It stated that AsycudaWorld was earmarked to evolve into an electronic single window for Zambia by the end of 2014.
"A single window is a trade facilitation service that allows parties involved in trade to lodge standardised information and documents with a single entry point to fulfil all import, export and transit-related regulatory requirements," stated ZRA.
Labels: INTERNET, TAXATION, ZRA
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Kumar says he'll return on Nov 28
By Chiwoyu Sinyangwe
Tue 12 Nov. 2013, 14:00 CAT
KCM chief executive officer Kishor Kumar says he will return to Zambia on November 28. And mines minister Christopher Yaluma has revealed that Konkola Copper Mines has not been fulfilling its tax obligations to the Zambia Revenue Authority.
In an internal memo to workers in the company, Kumar said he had flown to attend to Zinc International business in South Africa and would return at the end of this month.
"During this period, Mr David Kaunda who is vice-president human capital management will act in the position of chief executive officer, and all decisions will be jointly taken with the EXCO members," Kumar stated in the November 8 memo.
"Please accord him all the due cooperation during this period."
Kumar, who is currently chief executive officer for Zinc International, functions as chief executive for Base Metals (Africa), which includes control of KCM operations and copper mines of Tasmania (CMT) in Australia.
Kumar "voluntarily exited" the country last Thursday after the government pursued him over his remarks that President Michael Sata was full of political rhetoric.
This was after President Sata directed that KCM halts the planned retrenchment of over 1,500 workers as the company planned to migrate to mechanization and automation to cut down on labour costs at one of the most labour-intensive mines in the country.
And in a separate interview, Yaluma said the government would constitute a team of experts from ZRA, Ministry of Finance and Ministry of Mines to probe KCM which was struggling.
He said KCM was currently failing to meet its production targets as well as tax obligations to ZRA.
"Based on the discussion with KCM and ourselves, this team we will constitute is for specific things we want to find out and also KCM, they want to prove to us something that they have been telling us," said Yaluma.
"It's totally agreed by both parties and that is what we want to dwell on.
They have not been honouring or fulfilling their targets and they lack capacity to pay. They are in arrears with ZRA. They are in operations but they are not performing well."
Labels: CHRISTOPHER YALUMA, DAVID KAUNDA, KCM, KISHOR KUMAR, POLLUTION, TAX EVASION, ZRA
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ZRA launches online tax system
By Kabanda Chulu
Fri 19 July 2013, 14:00 CAT
ZRA has introduced an online system that will now require taxpayers to submit all returns electronically aimed at improving service delivery and making tax compliance easier.
The new system, which will officially be rolled out next month, would compel all forms of tax returns to be submitted in line with the new format.
The main objective of the electronic format is to ensure taxpayers conform to the new system that would capture integral data.
This is contained in a notice issued by the Zambia Revenue Authority (ZRA) to the effect that the system would be web based and all forms and returns could be submitted electronically.
"In an effort to improve service delivery to its clients, ZRA will be introducing e-business; this new system will be called Tax Online and it will help make compliance easier," it stated.
"This new tax return format will be used when phase one rolls out in August 2013, all returns submitted by taxpayers after roll out should be in the new format."
It stated the returns would be easier to complete.
"Guidelines on how to complete the returns will be attached to each return to enable our taxpayers easily fill in the returns. Guidelines will also be available on our website," it stated.
Labels: ICT, TAXATION, ZRA
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ZRA to launch Tax Online
By Edwin Mbulo in Mapatizya
Fri 26 Apr. 2013, 14:00 CAT
ZAMBIA Revenue Authority assistant director in the large taxpayers' department Debora Shampande Bwembya on Wednesday took time to explain payment of mineral royalties among amethyst miners in Mapatizya.
And ZRA domestic taxes project change manager Chisanga Kashoki says a new system known as Tax Online will be launched by ZRA in July to make it easy for people to pay taxes.
Addressing the business community and amethyst miners at the Mapatizya Mining Processing Centre in Kalomo yesterday, Bwembya said ZRA realised the need to get value out of Mapatizya through amethyst mining.
"Mineral royalty is paid whether you have sold or not; the moment you mine, mineral royalty tax is payable and it is based on realisable values. As you mine, you pay royalty tax, if you look at the form it does not talk of how much you have sold, it just talks of the values.
A mineral royalty tax is actually considered as a credit in your final returns. When you do your final returns you are going to knock out that tax against the final tax that you pay, it is like an advance tax," Bwembya said.
She told Mapatizya miners that ZRA was not an enemy and wanted to be reasonable with miners and the business community.
"If we are going to get value for tax, then there is need for capacity building. We as ZRA realise that you need care so that we can get the money we want," she said.
Bwembya added that if miners hid information on what was being generated, Zambia would remain poor.
"In Zambia, we say that we have minerals, but we say that we are not seeing the results. The government now wants to know how much is being generated from the mines, that is why we have taken this trouble to be here with you," she said.
And Kashoki said ZRA knew that it was not easy for Zambians, especially those in remote areas such as Mapatizya to pay tax, hence the introduction of the online system.
"ZRA has bought a new tax system which allows people to pay online from where they are called tax online. The small taxpayers will also be able to pay taxes on mobile phones. We want to make it easy so that you don't have to travel to Livingstone, and this will be launched in July," Kashoki said.
She said the tax pin identification numbers (TPIN) will be reduced to ten digits instead of 13 and would require a lot of training even within the ZRA.
And Pauline Mundia, an amethyst dealer, urged other miners to be registered with the ZRA as it was now becoming difficult for people to trade with miners who did not have tax clearance.
"The government will see the need to develop this area if we pay mineral royalties, look at our school it is in poor state," said Mundia.
Labels: CHISANGA KASHOKI, DEBORA SHAMPANDE BWEMBYA, TAXATION, ZRA
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ZRA engages experts to monitor mineral exports
By Gift Chanda
Thu 25 Apr. 2013, 14:00 CAT
LOW capacity to ensure correct taxes are paid through effective monitoring of production and exports from the extractive industry has hampered ZRA's ability to improve revenue collection, says commissioner general Berlin Msiska.
Msiska said the Zambia Revenue Authority (ZRA) has since engaged four experts in the mining industry to implement mechanisms for monitoring and facilitating the exports of minerals outside Zambia.
The four experts - Dr Sixtus Mulenga, a mining geologist consultant, Pius Maambo, a former operations and corporate planning director at ZCCM, Dr Silane Mwenechanya, a Metallurgist, and Urbano Mutati, former ZCCM general manager in charge of Metal Marketing and Sales locally and worldwide - will review mechanisms for monitoring the mining and mineral value chain from exploration to exportation in Zambia, develop and implement mechanisms for monitoring and facilitating the export of minerals outside the country.
Msiska said at the signing ceremony that the ZRA and the government were convinced that the consultants would deliver as they have the right knowledge and experience to carry out the task at hand and commended them for taking up the assignment.
Msiska added that ZRA needed to collect more revenue for the government to implement various social and economic projects that would improve the welfare of all Zambians.
Government estimates showed the country was losing as much as US $1billion each year through tax avoidance and the government this year seeks to closely monitor mining companies.
ZRA commissioner of domestic taxes Priscilla Banda said the agency has with the support of Norway received technical and financial support to improve mine audits and compliance under a four year project which began in 2011.
She said seminars had been held in tax audit skills and tax inspectors and auditors from the two countries have undertaken joint audits.
ZRA personnel have also been exposed to the workings of the London Metal Exchange and seminars on transfer pricing, hedging and derivatives have been done, added Banda.
Zambia collected K4.4 billion (US$830.19 million) in mining taxes last year compared with K3.3 billion in 2011.
Labels: BERLIN MSISKA, TAX EVASION, ZRA
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Tax modernisation project gets $15m
August 22, 2012 | Filed under: Business | Posted by: web editor
By NELLA MUKALENGE
ZAMBIA Revenue Authority (ZRA) Commissioner General Berlin Msiska (right) exchange signed contracts with Investment Climate Facility for Africa (ICF) Chief Executive Officer Omari Issa (left) worth US $ 15million for the implementation of phase two Zambia Tax Modernisation project. – Picture by BRIAN MALAMATHE Zambia Revenue Authority (ZRA) and the Investment Climate Facility for Africa (ICF) have contributed over US$15million towards the implementation of the phase Two of the Zambia Modernisation project.
The main objective of the project is to increase revenue collection in the country and enhance efficiency in revenue administration.
ZRA commissioner general Berlin Msiska says the implementation of the second phase will play a vital role in the modernisation of operations of the authority by facilitating its way of doing business.
“Government through the ZRA shall contributeUS$13,315,000 to the project costing US$15,463,000. ICF shall also contribute US$2,148,000 to the project,” he said.
Mr Msiska was speaking at the signing ceremony of financial assistance agreement between ICF and ZRA in Lusaka.
He said the authority in partnership with ICF successfully implemented the first phase whose objective included selecting Information Technology (IT) solution for the integrated tax administration system.
“ICF supported the authority in the implementation of the first phase in respect of the Zambia Tax modernisation and the other objectives included the completion of small and medium taxpayer (SMTO),”Mr Msiska said.
Meanwhile, ICF chief executive officer Omari Issa said there is need to enhance revenue collection through the introduction of modern technology to increase the number of people paying tax.
Mr Issa said the implementation of the second phase should see more SMEs pay tax as a way of facilitating their way of doing business.
“If ZRA makes it easy for SMEs to pay tax online there will not spurn away from paying revenue,” he said.
Labels: BERLIN MSISKA, TAXATION, ZRA
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ZRA reinstates assaulter, fires Complainant
By Agness Changala
Thu 21 June 2012, 13:22 CAT
THE Zambia Revenue Authority has terminated the contract of its director of human resources who sued a former assistant commissioner for customs, George Siame, for assaulting her.
Highly-placed sources told The Post yesterday that Rosemary Raelly's contract was terminated but that Siame was suspiciously reinstated and appointed acting director investigations.
Siame was fired from ZRA following the assault incident against Raelly and he was in August last year convicted for the offence.
Sources said Raelly's contract was terminated in January this year but that no reasons were furnished.
The sources said Raelly was unfairly treated because she was not a part of the commission of inquiry set up by President Michael Sata to probe corruption at the ZRA.
"She has never been charged and she was not even part of any commission of inquiry. Her contract was just terminated and we would want to believe that her contract was terminated to prepare the re-instatement of Siame," the source said.
The sources further said Raelly refused to disclose her dismissal to the media because she was dumbfounded and that her life would have been in danger had she taken that course.
The sources alleged that Siame was politically connected.
Sources said some people wrote to ZRA asking the two to withdraw the court case but Raelly refused to do so.
"She refused to withdraw the case and they made sure they threw mud. In fact, we are aware that the case was interfered with," the source said.
When contacted, Raelly confirmed the termination of her contract but declined to comment further saying she was not comfortable.
She however, said she was a Christian and that God would fight the battle for her.
And ZRA workers in their anonymous letter made available to the Non-Governmental Organisation Coordinating Council (NGOCC) confirmed Siame's reinstatement and his subsequent appointment as director investigations.
The workers stated that in order to bring Siame back, a new division called investigations had been formed.
"He has been reinstated as acting commissioner and immediately appointed acting director investigations with a view of advertising the position of director which we all know will be given to him," the letter read in part.
The workers stated that the morale in the organisation was extremely low and that this would affect revenue collection.
The workers feared for some of their colleagues who testified against Siame during the assault case.
They also questioned the calibre of ZRA board members and wondered why they should be paid allowances for just watching wrong things going on in the organisation.
They appealed to relevant authorities to ensure all the workers who were fired are re-instated.
"As employees, we are appealing to President Sata to save the face of ZRA.
Our hearts are bleeding," the workers stated.
ZRA director human resources could not give The Post a comment as he was reported to be in a meeting.
The secretary who answered the phone got the reporter's number and promised to give it to the director human resources but he did not call.
Labels: LABOUR, WHISTLE BLOWERS, ZRA
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ZEITI expert bemoans inaccurate production figures in mines
By Misheck Wangwe in Kitwe
Thu 14 June 2012, 13:22 CAT
THE Zambia Extractive Industry Transparency Initiative says the country will never maximise its profits from mining if the PF government does not address illicit capital flaws being perpetrated by mining companies.
ZEITI expert Talent Ng'andwe said inaccurate declarations of copper, cobalt and emerald production by foreign mining firms was one of the major reasons sustainable economic development in Zambia had not been achieved for many years.
Ng'andwe said the argument the mining companies were putting up that they could not report production figures because some mining company's outputs were very low and were producing low grade copper should not be tolerated.
He said in the previous MMD regime, there were a lot of secrecy in mining production due to vested interests that made it difficult for Zambians to see tangible benefits from the mining sector.
He said the manner in which many mining companies were conducting business was tantamount to tax evasion as there was no transparency in their production.
Ng'andwe said a lot needed to be done in terms of government policy on mining to ensure that accurate revenue is collected from the country's mineral resources to enhance national development.
"Extractive companies like we have mines in Zambia, they are generating a lot of revenues which is failing to contribute to the growth of African economies, Zambia is an example and this is due to illicit capital flaws which are as a result of inadequate monitoring and tracking mechanisms. Our tax authorities, the ZRA must be present at the point of production," he said.
Ng'andwe said the main purpose of disclosing the revenue remitted to the government by the mining companies was to promote transparency and accountability in the use of natural resources to ensure that all citizens and mining towns benefit from the process.
He said stringent mining monitoring mechanisms, coupled with level headedness and responsible corporate citizenship from foreign investors in the mining sector, was critical to enhancing economic development.
"The PF government has a responsibility to make sure that they unbundle the secrecy that surrounded the mining operations during the previous regime and make sure they make mining companies account through initiatives like the EITI. If they compel mining companies to report the figures that they produce then the watchdogs who are civil society will be able to tell that the figures are accurate and the proceeds will enhance economic development," said Ng'andwe.
Labels: CHISELEBWE NG'ANDWE, EITI, MINING, TAX EVASION, ZRA
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Government empowers BoZ to check mineral volumes
By Kabanda Chulu
Wed 22 Feb. 2012, 12:00 CAT
FINANCE minister Alexander Chikwanda has signed a statutory instrument that will give Bank of Zambia powers to check actual volumes of minerals declared by mining companies before exportation.
And Zambia Revenue Authority (ZRA) Commissioner General Berlin Msiska has said
20 mining metallurgists and engineers will be recruited this year to help the institution in auditing the mines in order to enhance revenue collection.
Many reports undertaken by various organisations have revealed that several mining companies under-declare the tonnage of mineral production, especially copper, in order to avoid paying the right amount of taxes.
Speaking after a familiarisation tour of ZRA offices in Lusaka, Chikwanda said the government agencies must be able to quantify the volumes and tonnage of minerals declared by the mines.
"ZRA will now be able to enforce this statutory instrument (SI) since it gives legal authority to BoZ to determine what is been exported by weighing commodities at weigh bridges so ZRA and the Central Bank will have powers to execute their functions and this is the first step because the ministry of mines will also have to issue an SI to collaborate with what we have issued," Chikwanda said.
"But most mining companies, I believe make honest declarations so this is just a precaution in case some are led into cheating so this SI is to give legal means to government wings to quantify things in a way which is appropriate."
When asked to comment on the investigations which government launched after Action Aid disclosed that Mopani Mines has been avoiding taxes through transfer pricing and other financial tricks, Chikwanda said it was not good practice to discuss issues about companies in the media.
"I prefer asking them to come to my office to discuss things because government ministers control instruments of power hence we should act considerably besides we have legal right to impose taxes but I shall not discuss individual companies it is unethical and as policy makers we expect executing arms like ZRA to implement the policies," he said.
Earlier, Chikwanda addressed ZRA employees and urged them to emulate the spirit of team work exuded by the national football team at the Africa Cup of Nations.
"ZRA has a huge responsibility and government will support it but there is need to work together in order to enhance revenue collection and I am hopeful that even this year ZRA will surpass the target of collecting the target of K20 trillion as they did last year when they collected K18.9 trillion from the target of K15.3 trillion," said Chikwanda.
And ZRA union representative Kalenga Musonda said the government should fund ZRA according to the budget plans that were submitted.
"Government should consider reverting to the percentage terms when funding ZRA so that the institution gets according to what it collects and we are happy that a ceiling has been removed because it made negotiations difficult", he said.
And Msiska said ZRA, last year, collected K1.7 trillion in mining tax arrears that arose when the mines protested the windfall tax.
"In 2012 we are not expecting to collect much of arrears from the mines since the bulk of it was collected last year and we intend to increase the number of auditors under the mining unit from the current seven to 20 and amongst the 20 we shall recruit metallurgists to provide that specialisation on how we should assess what actually comes out to be sold by these mines," said Msiska.
"We have a running agreement with the Norwegians who are supporting us through IMF, who shall come to build capacity in the mining unit so we are getting prepared to deliver right services by carrying out effective, efficient and professional audits in the mining sector."
Labels: BERLIN MSISKA, BOZ, MINING, TAX EVASION, ZRA
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People don't want me to serve Sata - Chipoya
By Bivan Saluseki
Mon 30 Jan. 2012, 14:00 CAT
FORMER State House senior private secretary Alfred Chipoya yesterday said some people don't want him to serve President Michael Sata.
In an interview, Chipoya said it was true he was no longer working at State House as senior private secretary but President Sata was working out something different for him. Chipoya said he had not received any warning or reprimand and did not know the companies involved in the Zambia Revenue Authority (ZRA) scanners.
Asked why he could not give his position when contacted on Saturday over the issue, Chipoya said he was repairing his son's car and his hands were soiled in oil and fuel.
"You should have said I'm from The Post. I would have paid attention. Now today I wake up and find that. You think I can get a US$ 2,000 to fix an appointment?" he asked.
However, Chipoya had clearly been told that it was the The Post.
And when reminded about the introductions, Chipoya said: " I didn't know what story you intended to run. Now I'm being judged in public on what you have written."
Asked if he was still President Sata's private secretary, Chipoya said: "No! But there is something that is being done by the President. I'm not working at State House. I'm waiting for the President to make the next move. I'm in the process of moving."
Asked of it was a voluntary move, Chipoya said: "The President is still finalising. I haven't received anything in writing yet. Maybe he (President Sata) is still thinking of shifting me to another organisation. But I'm completely innocent. I don't know anything (corruption allegations)."
Chipoya said he had never known Bradwell International and Cargo Scan and he did not receive any telephone call from them.
He detailed the procedure of meeting the President and said he had never heard the President talk about the US$ 2,000.
"Maybe he (President Sata) has facts," he said.
"There is another matter which is not part of what you have written which he was trying to solve. It's something not to do with misconduct or indiscipline or offending anybody," he said.
Chipoya said he was a humble person and it was not fair for people to destroy him for something he had not done.
He said he had been in the position of senior private secretary to serve the people of Zambia.
Chipoya said he had served diligently even at the time when late president Levy Mwanawasa had two strokes.
"It was not easy," he said.
Chipoya said even when he was trying his best and some people in ministries were going scot-free, others wanted to tarnish his name.
He wondered how those implicated in the ZRA irregularities could be so naïve as to send money in an envelope.
He said all mail at State House was scanned and appointments were scrutinised.
"If people don't want me to be there, I can't force myself. I never applied for that job. I did it as part of my duty," he said.
Chipoya said if there were any ‘foolish' people full of ‘bulls***' that wanted to scandalise him, they would not succeed.
He said Bradwell had never phoned to request for an appointment.
On Saturday, sources disclosed that President Sata had fired Chipoya for alleged corruption.
Sources disclosed that Chipoya was relieved of his duties after he tried to facilitate a meeting between President Sata and former operators of the Zambia Revenue Authority border scanners.
Last week, the government terminated the contracts given to Bradwell International and Cargo Scan to manage border scanners.
This was after ZRA Commission of Inquiry recommended that appropriate action be taken against former president Rupiah Banda and 13 former government officials for the fraudulent procurements regarding the border scanners and concession-related contracts.
Labels: MICHAEL SATA, ZRA
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Prosecute Rupiah, urges ZRA inquiry
By Kabanda Chulu
Fri 27 Jan. 2012, 14:00 CAT
THE ZRA Comm-ission of Inquiry has recommended that appropriate action be taken against Rupiah Banda and 12 former government officials for the fraudulent procurements regarding border scanners and concession-related contracts.
But home affairs minister Kennedy Sakeni yesterday said the 12 of those referred to in the report would have to face the law but there was a predicament in terms of making Banda answerable because of issues of his immunity from prosecution.
And the government has with immediate effect terminated the contracts given to Bradwell International and Cargo Scan to manage border scanners. The government has also cancelled the concession given to one company to develop border infrastructure across the country.
Meanwhile finance minister Alexander Chikwanda has said the government has no scores to settle but will provide no sanctuary to people who have committed crimes against society.
According to the report of the findings of the Commission of Inquiry released yesterday, senior MMD government officials, among them former president Banda must be investigated regarding the role they played in the fraudulent manner in awarding Zambia Revenue Authority (ZRA) related contracts.
Banda, then vice-president, played a key role in the procurement of four extra scanners and the increase in the loan from US$ 100 million to US$ 125 million while former finance minister Situmbeko Musokotwane was involved in awarding contract to Bradwell International and giving an illegal tax deferment on consumption taxes to Varun Beverages (Pepsi).
Dr Musokotwane has since been questioned by security wings investigating various offence committed by the previous government.
It stated that former ministers Mike Mulongoti, Prof Geoffrey Lungwangwa and Dr Musokotwane must be investigated for irregularities surrounding the awarding of the Kasumbalesa border concession.
But Mulongoti responded that the council of ministers had authority to approve the border projects.
"It was a project initiated by the developers and they sponsored it because they had money and ideas so what is the loss to government? The questions to ask is, was it public money or private money and would it be normal that an investor comes to Zambia with an idea and money be subjected to public tender, for what?" asked Mulongoti.
"Ask yourself, if you were to build a hospital in Kalingalinga and you have money and it is your idea, would you accept that they do a public tender for your money an idea for the other people to come on board is that possible?"
The report also stated that appropriate action must be taken against former ministers Mulongoti, Eustackio Kazonga, Prof Lungwangwa and Chileshe Kapwepwe for awarding the five border post concessions to a single entity.
The report further recommended that former secretary to the treasury Likolo Ndalamei must be investigated for the role played in the cancellation of the Nakonde border construction project, while former finance permanent secretary Emmanuel Ngulube should also be investigated in the role played in awarding of the Bradwell contract.
When asked for a comment, Kapwepwe said she would only comment when the report is availed to her with Prof Lungwangwa saying: ‘I can't comment on something that I have not read."
Ndalamei said: ‘I don't think I did anything wrong but I need to read the context of the findings before I can comment.'
But Sakeni said all those mentioned would have to provide answers to investigators.
He said the only predicament was on Banda because of the immunity clause.
Sakeni said the immunity issue had been left to people to debate first.
He said security officials were on the ground and there would not be any sacred cows.
The report stated that appropriate action be taken against ZRA board secretary Nana Mudenda and director of administration Tenthani Banda for their involvement in payments to Cargo Scan with no regard to service delivery and contract terms.
The report also recommended that former ZRA commissioner generals Wisdom Nhekairo (who has since been warned and cautioned by police) and Chriticles Mwansa should be investigated for their involvement in the Bradwell contract, justification of direct bidding (single sourcing) based on flimsy grounds, payments to Cargo Scan with no regard to service delivery and contract terms and justifying the procurement of four additional scanners that were not needed and reduction of floatation period.
It further recommended that former ZPPA director general David Kapitolo and his predecessor Samuel Chibuye be investigated for failing to verify information availed to ZPPA by ZRA in relation to direct bidding.
And the government has further revoked the tax deferment for Varum Beverages and ordered that the company pays the tax arrears and people involved in the transaction face criminal prosecutions.
Chikwanda said Cabinet had deemed it desirable and expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts with Bradwell International and Cargo Scan as well as the concessions to operate border posts.
He said ZRA must assume ownership of the scanners and work out appropriate measures for loan repayment for the scanners.
"We have terminated with immediate effect, the Cargo Scan contract on the operations and maintenance of Smith Detection scanners and the Bradwell contract on the operation and maintenance of Nuchtech scanners, and Nuchtech be compelled to perform their contractual obligations of installation, operation and maintenance of eight scanners," Chikwanda said, during a media briefing.
"We have also taken over the Kasumbalesa border project and the concession has been reversed and also the five border concessions of Jimbe, Nakonde, Chanida, Kipushi and Mwami be cancelled because they were given to one company and government will take up the responsibility of development of infrastructure at those borders."
He said the government has immediately taken over the Nakonde border infrastructure project which was concessioned under a PPP arrangement when it has reached 75 per cent completion worth K23 billion of certified works using government money.
"We shall revise all policies and pieces of legislation that deal with awarding of public contracts in particular the PPP policy and its Act is defective and at variance with the public procurement Act," Chikwanda said.
"The role of ministers under the PPP Act should be reviewed and reduced to policy guidance while awarding of contracts should be retained by ZPPA in consultation with the Attorney General's office."
He said the tax deferment for Varun Beverages had been revoked and the company should pay outstanding arrears amounting to K13 billion per annum.
"Concessions or incentives must be given within the confines of the law and not exclusively to individuals or friends because there is procedure to follow when doing things and investors who acquired incentives or concessions should not worry so long the deals were done within the law. We are not prosecutors or judges but it is up to law enforcement agencies to take up these matters especially where there was unlawful," said Chikwanda.
"Government has no scores to settle but there will be no sanctuary given to those who have committed crimes against society through abuse of office and trust which the people of Zambia reposed in them."
And Secretary to the Treasury Fredson Yamba said the government will soon write the affected parties about the development.
"For tax deferment, I would have loved the money to be refunded immediately but we shall write to Varun so that they give us a position and when they can pay. But the incentive was illegal because it was exclusive but they will continue enjoying other incentives and for border concessions, it is something that needs negotiations so that there is proper transfer of operations," said Yamba.
Labels: CORRUPTION, EMMANUEL NGULUBE, KENNEDY SAKENI, LEGAL IMMUNITY, LIKOLO NDALAMEI, MIKE MULONGOTI, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, ZRA
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Zambia Revenue Authority Commision of Inquiry Report out, Cabinet acts on its recommendations
TIME PUBLISHED - Thursday, January 26, 2012, 1:25 pm
Cabinet has directed the reversal of the concession of three borders namely Kasumbalesa, Nakonde, Jimbe, Kipushi, Mwami and Chanida and the reversal of the tax concession offered to Varum Beverages Limited, the promoters of the Pepsi Zambia project.
Finance and national planning Minister Alexander Chikwanda revealed during a press briefing in Lusaka today that Cabinet has deemed it desirable and expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts with Bradwell International, and Cargo Scan.
He says in addition, Cabinet has directed the implementation of other administrative measures incidental to the same as recommended by the Zambia Revenue Authority commission of inquiry.
Mr Chikwanda says Cabinet at its sitting of Wednesday 25th January,2012 accepted without reservations the report on the findings of the Commission of Inquiry into the operations of Zambia Revenue Authority.
He says consequently Cabinet has ordered the termination with immediate effect the Cargo Scan contract on the operations and maintenance of Smith Detection scanners, the Bradwell contract on the operation and maintenance of Nuctech scanners, and that Nuctech be compelled to perform their contractual obligations of installation, operation and maintenance of the eight scanners.
Mr Chikwanda adds that the pre-requisites for the installation and operations of the scanners shall be met by government, and that ZRA assumes ownership of the scanners and work out appropriate measures for loan repayment for the scanners.
The finance minister has also disclosed that Varum Beverages Zambia Limited will have to pay outstanding tax arrears and criminal investigations will be instituted on persons found wanting for unlawful conduct, for granting the company a tax deferment of 5 years.
Mr Chikwanda says the PF government has no scores to settle warning that there will be no sanctuary given to those who have committed crimes against society through fragrant abuse of office and trust which the people of Zambia reposed in them.
Labels: BORDER POSTS, ZAMTEL, ZRA
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Government prods ZRA to lead fight against corruption
By Edwin Mbulo in Livingstone
Wed 25 Jan. 2012, 13:53 CAT
FINANCE deputy minister Alfridah Kansembe has challenged Zambia Revenue Authority officers to own the fight against corruption because they face a lot of challenges with businessmen dangling carrots in their face.
And the Zambia Revenue Authority has constantly
exceeded the International Monetary Fund target by raising K6.5 billion at the Victoria Falls border post.
Speaking when she visited the Victoria Falls border post on her continued familiarisation tour of border facilities, Kansembe urged Zambia Revenue Authority officers to remove the tag of Zambia being known as a corrupt country.
"Let us fight corruption to the bitter end. We need to own the fight against corruption if we are to raise more revenue so that we can develop. With corruption, we will not develop, let us try all efforts to fight the vice," said Kansembe.
Victoria Falls border station manager Alex Zulu said the post last year exceeded the IMF target for border posts by one per cent.
"We try to be as effective as possible so that we minimise delays in traffic flow at the border. We also have a simplified trade regime which was agreed between Zambia and Zimbabwe to help small traders grow their business by not paying duty on certain goods," he said.
Zulu said the border, however, faced a lot of challenges such as staff shortage and deplorable office furniture.
And assistant commissioner for customs Nase Lungu said the border post needed banking facilities to help tourists transact in different currencies.
Later at the ZRA port office, Lungu told Kansembe that smuggling has been greatly reduced following the establishment of a joint operations system with neighbouring countries, hence reducing the use of canoes on the river.
And Southern Province minister Miles Sampa said the ZRA at Kazungula faced a major challenge in that the border post was porous.
"We need to police the river as a lot of people jump out of the pontoon before it docks in full view of officers and there is nothing they can do. We are losing a lot of revenue at the post," said Sampa.
Labels: CORRUPTION, IMF, MILES SAMPA, ZRA
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‘Officers were under ‘pressure' to award Bradwell contract'
By Mwala Kalaluka
Fri 20 Jan. 2012, 13:50 CAT
THE Commission of Inquiry probing the controversial procurement of cargo scanners for ZRA says excessive pressure could have been piled on responsible public officers to hastily engage Bradwell International to operate and maintain the border equipment.
The Kingsley Chanda-led Commission of Inquiry stated in its final report submitted to President Michael Sata that there were serious irregularities in the awarding of contracts to Cargo Scan and Bradwell International on the operationilisation of the border scanners.
The Commission recommended that the contracts in question be terminated as they were premised on a faulty Statutory Instrument SI.
"The Commission noted with concern the speed that characterised the engagement of Bradwell International to an extent where the Permanent Secretary - Budget and Economic Affairs, Mr Emmanuel Ngulube was edging the ZRA to implement an observed faulty SI," the report read.
"The Commission noted with great concern the manner in which the contract was signed at unofficial location of Pamodzi Hotel on Sunday the 8th May, 2011. This gives an impression that there could have been some excessive pressure on the officers both at the Ministry of Finance and National Planning and ZRA regarding the Bradwell contract."
The report further stated that at the time, the SI No. 101, signed by former Republican vice-president George Kunda, was put in place when both Parliament and Cabinet had been dissolved.
The Commission stated that it failed to understand as to why the MMD government could not wait for a month and half, after the general elections, to make legitimate decisions involving a full complement of the legislature and the executive.
"The Commission was surprised at the pace at which Bradwell International was contracted to operate and maintain scanners even though only one Nuctech scanner had been installed at Chirundu," the Commission observed.
"The Commission found it extremely unfair to the Zambian Government to get 15 per cent of the revenues from the scanners while Bradwell International who did not even own the scanners were to get 85 per cent. This sharing ratio neither reflected the level of investment nor the effort on the part of Bradwell International. Further, it made the repayment of the loan by the Zambian Government difficult."
The Commission stated that as a result of SI No. 101, the importers and exporters were made to pay K12.3 billion kwacha in 24 days out of which Bradwell International was to receive K10.4 billion while the Zambian Government through ZRA was to receive a paltry K1.9 billion as per sharing ratio.
"The Commission observed that the actual intent of the SI was hidden in its formulation. For instance the SI did not give an inclination that the fees raised would be channeled to Bradwell International, a private company, for the operations and maintenance of scanners. The SI appeared like any other government instrument for raising revenue for the development of the country," the report read in part.
"The Commission failed to understand why the SI No. 101 allowed for collection of an inspection fee even at ports of entry where scanners were not deployed. If this contract was necessary, under normal circumstances, Bradwell International was to be paid for operation and maintenance of scanners based on fees collected from ports with scanners and Bradwell International had its presence."
The Commission further recommended the need to revise all policies and pieces of legislation that deal with awarding of public contracts following what transpired at the Zambia Revenue Authority.
Labels: ZRA
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Ex-ZRA boss Wisdom Nhekairo faces arrest over cargo scanners
By Mwala Kalaluka
Sat 14 Jan. 2012, 14:30 CAT
IMMEDIATE past Zambia Revenue Authority commissioner general, Wisdom Nhekairo and board secretary Nana Mudenda are facing arrest over the controversial procurement of cargo scanners from China.
Highly placed sources within the combined team of Zambia Police, Anti-Corruption Commission and Drug Enforcement Commission investigators probing the plunder of national resources, disclosed yesterday that Nhekairo was questioned and subsequently warned and cautioned over the cargo scanners last Monday.
Berlyn Msiska replaced Nhekairo when the PF took over the reins of government power last year.
On Monday whilst former education minister Dora Siliya was being interrogated over the awarding of a tender for the installation of radars at two international airports, Nhekairo was also seen entering the former Task Force on Corruption offices in Lusaka's Woodlands area with stacks of files.
"On that very day when Nhekairo appeared, he was warned and cautioned over those scanners," the source said.
"The docket is just being prepared and he will be arrested by next week."
The sources said Mudenda had also been summoned to appear before the plunder probe team in Lusaka yesterday in connection to the boarder scanners deal.
"Today we are supposed to warn and caution the ZRA board secretary, Nana Mudenda," the sources said.
"The issue is that these scanners were bought from a company called Nuctech in China and this company provided for maintenance and operation costs. There was a warranty involved."
The sources said it was therefore not necessary for ZRA to engage another company called Bradwell International to operationalise the boarder scanners.
"There was obviously pressure from State House," the source said. "To date these scanners have not been installed."
A commission of inquiry constituted by President Michael Sata to look into the ZRA's procurement of the cargo scanners heard on November 10, 2011 that former president Rupiah Banda allegedly arranged for an additional US$ 25m for the procurement of four more scanners.
Acting director for investments and debt at the ministry of finance, Michael Mwanga, had said the idea to procure machine equipment at border posts was initiated by late president Levy Mwanawasa who entered into a US$100 million government loan with China.
Mwanga said Mwanawasa had allocated US$25 million towards the procurement of the four scanners but his successor, Banda allegedly re-arranged another US$25 million in addition to procure four more scanners.
He said due to single sourcing of the company that procured the scanners, the government was forced to lose over US$4 million.
"Probably that is the price the government will continue paying if it continues to single source contracts. If this contract was open, each scanner was going to cost US$2 million from France and not US$6 million each as they were purchased from China," Mwanga said then.
A senior ZRA official told the Commission during a sitting at Chirundu Border Post that it was irresponsible for the MMD government to contract Bradwell International to operate the cargo scanner at Chirundu border when ZRA had the capacity to carry out the work.
ZRA Chirundu border assistant commissioner Arnold Nkoma said it was unwise for the MMD government to contract Bradwell International, a private firm, to run operations that bordered on the country's security.
The MMD government before leaving power engaged Bradwell International of UK to operate border x-ray cargo scanners for 10 years despite having some ZRA staff undergoing specialised training to handle such operations.
Bradwell International of UK, through its local subsidiary, Border Protection Company Zambia Limited (BPCZ), was engaged through direct bidding (formerly single sourcing) to operate the border scanner at Chirundu.
Under the contract, Bradwell was supposed to get 85 per cent of the revenue collected at the border while the remaining 15 per cent went to the government.
Former vice-president George Kunda hastily signed Statutory Instrument number 101 of 2011 on August 28, 2011 as an amendment to the customs and excise Act to pave way for the introduction of an examination fee, which is not a tax but a charge towards the management of the scanners.
Labels: CORRUPTION, WISDOM NHEKAIRA, ZRA
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C0MMENT - How about copper and cobalt mines too?
Kafimbwa recommends ZRA presence at emerald mine sites
By Misheck Wangwe in Kitwe
Mon 26 Dec. 2011, 13:59 CAT
THE Emerald Production Watch of Zambia says the country is not collecting enough revenue from precious stones due to lack of transparency in the extraction of minerals.
In an interview, organisation president Musa Kafimbwa said the PF government must come up with measures that would enhance transparency in the extraction of emeralds and semi-precious stones.
Kafimbwa said it was sad that the country had not maximised its benefits from the country's precious minerals, which had remained one of the most lucrative at the international market.
He said the value of Zambian emeralds at the international market, if well utilised, could create the much needed wealth for the country.
Kafimbwa said the Zambia Revenue Authority (ZRA) must establish offices at the emerald mine sites for them to get actual production data as there were anomalies in the monitoring system of emerald mining.
He said revenue collection should be done at the production site as it was the standard practice in every country endowed with precious minerals.
"Our minerals are just taken like that. We are almost getting nothing from these mines. We need to monitor production in these mines because even the Ministry of Mines has no data on how many emeralds are produced per day in this country and the investors in emerald mining fall under this ministry.
As a watch group, we are strongly convinced that there is no monitoring from the point of production to where there is an auction," Kafimbwa said.
He said ZRA should put up a stringent revenue collection system in emerald mining.
Kafimbwa said it was unacceptable that districts like Lufwanyma had remained among the poorest despite producing richest minerals in the world.
"If you go to Lufwanyama, we have two chiefs there: chief Lumpuma and chief Nkana. They are all poor despite their chiefdoms being endowed with precious minerals like emeralds and every investor is looking for these minerals. We want our people to benefit from these minerals," said Kafimbwa.
Labels: EMERALDS, ZRA
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Inquiry on ZRA annoys Sata
By Ernest Chanda
Fri 23 Dec. 2011, 13:56 CAT
ZAMBIA Revenue Authority (ZRA) commission of inquiry chairperson Kingsley Chanda annoyed President Michael Sata yesterday when he failed to give a summary of findings into operations of the institution.
A few days after taking over office in September this year, President Sata constituted a commission of inquiry to investigate and report on the operations of ZRA especially the procurement of scanners.
President Sata in October this year disclosed that there was a scam at ZRA where the institution wanted to pay K4 billion to a "fake" clearing firm operating scanners in Nakonde in Northern Province.
President Sata immediately instructed police and the Ministry of Finance and National Planning to block the payment and investigate any other transactions that could have been made from State coffers to pay the firm.
President Sata said the scanners in Nakonde belonged to Zambians through the ZRA.
"This morning, ZRA was supposed to pay K4 billion to a front of somebody who was in my office but the scanners which are at Nakonde belong to the government of the Republic of Zambia through ZRA," President Sata said then.
President Sata therefore set up the commission to investigate irregularities in ZRA.
Most senior government officials appeared before the committee to explain the awarding of tenders.
The commission heard that contracts worth over US$40 million were single-sourced.
During its sitting, the commission heard that former president Rupiah Banda allegedly arranged for an additional US$ 25m for the procurement of four more scanners.
Acting director for investments and debt at the ministry of finance Michael Mwanga said the idea to procure machine equipment at border posts was initiated by the late president Levy Mwanawasa who entered into a US$100 million government loan with China. Mwanga said the deceased had allocated US$25 million towards the procurement of the four scanners but Banda allegedly re-arranged another US$25 million to procure four more scanners.
But Chanda, who used to be ZRA commissioner general but was fired during Levy Mwanawasa's presidency presented the commission's report to President Sata at State House yesterday kept quiet about the findings and recommendations, opting to go straight into reading the terms of reference before handing over the document to the President.
The visibly-upset President Sata wondered why Chanda was not disclosing the findings and openly rebuked him.
"You said nothing in your speech, there's nothing for me to comment other than to direct the honourable minister of finance to bring the report to Cabinet. He should do a Cab Memo so that we can come and look at it because you are economising on the truth. We don't know why we appointed you," President Sata said.
"And that's why you find some MPs are even refusing to come for interviews. We have a member of parliament who refuses to attend a commission of inquiry because you the commissioners yourselves you are not serious."
President Sata quickly called for the national anthem to be sung, and thereafter walkedout.
And as he walked out, President Sata remarked while pointing at finance minister Alexander Chikwanda: "next time don't recommend such people to me," in reference to Chanda.
President Sata then proceeded straight to his office.
Labels: MICHAEL SATA, ZRA
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ZRA report taken to Cabinet
TIME PUBLISHED - Thursday, December 22, 2011, 3:10 pm
President Michael Sata has directed Minister of Finance Alexander Chikwanda to table the report of the Zambia Revenue Authority Commission of Inquiry before cabinet.
Mr. Sata was however, disappointed that the Chairperson of the ZRA Commission of Inquiry Kingsley Chanda did not give a summary of the report.
The President was speaking at State House, when he received the Report of the ZRA Commission of Inquiry, which was set to look at the operations of the Zambia Revenue Authority.
Mr. Sata instructed Mr. Chikwanda to draw a cabinet memo so that cabinet could look at the document.
The President is also disappointed that a parliamentarian refused to appear before a Commission of Inquiry on the contract for the supply, installation and commissioning of the Zambia Air Traffic Management Surveillance Radar System.
He explained that a parliamentarian refused to appear before the Commission of Inquiry because it is NOT serious.
And Mr. Chanda said he is confident that the Report will help government in tax administration.
President Sata appointed the ZRA Commission of Inquiry to also among other things investigate the awarding of contracts to various firms and establish whether the law was followed.
Over one hundred witnesses appeared before the ZRA Commission of Inquiry, which sat for over a month.
[ZNBC]
Labels: MICHAEL SATA, ZRA
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