GOVERNMENT may not compensate the Railway Systems of Zambia (RSZ) following the termination of the concessioning of Zambia Railways, citing breaches and massive damage to the railway link, Attorney General Mumba Malila has said.
And Zambia Railways managing director Knox Karima says RSZ will not be allowed to take assets away until the matter is resolved, Zambia National Broadcasting Corporation reported last evening.
In an interview yesterday, Mr Malila said there are a myriad of contentious issues the government will consider before it can agree on whether or not to compensate RSZ.
“Remember RSZ may be guilty of breaching the concession agreement,” Malila said, “and so that is the issue that has to be considered…”
Finance Minister Alexander Chikwanda on Monday cited deterioration, damage, loss of property including life, as part of the reason the government decided to cut the concession.
Mr Chikwanda said the takeover was necessary, “because any additional delays would result in further destruction of the railway assets, making it more expensive for the planned upgrade of the railway to meet regional and international standards.”
Former Vice-President Enoch Kavindele – citing a study – says Government may need between US$150 million and US$200 million to get Zambia Railways back on track before more money can be invested into the venture.
Mr Kavindele said, in an interview, that the expenditure would be necessary if Zambia Railways was to meet modern standards.
“I don’t see why Government cannot raise these funds,” Mr Kavindele, who is promoting the North-West Railway project, said as he joined others in supporting the repossession.
And some political parties have welcomed the move by Government to repossess the company. Forum for Democracy and Development (FDD) president Edith Nawakwi said Government should consider signing a public-private partnership agreement with China Railways, among others, to revamp Zambia Railways.
Ms Nawakwi said there is need for Government to partner with the private sector to make the railway system viable.
“We desire to see bullet (efficient) trains that will move our people from Kitwe to Livingstone in a short space of time, unlike the current situation,” Ms Nawakwi said.
She called on people who were leased land or are squatting along the railway track to vacate the land and pave way for expansion works.
The FDD leader said Government should also categorically state that the land along the railway track is an asset of Zambia Railways which should be protected for future expansion of the railway track.
The United Party for National Development (UPND) has also welcomed the repossession of the company “with caution”.
UPND spokesperson Charles Kakoma said the issue of Zambia Railways has been problematic but Government should have reviewed the concession agreement in an amicable manner.
“The review of the concessioning of Zambia Railways is what Parliament actually recommended but I think the manner in which it has been repossessed raises some questions. The approach, rather than the decision, is the issue,” Mr Kakoma said.
On Monday, Government terminated the freight and passenger concession agreement between Zambia Railways and RSZ.
The railway line was put up to a 20-year concession in 2003 but its growth grid has been down from the concession period, according to the government.
RSZ has declined to comment on the development which has cheered many Kabwe residents, who believe the fortunes may turn in their favour, once the government recapitalises the venture.
“I am in Kabwe right now (yesterday) and Kabwe residents are openly basking in the news of the government takeover and the prospects new money may bring to the now economically-depressed city,” Ms Muleya Mwananyanda, a Zambian working abroad, said.
Meanwhile, ALEX NJOVU reports that the Zambia Congress of Trade Unions (ZCTU) in Kitwe has welcomed Government’s decision.
In an interview yesterday, ZCTU Kitwe district chairman David Mwamba commended Government for its decision to terminate the concession, which the union feels will enhance job security.
He said it is unfortunate that the RSZ failed to operate to expectation and allowed railway infrastructure to be run down without taking the necessary steps to safeguard property.
“Infrastructure was dilapidated and it was clear that there was something wrong. Now that government has taken Zambia Railways back, things might improve,” Mr Mwamba said.
[Zambia Daily Mail]
The vandalsim of the the railway properties was spearheded by Knox and his group and not RSZ. Can the government tell us what role Zambia Railways has been playing when RSZ was busy vandlising the properties. From what I know the holding Company Zambia Railways was the one selling off assets including wagons as scrap metal.. Get your facts right Boma
UPND have got brains thats a brilliant point Mr Kakoma
Once again , THIEVES, so its all over now, the thieves win again.
A good Transport system is key to national development. A vibrant railway system is vital to a growing economy. Good move GRZ! Allow Kavindele to put up a railway line to northwestern through to barotse. You have my blessing. RSZ was a thorn in Zambian economic strides! MMD was a thorn in the flesh!
More job ku ZR PF creating more jobs for more money in your pockets @ lower but costly taxes
Why is that woman using the window? Are these the investors you needed who were putting our peoples lives at risk…..Shaaa
because she is a poor nigga with no brains in the head.
@ Exhaust Blown Diffuser.. You, your Kakoma, and your ka party are full of inertia and not intelligent.. like trying to hold a rally when the whole country are focused on the Zambia Uganda soccer match.. that was a miscalculation.. you were hoping the papers and radio programmes would be talking about the failed rally.. but alas.. Everyone was discussing football, our poor performance, katongo theories and our chances.. Parliament has been talking and talking and talking for years.. typical of you.. This goverment makes decisions and acts.. get used to the real, developed country way of doing things. Not your dull approach over straight forward matter… Like Nike… Just Do It!
Get your facts right dunderhead, the dates were a day apart, ati where did you go to school again?
What have you been smoking?? Such ignorance requires a license. PF cadres don’t use their heads that’s my worry.. If you fail to see the logic in what KAKOMA said you have to go back to nursery school am afraid.. By the way the Zambia-Uganda game was on Saturday & the Rally was supposed to be on a Sunday, your reasoning of someone wanting to capture the NEWS paper headline is the kind of thinking associated with fetuses
ni zeee, kabili tuleteka
yaba once a haisha always a haisha no through door.the window is the best.thanx goes to our president cause aba tonga balichilamo ifikochikala
PF is ahead of UPND. Instead of condemning directly they have now turned to indirect condemnation of the repossession of the RSZ. UPND, Mr Kakoma sir, just pat the PF for the well done job not the caution injunction you are putting across. What you should have said is : We as UPND commend the PF government’s repossession of the RSZ. I think you learnt from the dull talk of Mumba about the same. Mumba showed dullness and ignorance by condemning the great decision of PF government. Guys you have to be strong coz Zambians have now come to know that the opposition is useless which is against their interests generally.
Eeeh. Kupoka not ifyabupuba. MMD had the tendency to favour criminal investors or infestors who were clearly not bringing any economic value to the country.
Ok…Kakoma today has spoken sense.Its good to give credit were it is due rather than evertime opposing to even wat is good.this is a good move that will benefit every Zambian.We need to hear such frm HH,Nevers as wee.
it was sata as secretary general of MMD!!
Chitima chesu……gues wat! the woman is tonga and the man bemba. that was at kapiri when the man was taking the woman (wife) to monze on 7 July 2012……one zambia?
It’s difficult to understand or appreciate matters when one is not privy to details. Why was ZR concessioned in the first place? Wouldn’t a forensic audit help that exhibits the bottom line of where the railway business was at time of concessioning and where it stands now in order to circumvent the power of optical illusions? And what does the Concession Agreement outline so that breaches can be pinpointed? All in all, the fact to acknowledge is that it’s never an easy task to negotiate with hard-nosed capitalists.
#7 Digga hope you never meant to call yourself Nigga……..You are behaving like a gal uli ku period. you are using reflexes rather than thinking about issues @ risk in the termination of the concession..Future investors may be thinking twice about coming to ZED we need to reposes strategically what KAKOMA was trying to say
So what you are implying is that because Kakoma is questioning the approach so the concession should not have been cancelled? So that ZRS could have continued siphoning the dollars until UPND tells PF the best approach…hell no! Even in a company it is not all suggestions that are adopted, sometimes even non, why? because what matters is being decisive…we are all agreed ZRS has not added value to the nation and so PF have been decisive. And who has shown us the right approach…None! In fact do not think the PF hasn’t studied this issue, they did before Kabimba came in. So when you see a risk, mitigate immediately…that’s called efficiency!
Generally, this government increasingly shows its ‘flip floppery’.
Taxes are still at a high generally and benefits of PF economic policy are yet to trickle down to the poor. This country does not have a middle class and most people are living hand to mouth and engulfed in informal debt.
Zambians have turned to crime and religion for solace, and yes, some have turned to blogging.
If even 40% of the electorate were literate, the PF would be waving 2016 bye already.
nice one but no one make a living by blogging we all work and make money
You’d be surprised. Others wait on daddy’s allowances and hurl insults.
THERE WAS NO WAY SWIMMERS BY QUALIFICATION COULD MANAGE TO RUN THE SYSTEM WITH ZAMBIAN MANAGERS PLEASING INVESTORS .HOW COULD THEY TRANFERE HEAD QUATERS TO LUSAKA CHANGING STATUS OF ZAMBIA .
USING WAGONS TO FENCE LOCO SHED IN LIVINGSTONE, LOOK AT PEMBA,MONZE,CHOMA,CHISEKESI,KABWE CONTROL OFFICE, HEAD OFFICE,LIVINGSTONE BOARD ROOM, BUNK HOUSES,TRAINING CENTRE, DRIVERS TRAINED FOR 2WEEKS AND SHUNTERS THIRD WEEK THEY ARE PASSED OUT,NDOLA STATION SAD NEWS,KAFULAFUTA AS IF THERE WAS A CIVIL WAR IN ZAMBIA. . MANAGERS WERE BEING SENT OUT TO GO SHOPING IN ISRAEL, SOUTH AFRICA TO SHUT THEIR MOUTH AND FOLLOW WHAT EVER THEY COULD BE TOLD. PF HAS DONE A RECOMENDABLE JOB WORKERS WERE TURNED INTO SLAVERY ONLY YES BWANA WERE RETAINED, SPOORNET ARGUED WERE KICKED OUT.ZR TRIED TO ADVISE THEM REFUSED.
While I agree with Kakoma, I am more afraid of what plans PF has for ZR. Just will at the ZAMTEL Board, full of illiterates to the extent that board meeting are in bemba. The other worry is that usually regimes like this normally do not know where to draw the like. These people may want to bring back even ZCBC. There is also the expectation that ZR should create jobs, what happens if efficiency requires even fewer worker.
Why should they be compenasted?As a yooung i saw how ZR was the envy of every youg boy to work for…I remember Kafue Express passenger train,Rail car(greenish in colour) in Livingstone..DONT ARGUE IF YOU WERE NO THERE
Mumba Malila one would have hoped that you did due diligency before you gave the go ahead for the repossession. What is this nonsense about “may” not be compensated; “may” have broken the law or “may” have engaged in illegal activities is hedging that is common amongst gamblers not a top govt advisor. For your own information part of the rolling stock that RSZ was leased from Transnet. It is RSZ that had a contract with Transnet so their is no way you will stop them from getting their property. If you don’t play this very well the South Africans are going to kill your petty project in its tracks. Be warned!
Yes, kupoka is right, manje kapokedwe! Hear the AG expressing uncertainty on whether there were breaches; that is rush. There was need for an evaluation of perfromance, and if there has been any, then we should be citing the reasons outlined by the FM with confidence, not what Malila is crying now! We were all sad about the fact that there is no more line from Luanshya to Ndola, and the general state of the railway infrastructure, but there was need to highlight all such failures in a civil manner – no lessee would dispute breach if proved. Ba PF supporters, you must sober up, so that everything is not done and said without thinking, like the 90 day prophesy!
No compernsation is neccesary, they failed to develop the rail system. This time around you need to partner with firms that have a proven record of success. You should be talking about double tracking, electrictric fuel effecient trains at this point in time. Being land locked and under developed, it was a bad idea to exepect private hands to upgrade and maintain the system. The main aim of the private sector is to maximise profit for its stock holders. You need a good transport policy and a hands on approach to matters of National interest.
The Zambians who negotiated this rubish concession must be investigated and if found wanting charged with economic sabotage together with the RSZ crooks
What some pipo are implying is that because Kakoma is questioning the approach not the decision so the concession should not have been cancelled? So that ZRS could have continued siphoning the dollars until UPND tells PF the best approach?…Hell no! Even in a company it is not all suggestions that are adopted, sometimes even none, why? because what matters is being decisive…we are all agreed ZRS has not added value to the nation and so PF have been decisive. And who has shown us the right approach…None! In fact do not think the PF hasn’t studied this issue, they did before Kabimba came in. So when you see a risk, mitigate immediately…that’s called efficiency!
by breaking your own constitution
When a leg has a ganglion, you do not allow the patient negotiate to try curing it with medicine when you know very well that what they need is amputation. Bo Alex Chikwanda, well done for this decisive move. Abrogation of any agreement/concession is reason enough to terminate! This concession was none performing and retrogressive in alot of terms and hence most likely GRZ will not compensate RSZ. Kakoma, somethings are painful, but dealing with them quickly, decisively and efficiently as was the case with Finance Bank and now RSZ is cheaper than start negotiating with capitalist opportunists and none performers respectively!
# 14 Mutale, you are very naughty! Very good sense of humour. One Zambia, one nation!
This is what the people of Zambia voted for, people who can put our national interests first.
Railway transport is a vital tool for national development, which we need through out Zambia.
The quest to modernise our railway infrastructure is the move in the right direction, if fact we need a lot more railways to propel Zambia to an economic giant.
One Zambia One Nation.
@1 YOU ARE 100% RIGHT.KNOX AND HIS GROUP AT ZRL SHOULD BE ARRESTED IMMEDIATELY.ALL ASSETS WERE SOLD BY KNOX TO RAISE MONEY FOR THEIR INFLATED SALARIES.DON””T YOU WONDER WHAT ROLE THIS GUY WAS PLAYING IF RSZ DIRCTORS WERE SELLING LAND AND WAGONS WHICH STILL REMAINED ASSETS OF ZRL.KNOX SHOULD BE CAGED IMMEDIATELY INCLUDING HIS GROUP AT ZRL.THESE GUYS SHOULD NOT PLAY INNOCENT.THE PRESIDENT WILL BE EMBARASSED.PLEASE INVEST AGE THE HOLDING COMPANY ZRL IF YOU DON””T WANT TO EMBARRASSED INTERNATIONALLY.
RSZ Proper team HQ
1.Babe Botana
2.Asaf Sinah
3.Moses Sakala
4.Joseph Chiseyengi
5.Miss Namakau
6.Manda Vyonsi
7.Guylet Kunda
8.Alex Mulenda
9.Kelvin Mumba
10.Gabriel Mwanza
11.Francis Kangwa
12.Joe Chabala
13.Wezi Chibundi
14.Charles Mukandawire
15.Avishai Devir
16.Samson Banda Amichocho
17.Elly Mumba
18.Estella
19.Micheal Botana Chileshe
20.Mwansa
21.Ezla Ngombe
22.Francis Kauseni
23.Gilead
24.Cremmy
25.Sandu
Guys umu jew alibwino when they just came in nomba boma na Union let down.Teka farms irrigation ba ka teka
Ms Nawakwi, don’t bring up the inclusion of the chinese, please, because that will only result in compromising on a lot of issues, such as quality, labour, among a host.