GOVERNMENT has ordered Railway Systems of Zambia (RSZ), the firm running under a concession pact, to surrender management of the railway transport, President Mwanawasa has disclosed.
The President, who was speaking at a dinner in Cape Town on Wednesday night, described as ‘tragic’ the operations of RSZ.
Mr Mwanawasa said the railway transport was not performing to the expectation since it was concessioned to the RSZ.
He said RSZ had been asked to give up management so that Government could give it to serious investors who would manage the transport system to the satisfaction of the Zambians.
The President was responding to questions from potential investors who wanted to know about Zambia’s transport network.
“The management of the railway system in Zambia is ‘tragic’ for lack of a better word. We’ve asked RSZ to hand the railway network back to us so that we can look for another investor who can manage it properly,†he said.
He said the railway line which stretches from Livingstone to Chililabombwe, was better before it was concessioned to RSZ from Zambia Railways.
The President also updated the gathering on the proposed construction of the Solwezi-Chingola railway, which was expected to be connected to Angola while the Chipata-Mchinji line would connect to Malawi and then Tanzania-Zambia Railway Authority (TAZARA) line near Mpika.
“So if you’re interested in railway business, you’re welcome to Zambia and take over the running of our railway network,†he told the dinner, which included Finance and National Development Minister, Ng’andu Magande and Mundia Sikatana for Foreign Affairs.
Bank of Zambia Governor, Caleb Fundanga moderated the discussions which focused on Zambia’s investment potential in mining, tourism, agriculture, manufacturing and transport.
President Mwanawasa is in Cape Town attending the 17th annual meeting of the World Economic Forum on Africa which opened yesterday and ends today.—ZANIS
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why is it that everything that we have given to foreign investors has been a flop?
This is total BULSHIT.
We are able to run our own companies,please lets re-visit our contracts and give back to Zambians to run these most important companies.
please please
The danger of teams dispersed so widely is that they end up working as separate entities and not leveraging synergies. However, I believe that, among the many strengths of the team assembled in SA, the working relationships that have been already established over the years stand out.The partners have a history of friendly mutual collaboration in the framework of the South African Railway Systems.But why are they not doing the same to the Zambia Railway Systems. If you were to seriously look at the contract that was signed you would realise that it leaves alot to be desired. It is embarrancing for the head of state to make such a pronouncement in a foreign country. Have we started nationalisation? Where are the top government officials who should deal with this matter? This is no different from revisiting royalties in the mine contract.
Bravo Ba kateka!!!
Now Nkataboy Kaunda was right by nationalising firms. You see now where we are heading to.We have to be very careful with these activities because they can cause in security in the country. sensitive matters this should not be used as weapon to divide united Zambia. We have enjoyed peace for years now. I have not seen a nation give away strategic companies and Banks apart from Zambia. Very soon we shall be repossing ZANACO. FTJ did a heavy collatra damage to the nation. He didnt not just steal but destroyed a vivided system. I never heard even developed nations give away its industries to foreigner. There is no interest apart from making money in short term and leave. I thought we learnt what happened to Meridian BAO the man ran away with our man. Zambia need Public-Private partnerships join ventures. The chinese they just doing that why cant we follow.This kind of Insourcing in the name of foreign investment is damaging to the economy.
Short of sounding like I am preaching! the trouble with most of these investments and calls for similar ventures to Zambia is that they are done half-heartedly and in ignorance. If as a country we know exactly what we want, we should outline these concretely and clearly (much like writing Terms of Reference for a consultant – if you do not write them clearly, BULLSHIT comes out)… Our technocrats and whoever is responsible should do due diligence here. For crying out loud, let’s learn how other countries do it. South Africa gets GAUTRAIN we Zambia get MULUNGUSHI train (Matero – Chilenje!)
This is another problem we have in Zambia, we are always looking for foriegn investors.It would be better if the government ran some of the companies.Where there is need for foreign expertise the government can hire some people to work on contract.
Its a good thing also to make the rail network expand as there doing.In the future we need to get some new trains, in some areas it would be good to have electrical trains.There faster and people would later prefer to use them instead of buses.
Gentlemen after all said,above, a leader with a heart for the country is most right,leaders like KK and others,definately not Kafupi.
But for now the problem is ours to sort out,big time .
A Country is regarded by how the govt treats it’s citizen’s. If the govt respects and values it’s citizens,so will the investors.
This is corporate failure on the part of people entrusted with authority to concession ZR.what criteria did they use in awarding these guys the contract? ZPA must be held accountable on this one together with Magande.Their attitude was just something else, every vehicle they used was from lease companies,just the lease charges alone ZR could have refurbished the sleepers over time.In the short term leasing is got its own merits especially interms of boosting cashflows but not as a long term measure.As for Levy its another ethical malaise to denounce these Israelites in another foreign country.These came as investors like anyone else , you evaluated their cv and satisfied yourselves that they were credit worthy in the same vein you should have let them leave in a more professional manner.Why could Levy denounce Supreme, Barnets,Avmin , AAC?Its shameful for the Head of State to speak like this.If you cant trust foreign investors empower locals like SAGE,KC, Citizen and Nkhtaboy
This is unethical,un professional and sending wrong message to would be investors.Mutual respect in business is cardinal.Everything we have done regarding our economic reform has just been total chaos.This is where we need to institute CI not the stampede in Bancroft.Iwe Citizen is this how you are going to participate in the global market?you are behaving like its those shops at Chisokone where anyone can close and open a stall as much as they like? Looking at ZR today the value attributed to it has even reduced futher and will pose as a draw back in arriving at optimal agreements because since dirt has been exposed any would be investor will use this to bargain.When will you guys develop your managerial abilities?
#2 Nkhtaboy good piece of work and welcome back
#10 You are right KUKU
Thums up,mr prisident. My dad laboured for the system for over 40 years and this is what they have done TO IT,’nothing’. They have no competion in zambia but they are failing to put a decent rail line and pasenger train for us.Get it back they are a disgres to our society. We neeed serious investors and give them targets to achive in a short time of there operation in zambia. WE NEED RESULTS, bravo once more.
Jean… we know Kuku is right but what is your point. You cant just come to the blog and make a 4 word statement. We want your point of view.
No more foreign investors. Why cant we run our ZR like the punctual Zim train. What positive things did RSZ bring better than ZR. I fail to understand why GOVT has to go around the world to look for someone to experiment on our resources and assets. Is it one of the conditionality for donor aid? LPM, stop begging. We have a lot money in our country to pump into ZR. We can also dig our own copper and oil reserves.
We dont know what specific elements of their contract Spoornet failed to honor. But…
There’s ample data to show that the net effect of fiscal(i.e. tax) incentives offered to foreign investors, in manufacturing at least, has been negative as there has been insignificant technology transfer to local partner firms and in fact companies have suffered/closed down due to adverse competition effects. But from a distance, the boom in mining and agriculture should have helped.
RSZ was not really privatized but running under a management service contract or concession. Their apparent failure to perform has to be viewed in the context of what’s happened after privatization to the real side of the zambian economy over the past decade and half. Not an easy job to run such an enterprize in these conditions.
President Mwanawasa shouldn’t see this just as usual politics or fall into the geo-political frenzy obtaining at WEFA. The MMD has some real work to rectify the mess FJT left behind…
#15 Francis my worry is who advises Levy to take such posture,in public for that matter?He is being blinded by the Chinese links who he thinks are his all weather partner.Zambia has struggled to attract FDI and what is obtaining is very scary and putting up Zambia as a very high risk destination to invest in.The rampant thefts and corrupt practices in public sector are one such impedement, that is why these bogus investors they keep bringing through the inept ZPA are capitalising on the weak regulatory systems.Alot has to be done a clear policy on investment must be enacted without any delays.Spoornet used to make collosal transfers of forex without putting it back into business, there has been no value added to ZR ever since they took over
Kuku, we’d have wished for more details to understand exactly where these guys failed. The President meant well, but in this difficult market environment its crucial for leaders to speak clear, credible policies.
It seems from what Magande and other govt leaders have been saying that they want major reform in our investment policy. But not just for mining; FTJ left our economy with no shock absorbers.
However, as Nkataboy says state-led investment or capital controls are going to make things better. We have no economic clout and are still far too corrupt to sustain either.
only a fool can feel thirsty in a place where there is abundanty of water, so may it be with ci easy iciwelewele te? iwe ci Easy, you can’t go and tell pipo what you have in bed bedroom especially outsiders, that’s taboo te? if that’s taboo then iwe ci easy uli chiwelewele te? abo ba chuchu nabo mukusanwa ati zed is playing field for bogus investor when he was in cape town. when i read that story i felt like going to IT nokucilangula ama-kofi mumutwe. am pissed off pipo, plz for give me.
#17 Sate led-investment we are going back to nationalisation.Strenghtening Public Private Partnership is key,a well functioning legal and economic insititutions that promote, MONITOR and render transparent market operations is what we need to focus on.If spoonet was being constantly monitored the tragedy being talked about could have been avoided.If our leaders feel the responsibility is too heavy for them they can outsource certain functions to the public or private sector until such a time they are ready to handle it.We are not the only ones who have embarked on such path but its our ineptitude and attitude which is causing all this chaos.Utwala pa bwingi tonaula.That is why people get attached to some well impelemented systems so that they learn the best way of doing it but in our case we operate on trial and error system.the measure you give is the measure you get.
Nationalism is not a bad thing as long as its in the interest of the people of that particular country in this case Zambia.And by so doing the government will be able to monitor closely, how things are moving and how much profit is coming in.Foriegn investors are in the country not becuase they want to employ people of that country but making a profit that will go to develop their own country.There certain major industries where the government should be the ones to run.Look at bostwana mining of diamonds is done by the state, not individuals or foreign investors.In zambia things like the train can be ran by the government and most especially the mining of oil and gas should only be by the government if at all any individuals then they should be Zambians.Foriegners you just employ them.Another mentality we need to iron out is to say we can do it let foriegn investors do it.When thes people come they will be given 99 years.Is zed going to benefit from that?I do agree with GLUCO.
…continuation
For those who have been overseas if you have observed most of the time for certain things one would not have access to them unless you are a citizen or atleast permanent resident(atleast according to my experince).Yet for us in Zambia we want the opposite priority goes to forieners instead of our fellow country men.Ladies and gentlemen let us see the big picture.we can do it, one has mentioned of trial and error as long as we have people with the right experience and qualification no matter where they come from we can employ them to run our oil,gas and certain other areas of mining and industries where the government would ran.
Dear Past, Present and Prospective Clients
Be advised that all priority dates are current for employment based applications in the USA.This means that if you have an approved Petition for Alien Worker (I-140) or an approved Labor Certification (ETA 750), you can now file your adjustment of status application. USCIS should then be able to approve your work authorization document (EAD) or work permit in 90 days. If you are not in the United States and have an approved Petition for Alien Worker (I-140), you will be able begin consular processing. If you are in the latter category, there may be the need to file additional paperwork for the embassy or consular office to begin the processing. Furthermore, if you are 245i eligible, which means you began immigrant processing before April 30, 2001, you could possibly file to get your resident alien card so long as your labor certification has been approved or you have an approved petition for alien worker. It is important to know, that you could transfer eligibility of the 245i based application from one petitioner to another so long as the 245i application was “approvable at the time filed.†Lastly, all the priority dates being current means that if you were to begin, or restart, the process of getting an employment based application today, you would be able to get through the process of getting an employment based immigrant visa and adjusting your status much faster than in previous years. Priority date notifications change month to month so it is important to act quickly. Our firm will begin accepting consultations for this process now.
Sincerely yours,
Paparazzi & Partners’ Law Offices, P.C.
By: Paparazzi
Attorney at Law/ Planning Consultant
Not all that glitters is gold.This is an eye openner.
I am not surprised with the action being taken by the Zambian Govt. I have been to many countries including developed nations, the railway system is either run by the govt or heavily subsidized. Take for example France, the entire system is run by the govt. In USA, they receive heavy subsidies, same in the UK. If in developed economies, they have found it diffcult for the railway system to stand on its own, what of in Zambia? We should not always accept what IMF/World Bank tells as some things are not practical. We should also be aware of double standards by the West, when they do run the system and when they talk to us, they change the perception. We should always agree to what is best for the country and not follow IMF programs. I like what Kenya did. They refused IMF pills and have not received any funds for past 5 years, but economy is growing and country has been removed from any support due to its good performance. Let us not dance to any song, we should have our own.
#22 paparazzi be transparent , Am sure there are despearte people out there who are in dare need of such help,put up your true identity not ifi ifyabukazizi, we have seen a number of illegals being repartriated back to Zambia especially last month, alot have landed back home, and these are chaps who have been there for the last 5 years, they are no less than ex convicts they look lost in Zambia,so if you can help please open up roots for those who are still there.Its a sorry site for those who have come back as PIs.Some are finding it difficult to settle here.
Mr President, I wish to first of all thankyou for getting back the railway line to the GRZ. However, selling it off again to the so called investors is sickening, the problem is that u have no capacity to run the railway industry!! That is shamefull for zambia. It could not even run zambia airways just in the same line. And by the way, how much honor was given to the zambian pipo to have the seizure announced in cape town??? No wonder many mining jobs are announced in south africa. You should send young pipo to go abroad and learn how to run railway industry.
#24 mulenga i agree with you. IMF is not the one to give us guidelines on what is good for us and what we should take and not take. But look at how your former vice pres. nevers went on to support them when he addresses pipo in zambia “lets not be cheaky you guys!!” He said. So let GRZ take active roll in running the railway industry and support its operations. As much the economy of zambia much depends on copper, its imperative that railway industry is in good shape for transporting heavy cargo. On the other hand, it provideds safe travel for passengers. In developed countries, its even prefered to go by rail than to fly. Pipo should realize that railway industry is key to national development.
Former Enron exec gets 27-month sentence
HOUSTON (Reuters) – A U.S. federal judge on Monday sentenced the former CEO of Enron Corp.’s broadband division to 27 months for securities fraud in the company’s 2001 collapse.
Ken Rice, 48, pleaded guilty to one count of securities fraud in 2004 and assisted prosecutors in other Enron cases.
Enron, once a high-flying energy trader that tried to add broadband Internet access to its portfolio, inflated revenues and earnings and collapsed in a 2001 accounting scandal.
Rice, who was allowed to remain free on $3 million bond pending assignment to a prison, could have received a penalty ranging from probation to 10 years in prison.
U.S. District Judge Vanessa Gilmore also ordered Rice to forfeit more than $379,000 in cash and assorted cars, jewellery and real estate found to have been ill-gotten gains.
Among forfeited items were a house in Telluride, Colorado; a platinum, sapphire and diamond necklace; a 1995 Ferrari; and investment accounts totalling more than $1 million.
Rice is the last to be sentenced of 15 former Enron executives who pleaded guilty. Sentences have ranged from one to six years.
Former Enron CEO Jeffrey Skilling was convicted at trial and is serving a 24-year sentence. Enron founder Ken Lay also was convicted at trial but died before he could be sentenced.
#24 Mulenga,you’ve mentioned Kenya. Anyway, if you as an individual walk into a bank to ask for a loan and you are given terms and conditions, its up to you to accept them or not. So tell Zambia not to apply for loans from IMF/WB and not to accept their terms.
Problem with our leaders is they put the blame on the creditors,it’s like a father failing to feed his family and putting the blame on a friend who refused to loan him money.
Lets be realistic.
#27 Titus, the reason why govt cant be entrusted with running the rail system is because they are incompetent ,inept,lazy,corrupt and most of all they misappropriate funds and divert to political and self needs.
The rail and road(transport) system is very important to every countries development.Chipata to Mpika is about 200km,why do people have to go to Lusaka first then proceed to Mpika,covering a distance of 800km in total.
Does it make any sense?
We luck innovation,hence subsidies can nt be tolerated in a developing nation.