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MINISTER of Labour and Social Security Austin Liato says it is immoral for Patriotic Front (PF) president Michael Sata to try to politicise the go-slow by Lusaka-based Zambia Revenue Authority (ZRA) workers.
And the ZRA management has warned that it will take disciplinary action against any worker who fails to immediately report for work.
Mr Liato said in an interview yesterday that it is unnecessary for Mr Sata to address ZRA workers who are picketing over industrial differences when he is a mere politician.
He said Mr Sata should confine himself to political issues instead of the ZRA workers’ matter, which is essentially industrial.
Mr Liato reminded Mr Sata that the matter at hand is industrial, and there are laid down procedures to follow in any dispute.
The minister warned the PF leader from interfering in such matters, saying he is not a jack-of-all-trades.
Mr Liato urged all the striking workers to return to work immediately as the go-slow is illegal.
He warned that any unionised worker of ZRA who decides to work with Mr Sata will be dealt with in accordance with the law.
Labour minister Austin Liato (l) and his counterpart from energy Kenneth Konga
Mr Liato said although he has not yet received an official report on the go-slow, his office will be proactive and follow the matter with interest to restore order at Revenue House.
Mr Sata took advantage of picketing ZRA unionised workes and rushed to their offices where he addressed them, promising that he will prevail over authorities concerning their grievances.
“Let’s be serious with national affairs. Since when has Mr Sata’s office been resolving labour disputes? He must learn to differentiate between political and industrial issues,” Mr Liato said.
Mr Sata arrived at Revenue House after 11:00 hours and urged the workers to go back to work.
He told union officials to petition management and meet him today at his Farmer’s House office so that he can help them on the way forward.
He told the workers who had gathered around him that they risked being victimised if they continued to stay away from work and could end up losing their jobs.
[pullquote]“Let’s be serious with national affairs. Since when has Mr Sata’s office been resolving labour disputes? He must learn to differentiate between political and industrial issues,” Mr Liato said.[/pullquote]
But union acting general secretary Shadreck Kalunga told Mr Sata that his presence will raise suspicion.
Mr Sata, however, told Mr Kalunga that the whole situation was already political, and urged the union to meet him today, saying he will help them to hire lawyers.
However, as soon as Mr Sata left, Mr Kalunga told the workers that the go-slow was an internal matter and there is no need to involve other people, especially politicians.
“We are glad that Mr Sata has come to visit us, but that is as far as it goes. This is an internal matter, and we are not going to involve anyone other than management,” he said.
And ZRA management has warned that disciplinary action will be taken against any worker who fails to report for work immediately.
ZRA director of research and planning Samuel Bwalya said in a statement yesterday that that the go-slow is unlawful and contravenes the existing collective agreement and negotiation procedures.
“In this regard, all employees are expected to report for work and perform their duties normally. For those who do not oblige, disciplinary action will be taken against them in accordance with ZRA grievances and disciplinary procedure code and the existing recognition agreement,” Dr Bwalya said.
He advised members of the public and all stakeholders that the ZRA offices will be open and operational.
But the workers have vowed not to return to work until their demands are met.
Mr Kalunga said yesterday that unionised workers have rejected the eight percent increment to their salary and housing allowance.
He said the decision to down tools was made after the union rejected the increment management was offering.
The workers, among other things, are also demanding long service bonuses for those who have served over 10 years to be reviewed.
“These negotiations began in January this year, and have not yet been concluded because management does not want to move from the eight percent that they have offered us. We are going to continue with the go-slow until management hears our plight, “ Mr Kalunga said.
A check at Revenue House opposite Kabwe round-about found offices deserted, with most clients being turned back at the gate by security guards.
Most of the workers were found idling or reading newspapers, while some union officials were going round offices to check whether there were some unionised workers that were still in their offices
President Banda has congratulated new British Prime Minister David Cameron on having ascended to the position following general elections held early this month.
Mr Banda said Zambia and the United Kingdom have enjoyed many years of cordial relations based on mutual trust and interest.
This is contained in a statement issued in Lusaka yesterday by special assistant to the President for press and public relations Dickson Jere.
Mr Banda said he hopes Mr Cameron will work with the Zambian government to further strengthen the bonds of friendship and co-operation during his tenure.
“It is in this regard that I desire to work closely with you at a personal, bilateral and multilateral level,” the President said in his letter to Mr Cameron.
Mr Cameron became British Prime Minister after the general elections held on May 6.
And President Banda has sent a congratulatory message to his Austrian counterpart Heinz Fischer for having won presidential elections that took place last month.
Mr Banda said the re-election of President Fischer is an affirmation of the trust and confidence which the people of Austria have in his leadership.
[ Zambia Daily Mail ]
COORDINATORS of the Luapula Province development conference are surprised that detractors are deliberately reacting to a missed statement that did not form part of the resolutions.
Kawambwa Member of Parliament Elizabeth Chitika-Molobeka, Copperbelt Province Minister Mwansa Mbulakulima, Bahati MP Besa Chimbaka said the chiefs and members of Parliament only resolved never to support politicians who insult others.
Ms Chitika-Molobeka said there was no part in the resolutions that talks about supporting President Rupiah Banda but what was clear was that opposition supporters were jittery because they have presidential candidates who seek political gain out of insults.
“We sat from 09.00 hours to 20.00 hours and those resolutions were read by Senior Chief Mushota. We have very intelligent chiefs who will not allow to be detracted by those who do not understand the situation on the ground,” Ms Chitika-Molobeka said.
MMD national secretary Katele Kalumba said in a media release in Lusaka yesterday that the conference exceedingly achieved objectives and expectation.
Dr Kalumba said the primary purpose of the conference was to achieve unity for the people of Luapula in the quest for greater political and economic participation.
Mr Mbulakulima said some people were fighting the outcome of the development conference because of its potential impact on the political standing of the opposition.
[pullquote]“We sat from 09.00 hours to 20.00 hours and those resolutions were read by Senior Chief Mushota. We have very intelligent chiefs who will not allow to be detracted by those who do not understand the situation on the ground,” Ms Chitika-Molobeka said.[/pullquote]
Mr Chimbaka said the opposition were trying to distort a well set agenda that had been set by the conference for political reasons.
Mr Chimbaka said the resolutions had hit opposition supporters in their face because they know that President Banda does not insult fellow politicians and was delivering development to the people.
Meanwhile, Mansa Central Member of Parliament (MP) Chrispine Musosha has refuted reports that he supports allegations that former president Chiluba is creating parallel structure in the MMD.
Mr Musosha said yesterday at a Press briefing that The Post newspaper had twisted the story to suit what they perceived was the way things should be.
He said there were no parallel structures in the MMD and that he was ready to work with Dr Chiluba the way the party was working with him because he was the founder of the party.
First Lady Thandiwe Banda with visitors at State house
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Bank of Zambia of Zambia governor Caleb fundanga and his deputy Denny Kalyalya during the centrals bank's quarterly briefing in Lusaka.
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Boxer Esther (r) Phiri and her sponsor Peter Cottan (c) during a fundraising event in Lusaka
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Community Development minister Michael Kaingu meets women from community clubs in Mongu
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Information minister Ronnie Shikapwasha in toast with Norwegian envoy Kjoe in Lusaka
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Chimwemwe Member of Parliament Willie Nsanda arrives at the Lusaka local court where he was divorced by Phebby Mwamba
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Olympic Youth Development centre consultant Clement Chileshe (l) and sports ambassador Samuel Matete at the sports centre in Lusaka.
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Former Luena Member of Parliament Charles Milupi after launching his new political party in Lusaka.
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President Banda (r), sports minister Kenneth Chipungu (c) and sports administrator Mwamba Kalenga (l) watch the National team players in training in Lusaka
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President Banda talks to national soccer team assistant coach Lucky Msiska (r) in Lusaka.
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President Banda talks to Zambia national soccer team coaches in Lusaka
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SACCORD executive director Lee Habasonda presenting a report on tribal politics in Zambia
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Some clergymen hold the world's biggest Bible when it visited Lusaka.
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Some clergymen hold the world's biggest Bible when the book visited Lusaka
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United Party for National Development spokesperson Charles Kakoma and Mufumbwe MP Lumba during a press briefing in Lusaka.
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Women from community clubs dance with community development minister Michael Kaingu in Mongu
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Zambia National soccer team players in training at Barclays Sports centre in Lusaka.
Chimwemwe Member of Parliament Willie Nsanda arrives at the Lusaka local court where he was divorced by Phebby MwambaPATRIOTIC Front (PF) Chimwemwe Member of Parliament (MP) Willie Nsanda has alleged that he saw Ernest Mwaamba, an employee of the Citizen Economic Empowerment Commission (CEEC) caressing and fondling his former wife Phebby Mumba at a lodge in Lusaka.
And Lusaka Boma Local Court senior presiding magistrate Henry Mwananshiku sitting with senior local court magistrate Juliet Mwila has set May 24, 2010 as judgment day in the case in which Mr Nsanda has taken Mr Mwaamba to court for committing adultery with his former wife.
Mr Nsanda told the court when the matter came for hearing that in February this year someone called him to inform the MP that they had seen his wife with a man drinking beer at Lusaka’s Mutende Lodge.
He said he confirmed with his friend Davies Kapijimpanga, who was drinking from the same place, that Ms Mumba was at Mutende Lodge in the company of some men.
[pullquote]“I received a call on Friday and I took a spear for my protection and booked a taxi to the lodge. At the lodge I saw Mwaamba busy caressing and touching my wife’s waist and what happened after wards I do not know because that was preparation for activities,” Mr Nsanda said.[/pullquote]
This is in a case in which Mr Nsanda 57, of 245 Zekoni Avenue Itimpi, Kitwe has sued Mr Mwaamba 43, of 1349/3 Woodlands for flirting with his then wife Ms Mumba and the MP is claiming for compensation.
“I received a call on Friday and I took a spear for my protection and booked a taxi to the lodge. At the lodge I saw Mwaamba busy caressing and touching my wife’s waist and what happened after wards I do not know because that was preparation for activities,” Mr Nsanda said.
He said on Monday the following week he went to CEEC offices to clarify whether Mr Mwaamba knew a person by the name of Phebby Nsanda but Mr Mwaamba denied knowing any person by that name.
Mr Nsanda said when he further queried Mr Mwaamba’s relationship with his wife, the CEEC employee said he was only keeping the MP’s wife for his friend named Blackson Mwale.
The MP also said he saw his wife along Great East Road with a man who looked like Mr Mwaamba and after confronting his former wife about the incident, she ran away from their matrimonial home taking with her all household goods.
In cross-examination Mr Nsanda maintained that he saw Mr Mwaamba fondling his wife at Mutende Lodge in Lusaka.
Asked if he had any proof to back his allegations, the MP said his eyes were proof enough because he had seen the fondling for himself.
But Mr Mwaamba said in his defence that during the night in question, he was drinking beer from inside the bartenders counter and there was no way he could have caressed the MP’s wife because he was far from where she sat.
Former first Lady Maureen Mwanawasa has apologized unreservedly to the Zambian people and the Government for what she terms as the misunderstanding that has been caused through an interview she gave to the BBC.
Former first Lady Maureen Mwanawasa has apologized unreservedly to the Zambians and the government for what she terms as the misunderstanding that has been caused through an interview she gave to the BBC.
In a statement released to Qfm today following Government’s displeasure at her recent interview with the BBC, Mrs Mwanawasa said she has never requested government to increase her retirement package.
Mrs Mwanawasa explained that she decided to go back to her legal profession and to continue working to meet the needs of her family especially their education.
“I have always and will always treat the gesture by government to provide her with the retirement package as a privilege and not as a right, which she appreciates and is grateful for and that it is incumbent upon her to fend for her family,’ Mrs Mwanawasa said.
She said that the BBC interview was not an isolated incident as has been portrayed that she gave an opinion to a foreign media.
[pullquote]”I have always and will always treat the gesture by government to provide her with the retirement package as a privilege and not as a right, which she appreciates and is grateful for and that it is incumbent upon her to fend for her family,’ Mrs Mwanawasa said.[/pullquote]
The former first lady noted that she is not a selfish person as some section of the society would like to portray and that she takes the government statutory provision as a privilege and not as a right, adding that she cannot disparage the same when she is fully aware of the sufferings of many Zambian.
Mrs Mwanawasa has since assured the public that she would not issue any further comments on issues regarding the demise of her late husband but will find a way to amicably discuss with the Government.
[ QFM ]
Below is the Interview the Former first Lady Maureen Mwanawasa gave to BBC
FINALLY the Auditor General’s Office has issued a final audit report on the Road Development Agency (RDA). The report does not in any way differ with the draft report analysed earlier.
The focus remains on the K1.4 trillion alleged to have been misappropriated. The audit covers the period 2006-2009. The period covers construction of roads during this period.
However, external influences seem to have driven the core purpose of the audit. Following allegations that huge amounts of money were misappropriated, the donor community, being key stakeholders, ensured that a comprehensive technical and financial audit was done.
However, the accusations that monies up to US$250 million (K1.4 trillion) was misappropriated surprisingly turned out differently.
Some members of the donor community complained about Minister of Works and Supply, Mike Mulongoti who they accused of not taking their concerns. Mr Mulongoti’s annoyance was their allegation that the K1.4 trillion was stolen when even the technical and forensic audit proved untrue. Despite the audit findings that revealed the truth, some donors insisted on trumpeting the K1.4 trillion.
[pullquote]Are the recent changes made to the road sector by President Rupiah Banda related to all this? Are some quarters fearful that the good activities happening in the road sector, through the RDA, may bring political fortunes to President Banda?[/pullquote]
The road sector is a key driver in the development of this country. This sector gobbles up to $350 million annually.
It is cardinal that the projects carried out are of lasting value to the country and open up the country to more economic activity.
But there appear to be sinister activities of some donors campaigning for the abolition of the Roads Development Agency (RDA). Are these calls justified?
What about the allegations that RDA had caused Zambia’s biggest corruption scandal amounting to K1.015 trillion in 2008? What are the findings of the forensic, technical and financial audits carried out since its creation?
Are the recent changes made to the road sector by President Rupiah Banda related to all this? Are some quarters fearful that the good activities happening in the road sector, through the RDA, may bring political fortunes to President Banda?
Is there cause to sabotage funding and close the tap to the sector until after 2011?
Members of Parliament who sit on the Public Accounts Committee (PAC) are familiar with various stakeholders and lobbyists persuading them to take certain stands when they are performing their oversight duties.
But when senior members from the donor community of Danida and the European Union (EU) made it clear that the committee should recommend the abolition of the RDA because of a ‘‘damning audit report’’, the MPs were alarmed.
It has now become fashionable for members of the donor community to campaign for the abolition of model and autonomous institutions created to a large extent by themselves.
In recent times, the Central Board of Health (CBOH) stands as a classic example of a model, autonomous and highly efficient body which was abolished for petty, political and corrupt reasons.
While CBOH was a body admired in the region and credited as an efficient vehicle to deliver health services, the body was dissolved with the help and collusion of politicians and some members of the donor community.
In fact, the dissolution of the CBOH cost the country K400 billion which was funded by cooperating partners. Today, the health sector is suffering the effects of that abolition.
Other social service delivery and social programme bodies that have suffered a similar fate are Zambia Social Investment Fund (ZAMSIF), Micro Projects Unit (MPU) and the five bodies that were abolished and merged into the Zambia Development Agency (ZDA).
Over the years, the World Bank has imposed structural reforms of Government.
Donors have convinced people that Government ministries cannot deliver social services and this power should be ceded to autonomous bodies so that Government ministries are left with policy and supervisory functions.
It is for this reason that autonomous bodies have sprung up being run by professionals and performing better than former Government departments.
It is for this reason that members of PAC were shocked by a proposal from the EU for the dissolution of RDA.
Since then, a concerted campaign has been underway with opposition members of Parliament calling for the entire abolition of RDA.
Road Development Agency (RDA)
In 2002, far-reaching changes were made in the road sector with the abolition of the National Roads Board (NRB) and creation of three bodies: The RDA, the Road Transport and Safety Agency (RTSA) and the National Road Fund Agency (NRFA).
Zambia and the cooperating partners comprising the World Bank, European Commission, DANIDA, Japanese International Cooperation Agency (JICA), Nordic Development Fund, Africa Development Fund (ADF) and Germany Development Bank (KFW) launched the ROADSIP I&II programmes to construct, rehabilitate and maintain a core road network by 2013.
RDA was mandated with the construction, rehabilitation and maintenance of the country’s roads infrastructure.
RDA is also mandated with the tendering and awarding of road construction deals. It is also in charge of the construction of bridges and other crossings.
The NRFA is mandated with managing funds mobilised by the Ministry of Finance and National Planning, locally and from the donor community. NRFA is also in charge of supervising and implementing the ROADSIP.
The RTSA implements policies on road safety, traffic management, registration of vehicles and educational programmes.
NRFA reports to the Ministry of Finance and National Planning, while the other two report to Ministry of Works and Supply, and Ministry of Transport and Communications.
The core agency is RDA which manages the 40,000-kilometre core road network in the country. Only 22 per cent of this road network is now paved. Roads are a key driver of economic development and economic growth and RDA is at the centre of this need.
In its short life, RDA has scored milestone achievements and has in its short time built, paved and in some cases completed very important and political projects.
Some of the major road works that RDA has handled are roads such as the Choma-Chitongo, the Bottom Road (Sinazeze), Mutanda-Chavuma, Lusaka-Chirundu, Lusaka-Kabwe, Mongu-Senanga, Chipata-Lundazi, Mumbwa-Kasempa, the Mwanawasa Bridge, and the installation of computerised weighbridges in Kapiri, Livingstone, Kazungula, Mpika and Solwezi.
RDA corruption allegations
The road sector in Zambia has an annual budget of $350 million. Its projects are multi-billion Kwacha ventures and the industry is expected to attract corruption and corruption allegations.
The huge works have mostly been done by a few contractors with capacity for such works. These are Raubex, China Henan, China Geo, China Jiangxi, Sable Transport, and Roads and Pavings.
Raubex, a South African company, has done the Lusaka-Luangwa Bridge, the Livingstone Airport, the Kafue-Mazabuka, the Lusaka- Kabwe, the Chipata-Lundazi and numerous feeder roads.
Shortly after the death of President Mwanawasa in 2008, NRFA which is headed by Raphael Mabenga, issued a detailed complaint to donors (uncharacteristic) that RDA had overprocured contracts of up to K1.6 trillion (in excess of the limit of K600 billion in 2008).
Upon completion of works, RDA issues certificates to NRFA to pay. This has been the problem. NRFA has instead hijacked the powers of RDA and insists on re-inspecting projects before the fund can pay rendering the process provided for in the law for RDA, useless.
Correspondence shows that NRFA has assumed the role of a ‘’whistle-blower’’ and constantly forwarding the details of ‘’suspect’’ payments to donors.
If there are suspected payments, a detailed report should be sent to NRFA supervisors- Ministry of Finance and not donors!
When the audits were commissioned, NRFA quickly circulated draft findings to road sector donors!
In fact the NRFA is reported to have taken RDA chief, Watson Ng’ambi to the Drug Enforcement Commission (DEC) Money Laundering Unit, alleging that Mr Ng’ambi had made a double payment to a contractor amounting to K2.4 billion.
Upon thorough investigations that saw Mr Ng’ambi suffer a highly publicised arrest, DEC found that the so called double payment was, in fact, an administrative error caused by a new junior who duplicated certificates for payments. Mr Ng’ambi was cleared.
Rwanda, the country that is among states in the region that are learning from Zambia on its road sector quickly poached Mr Ng’ambi for his expertise.
DEC discovered that NRFA had actually made similar errors. In their case, actual funds in excess of K3 billion were released to the contractor doing the Chirundu Road and reversals had to be done, only upon discovery many days later yet the NRFA boss was never arrested.
But tables turn, two years later, Mr Ng’ambi is the new Permanent Secretary at Works and Supply.
The Audit
NRFA’s allegation that RDA had overprocured road contracts in excess of K1trillion has set a vicious process in motion with donors demanding a three-year audit of RDA fearing that Zambia had suffered another grand corruption case involving $250 million.
Since then, Government were made to commission a forensic audit spanning the period 2006-2009.
The audits have involved technical and engineering auditors by teams from Europe and Tanzania.
Following the audit findings, the boards of NRFA and RDA were dissolved and Mr Ng’ambi has been recalled from Rwanda to replace Colonel Bizwayo Nkunika as permanent secretary.
Despite the pressure, President Banda has not yielded to the campaign to abolish RDA and fuse it into NRFA.
The Audit Report
The auditor general has commissioned a three-year financial and technical audit of RDA as demanded by DANIDA and the EU.
The Audit was commissioned to ascertain whether procurement procedures were followed in the awarding of contracts, if road projects were administered in accordance with contract provisions and whether the expenditure adhered to the law.
In conducting the audit, the auditors tested accounting records kept at the Ministry of Works, NRFA and at the RDA.
The preliminary draft findings and inspection culminated in a 300-page query. After examining documents, contracts and payment vouchers, the audit has reduced the report to a 99-page final draft.
The audit report shows that documents were not properly filed and were not produced for audit or were tendered to her team after the audit.
Her major findings include the issue that RDA overcommitted Government on road contracts in excess of money appropriated by Parliament. The overcommitment amount is K1,015,817,097,718 (K1 trillion) in 2008. This resulted in cash flow problems for the year 2009.
The audit also established that RDA signed contracts that exceeded the funds provided for resulting in delayed payments and stalled works or incomplete works.
The audit also questioned procurement procedures, failure to supervise the works, poor contract administration, irregular payments, and failure to provide progress reports.
The audit established that from the 18 sample projects it inspected, contractors provided shoddy, poor or below-grade works.
The audit also established that RDA is encumbered with a debt of more than K300 billion carried over from works done earlier by the NRB.
The K300billion was taken up by Ministry of Finance yet the auditors chose to reflect it in the books of RDA.
The works done under the defunct NRB were not properly documented and the board operated under a defective accounting system.
The audit also dealt with minor issues such as conditions of service for staff and the sale of personal-to-holder motor vehicles.
It also shows an outstanding unretired imprest totaling K19 billion. This amount reflects monies released by NRFA for RDA’s regional engineers across the country to carry out withholding maintenance work.
The retirement of this imprest has been rejected by NRFA because RDA chose to buy tools and equipment such as compactors. NRFA insists this is among the breaches in RDA’s mandate.
In some cases, payments to casual workers have been rejected by NRFA.
Donors had decided to strip RDA of all equipment and tools, insisting that road construction and works will be outsourced from independent contractors.
But there are limited and small works such as patching up of potholes and peripheral works that arise time and again and might not require RDA’s rigorous procurement process.
For example, the works for the Pedicle Road tenders showed that it would cost RDA more than K8 billion. However, RDA chose to use their regional engineer to do the gravel works and it only cost the institution K300 million.
Over-procurement of K1.2 trillion
Following the complaint filed by NRFA and circulated to donors, that RDA had over-committed Government to road works totaling K1.2 trilion, this amount excited many and caused the commissioning of the audit of funds from the EU and DANIDA.
In 2008, Parliament budgeted and appropriated for road works a total amount of K685billion, while RDA signed contracts totaling K1.643 billion (K1.6 trillion) resulting in an over-commitment of K1.015trillion.
This over-commitment was caused by RDA being directed to do unbudgetted for roads and bridge works such as Luansobe, Mpongwe, Nansanga Farm Bloc roads and upgrading of selected Lusaka township roads as directed by president Mwanawasa or his committee of ministers.
It also included works such as the Zimba-Livingstone Road when the road became almost impassable. The committee of ministers directed RDA that a 30 kilometre section which had presented the worst patch be done as an emergency case which cost more than 28 million euros.
RDA was directed to construct and finish the Mwanawasa Bridge in Luapula costing the agency more than K48 billion.
The over-commitment is normal in the industry as some road works that are in the annual work plans can be overturned or new projects included as directed or as a result of emergencies such as the wash-away.
Contracts are signed based on the total contract value for the project and not based on the amount appropriated by Parliament in that particular year.
For instance, the Executive has directed RDA to attend to such roads as Kabompo-Chavuma (K300 billion), Mumbwa-Landless (K300 billion), Senanga-Sesheke (K600 billion), Chipata-Mfuwe (K190 billion), and Lundazi-Chama-Muyombe-Isoka (to help the important link of Eastern and Northern Provinces) and sign contracts.
Most works planned for in the annual work plan and submitted to Government and the donor community will always spill over into the next year.
New huge road works require completion time of 18 months to two to five year period.
The process is designed to promote accountability but is heavily cumbersome.
When a project has been earmarked for construction, RDA comes up with cost estimates and advertises for eligible contractors. The adverts have to run for a period of one month as required by the law.
When bids are received, they have to be evaluated and then submitted to the Zambia Public Procurement Authority (ZPPA). ZPPA also has to sit and approve the winning bid.
Then contracts are entered into between RDA and the Contractor. Upon approval and contract signing, the contractor has to be given a period to set camp, mobilise equipment and workers before commencement of the works. All this might take up to six months.
And then there is a window period for construction as contractors have to contend with disruption of a rainy season especially for road construction projects.
Donors have always complained about this process. It is for this reason that even the Budget cycle has been changed from October to January to attempt to mitigate difficulties of implementing the annual Budget.
But NRFA and its senior officers have not helped matters choosing to put spanners in the works and scandalising the process as corrupt.
Correspondence between NRFA and sent to the donor community (DANIDA, EU and the World Bank) but not shared with Ministry of Works and Supply, RDA and Ministry of Finance and National Planning (the parent and reporting Ministry for NRFA), shows that NRFA reported the so called over-procurement and sent a summary sheet of road works and projects procured in 2007-2008 and spilling over to 2009/10.
Correspondence also shows that NRFA has chosen to guide donors before any donor/Government meeting.
For example, the answer given by RDA on the K1.2 trillion over-procurement was dismissed by NRFA insisting to the donors that RDA’s explanation of over-procurement as being the result of the multi-year commitments was not credible.
In NRFA ‘dossier’ to donors, they guided the cooperating partners to use provisions of Zambia’s own Finance Act and Appropriation Act which prohibits any controlling officer to commit Government to expenditure beyond one year, and beyond totals provided for in the Budget.
Yet Government has mid-term and long-term plans that also help provide an important guideline for the president beyond the one year RDA work-plan.
For its projects, RDA receives funding from cooperating partners, Government, through its fuel levy, and other charges slapped on road users. The road fund receives and disburses this money and manages the fund as a basket resource.
Zambia has a road network of 67,000 kilometres and its core road network totals 40,000. The work that lies ahead is huge and the criteria on which roads should be done in priority differ from the president, business, agriculture and trading sectors. And all these stakeholders are competing for limited funds in the basket resource.
The audit, however, ignored road works procured by DANIDA directly without tendering. DANIDA gave Raubex $1 million contract (single sourced) to do Luena Bridge in Western Province.
Raubex went on the site, changed the design of the bridge, and changed the scope of work.
DANIDA also hired Zulu Barrow as supervising engineers. The bridge is now showing serious signs of tear and wear, yet the auditor refused to include such works in their sample projects to be audited.
The Mongu–Shoprite Road was also directly procured by DANIDA but was not subjected to or included in the audit.
Cancellation of Advance Payments
RDA operations were disrupted and complicated when advance payments to contractors were banned.
Contractors were forced to begin to secure expensive financing from banks to complete road works.
This meant that road construction works became more expensive as contractors have to factor in the cost of borrowing.
This also resulted in difficulties for small and medium-scale contractors who had to pledge their personal assets to secure bank guarantees.
Why should private banks pay for the construction of budgeted for public works with secured local and foreign funding?
The construction industry is now regulated with the formation of a peer statutory regulator in the National Council for Construction (NCC). If contractors have acted dishonestly, why not let the NCC takes action and de-register such contractors and not punish the whole industry?
Conclusion
Clearly, the road sector is important. This sector is key to the re-election of President Banda in 2011.
It is, therefore, strange that donors appear to use the audit to attempt to close the taps on funding for the sector and use it to abolish RDA.
The startling allegation that a $250 million corruption scandal had occurred at RDA in 2008 as peddled by the donors has turned out to be a mere cold fact of over-commitment and out-of-work-plan contracts.
The measures taken so far by President Banda appear adequate, but will they forestall the administrative and operational lapses exposed by the Audit?
Any attempts to abolish RDA will bring serious confusion and disruptions to current road projects and the efficient systems designed to deliver successful and gradual construction of a sustainable core road network in the country.
The Government should learn from earlier actions made to abolish bodies such as CBOH that have left both Government and cooperating partners puzzled by their own actions.
The establishment of RTSA, NRFA and RDA was a good move that requires perfection through implementing regular reviews.
Since the road sector handles contracts worth billions, it is important that the audit findings as revealed and recommended are carried out.
However, any attempt to use this audit to deny the sector funding or use it to abolish RDA will be totally misguided as the audit report at both technical and financial level is not as damning as sensationally portrayed.
SOME unionised Zambia Revenue Authority (ZRA) employees in Ndola yesterday resolved to go on strike while their colleagues at Kasumbalesa, Nakonde, Lusaka and Livingstone border post have resorted to be on a sit-in.
A Times Reporter who visited the Ndola ZRA office, Indeni and Ndola Post Office branches yesterday found the workers doing nothing in their offices while some clients were being turned away.
Some Zambia Revenue Authority Workers Union (ZRAWU) members in Ndola said they would not return to work until management meets their demand of a 25 per cent salary increment.
A check at the ZRA headquarters in Lusaka found unionised workers wandering outside the revenue building in the company of their union representatives.
ZRA spokesperson Samuel Bwalya said the action by the workers was unlawful and contravened the collective agreement.
Patriotic Front leader Michael Sata has vowed that second republican president Fredrick Chiluba will not deter him from becoming the President of this Country.
Mr Sata said in an interview that Dr Chiluba’s attempts to stop him from becoming president of Zambia through the issuance of negative statements against him will not deter Zambians from voting for him.
He said Dr Chiluba failed to stop him from furthering his political ambitions when he was still republican President and that he cannot do that now when he is a mere political spectator.
And Mr Sata pointed out that reports that some chiefs who attended the developmental meeting in Luapula province addressed by Dr Chiluba complained at the way they were treatment is a clear indication that all is not well for the ruling MMD.
Mr Sata said he sympathizes with Dr Chiluba who the ruling party is using to gain support for President Rupiah Banda from the people of Luapula province.
He urged Zambians to bear with Dr Chiluba’s lame statements aimed at regaining their confidence and trust because he is a troubled Man.
Meanwhile Mr. Sata has said Zambians are suffering as a result of the high cost of Living under President Banda’s administration.
He said the move by Government to stop subsidizing fuel prices has led to the devaluation of the Kwacha and the rise in the cost of living.
Mr Sata pointed out that there is no development happening in the country and he urged Zambians to realize the need for the change of Government if the economy of the country is to be restored.
[ QFM ]
The Alliance for Democracy and Development (ADD) has called for campaign funding ceilings. The party has also demanded that political parties should disclose their sources of funding.
ADD president Charles Milupi said the system would help curb suspicious sources of funding for political parties to avoid distorting democracy and the economy while credible leadership would be voted into office.
Mr Milupi said political parties must be compelled to disclose their sources of funding to protect the country from being run under foreign influences.
He said the current situation allows foreign entities to finance campaign teams of political parties who would auction the country when they emerge victorious in an election.
Mr Milupi said all registered political parties should have their books of accounts checked by an independent body to stem illegal activities in the country, which could also distort the economy.
On the economy, Mr Milupi said agriculture had gone down and would reactivate it when he assumes office while job-creation would be his priority.
He said the Government was wrong to waive the windfall taxes and has also failed to improve agriculture, which would be his first assignment.
[pullquote]Mr Milupi said all registered political parties should have their books of accounts checked by an independent body to stem illegal activities in the country, which could also distort the economy.[/pullquote]
Mr Milupi also urged President Rupiah Banda to continue making appointments to leadership positions on the basis of credibility and not tribal preferences.
He said calls for tribal balancing were unjustified because the Zambian economy could sustain the 73 tribes and dialects that existed in the country.
He said people peddling the concept of tribal balancing were promoting divisions instead of unity and were also perpetuating the death of the rich concept of One Zambia One Nation.
Mr Milupi supported Forum for Democracy and Development vice-president Chifumu Banda’s position that the Cabinet should be considered as balanced as long as all provinces have representation.
He, however, encouraged President Banda to make efforts to balance the Cabinet in terms of provincial representation, citing Southern Province which he said only has two Cabinet ministers and its equivalent— Bradford Machila and Vernon Mwaanga.
Mr Milupi said his national management committee was balanced in terms of provincial representation, which was similar to the system that had been used by President Banda.
Mr Milupi said his government would turn Southern Province into a maizebelt and ensure more investment was put in cattle rearing to compete with Botswana in beef exports to Europe.
He said the Bottom Road would be opened up to promote tourism while feeder roads would be improved to encourage crop marketing.
FORMER Taskforce prosecutor Mutembo Nchito acted illegally when he appealed against the acquittal of former president Fredrick Chiluba last year by disregarding a directive of the Director of Public Prosecutions.
According to correspondence obtained by the Times of Zambia, DPP Chalwe Mchenga had on August 21 last year directed that the appeal against Dr Chiluba should not be lodged until after he had studied the judgement to determine whether or not the appeal should go ahead.
But Mr Nchito went ahead to appeal against the judgement on instruction from the then Taskforce chairperson Max Nkole despite the directive from Mr Mchenga.
After the appeal was made, Mr Mchenga wrote to the Taskforce’s new executive chairperson Godfrey Kayukwa and stated that the decision to appeal was against his express directive and a contravention of the law.
“Section 86(3) of the criminal procedure code provides that every prosecution shall be subject to the express directions of the director of public prosecutions.
“The decision by your predecessor to instruct Mr Nchito to file the notice was against my express directions and was in contravention of the law and illegal,” said Mr Mchenga in a letter dated August 26.
The former Taskforce prosecutor has been summoned by the Law association of Zambia (LAZ) legal practitioners to answer complaints raised against him by Dr Chiluba and his former Press aide Richard Sakala.
[pullquote]“To resolve the difficulty the court relied on the well established principle of criminal law that where two or more inferences can be drawn from a set of facts, the court must adopt one which is more favourable to an accused person if there is nothing to exclude such inference,” he said.[/pullquote]
Mr Nchito has written to LAZ’s legal practitioners committee informing them that the only authority that could question his decisions was the DPP and that he never received any complaint on his decision to appeal against the acquittal.
Mr Nchito appears before the committee at LAZ offices tomorrow at 12.00 hours but he has raised objections in his letter to LAZ dated May 13, 2010 in which he has indicated that he was a gazetted public prosecutor and enjoys protection as provided for by the Constitution.
He also contested that the DPP has not complained about the matter and reminded Dr Chiluba that he was not the spokesperson of the DPP.
But in his letter to Mr Kayukwa, Mr Mchenga said having read through the judgment, there was essentially one reason why Dr Chiluba and his co-accused were acquitted of theft in nine counts of the indictment.
“It is because the evidence before the court shows that the account (Zamtrop Account) from which the money alleged to have been stolen, was also received money from “private sources’.
There was un-controverted evidence that money in excess of US$8,500,000 was paid into the account from sources other than Government at the material times,” Mr Mchenga states in the letter.
He said from the evidence before the court, it was not clear whether the money the accused persons are alleged to have stolen in the counts in which they were acquitted came from Government sources or from private sources.
“To resolve the difficulty the court relied on the well established principle of criminal law that where two or more inferences can be drawn from a set of facts, the court must adopt one which is more favourable to an accused person if there is nothing to exclude such inference,” he said.
Since on the evidence before it was not possible to indicate whether the money drawn was from Government funds or private source, the court was therefore bound to draw the inference that the money drawn was that which came from the private source, an inference was favourable to the accused persons.
He said this being the case, the court had no option but to acquit them.
His Excellency, Mr. Rupiah Banda, President of the Republic of Zambia, on Wednesday announced changes to his Government and appointed Lundazi Member of Parliament Hon. Mukondo Lungu, MP, as new Minister of Home Affairs.
The appointment of Hon. Lungu, current Deputy Chairperson of Committees of the Whole House in Parliament, is with immediate effect.
“In exercise of the powers vested in me pursuant to the provisions of Article 46(1) of the Constitution of Zambia, Chapter 1 of the Laws of Zambia, I hereby appoint you Minister of Home Affairs with immediate effect,” President Banda said in his letter to Hon. Lungu.
The President said he has revoked the appointment of Hon. Lameck Mangani, MP, as Minister of Home Affairs and has reappointed him as Deputy Minister in the Ministry of Science, Technology and Vocational Training. President Banda thanked Hon. Mangani for the service he rendered to the nation during the period he served as Minister of Home Affairs.
Further, the President has transferred Hon. David Phiri, MP, Deputy Minister of Home Affairs, to the Ministry of Finance and National Planning to be one of the two Deputy Ministers.
President Banda has also transferred Hon. Chrispin Musosha, MP, to the Ministry of Education where he will take over from Hon. Richard Taima, MP, who has been moved to the Ministry of Home Affairs in the same capacity.
________________________________________________________________________
Issued by:
Dickson Jere
SPECIAL ASSISTANT TO THE PRESIDENT
PRESS AND PUBLIC RELATIONS
The MMD has dismissed assertions by the Patriotic Front that the recently held developmental meeting in Mansa was held using public funds.
In a telephone interview this morning, MMD National Secretary Katele Kalumba who is also Chienge Member of Parliament said the funds used to organize the developmental meeting were raised by MMD parliamentarians in Luapula province.
Dr Kalumba said the MPs made financial contributions towards raising funds to organize the meeting.
He said it is therefore not right for the opposition Patriotic Front to insinuate that the meeting was held using public funds because such statements are misleading to the nation.
He said the MMD is a party and not a government which cannot in any use money meant for the people of Zambia.
Dr Kalumba says all businesses concerning the MMD as a party cannot be conducted using public funds because such a move is tantamount to abuse of public funds.
