Debates- Thursday, 15th December, 2011

Printer Friendly and PDF


Thursday, 15th December, 2011


The House met at 1430 hours

 [MR SPEAKER in the Chair]











54. Mr B. Mutale (Kwacha) asked the Minister of Transport, Works, Supply and Communication:


(a)                 when Zambia Airways was liquidated and who the liquidator was;


(b)                 how much money was realised from the disposal of the company assets:


(i)                   within Zambia; and


(ii)                 outside Zambia;


(c)                 whether there were any former employees and creditors who had not been paid as of 31st October, 2011 and, if so, how many they were; and


(d)                 whether the liquidation process was completed and, if not, when it would be completed.


The Deputy Minister of Transport, Works, Supply and Communications (Mr Mwenya): Mr Speaker, following the recommendation of the Board of Directors that Zambia Airways Corporation could not, by virtue of its liabilities, continue to trade and in the light of the decision by the Government of Zambia, being the major creditor, a resolution by the shareholders of Zambia Airways was passed on 4th December, 1994 that Zambia Airways Corporation be liquidated.


Sir, in the same month, John Stanley Ward and Nicholas Charles Allen were subsequently appointed as joint liquidators of Zambia Airways Corporation.


The total amount of money realised from the disposal of the company assets was K63,409,920,484 broken down as follows:


            Details                                                                                   Amount in Kwacha


            Within Zambia                                                                     51,340,181,436


            Outside Zambia                                                                   12,069,739,048


            Total                                                                                       63,409,920,484


Mr Speaker, in June, 1995, the Government paid all former employees of Zambia Airways Corporation their agreed terminal benefits. Accordingly, the employees do not have any claim for terminal benefits in the Zambia Airways Corporation liquidation. The employees also signed an agreement with the Government not to make any further claims.


Sir, the total number of Zambia Airways Corporation creditors, whose claims have been admitted into the liquidation, is 1,400.


Mr Chairperson, the liquidation of Zambia Airways Corporation is yet to be concluded due to two outstanding legal matters. The liquidation process cannot be closed without resolving the outstanding legal matters. The liquidator has presented to the Government various options to the closure of the company and the Government is still consulting on these options.


I thank you, Sir.

Mr B. Mutale: Mr Speaker, does the Government intend to have an airline company such as Zambia Airways after this?

 The Minister of Transport, Works, Supply and Communication (Mr Mukanga): Mr Speaker, the issue that has been raised is very important. However, Cabinet needs to sit and decide on the way forward so that an answer which is acceptable to Cabinet can be given. At the moment, no discussions have been taken to that effect.


I thank you, Sir.


Mr Speaker: The hon. Member for Mpika Central.


Mr Kapeya (Mpika Central): Mr Speaker, I wanted to ask the question posed by the hon. Member of Parliament for Kwacha.


Mr Chisala (Chilubi): Mr Speaker, the hon. Minister has just mentioned that two liquidators were appointed. Are these liquidators Zambians by birth?


Mr Mukanga: Mr Speaker, that is a new question. However, when it comes to carrying out this function, it is not required that they be Zambians by birth.


I thank you, Mr Speaker.


Ms Lubezhi (Namwala): Mr Speaker, the hon. Minister mentioned that there are outstanding legal matters. May we know what these outstanding legal matters are.


Mr Mukanga: Mr Speaker, when issues are in court, we cannot discuss them in this House. For this reason, I would not like not to discuss these legal matters.


I thank you, Mr Speaker.


Mr Habeenzu (Chikankata): Mr Speaker, we have heard how Zambia Airways Corporation was liquidated, but we have not been told why the company was liquidated.


Mr Speaker: I suppose that is a new question.


Mr Mukanga: Mr Speaker, thank you for that answer. I will try to give a bonus answer based on the reply that was given by the hon. Deputy Minister. The answer was very clear that the company was liquidated because of increased liabilities.


I thank you, Sir.


Mr Mbulakulima (Chembe): Mr Speaker, the hon. Minister said that the formation of a national airline will require Cabinet’s decision. Is the hon. Minister aware that he is on record as having informed the nation that this Government will re-establish a national airline? Is he aware or did he speak in his personal capacity at the time?


Mr Konga: He was giving a ministerial statement.


Mr Mukanga: Mr Speaker, I think I was misquoted. What I said was that the country needs a national airline.


Hon. Government Member: Hear, hear!


Mr Mukanga: When I said that, I did not mean that the country will have a national airline which will be instituted by the Government. Every issue and every statement that is binding comes from the Cabinet. We will discuss it in Cabinet first and when a Cabinet decision that we have a national airline has been made, we will announce that we are going to set up a national airline because the Government will have taken a position.


I thank you, Mr Speaker.


Hon. Government Members: Hear, hear!


Mr Kampyongo (Shiwang’andu): Mr Speaker, we have just had the sixth airline going under. May I find out from the hon. Minister of Transport, Works, Supply and Communication whether the challenges faced by the private airline operators are similar to those faced by the public airlines that have gone under.


Mr Mukanga: Mr Speaker, I think what we are discussing this afternoon is Zambia Airways Corporation, and I would not like to go into issues that are in the courts of law, such as those relating to Zambezi Airlines. Therefore, I will not discuss that, except to mention that Zambia Airways Corporation was liquidated because of increased liabilities.


I thank you, Sir.


Colonel Chanda (Kanyama): Sir, is the hon. Minister aware that at the time of liquidation, Zambia Airways Corporation was rated the second best airline in Africa? What, then, precipitated the insolvency of Zambia Airways Corporation?


Mr Speaker: That question has been answered. The hon. Minister may, however, repeat his answer.


Mr Mukanga: Mr Speaker, at that particular time, the national airline might have been rated as the second or third best, but this rating was done by people who did not have the right information on it. However, as far as I am concerned and from the Government’s point of view, the company had many liabilities and could not continue operating. That is why it was liquidated.


I thank you, Sir. {mospagebreak}











The Chairperson: The House will recall that, on Wednesday, 7th December, 2011, when the House was in Committee of Supply, considering Head 27 – Public Service Management Division, and the hon. Member for Kalomo Central Parliamentary Constituency, Mr R. Muntanga, MP, was contributing to the general policy debate, the hon. Member of Parliament for Shiwang’andu Parliamentary Constituency, Mr S. Kampyongo, MP, raised the following point of order:


“Mr Chairperson, first of all, I must apologise to the Senior Member of Parliament on the Floor for interrupting his debate. However, Sir, I rise on a very serious point of order. Is it in order for hon. Members of this House to insult the Head of State in the manner that it has been reported in today’s edition of The Post Newspaper, dated 7th December, 2011?


Mr Chairperson, I quote:


“‘Situmbeko challenges Sata to be serious with relationships. Musokotwane insults Sata’


Mr Chairperson, I lay this paper on the Table.


“Sir, the Head of State is the Executive head of the nation, and by virtue of being the Head of the nation, he has certain privileged information which he gets through various ways. Therefore, it is not in order for members to challenge any information that gets into his possession.


“Mr Chairperson, we might be setting a very bad precedent in this nation. I seek your serious ruling and now lay the paper on the Table.”


In his immediate remarks on the point of order, the Chairperson of Committees of the Whole House said:


“I will come back with a ruling after I have read the contents of the newspaper.”


Hon. Members, I have since studied the point of order and wish to begin by guiding the House on the Procedure to be followed by hon. Members whenever they raise a point of order in which they make reference to a newspaper article or, indeed, any other publication.


Parliamentary Practice and Procedure requires that any reference made to a newspaper article or any other publication must not only be factual in substance and content, but also specify the actual violation to which the point of order relates. In this regard, a Member wishing to refer to an article in his/her point of order must clearly cite the exact words in the article on which he/she is raising the point of order. It is, therefore, not sufficient for a Member, in his/her point of order, to merely quote the headline of the article and fail to cite the actual words in the article that are being complained against.


In view of this, I find that in raising the point of order, the hon. Member for Shiwang’andu Constituency merely quoted the headline in The PostNewspaper article without pointing to the actual alleged insults directed at His Excellency the President, Mr Michael Chilufya Sata. This was unprocedural. The House is, therefore, being advised to follow the guidance I have just given in raising such a point of order.


In considering the point of order, I also took note that the statement complained of was made outside the House. Hon. Members, the issuance of statements by Members of Parliament outside this House is a matter which my predecessors have ruled upon on several occasions. However, because this is a new Parliament, perhaps, there is a need to remind hon. Members on the position regarding statements made by hon. Members outside the House.


Hon. Members enjoy the privilege of absolute freedom of speech when they debate on the Floor of this House. However, this privilege does not extend beyond the precincts of Parliament. In this regard, statements made by hon. Members outside the Assembly are not protected by Parliamentary Privilege and are made at hon. Members’ own peril. It goes without saying, therefore, that should such statements have any defamatory content, the hon. Member will be subject to the laws of defamation such as slander and/or libel.


Hon. Members should, however, note that the issue of whether or not a person has insulted the Republican President is not for this House to determine, but for the relevant investigative and law enforcement agencies. In this regard, anyone aggrieved by the statement uttered by the hon. Member for Liuwa Constituency was, and still is, at liberty to seek redress from the appropriate law enforcement agencies.


In conclusion, let me encourage all the hon. Members to carefully study and familiarise themselves with the provisions of the National Assembly Standing Orders, the National Assembly Powers and Privileges Act, Cap 12 of the Laws of Zambia and the Members’ Handbook, which relates to Members’ powers, immunities and privileges, and the rules and procedures of the House, in general.


I thank you.


Hon. Members: Hear, hear!


VOTE 80 – (Ministry of EducationScience and Vocational Training –K4,850,866,692,395).


(Consideration resumed)


The Chairperson: It must be noted that we exhaustively discussed this Vote. Therefore, the hon. Member for Katombola will end his debate before I ask the hon. Minister to wind up.


Mr Livune (Katombola): Mr Chairperson, I am very grateful for the opportunity to stand on the Floor of this House this afternoon again. In continuing with my debate, …


Mr Livune stopped debating.


Mr Livune: Mr Chairperson, I was waiting to catch your attention, thank you.


The Chairperson: I am listening.




Mr Livune: … I would like to emphatically state, as a way of reminding the hon. Minister, that I support the allocation to this important ministry. However, I will continue with the issues that we talked about on the Floor. Others such as issues relating to infrastructure are important and I will request the Government to attach importance to them. It is public knowledge that most of the missionaries have done a lot of good work in this country. They have built schools, colleges and health centres. Sometimes, the contribution of the Government is questioned because even the road network leading to those institutions is inadequate. Therefore, as a way of motivating our good missionaries who have helped us in this sector, we urge the Government to take interest in ensuring that the road network to these schools and health facilities is something to write home about.


Mr Chairperson, whilst on the same subject, I am compelled to talk about the teachers, whom I mentioned do not only look forward to getting a salary, but also other needs such as their social welfare and way of life. Therefore, when a good road to a school is constructed, the teacher is motivated because there will be easy access to transportation. In the same vein, in most schools, especially in the rural areas, the houses our teachers live in are not in good condition. That is partly why when many young people are deployed to the rural areas, they hesitate or refuse to take up their appointments. The standard of the few houses that are there in some schools is very poor. We urge the hon. Minister to take interest in that area so that teachers can be motivated. I would like to go further and suggest that for the rural teachers, we need to go a step further and provide a decent standard of housing so that the teachers in towns may be lured to the rural areas. This will ensure that we have the required levels of teachers in the villages.


Mr Chairperson, having spoken about the houses, I would like to talk about one thorny issue. I will, again, drift a little into matters relating to urban areas. In this country, there are many funny certificates, diplomas and degrees being conferred on people by institutions with questionable credibility. In this regard, I am talking about the issue of accreditation. I hope the hon. Minister of Education, Science and Vocational Training will take keen interest in cleaning up this unpleasant situation because some people are addressed by titles such as doctor after acquiring certificates from these questionable institutions. We would like to bring sanity and give the required kind of credibility to the education sector. Why should we allow colleges to operate when, at the end of the day, the people who graduate from them cannot be accepted even by local employers? Let us help the people to avoid wasting their money on such colleges.


Mr Chairperson, the other matter I would like to mention is that of universities, especially those that are to be constructed in Chinsali, Mulakupikwa and Lubwa. I think that it is only fair that the rural areas are also accorded the importance that they deserve in the development of the country. It is not fair to have two universities built in one area within a short period of time. Is it possible for the Government to build two universities in each rural district in the country? We should distribute these universities fairly and equally.


Hon. Opposition Members: Hear, hear! {mospagebreak}


Mr Livune: Mr Chairperson, we need universities in the Western, Southern, Eastern, Northern and Luapula provinces so that we can access these institutions. We are putting a plea on record that the hon. Minister look into this matter seriously.


Lastly, Mr Chairperson, let me talk about the issue of witchcraft in villages. I am appealing to the hon. Minister of Education, Science and Vocational Training to liaise with the hon. Minister of Chiefs and Traditional Affairs or cultural scientists to educate the people in the rural areas so that teachers do not run from their posting for fear of being bewitched.


With these words, I thank you.


Hon. Opposition Members: Hear, hear!


The Minister of Education, Science and Vocational Training (Dr Phiri): Mr Chairperson, I wish to thank the hon. Members who have contributed to this Vote for expressing their support for the estimates of my ministry. I know many more hon. Members have similar opinions.


Sir, I thank Hon. Professor Lungwangwa for his exposition on the universal goals of education, and the strategic policy options and challenges that face the sector. We could not have asked for a more elaborate exposition than that. We share his feelings on education and hope that we can rely on his wise counsel as we proceed in building an education system that all of us will be proud of.


Hon. Mazoka, I thank her for her insights on the assessment of our pupils, enrolment of learners vis-à-vis the Education for All goals and our education outcomes being the worst in the region.  I share those sentiments. I also share her sentiments on the opening of the two parts in the field of education, the academic and vocational aspects, and her ideas on reviewing the curriculum. Many of her ideas were highlighted in my policy statement. I am, however, particularly humbled by her support because she stated that she felt strongly that this ministry deserves an increased allocation. I cannot agree with her more because an acceptable allocation will be in the range of 25 per cent of the whole Budget, but we are at 18 per cent. Therefore, there is room for raising the allocation.


Sir, Hon. Bwalya urged the ministry to be practical. I hope we can be practical, Bwalya,…




Dr Phiri: … to include teachers’ houses in the development of school infrastructure. His reminder that rural schools lack the necessary facilities, and his sentiments on the low staffing levels and the need for the Government to support community mode projects have all been ably added to the sentiments of my policy statement. Ideally, all secondary schools that have been built should have electricity, and I share that notion.


Sir, Hon. Kazabu bemoaned the persistent examination leakages, lack of bursaries, the dangers of under-funding the public universities and the discipline of teachers. On all these fronts, the ministry will make its stand very clear. Admittedly, examination leakages are not desirable and efforts are being made to deal with this problem. I bemoaned the under-funding of public universities and hope that, in future, allocations will take into account this perennial problem.


I thank Hon. Livune for his contribution, especially on what he called the thorny issues of school infrastructure, particularly community schools. As I share his sentiments, I also remind him that the PF Manifesto is categorical on the party’s intentions to upgrade community schools. I am glad that he have brought an additional element into this debate which is the need to give opportunities to the untrained community school teachers to further their training. The ministry will consider this proposal very seriously.


Sir, I also took note of the fact that Hon. Livune is a member of the Parliamentary Committee on Education, Science and Technology. I thank him for the interest that he has already shown. He worked in this ministry, in particular, the science and technology section, when it had a march past and held exhibitions. He mentioned some of the products that he thought we must learn in order to appreciate and market them.


Sir, I urge the Parliamentary Committee on Education, Science and Technology to continue collaborating with us. We need the Committee as much as it needs us. The missionaries’ contribution that Hon. Livune talked about is very important. The best results in this country come from mission schools and this is for a good reason. Mission schools inculcate values in our children and prepare them in a better way than the Government schools do. The good results that we see at mission schools should be emulated by public schools.


Sir, it is true that we need good, probably, better teachers’ houses in rural areas than those in urban areas. We will try to provide houses that can attract young teachers to the rural areas. On the need for an accreditation authority to look at the awarding of diplomas and certificates so that there is sanity in this sector, I could not agree more with Hon. Livune. The ministry is working on establishing this body.


Mr Chairperson, we have taken note of the issue of one rural district, in this case Chinsali, having two universities built while other districts have none. However, the explanation to this is simple. As a new ministry, we inherited Mulakupikwa University of Science and Technology, which will be operational, I think, beginning May, 2012. We are grateful to the previous Government for this development. However, the Republican President seriously thought that His Excellency the First President, Dr Kenneth Kaunda, should be honoured by having an institution with the stature of a university built at Lubwa Mission. I wish I could have moved the institution elsewhere, but Lubwa Mission is Dr Kaunda’s birthplace and it is in Chinsali District. Therefore, it is by coincidence that we have to build this institution in honour of the First Republican President in Chinsali District.


Professor Luo is also adding her name to Lubwa Mission, but that is not an additional reason.


Professor Luo indicated assent.


Dr Phiri: I feel that these two institutions will further upgrade the new province of Muchinga. The two institutions will be situated in Muchinga, but we hope that many other provinces will have developments of this nature. I assure this august House that the ministry will endeavour to extend this privilege as widely as possible. Hon. Livune’s sentiments will be taken very seriously.


On the issue of teachers running away from the rural areas because of witchcraft, I wish that my neighbour, the hon. Minister of Chiefs and Traditional Affairs, were here. However, let me use my layman’s views on this matter. Yes, it has wrecked havoc, especially in rural areas, on the schools that are not producing results according to the sentiments in the catchment area of that particular school. I can only sympathise with him for that, but beyond that, I have to seek guidance from or




Dr Phiri: Mr Chairperson, in the interest of time, I will not attempt to go further than this because I know I have a big portfolio and we have forty-six heads to consider. Let me just say that education is the key to personal and national socio-economic development. I would like us to take it as such as we consider the estimates of expenditure for this ministry. I would also like to appeal to hon. Members to kindly consider the children in their constituencies and use part of the K1 billion given as Constituency Development Fund (CDF) to help the ministry meet the goals that it may not meet on its own. I have already mentioned the fact that the allocations have, seemingly, increased, but there is still demand for more funding.


I thank you, Sir.


Vote 80/01 ordered to stand part of the Estimates.


Vote 80/02 ordered to stand part of the Estimates.


Vote 80/03 ordered to stand part of the Estimates.


Vote 80/04 ordered to stand part of the Estimates.


Vote 80/05 ordered to stand part of the Estimates.


Vote 80/06 ordered to stand part of the Estimates.


Vote 80/08 ordered to stand part of the Estimates.


Vote 80/09 ordered to stand part of the Estimates.


Vote 80/10 ordered to stand part of the Estimates.


Vote 80/11 ordered to stand part of the Estimates.


VOTE 80/12 – (Ministry of EducationScience and Vocational Training – Regional Headquarters – Copperbelt – K21,435,709,397).


The Minister of Agriculture and Livestock (Mr Chenda) (on behalf of Minister of Finance and National Planning (Mr Chikwanda): Mr Chairperson, I beg to move the following amendment:


 (a)          Under 01, Regional Headquarters – Copperbelt Province, Programme: 5001 – General Administration,




(i)            040 – Utility Bills, by the insertion of “K47,902,007”; and


(ii)                 066  –  Budgeting and Planning (13), by the deletion of “K236,184,502” and the substitution therefor of “K81,559,651”;


(b)                 Under 01, Regional Headquarters – Copperbelt Province, by the insertion of “Programme: 5018 Curriculum Development and Educational Materials”,




“(i)          002 – Procurement of Laboratory Equipment & Chemicals – K26,416,508; and


(ii)                 004 – Procurement of Teaching and Learning Materials – K22,500,443”; and


(c)                 Under 05, Kalulushi District Education Board, by the insertion of “Programme: 5011 – Infrastructure Development”;




“(i)          003 – Construction, Rehabilitation and Maintenance of Buildings –   K33,354,425; and


(ii)                 023 – Monitoring and Evaluation  – K24,451,475.”


Amendment agreed to. Vote amended accordingly.


Vote 80/12, as amended, ordered to stand part of the Estimates.


Vote 80/13 ordered to stand part of the Estimates.


VOTE 80/14 – (Ministry of EducationScience and Vocational Training – High Schools – Copperbelt Province – K79,642,150,078).


Mr Chenda: Mr Chairperson, I beg to move the following amendment:


(a)      Under 01, High Schools – Copperbelt Province, Programme: 5001 General –  Administration – (PRP),




(i)                   014 – Management of Initial and In-service Training (5), by the deletion of “K1,574,254,937” and the substitution therefor of “K1,310,187,722”; and


(ii)                 023 –  Human Resources Policy and Management (7), by the deletion of “K1,574,254,937” and the substitution therefor of “K1,250,187,722”; and


(b)         Under 01, High Schools – Copperbelt Province, by the insertion of “Programme: 5011 Infrastructure Development, Activity 003 – Construction, Rehabilitation and Maintenance of Buildings –  K588,134,430”.


Amendment agreed to. Vote amended accordingly.


Vote 80/14, as amended, ordered to stand part of the Estimates.


Vote 80/15 ordered to stand part of the Estimates.


Vote 80/16 ordered to stand part of the Estimates.


Vote 80/17 ordered to stand part of the Estimates.


Vote 80/18 ordered to stand part of the Estimates.


Vote 80/19 ordered to stand part of the Estimates.


VOTE 80/20 – (Ministry of EducationScience and Vocational Training – Regional Headquarters – Northern Province – K15,654,167,060).


Mr Simbao (Senga Hill): Mr Chairperson, may I have clarification on page 886, Programme 5011, Activity 003 – Construction (113) – K52,849,568. What will be constructed which will cost this amount? Secondly, on Programme 5021 – Activity 002 – School Health and Nutrition (137) – K17,560,363. The amount here has doubled. Why will this activity take place?


The Chairperson: The hon. Minister of Finance and National Planning.


Mr Chenda: Mr Chairperson, I beg to move the following amendment: …


The Chairperson: Order!


What is happening? Hon. Simbao was raising a point of clarification. I will ask him to repeat it. Actually, I think it should be the hon. Minister of Education, Science and Vocational Training who should respond to the question by Hon. Simbao. I beg your pardon for the confusion.


Hon. Simbao, can you, please, repeat your question.


Hon. Simbao: Mr Chairperson, I asked if I could have clarification on page 886, Programme 5011, Activity 003 – Construction (113) – K52,849,568. What will be constructed which will cost this amount? Secondly, on Programme 5021 – Activity 002 – School Health and Nutrition (137) – K17,560,363, the amount has been doubled. Why will this activity take place?


The Deputy Minister of Education (Mr Mabumba): Mr Chairperson, the budget line on page 886, Programme 5011, Activity 003 – Construction – K52,849,568 is for the purpose of facilitating the construction of education infrastructure in Mbala District. The increase in the budget line is meant to construct more infrastructure in the district.


I thank you, Sir.


The Chairperson: What about the other question?


 Mr Mabumba: Mr Chairperson, the increase in the allocation for Programme 5021, Activity 002 – School Health and Nutrition – K17,560,363 is for the purpose of facilitating the monitoring and promotion of good health and nutrition as well as a clean environment, personal hygiene and appropriate sanitation in the district. The increase in the budget line will help to create a conducive learning environment and enhance healthy practices in schools.


I thank you, Sir.


Vote 80/20 ordered to stand part of the Estimates.


Vote 80/21 - (Ministry of EducationScience and Vocational Training – Basic Schools – Northern Province – K416,121,858,707).


Mr Chenda: Mr Chairperson, I beg to move the following amendment:


Under 01, Mungwi District, Programme: 5000 Personal Emoluments, Activity 03, by the deletion of the words “Salaries-Class Teachers” and the substitution therefor of the words “Salaries Division III”.


Amendment     agreed to. Vote amended accordingly.


Vote 80/21, as amended, ordered to stand part of the Estimates.


Vote 80/22 ordered to stand part of the Estimates.


Vote 80/23    ordered to stand part of the Estimates.


Vote 80/24 ordered to stand part of the Estimates.


Vote 80/25 ordered to stand part of the Estimates.


Vote 80/26 ordered to stand part of the Estimates.


Vote 80/27 ordered to stand part of the Estimates.


Vote 80/28 ordered to stand part of the Estimates.


Vote 80/29 ordered to stand part of the Estimates.


Vote 80/30 ordered to stand part of the Estimates.


Vote 80/31 ordered to stand part of the Estimates.


Vote 80/32 ordered to stand part of the Estimates.


Vote 80/33 ordered to stand part of the Estimates.


Vote 80/34 ordered to stand part of the Estimates.


Vote 80/35 ordered to stand part of the Estimates.


Vote 80/36   ordered to stand part of the Estimates.


Vote 80/37   ordered to stand part of the Estimates.


Vote 80/38    ordered to stand part of the Estimates.


Vote 80/39    ordered to stand part of the Estimates.


Vote 80/40 ordered to stand part of the Estimates.


Vote 80/41 ordered to stand part of the Estimates.


Vote 80/42 ordered to stand part of the Estimates.


Vote 80/43 ordered to stand part of the Estimates.


Vote 80/44 ordered to stand part of the Estimates.


Vote 80/45 ordered to stand part of the Estimates.


Vote 80/46 ordered to stand part of the Estimates.


VOTE 21 and VOTE 37 – (Loans and Investments – Ministry of Finance and National Planning – K5,583,967,892,951 and Ministry of Finance and National Planning – K1,108,575,887,431).


Mr Chenda: Mr Chairperson, I thank you for the opportunity to present my policy statement on the 2012 Estimates of Expenditure for the Ministry of Finance and National Planning. In my debate, I will focus on Head 21 – Loans and Investments and Head 37 ─ Ministry of Finance and National Planning.


Sir, earlier in the year, the World Bank bestowed Zambia with the status of a Lower-Middle Income country despite the entrenched poverty in the rural areas. This declaration was arrived at largely due to the high copper prices and without much regard to the population dynamics and other income factors such as equality. The recent turbulent trend of copper prices renders this status questionable.


Mr Chairperson, during the year, Zambia got a B+ Credit rating as well. This improved investor sentiments about the economy. It created conditions in which increased borrowing from the international community to finance our infrastructure needs is affable.


Sir, the country’s target was to issue a bond of US$500 million. However, the previous Government borrowed US$145 million before the September, 2011, General Elections in order to finance some road rehabilitation programmes in a hurry.


Hon. Government Members: Shame!


Mr Chenda: This meant that the planned amount for the bond was reduced. The change in the Government, the commitment to fight against corruption, strengthening of the Public Service and corporate governance and the realignment of significant resources for running the Government to social sectors and infrastructure have also improved the confidence in the Government among Zambians and the rest of the international community.


Mr Chairperson, one indication is the numerous inquiries which we have received from both local and international prospectors on our intended issuance of a sovereign bond. Indications are that the bond might be over-subscribed, thereby giving us leeway way to raise it to around US$700 million. We are working on a mechanism to float a public tender so that there is fair competition from both local and foreign prospectors.


Sir, in 2012, the ministry will focus on building stakeholders’ confidence by harmonising and consolidating the existing policies and programmes with the aspirations of the PF Government by strengthening legislation in various areas. Among the bills and legislation for which we will seek the patriotic support of hon. Members, in 2012, are the following:


                   (i)                        the Planning and Budgeting Act to facilitate creation of a legal framework for full implementation of regulations, systems, processes and procedures related to national development planning and budgetting;


                 (ii)                        legislation for strengthening the oversight and monitoring of State-owned enterprises;


                (iii)                        the 2004 Public Finance Act to eliminate the weaknesses, strengthen protection of revenue and promote lawful usage of public resources; and


               (iv)                        the Banking and Financial Services Act to strengthen the supervisory capacity of the Bank of Zambia, consolidate good corporate governance and improve confidence in the activities of the sector.


Mr Chairperson, it is a shame that some of the business modelled State-owned enterprises have been a drain on the Treasury rather than a contribution to wealth creation. Over the years, they have lamentably failed to increase their profitability. They have not been paying any dividends to the Government and, in many cases, have tended to incur lofty expenditure. This must stop.


Sir, concerning Head 21 – Loans and Investments, as I indicated in the Budget Speech, we project to increase the expenditure on economic affairs by 54.6 per cent to K8,120,000,000. Many sectors of the economy, including agriculture, energy and roads, will benefit. Parts of these estimates are under Head 21, which also provides for contributions and subscriptions to international organisations, counterpart funding to donor-aided projects and recapitalisation of State-owned enterprises. K5,584 billion has been estimated under this Head out of which, K37.9 billion is for payment of contributions to major regional and international organisations such as the United Nations System (UNS), World Bank, African Development Bank (ABD), the Common Market for Eastern and Southern Africa (COMESA), Commonwealth Organisations, Southern Africa Development Community (SADC) and the Great Lakes Region.


Mr Chairperson, K77 billion is for projects. K47.4 billion of this amount is for the Citizens’ Economic Empowerment Fund (CEEF) and K10 billion is for the Cancer Diseases Hospital. K104 billion is for financial restructuring vis-à-vis the external commercial debts incurred by the Government and Government-related institutions. K1,196 billion is meant for other recapitalisation and investment. This includes K864 billion for the Kafue Gorge Lower Hydro Power Project as our 35 per cent equity participation. It also includes a K10 billion for the Zambia Consolidated Copper Mines (ZCCM) Trust Fund to cater for the benefits for mine workers who were retired or separated when it was privatised.


Mr Chairperson, K15 billion is for the Zambia Wildlife Authority (ZAWA) recapitalisation. K10.5 billion is for old cases of terminal benefits at the Tanzania-Zambia Railways Authority (TAZARA). Our colleagues in Tanzania have already paid their people. K15 billion is for reconstruction of TAZARA at 50 per cent sharing with the Tanzanian Government and K120 billion for modernisation of the Zambia Revenue Authority (ZRA). This will cater for a full-scale upgrading of its systems, implementation of enhanced tax administration systems, rehabilitation of border stations and other tax collection infrastructure.


Mr Chairperson, there are major infrastructure works under the Ministry of Transport, Works, Supply and Communication that fall under this Head. The Road Development Agency (RDA) also falls under this Head. In this regard, K153.8 billion is for countrywide works, taking into account economic feasibility studies and design. K1,027 billion is for road infrastructure rehabilitation. K810 billion is for road infrastructure maintenance, K114.6 billion is for axle load control, K203 billion is for bridge infrastructure and K1,963 billion is for road infrastructure upgrading countrywide.


Mr Chairperson, let me now talk about Vote 37 which is for the Ministry of Finance and National Planning and whose total is K1,108,575,887,431.


Mr Chairperson, in order to achieve its mandate, the ministry will pursue the vision of becoming a world-class institution in the mobilisation and management of public resources for sustainable socio-economic development. The vision will guide us in the pursuit of efficient and effective co-ordination of national planning and economic management as well as in the mobilisation and management of public resources. As a ministry, we set ourselves core values which we will commit to observe religiously on a daily basis and these are transparency, accountability, value for money, integrity, teamwork, professionalism and commitment to excellence.


Mr Chairperson, in the 2012 Budget, structural operational systems and process adjustments are necessary to ensure that we achieve success in upholding our core values as a ministry. To facilitate this, the ministry will soon finalise the 2012/2016 Strategic Plan. The plan is expected to create circumstances for the fragmenting activities and put the ministry’s operational framework into perspective with the aspirations of the PF Government. I wish to assure the House that the ministry is irrevocably committed to the principles of good governance and strict compliance to prudent utilisation of both locally and externally-mobilised resources.


Sir, in this regard, all departments in the ministry, grant-aided and statutory institutions will subscribe to service charters in order to ensure that there is effective, efficient, and result-oriented performance. I am confident that this measure will foster and instill continuous commitment to the objectives and goals of the ministry and ensure that the resources allocated in the 2012 Budget are judiciously applied in the best interest of the people of Zambia.


Mr Chairperson, to strengthen governance, we have instituted measures which will require that, without exception, the procurement of eligible public works and services be channelled through the Zambia Public Procurement Authority (ZPPA). We will not relent on this requirement and will not tolerate any departure from this standard. Let it be clear to all that the era of circumventing tender processes is now over.


Hon. Government Members: Hear, hear! {mospagebreak}


Mr Chenda: Mr Chairperson, all Government-procured projects, Government-guaranteed contracts and any other project of slight, moderate or absolute public interest will, henceforth, have provisions for competitive tender participation. We will consign any public officer in the ministry, any province or any other public institution, which perpetrates or entertains acts of impropriety, misuse of resources and disregard of procurement regulations, to law enforcement agencies to prosecution and moral rehabilitation.




Mr Chenda: Sir, this is not a threat, but an act of conviction in which we must all support President Michael Chilufya Sata in his crusade to root out financial indiscipline and corruption in our midst.


Hon. Government Members: Hear, hear!


Mr Chenda: Mr Chairperson, furthermore, we cannot continue to live with the perception that in Zambia, the Public Service is the axis of corruption and financial indiscipline. In this regard, the ZPPA will be involved in negotiations with our development partners and other financiers to ensure that the observance of procurement procedures and regulations is watertight.


Mr Chairperson, through the planning and budgeting registration, we will ensure that the focus of the national development framework is at district level. It is also my strong belief that focusing development at district level will enhance the trickle-down effect                                                                                                                                                                                                                                                                                                                                                                                         of economic gains to the people. I, therefore, urge the hon. Members of this august House to participate actively in the planning, monitoring and evaluation of developmental activities in their districts and constituencies. This will ensure that there is a countrywide ownership of the development programmes.


Mr Chairperson, to achieve our vision and implement our mandate, we have put together programmes and activities amounting to K1,108 billion under Head 37 of which, K484.8 billion is for personal emoluments. This also includes K20 billion for contract gratuity for permanent secretaries and district commissioners. K55.4 billion is for supper-scale salaries for hon. Ministers and hon. Deputy Ministers. K316.5 billion is as employers share statutory contributions. K14.6 billion is for staff welfare for constitutional office holders and K14.5 billion is for other emoluments for constitutional office holders. K623.2 billion is for operations of which K319.2 billion is the total estimate for grants to institutions under this ministry. These are National Economic Advisory Council, National Road Fund Agency (NRFA), Revenue Appeals Tribunal, Securities and Exchange Commission, ZRA, ZPPA, Financial Intelligence Unit and the Lusaka Stock Exchange (LuSE).


Mr Chairperson, K304 billion is for operations in the twelve departments of the ministry. The focus of these resources will be on reviewing, developing and managing economic and financial policies in order to facilitate the creation of a stable macro-economic environment for enhanced economic development.


Mr Chairperson, of the total estimates, human resources and administration has been allocated K34 billion. The resources will be used on effectively planning, directing, co-ordinating, monitoring and evaluating the implementation of the ministerial programmes in order to attain the vision, mission and set goals. Part of the resources under this department are for new activities under the African Peer Review Mechanism Process, finalisation of the ministerial strategic plan, commencement of restructuring of the ministry, publication of information on Budget performance and dismantling of arrears owed by the ministry.


Mr Chairperson, the Budget Office has been allocated K7.3 billion to facilitate improvement in resource mobilisation, enhance preparation and streamline implementation of the National Budget, and ensure allocation and timely release of financial resources for national development. Part of the resources under THE Budget Office are for the 2012 Comprehensive Tax Policy Review Process and for enhancing the National Budget systems and process, in accordance with the planning and budgeting legislation.


Mr Chairperson, the Government Stores have been allocated K4.3 billion for operations, of which K2 billion is for the improvement of trading capacity in common-user items. Through this action, my ministry aims at reducing Government expenditure by ensuring that ministries, provinces and spending agencies purchase common-user goods from the Government Stores.


Mr Chairperson, the Centralised Computer Service Department has been allocated K11 billion to facilitate development and implementation of an efficient and integrated Information and Communication Technology System. This includes facilitating effective planning, decision making and business continuity in the ministry. Of the resources allocated, K3 billion is for the purchase of pay slips for the entire Public Service. Other key activities include development of an integrated ministerial data base and processing and printing of the Public Service payroll.


The Office of the Accountant-General has been allocated K149 billion to enhance financial management systems and standards in order to promote good corporate governance practices in the Public Service. Of the amount allocated, K107 billion is for partial dismantling of the national arrears owed to suppliers of goods and services, K20 billion for the procurement of safes for distribution to some ministries, provinces and spending agencies and K9.7 billion for Public Expenditure Management and Financial (PEMFA) implementation.


Mr Chairperson, Investment and Debt Management has been allocated K7.5 billion for operations, of which K1.3 billion is for maintenance of debt management and financial accountability software and K1.6 billion for the Government portfolio management which includes review of corporate governance in State-owned enterprises and supervision of liquidations and receiverships of State-owned enterprises.


Mr Chairperson, the Central Statistical Office has been allocated K45.8 billion for operations, of which K1.9 billion is for the operations in the provincial offices, K2.6 billion for finalisation of the 2010 Census activities, K1.2 billion for the Labour Force Survey, K3 billion for the Zambia Demographic and Health Survey, K3 billion for the completion of the Economic Census, K5.5 billion for the Living Conditions Monitoring Survey, K3.5 billion for the new Consumer Price Indexing, K3.7 billion for the Post- Harvest Survey and K3.5 billion for the completion of construction works on the new office block for the Central Statistical Office.


Mr Chairperson, the Internal Audit Department has been allocated K7.9 billion to strengthen the internal control system in order to provide assurances to clients and stakeholders on the efficient and effective utilisation of public resources. This includes strengthening financial controls and procedures, audit of arrears, formulation of a risk management framework and audit of public investments.


Sir, the Economic Management Department has been allocated K8.8 billion for operations which include data collection on macro-economic variables and economic assessment, multilateral development co-operation, bilateral development co-operation, poverty reduction budget support reviews, aid management and production of annual economic and development co-operation reports.


The National Planning Department has been allocated K10.9 billion for operations, including the development of planning and budgeting framework, procurement of planning and statistical software and capacity building.


The Monitoring and Evaluation Department has been allocated K8.7 billion for operations, including development of a sector level management information system, quarterly analysis of budget execution, research and development and decentralisation of the National Development Plan monitoring activities.


The National Policy and Programme Implementation Department has been allocated K9.3 billion for operations, of which K1.8 billion is for institutional setup of the public- private-partnership (PPP) mandate and K1.1 billion for transaction advisory services for the PPP programmes. The resources under this department will also benefit other activities such as the co-ordination and preparation of the PPP pipeline projects, co-ordination of the SADC, COMESA and the New Partnerships for Africa’s Development (NEPAD) activities and the sovereign policy analyses.


Hon. MMD Member: Summarise!




Mr Chenda: Mr Chairperson, in conclusion, …


Hon. Opposition Members: Hear, hear!


Mr Chenda: … we are not promising an easy road ahead or a rapid solution to our economic and social challenges. We know that if we are to achieve the transformation we seek in reaching the country’s Vision 2030, there is hard work ahead, especially during the preparations of the 2013 National Budget and other budgets and developmental programmes to come under the PF Government.


To travel this road, we must all remain united, focused and support the plans that this Government has put in place to put this economy back on track. Together, we must create jobs for our people, diversify the economy collectively and establish our place among strong economies in the region through our abundant capacities.


Mr Chairperson, I hope that the statement and explanations have been elaborate and detailed enough to assuage all the hon. Members’ concerns. I now recommend Vote 21 – Loans and Investments and Vote 27 – Ministry of Finance and National Planning for the favourable consideration and approval of this House.


I thank you, Sir.


Hon. Government Members: Hear, hear!


Mr Hamududu (Bweengwa): Mr Chairperson, I would like to note the detailed policy statement that has been delivered by the acting hon. Minister of Finance and National Planning.


Sir, the Ministry of Finance and National Planning is the nerve centre of economic growth and development. The actions and decisions that this ministry makes have far- reaching consequences on the development agenda of our country.


I wish to note that the hon. Minister has assured this House that the Planning and Budgeting Bill will come to this House in the coming fiscal year. We hope to see this Bill on the Floor of this House because for the past two years, we have had assurances. We hope that we will see the Planning and Budgeting Bill. I think some work has already been done and we only need to polish it up.


Mr Chairperson, this Budget you see now is not so much a result of the consultation of the stakeholders. The Budget is crafted by a few people in offices and does not reflect the aspirations of the people. However, the Planning and Budgeting Act will address that deficiency.


Planning of the Budget must start from the people. This voluminous document is supposed to be half this size. It is crafted by a few people in the offices and money is hidden. At the end of a fiscal year, when you go in the hinterland of the country, there is no evidence of this voluminous ‘brick’. This ‘brick’ must be remoulded and made smaller. It must have clear programmes and outcomes. To that effect, this ministry plays a very important role.


Sir, with the Planning and Budgeting Act, we should see an improvement in the coming up of the Budget as opposed to what is happening at the moment.


Mr Chairperson, I would like to raise a few issues. Firstly, I would like to talk about the financing of infrastructure. I wish to note that there is an increment in the allocation to the road sector. From the 2011 financial year, there is a clear up scaling in the Budget and that is noted.


Sir, in the Opposition, we do not say that is good, but just say, that is noted.




Mr Hamududu: The other Backbenchers of the PF will say it is good. It is not our job to say so. We just say we note. That is Opposition’s politics.


Sir, in financing our infrastructure, I wish to suggest that different models must be explored. We might not have the money to finance our infrastructure but, I think, there are other models. For this reason, I wish to debate the issue of the PPPs.


Mr Chairperson, examples around the world, even in Third World countries, have shown that the toll roads have given relief to the Treasury. If you want to have good roads in this country, we must go the build, operate and transfer (BOT) route. The private sector should put up roads, recoup their money, and hand over the roads back to the Government. We do not have the domestic resources to put up the kind of infrastructure we would like to see.


Sir, if this economy is to be active, we should have dual carriageways from Livingstone to Chililabombwe, Lusaka to Mongu, Kapiri Mposhi to Nakonde and a deviation from Mpika through Kasama to Mpulungu. We also need dual carriageways from Chingola to Solwezi and from Lusaka to Chipata. We cannot remain behind. We are wasting so much time.


It is very shocking that due to low financing to the road sector, the state of the road is poor. This has made going to Monze in the evening difficult because of the resultant traffic jams. Nowadays, people cannot steal cars due to traffic jams. This is very good. From Lusaka to Monze, cars follow each other bumper-to-bumper. If you cannot drive at a high speed, you will be late for meetings. For this reason, we need to open up the economy. Hence, investment infrastructure must be given due consideration.


Mr Chairperson, some of the hon. Colleagues were here when the issue of toll roads was brought to the House. I recall that one hon. Member who is now in the Executive was against people paying toll fees. I think he will now be converted after seeing the realities of governance.




Mr Hamududu: I would like to tell you that if you can afford to put fuel in your car, then you can pay a toll fee. We must not tell the people the easy way out. Toll fees can be paid.


Mr Chairperson, last year, Hon. V. Mwale and I were privileged to be amongst a group of young Parliamentarians who were invited by the Ministry of External Affairs in India. We travelled the breadth and width of India which is a Third World country and is, probably, poorer than ours. The Indian Government has dealt with the issue of road infrastructure through toll roads. From New Delhi to Agra, there are toll gates everywhere. Even if one is driving a scooter or a small car he/she has to pay a toll fee. There is superb infrastructure and there are dual carriageways throughout the country.


Sir, we flew to Punne and, from there, we went by road to Mumbai. Again, there was a dual carriageway. We were impressed with the road infrastructure in such a poor country. I think this is a good lesson for us. We need to use this approach because the money which you are generating is not enough to put up the infrastructure we want.


Mr Chairperson, the Zambian economy is at the right time for takeoff. If we do not do it now, we will never do it. We have the best conditions for the take-off in this period. If we do not do it now, our children and grandchildren will blame this generation. Let us be focused and put up strong infrastructure to drive the economy.


Sir, this country is unattractive. If someone comes into this country through a border entry, it looks unattractive. You can go round attending investment seminars, but people will come to attend whatever conference in this country and see the state the country is in. The moment an investor enters the country via Livingstone, Kasumbalesa or Nakonde Border posts, he/she cannot be convinced to come and invest in this country. The only people who are investing are those who want copper because copper is not found elsewhere. There are no serious investors because of the poor infrastructure.


I think we must explore the different funding models for our infrastructure. One good example is the Kasumbalesa Border Post which was built through the PPP. It is wonderful infrastructure and I think a private sector can come on board.


The other issue I would like to raise, Sir, is with regard to the support to the parastatals and quasi-parastatals. I note here that a significant figure has been given to the Zambia Electricity Supply Corporation (ZESCO) to improve power generation. That is positive. However, I am very disappointed with the allocation to the recapitalisation of the Development Bank of Zambia (DBZ).


The DBZ is an institution that can give long-term financing to address issues of manufacturing and industrial development. These commercial banks you have given concessions, through reduced reserve ratios and reduced corporate tax from 40 per cent to 35 per cent, only offer short-term financing and you cannot change that. It is the DBZ that can give long-term financing. Therefore, we need to put more money in this bank. The issue of low interest rates will not help us achieve our desire to have long-term financing. You can have cheaper loans, but they will be short term. Which local investor can borrow money for two years to put up a pineapple factory in Mwinilunga? You allocate K5 billion only to the DBZ, and yet it requires serious recapitalisation. After all, this is money that is revolving.


Mr Chairperson, the Government must also consider putting money in the Co-operative Bank. Yes, co-operatives are private institutions, but they are owned by our people. From the time you weaned off our co-operatives, they have survived through difficult conditions. Therefore, if we revived the Co-operative Bank, we would be able to give structured finance to the many rural people.


The ministry has a lot of work to do with regard to loans and investment. The issue of increasing funding to the DBZ has been outstanding for quite some time. In fact, in the next financial year, the allocation to the DBZ has been reduced to K5 billion from the K15 billion it was given this year. This institution needs more recapitalisation. The secret for job creation lies in the fact that we will give long-term financing to our people for them to go into serious ventures.


Mr Chairperson, commercial banks only finance traders. They give lower interest rates to traders, but trade does not grow the economy. Trade only recycles goods. What we want is manufacturing and industrial development and it is through wings such as the DBZ that we can achieve that.


Finally, due to the shortage of time, and how I wish someone could give me their time to debate …


Colonel Kaunda interjected.


Mr Hamududu: You will give me yours?


Colonel Kaunda indicated assent.


Mr Hamududu: Hon. Colonel Panji Kaunda will give me his time. Therefore, I have another fifteen minutes to debate.




Mr Hamududu: Mr Chairperson, the other issue is on the ministry that gives money to the other ministries, the Ministry of Finance and National Planning. I plead with this ministry to demand results from other ministries. Most ministries are not performing. I think we have experienced this in the last three to four years. One of the outstanding ministries in terms of infrastructure development has been the Ministry of Education, Science and Vocational Training because it always has structured work plans.


The allocation for capital expenditure given to all ministries should have a breakdown of how the money is apportioned in the work plans. I think later on, the Ministry of Health came on board by also formulating work plans. We want to know which schools are going to be built by name. Hon. Ministers should not go around like Father Christmas, donating things such as boreholes. We do not want donated boreholes.


Mr Chairperson, we want to know the names of districts or villages where the boreholes will be sunk and how much they will cost. We also want to know the names of the schools or clinics that are going to be built across the country. We want to see the names in the Budget and in the work plans, which should be put in the pigeonholes of hon. Members of Parliament. Personally, I do not want to dance before an hon. Minister in order for projects to be implemented in my constituency. I do not want to dance for an hon. Minister because I am from the royal family.




Mr Hamududu: Mr Chairperson, if hon. Members do not dance for them, hon. Ministers go around the country commissioning projects as if they are giving gifts. We want things to be clear. Therefore, I would like to repeat that the Ministry of Finance and National Planning should, please, demand that all ministries it has given money for capital expenditure give a breakdown of projects to be undertaken by name and amount across all the constituencies and districts of our country. This will make it easy for us to monitor the progress on projects. It was very easy to follow the plan of work of the Ministry of Education during the time of Professor Lungwangwa and Hon. Siliya and that of the Ministry of Health during Hon. Dr Chituwo and Hon. Simbao’s time. Even now, I can show those who are in doubt the work plans that were produced then. They would be able to see that these work plans include the Nalutunda Clinic, which is standing in my constituency today. There was also Hamusonde School, which was built using the community mode and it is there.


Dr Chituwo: And local courts.


Mr Hamududu: And local courts.




Mr Hamududu: The new Executive can do better than this. I beg the hon. Minister of Finance and National Planning, since he is in charge of planning, among other functions, to compel ministries to produce work plans so that we know what is going to be built on the ground. Otherwise, we do not want to suffer due to the efficiency of ministries. They have big amounts allocated to them, but we do not know what they will do with these allocations. We want capital expenditure to be explicitly explained and the projects named.


Sir, finally, I would like to make some comments on the issue of planning. The bringing of the National Commission for Development Planning (NCDP) into the Ministry of Finance and National Planning is somehow a disservice. However, I would like the hon. Minister to give attention to the Directorate of Planning. I think it must have its own permanent secretary. This country must plan its development agenda. Already, we have failed to make headway on the Millennium Development Goal’s (MDG) vision, which was supported by donors …


The Chairperson: Order!


Business was suspended from 1615 hours until 1630 hours.





Mr Hamududu: Mr Chairperson, in conclusion, I would like to say that it is a pity we are almost missing the opportunity to achieve the MDGs because of a lack of a clear development agenda. This programme is funded by a cocktail of donors and we should have taken advantage of this funding to meet these goals. However, it is not too late. As a precursor to the Vision 2030, let us see whether we can meet the MDGs.


Finally, I would like to say that, through the hon. Minister of Finance and National Planning, we should have a clear development agenda. Let us be ambitious, courageous, and accountable, and have empathy for the people.


I would like to thank my colleagues, Hon. Colonel Panji Kaunda and Hon. Kalaba the hon. Member for Bahati, who had given me their time, courtesy of the Speaker, even if that will not happen.


 I thank you, Sir.


Mr Kalaba (Bahati): Mr Chairperson, I thank you for protecting my time which Hon. Hamududu wanted to use. In debating the Vote on the Floor of the House, I would like to mention that the Ministry of Finance and National Planning is very strategic in the country’s wellbeing and development. However, I will limit my debate to some line institutions so that, probably, my ideas can be heard properly.


Sir, from the outset, I would like to mention that this year’s Budget of K27 trillion is unprecedented. I was going through the Sixth National Development Plan (SNDP) and saw that, in fact, some of the money we are appropriating now should have been spent three years from now. This means that we are moving very fast in enhancing development.


Mr Chairperson, I, however, see a challenge regarding the issue of the ZPPA vis-à-vis the money that has been given to the RDA. You will note that in the 2012 Budget, the RDA has been given K4.4 trillion for road construction. However, this year, the RDA was given only K1.9 trillion for that purpose. This means that the amount has been doubled, if not almost tripled. It is a lot of money, but I have difficulties in understanding how the RDA will spend that money with the ZPPA on its back.


The ZPPA is a good institution, but I think, sometimes, it serves as a bottleneck. This K4.4 trillion for roads is a humongous amount. The RDA will fail to spend it if we allow the ZPPA to regulate the awarding of contracts. Sir, you are aware that the only amount that public institutions are allowed to spend without the approval of the ZPPA is K50 million. Beyond K50 million, they have to seek the approval of the ZPPA. However, my problem is that the ZPPA cannot be a regulating authority and, at the same time, be the body which decides which contract will be the picked.


Mr Chairperson, I wish to submit that this is very critical and if we are to spend money, we have to shift from the traditional ways of doing things in Government to non-traditional ways and one of them is to let us look at the planning in the Ministry of Finance and National Planning. I hope the hon. Minister is taking notes. Countries such as Kenya and Rwanda plan for the road sector for five years. They do not have to go to Parliament every other year to seek authority from the hon. Members. I think we need to take a more proactive stance rather than a reactive one. Why should we appropriate money to the road sector every year when we know very well that a road contract will take two years to complete? However, we still apportion money for one year and, after one year, we come back to this House to re-appropriate what we had appropriated earlier. I think Parliament should rise above the dictates of some of these traditional practices and begin to look at issues from a different angle.


Mr Chairperson, I also would like to say that the NRFA which is, again, under Vote 21, is at the RDA just to wait for the RDA to spend the money. Surely, is that a progressive way of doing things in Government? I am of the view that the NRFA should just be part of the RDA. The NRFA should begin to strengthen the RDA so that the RDA can spend its money expeditiously. We do not want to hear that the K4.3 trillion has not been spent. After we have spent all this time appropriating it, we should not hear that the money has not been spent because it did not have spending authority or it was not given authority by the ZPPA because the authority was busy doing other things. It is important that we remove these bottlenecks. The list of bottlenecks in all the line ministries is endless. The Ministry of Finance and National Planning has allocated over K3 trillion to this sector, but how will it spend it if the ZPPA also has to authorise projects for Luapula, Southern and other provinces. The threshold is too limited.


Mr Speaker, I was happy that when the hon. Minister was making his policy statement here, he said that the internal controls had been allocated K7.2 billion. This means that we can strengthen internal controls in the line ministries and in the provinces instead of always referring to the ZPPA. This can be done because there are ministerial tender committees. This is why I am having a problem with the ZPPA. I refuse to eulogise them because, sometimes, they act as bottlenecks. Ministerial tender committees should be strengthened, given guidelines on how they will award contracts and anybody who goes outside track should obviously be punished. We have offices of the Auditor-General to look at issues like that, but if we will continue doing things in the traditional manner, then 2012 will come to an end, but the RDA will only have spent K1 trillion of the K4.3 trillion. This will mean that what we will have done in this House is academic.


Mr Chairperson, I would like to encourage the hon. Minister of Finance and National Planning to think outside the box and begin to look at issues in a more progressive and dynamic manner. This is especially so for us in the PF. People are waiting and watching how fast we are moving. If we will continue moving in the methods that our colleagues the other side were moving in, we are bound to get stuck.


Hon. Government Members: Hear, hear! {mospagebreak}


Mr Kalaba: Forewarned is forearmed. There is a saying in Bemba that, ‘Nalikwebeletabulapo’.


Hon. Government Members: Hear, hear!


The Deputy Chairperson: What does that mean?


Mr Kalaba: It means that there will always be somebody who will tell you that I told you not to do this. Thus, forewarned is forearmed.




Mr Kalaba: Mr Chairperson, I would like to be extremely brief to allow others to speak, but the other issue I wanted to raise under the Ministry of Finance and National Planning is that I agree with and take Hon. Hamududu’s words as my own. This Yellow Book is voluminous and all of us seated in this House should agree that our arms are aching …




Mr Kalaba: … from moving it from the car park to here and back to the car park. The Minister of Finance and National Planning, who is there listening, should find a way of reducing this big book because there is no way he can expect hon. Members of Parliament to read, understand and assimilate this Yellow Book and come and debate it in this House in an effective manner, given the time we were given this Yellow Book. I think we should stop being academic and take the affairs of this country in a more serious manner. Our people expect us to understand this Yellow Book.


Mr Chairperson, I was just coming from Bahati the other day when the people said, “Hon. Kalaba, we heard you debate in Parliament.” I said, “My friends, I am struggling with the Yellow Book in the House.”




Mr Kalaba: Therefore, my advice is that some of us want to debate issues that we understand clearly. In future, hon. Minister of Finance and National Planning, give us time to understand the estimates. In some Parliaments, such as that of America, the Congress refused to approve certain things because it thought it was not given ample time to go through the Yellow Book. Likewise, for us, the time was limited. We need more time and technocrats should not think that we do not know what we are doing We need to go through this page by page and appreciate whatever is in there. Otherwise, we will approve things and afterwards ask, “Did we approve this?” For instance, under the Ministry of Finance and National Planning, there are many similar votes. The hon. Minister should assist us by explaining the items that have been repeated such as workshops, training and capacity building, because ultimately, all those things are workshops. Please, help us by indicating monitoring and evaluation and, capacity building, then we will know these activities are workshops because, at the end of the day, we will be approving money in this Yellow Book under the Ministry of Finance and National Planning to assist people to build another house in Chalala.


Hon. Members: Hear, hear!


Mr Kalaba: The PF Government is against things like that. I understand the period which we were given and appreciate that I am sure next year, things will be done in a different way. This is my belief and conviction.


I thank you, Sir.


Hon. Government Members: Hear, hear!


Mr Mulusa (Solwezi Central): Mr Chairperson, twasanta, mwane. In supporting the debate on the Ministry of Finance and National Planning Vote, I would like to make a few observations. The Ministry of Finance and National Planning is the custodian of our economy. What is worrying, at the moment, is that we seem to delay in crafting a developmental growth strategy. We know that the MMD Government left economic growth to our economy, but we need now is to translate that economic growth into shared economic development and the Ministry of Finance and National Planning is the only one that can do so. At the moment, Zambia just exists as a consequence of other people’s planning.


Mr Chairperson, our fiscus may receive more money, for instance, from copper mining simply because elsewhere copper prices have gone up and there is demand elsewhere, and not that we have planned to create that demand which then enhances the income that we are receiving. We need to craft a strategy that will start by identifying and unlocking the binding constraints to our economic growth. We also need to examine the value chain of Zambia’s economic activities and see how much of that wealth is retained in Zambia.


Mr Chairperson, you will be shocked to realise that, most probably, of all the economic activities that are carried out in Zambia, less than 20 per cent of the proceeds there from is retained in our domestic economy. The remaining 80 per cent goes to grow other economies. In addition, there is a tendency for us not to co-ordinate many of our policies. For instance, we have been told that the Ministry of Foreign Affairs is going to craft a foreign policy within two months, but this should have been started by other sector ministries so that the foreign policy that is crafted becomes a summary of the interface that each of our economic activities has with the rest of the world’s economic activities. When the Ministry of Foreign Affairs leaps to do so, then there is confusion. Therefore, the Ministry of Finance and National Planning must quickly take leadership in this matter.


The other issue is that we do not seem to adequately use our State-owned entities to drive economic development. The DBZ has made many wrong investment decisions and the Ministry of Finance and National Planning needs to enhance its proactive oversight role over this institution. This will ensure that the DBZ constantly strikes that delicate balance between cost and risk management, and financial sustainability and delivery on the mandate for which it was created. Otherwise, it will just become a white elephant at which we are throwing a lot of money and reaping nothing.


Mr Chairperson, regarding the issuance of the bond, an issue that has just been mentioned here, I feel that we are not doing those delicate activities that we need to do before we issue this bond. I know that we are saying that there were many inquiries and that the bond is likely to be over-subscribed. However, you cannot tell from the kind of inquiries that you are getting because they might be from primary dealers who want to make money by helping you issue that bond, not necessarily from investors. Therefore, you cannot tell. Besides, I have not seen any Budget line that indicates that the Ministry of Finance and National Planning is, for instance, going to conduct road shows. Unless it conducts known-deal road shows and gets indications from possible investors, it will not be able to tell whether the bond is going to be over-subscribed. In fact, the only time one are able to tell that one’s bond will be over-subscribed is a few hours before issue, that is, when you get the whisper of the price.


Mr Chairperson, lastly, I have observed that successive Governments have always experienced mismanagement of public resources. It is becoming fashionable for a government-in-waiting to wait for the time they would get into the Government to settle political scores with members of the previous Government by prosecuting them on cases of abuse of public resources. We need to run away from these punitive responses to abuse of resources by revisiting our environment. Is our Finance Management Act adequate? Does it have provisions that will make sure that incidences of abuse of public resources are reduced? What mechanisms do we have that give the Act effect? I have researched and want to believe that there is more work the Ministry of Finance and National Planning can do. For instance, it can ensure that it issues Treasury regulations that it should update in response to the changes in the world. I also noticed, in the Finance Management Act, that the issuance of best practice and practice notes seem to have been decentralised. This means that some departments may not benefit from an incidence it targeted to be corrected in other departments. Therefore, that needs to be looked at.


Mr Chairperson, I do not think we are tapping a lot from multilateral funding. The developed economies have specific amounts that they have placed aside for developing economies, such as ours. The principles concerning where that money is supposed to be spent speak back to our aspirations at the moment. When you look at the PF Manifesto and what it wishes to achieve, and consider the mandates of these multilateral organisations, you will see that these speak to each other, including on the availability of concessional lending and grant funding.


Lastly, I would like to assure the hon. Members who are scared of the PPP that this scheme can benefit an economy such as ours to a large extent and that is the way we should go. The principle of the PPP is that a government tends to offload costs and risk management to the private sector. It also rides on the back of the huge resources that we can tap from the private sector. Governments do not have money that can be equated to that of the private sector. In fact, if you added up the balance sheets of the private banks in Zambia, you would see that they are probably bigger than our Budget, and this is minus the balance sheet of other private companies. That shows you that the private sector has a lot of money. Therefore, when you identify incidences of market failure, you then create what we call parastatals. We then use these parastatals to access all these concessional funding mechanisms, including partnerships with the private sector. I think following this path will go a long way in ensuring that we unlock our binding constraints to shared economic development.


With these few words, I wish to support these Budget estimates.


I thank you, Sir.


Hon. Opposition Members: Hear, hear!


Mr Mooya (Moomba): Mr Chairperson, I support this Vote and, in doing so, I have four comments to make.


The first one is that I request the hon. Minister to take this Vote back to the Ministry of Transport, Works, Supply and Communication because, if I am not wrong, some five or six years ago, it was under that ministry. It was only brought to the Ministry of Finance and National Planning because of some challenges faced then. I find it very difficult to debate on this Vote because there are roads, bridges, access roads, pontoons, although Lozis say ‘pantoon’, and weighbridges among other items. I feel that this Vote should be considered under the new Ministry of Transport, Works, Supply and Communication. I make that request.


Secondly, Sir, on page 382, Programme 3097, Activity 009, there is the Bottom Road. It would be a very good idea and, as you know, the Bottom Road runs along the Gwembe Valley, to link it to the plateau. I, therefore, have two suggestions to make. There is one link already, the Chisekesi/Gwembe and Chipepo Road, which is fine. The second one is the Monze/Chivuna Road. There are two routes there that we can use to link the plateau to the valley. The first one is through my constituency, Moomba, down to the Bottom Road. The other is the Chikankata Road. There could be some people from Siavonga who would want to come to Monze or Chivuna and they will take a long route. However, if we had these three more links, it would be a very easy for them.


Thirdly, I also seek clarification on page 385, Programme 3100, Activity 003 – Chikuni Bridge – K3,000,000,000. I take it that this bridge is near Chikuni Mission and St Canisius Secondary School in Chisekesi. If my supposition is right, then I should be supported by Hon. Colonel Kaunda because this is long overdue. The present crossing is a causeway, not a bridge. It is just a concrete structure. When the river is full, no one can cross there until the water level goes down. Saint Canisius Secondary School is a mission that is only 400 metres away from this bridge. However, when the river is flooded, you are forced to go to Chisekesi, then to Gwembe before connecting to the mission. This stretches the journey by about 116 km. I am sure hon. Members are aware of the part Chikuni Mission has played in the history of this country. I note that K3 billion has been allocated in the 2012 Budget, but that work should have started a long time ago. When I passed there a few weeks ago, there was nothing happening. Therefore, I am requesting the ministry that this K3 billion which has been allocated be used to start that work.


Similarly, Sir, we should let the work at the Mbesuma Bridge start. We know all the scandals that have taken place there. There is also the Kazungula Bridge. It is funny that it has been on the drawing board for more than fifty years now. Each time there is a study, we are near, yet very far.  The last works involved the Japanese who were ready with the money. However, because there were four countries involved, Zambia, Botswana, Namibia and Zimbabwe, there were some political games played and the project was shelved. I hope this latest attempt will see this bridge constructed. A few days ago, I heard the head of COMESA, Mr Sindiso Ngwenya, talk about the money for the bridge finally being available. Please, let it be built.


Finally, I wish to talk about the fuel levy. The idea of imposing a levy on fuel was brought up some few years ago when our roads were in a very bad state because the Government had no money to rehabilitate them. It is a good idea and it has generated about K810 billion. My request, once more, which I have spent almost eight years making, is that the Government shortens the route of collecting this money. What is happening, currently, is that the ZRA collects money from the oil companies and sends it to the Bank of Zambia (BOZ), which keeps it together with other taxes in Control 99. It is only after three months, if I am not mistaken, that it is sent to the NRFA. It is disbursed from there. There are many leakages in this process. I would like the PF Government to look at this issue because, together with the hon. Members who are now hon. Ministers, we argued that this route be shortened. Once the ZRA collects this money, it must be sent straight to the NRFA. Let us have an account there. There is a lot of money, but there are many leakages along this long route.


I thank you, Sir.


Mrs Masebo (Chongwe): Mr Chairperson, I would like to add my voice to the support for this very important Vote. In doing so, I have very few comments to make.


Sir, the first comment that I would like to make relates to the functions of the Ministry of Finance and National Planning as they relate to the functions of the Ministry of Local Government, Housing, Early Education and Environmental Protection, in particular on physical planning. Over the last few years, there has been some misunderstanding or confusion, hence this problem of improperly co-ordinated planning as it relates to settlement. There are roads, churches and commercial centres that have to be built in settlements. These and the economic aspect of planning of a new settlement must be considered. There was a Motion on the Floor of this House, yesterday, in which an hon. Member urged the Government to come up with an integrated development planning programme for our settlements.


Sir, I am aware that over the last two years, the Ministry of Finance and National Planning has taken over the functions of the Regional Planning Department of the Ministry of Local Government, Housing, Early Education and Environmental Protection. I have noticed also that, even in the 2012 Budget, there is money that has been put for physical planning functions together with economic planning. I would like to urge the new Government to reconsider this issue because it is creating confusion at district level. It will not work for the Ministry of Finance and National Planning, which has the big job of raising resources and ensuring that these are properly expended, to take on this function for which it does not even have qualified officers. We used to have people we called regional planning officers in the Ministry of Local Government, Housing, Early Education and Environmental Protection, but they were taken over or poached by the Ministry of Finance and National Planning. This has left the Ministry of Local Government, Housing, Early Education and Environmental Protection almost dysfunctional. When the hon. Minister talked about ‘non-functionality’, I appreciated some of the terms she used. When the relevant ministry that has the mandate to do that asks for money to perform its functions, it is not given. That is why people say that in Zambia, we budget without planning. The truth, however, is that we plan, except that the planning is a one-way exercise in which officers are sent from Lusaka to Choma. When they arrive there, the people in the district are called for a planning meeting, but most of the district officers are not even available in these districts. Then, the officials from Lusaka will be forced to spend two days after which they will come back to Lusaka and report that they consulted and yet they did not. It just cannot work.


Sir, in the good old days, whenever we had a place such as Solwezi, for example, since it is a town where all sorts of developments are coming up ...


Hon. PF Member: Even Mansa.


Mrs Masebo: All right, even Mansa. … the Department of Regional Planning would plan the physical space, what is called spatial planning, of that particular town. When it finished the planning, the plans would be submitted to the Ministry of Finance and National Planning, which would then begin to attach values to the proposed developments. Currently, the Ministry of Finance and National Planning is performing both functions, leaving the relevant ministry out of the picture. There is total confusion at district level. Do not be cheated. I know what I am talking about because I have been a leader at the grassroots level in this country since 1990. I know exactly what is happening at district level. A lot of money was wasted because the previous Government was getting people from Lusaka whom it took to Choma to do some work there. It even paid these people allowances. Before that practice was started, those functions were performed by local authorities and the Regional Planning departments at provincial level. I know that there is some confusion now. I urge the new Government not to get into the shoes of such confusion. Otherwise it will not move, but waste more resources.


Mr Chairperson, the other issue I would like to raise is that of the new system of doing things using the activity-based budgeting that we adopted some years ago. I can hear my colleagues saying that this Yellow Book is very bulky. Yes, it is bulky because of the system we chose to use. We are also presently trying to take this same system to the local level. There have been attempts by the Ministry of Finance and National Planning to try and build capacity at district level so that councils can use the activity-based budgeting system.


 I only have one question for the hon. Minister to which I do not even need an answer as I only want to be heard. After asking themselves the same question, the experts in the ministry can decide the best budgeting system we should use. Ten to fifteen years down the line, has the activity-based budgeting system helped this country to develop? My personal view, based on my little experience, is simply that this budgeting system, important and good as it is, has a lot of weaknesses. If you go through the details, you will find that people just throw around names of activities to be funded and then money is just wasted.


Mr Chairperson, in the past, when we gave a blanket amount to a particular activity such as the construction of schools, it took into account everything that was involved in the whole exercise. At the moment, you have to specify the activities. For example, you say, “Touring the Site” and you put an amount. As far as I am concerned, most of those amounts are just arrived at through guess work. I say so because the figures do not even make sense. The allocations are either too big or too small such that they even make you wonder how the activity will be carried out.


Mr Chairperson, then there is the problem of the Auditor-General going to audit institutions according to the allocations in the Yellow Book. This is the source of some of the never-ending audit queries which the Government keeps wondering about. Some of the activities do not make sense when compared to their allocations.


Sir, I am aware that this is not a purely PF Budget because it was not party to the entire preparatory process. I know that the PF has done very well to present a Budget to this House after having been in power for a short period of time. My hope is that next year, when the PF Government will have all the time to itself, …


Hon. Opposition Member: Question!


 Mrs Masebo: What question?


The Deputy Chairperson: Forget about hecklers and continue.


Mr Masebo: … it will come up with a realistic Budget, even if it will be an activity-based one. Most of the things that are in this Budget are not realistic. I know that there were attempts made to ensure that the PF’s major policy statements that were made by President Sata are included in this Budget. However, one can still tell that the whole Yellow Book was prepared in a business-as-usual approach. You have money allocated for Women’s Day, Youth Day, Keep Zambia Clean Day and all sorts of days littered all across the different ministries. Actually, when you put together all the money allocated to such activities, you will be shocked to learn that it can be used to build a university in every province. You can build a university in every province just from the money which has been allocated to the many activities which have been indicated in the Yellow Book.


Mr Chairperson, allow me to say more about our budgeting system. I know that all of us want to spend and, thus, we put a lot of emphasis on the expenditure side of the Budget. We rarely put emphasis on the income side of the Budget. I think that the new Government has a lot of work to do to ensure that we have a sustainable income base which will support our expenditure. Yes, I do appreciate our promise to put more money in people’s pockets. We have to find ways of generating the income which will enable us to put more money in people’s pockets. Clearly, there is a need to expand our resource base.


Mr Chairperson, closely linked to issues to do with our resource base are the institutions that generate resources. These include some of the parastatals organisations  and public institutions. In those good old days, we used to hear about dividends being declared by such institutions. However, these days, even institutions which are supposed to generate resources seek help from the Government for recapitalisation, year in and year out. They are like bottomless pits. I think that we need to review the operations of some of these institutions.


Mr Chairperson, I have in mind the Zambia Information and Communications Technology Authority (ZICTA). We hear that this institution makes a lot of money. As to how much of that money goes to the National Treasury, we do not know. What we have seen with most parastatals organisations, be they water utility companies or other quasi-government institutions, is that they give good working conditions to their top managers without living any money for the delivery of the services they are supposed to offer. As a result, in order to provide the services they are supposed to offer, they end up seeking financial assistance from the Government. In turn, the Government must find money by taxing the few overtaxed people in order to fund the operations of these institutions.


Mr Chairperson, we need to review the operations of some of these institutions and ask ourselves why they were established in the first place instead of the Government just continuing to fund them. Almost every year, the Government funds these institutions, but they still go back to it, claiming that they have no money to pay salaries.


Sir, we hear of statutory bodies increasing salaries without coming up with a source of funding for the increment. I think that is unfair. Personally, I am looking forward to the release of the Salaries Commission Report because we need to get to the bottom of the issues on the salary structure of this country. If you think deeply about issues, I am sure you will agree with me that the structure is unfair. Some people get high salaries at the expense of the many citizens who work hard in most institutions. We need to look at the income side of our Budget and also review the operations of some of the institutions that we give a lot of funds.


Lastly, let me make a few comments regarding the functions of the NRFA and those of the RDA. Debates regarding the operations of the NRFA have always been in this House. I am aware that in the old House, there used to be campaigns of which officers needed to be replaced by who.  Others campaigned for some changes to be made to the agency. 


Mr Chairperson, my humble understanding is that the NRFA acted in line with the Road Transport Act by not releasing resources for roads which were claimed to have been repaired, but were not repaired. Some people kept pushing for payments to be made for roads which had not yet been repaired.


Some of us, who were in the system, came to learn quickly that such things used to happen because we took interest in them. I did not just listen to stories. There are so many stories that go round this House as hon. Members of Parliament lobby for their areas to be developed. When some hon. Members are promised that a road will be graded in their constituency, they just debate without really understanding that they are simply shooting themselves in the foot.


The NRFA refused to pay the RDA for some works which had not been carried out. On paper, it was written that some roads had been rehabilitated, but they had not been rehabilitated. When people went on the ground, they discovered that the roads had not been rehabilitated despite somebody wanting the works to be paid for. When someone refuses to pay for works which have not been undertaken, then he is seen as a bad guy by some people. It is such people who come here and say that the NRFA should be dissolved. Innocent people have lost their jobs in this country because of such behaviour.


This is the only country where good people are sacrificed. Good officers are sacrificed because they have no one to back them.


Hon. Members: Hear, hear!


Ms Masebo: It makes me very sad. This is the only country where when an officer of the Government is being praised by hon. Members of Parliament or citizens, then you know that there is some element of corruption in his or her office. When one is straight and says that certain things cannot be done by his or her office, that person is discredited, even by the hon. Minister of the ministry in which that individual works. The individual is hated for advising that the appropriate regulations should be followed.


Mr Chairperson, we, as hon. Members of Parliament, must be careful when people lobby for us to do certain things. We should investigate matters before we come here to discuss them in the House. That is why, in the past, this House came up with laws that were later criticised and questioned by the hon. Members who contributed to the passing of the laws. This is clearly because we do not have a deep understanding of what our problems are.


I would like to challenge the hon. Ministers who have come to, please, …


The Deputy Chairperson: Order! The hon. Member’s time has expired.


Mr M. H. Malama: Naipwa inshita!




Mr Chenda: Mr Chairperson, let me begin by thanking my colleagues who have contributed to the debate on the Vote which we are debating on the Floor of the House. I would like to assure them that we have been taken note of their ideas and contributions. I would also like to thank my colleagues who have debated silently by listening to those who contributed on the Floor.


Mr Chairperson, all the contributions are valuable and important. Allow me to comment on a few of them.


Sir, Hon. Hamududu is passionately concerned about the Planning and Budgeting Act. The hon. Member will be pleased to know that issues regarding this Act are currently being attended to.


Mr Chairperson, Hon. Hamududu was also concerned about the Government’s investment in infrastructure. President Michael Sata, during the Official Opening Address of this Session emphasised the importance of infrastructure development. In fact, you will be pleased to know that the bulk of the US$700 million bond which the country is about to get will go towards raising funds for infrastructure development. This should also please Hon. Mooya, who is passionately concerned about the Bottom Road. Hon. Mooya may also be pleased to learn that the building of thebridge linking the school in the Chikuni area, which he talked about, will commence during the course of this year.                          


Mr Chairperson, Hon. Mulusa expressed his concern on our development and growth strategy. I would like to inform him that the Vision 2030 and the SNDP are in place and will take care of his concerns.


Sir, my dear sister, Hon. Masebo, talked about the existence of contradictions between the Ministry Finance and National Planning and the Ministry of Local Government, Housing, Early Education and Environmental Protection on infrastructure development. These contradictions will be addressed when the Planning and Budgeting Bill will be brought before this House.


Mr Chairperson, allow me to, once more, thank all my colleagues who have contributed to the debate which is currently on the Floor of the House. I am asking them to favourably consider the approval of the allocation which we are looking at.


I thank you, Sir.


Hon. Government Members: Hear, hear!


VOTE 21/01 – (Loans and Investments – Ministry of Finance and National Planning – K5,583,967,892,951).


Mr Chenda:  Mr Chairperson, I beg to move the following amendment:


Under 2 Ministry of Works and Supply – Road Development Agency, Programme: 3087 – Techno-Economic Feasibility Studies and Designs – (PRP)




(i)                   007, by the deletion of “Feasibility & Detailed Designs & Tender Documents for the Barotse/Kafue River Basin (Climate Resilience) Roads: Kalomo-Dundumwezi, Kafue Chanyanya, Imusho-Lusu & Namwala to Shezongo (11) – K6,000,000,000.00” and the substitution thereofor of “Consultancy Services for A Detailed Assessment Study and Environmental and Social Assessment Study for the Improvement to Climate Resilient Standards of Strategic Roads in the Kafue River Basin – K11,000,000,000.00”;


(ii)                 by the deletion of “Activity – 008, Feasibility & Detailed Designs & Tender Documents for the Barotse/Kafue River Basin (Climate Resilience) Roads: Kalomo-Dundumwezi, Kafue Chanyanya, Imusho-Lusu & Namwala to Shezongo – K5,000,000,000.00”;


(iii)                029, by the deletion of the words “Feasibility & Detailed Designs & Tender Documents for the Chipata-Chadiza-Katete Vubwi road including Chipata-Feni Roads” and the substitution therefor of the words “Feasibility Studies & Detailed Engineering Designs & preparation of Tender Documents for the Chipata-Chadiza-Katete Vubwi Road including Chipata-Feni Roads and T006”;


(iv)               034, by the deletion of the words “Feasibility & Detailed Designs & Tender Documents for the Luangwa Bridge-Feira (D145) Road” and the substitution therefor of the words “Feasibility & Detailed Designs & Tender Documents for the Mwembeshi to Mano Road”;


(v)                 035, by the deletion of the words “Feasibility & Detailed Designs & Tender Documents for the Luanshya-Mpongwe Road” and the substitution therefor of the words “Feasibility & Detailed Designs & tender Documents for the Mpongwe to Machiya Road”;


(vi)               041, by the deletion of the words “Feasibility & Detailed Designs & Tender Documents for the Kabwe-Picadilly Circus [D200/D207/D217] road” and the substitution therefor of the words “Feasibility & Detailed Designs & Tender Documents for the Kabwe-Pacadilly Circus [D200/D207/D217] including the Mpula-Masansa road”; and


(vii)              042, by the deletion of the words “Feasibility & Detailed Designs & Tender Documents for the Kabwe-Kapiri Road” and the substitution therefor of the words “Feasibility Studies & Detailed Engineering Designs & Preparation of Tender Documents for the dualling of the Lusaka-Kapiri Road”.


Amendment agreed to. Vote amended accordingly.


Mr Namulambe (Mpongwe): Mr Chairperson, may I have clarification on Programme 3060, Activity 012 – Support to National Authorising Office – K3,752,586,822. I have noticed that this is a new figure. Since this item is being introduced for the first time, I would like to know what it is all about. May I also have clarification on Programme 3085, Activity 039 – Zambia Revenue Authority Modernisation – K120,000,000,000. What is being modernised to warrant the expenditure of this amount?


The Deputy Minister of Finance and National Planning (Mrs Mwamba): Mr Chairperson, the provisions in question are required as bridging funds for the year 2012 because the financing agreement under the European Union has not yet been signed, but the projects in question have to continue.


I thank you, Sir. {mospagebreak}


Vote 21/01, as amended, ordered to stand part of the Estimates.


Vote 37/01 ordered to stand part of the Estimates.


Vote 37/02 ordered to stand part of the Estimates.


Vote 37/04 ordered to stand part of the Estimates.


Vote 37/06 ordered to stand part of the Estimates.


Vote 37/07 ordered to stand part of the Estimates.


Vote 37/08 ordered to stand part of the Estimates.


VOTE 37/09 – Ministry of Finance and National Planning – Central Statistical Office – K61,697,850,861).


Dr Kazonga (Vubwi): Mr Chairperson, may I seek clarification on page 517, Programme 3007, Activity 005 – Separation Package – Nil. In this year’s Budget, there is a provision of K3.2 billion, but, in next year’s Budget, there is nothing. Can we assume that, come the end of this year, all the separation packages will be paid?


Sir, on page 518, Programme 3082, Activity 008 – National Strategies for the Development of Statistics (NSDS) – K1,000,000,000, this year, the provision is K200,000,000, but it has been increased to K1 billion in next year’s Budget. Is this for development or implementation of these strategies?


Mrs Mwamba: Mr Chairperson, this is for both the implementation and development of strategies.


I thank you, Sir.


Vote 37/09 ordered to stand part of the Estimates.


Vote 37/10 ordered to stand part of the Estimates.


Vote 37/11 ordered to stand part of the Estimates.


Vote 37/12 ordered to stand part of the Estimates.


Vote 37/13 ordered to stand part of the Estimates.


Vote 37/14 ordered to stand part of the Estimates.


VOTE 33 – (Ministry of Commerce, Trade and Industry – K90,207,530,368).


The Minister of Lands, Energy and Water Development (Mr Yaluma) (on behalf of the Minister of Commerce, Trade and Industry (Mr Sichinga)): Mr Chairperson, I thank you for the opportunity to deliver a statement for the 2012 Budget Estimates for the Ministry of Commerce, Trade and Industry, which is aligned with the 2012 National Budget whose theme is “Making Zambia a Better Place for All.”


Mr Chairperson, the mission of the Ministry of Commerce, Trade and Industry is to effectively and efficiently facilitate and promote sustainable development, growth and competitiveness of the private sector in order to enhance socio-economic development.


Mr Chairperson, our goal for 2012 is to accelerate private sector growth and create a conducive environment for business operations thereby creating more jobs for the people of Zambia. Our main strategies will be infrastructure for industrial development, promotion of micro, small and medium enterprises (MSMES) and securing local and foreign investment.


The ministry will work towards enhancing and reducing the cost of doing business by working closely with the private sector in addressing the challenges they face in enhancing their operations and profitability.


Mr Chairperson, we are also cognisant of the fact that MSMEs offer the most effective tool to reduce poverty and create a just and equitable society. One of the main failures of the previous Government was at the point of implementation. Zambia has sufficient legislation to facilitate the initial steps required for the implementation of a just and equitable society. However, the fact that the Movement for Multi-Party Democracy (MMD) now sits in the Opposition is testimony of its failure to make policies work for the average Zambian.


Mr Chairperson, let me elaborate by giving examples of this failure in policy implementation. In the area of Multi-Facility Economic Zones (MFEZs), the pace of implementation has been disheartening. In five years, since the enactment of the Zambia Development Agency (ZDA) Act, we still have the Chambishi MFEZ at 50 per cent project implementation, with other MFEZs, such as Lusaka South-East and Lumwana, at less than 10 per cent. The implementation of industrial Parks is at 30 per cent n and Sub-the Saharan Gemstone is still at start-up stage. Clearly, more needs to be done and the PF Government is determined to accelerate and complete the work by making the MFEZs fully operational in collaboration with the private sector.


In the area of citizens’ economic empowerment, the story is not any different. The targeting of empowerment interventions was unsatisfactory. Whereas our empowerment law is comprehensive in addressing the various dimensions of empowerment, we saw little or no focus on the other empowerment pillars. Even in the areas such as preferential procurement and reservation schemes, where subsidiary legislation was issued, there was inertia by the Government in ensuring that the structures, mechanisms and processes necessary to facilitate implementation of the law were put in place.


Furthermore, there was excessive political interference in the disbursement of empowerment funds.


The Deputy Chairperson: Order!


Could you, please, raise your voice. Some hon. Members cannot get your delivery.


Mr Yaluma: My apologies, Sir.


Mr Chairperson, there was excessive political interference in the disbursement of empowerment funds. People were being funded without collateral and proper business plans, resulting in poor recovery rates. Simply put, the citizens’ economic empowerment has been a flop.


In trade facilitation, the Government was slow in implementing the simplified trade regime with neighbouring countries and the implementation of the one-stop-border post programme has only taken off at the Chirundu Border. Clearly, there is a need to change the pace at which the ministry works. Trade facilitation, therefore, remains one of the key challenges negatively affecting the growth and competitiveness of our export to regional and international markets.


With regard to the Private Sector Development Reforms, the previous Government made progress in eliminating unnecessary legislation, regulations and licences that hindered business growth, and for this, I wish to commend my predecessor for spearheading the effort. That said, I must also point out that whereas at the level of Central Government and Parliament, these laws were being amended and repealed, it is also true that, in terms of impact, a lot remains to be done. 


Mr Chairperson, we have not seen the impact of these reforms at local level. In some cases, the revised laws have not been implemented and local authorities continue to operate, seemingly oblivious to the intents of the private sector reforms. The points of internal resistance to the reforms and co-ordination challenges were aspects of the reforms that were neglected by the previous Government.


Mr Chairperson, taking into account these policy implementation failures, the focus in 2012, therefore, is for the Government to start paying attention to the implementation by addressing constraints to the implementation exercises and providing effective leadership. Therefore, ensuring that the Government and, in particular, my ministry, moves away from just talking about reforms and empowerment to actually delivering its mandate will be my primary motivation as Minister.


Mr Chairperson, let me now turn my attention to the salient issues in my ministry’s proposed budget. The programmes and activities that are being presented in this budget have been developed with particular attention paid to the priorities identified in the strategic plan for the ministry. They have also been aligned with our promises as enshrined in the PF Manifesto.


Taking into account an increase to the ministry’s 2012 Budget allocation from K52.2 billion, in 2011, to K78 billion, in 2012, the ministry has allocated 36 per cent of its budget to priority programmes which I outlined in my opening remarks and 48 per cent to the statutory institutions that are the implementers of Government policy.


I expect the statutory bodies under my ministry to significantly improve in policy implementation, hence the dedication of a significant share of the budget to implementing agencies. I have already directed that all statutory bodies under my ministry develop strategies that will sustain their operations as the Government considers weaning off Treasury financial support in future. We will, however, be careful not to transfer the burden of sustaining these institutions to the private sector, lest we raise their cost of doing business. We will still insist on innovative and efficient delivery of services.


Mr Chairperson, during the 2012 Budget and the 2012-2014 Medium Term Expenditure Framework (MTEF), the ministry and statutory bodies will focus energies on improving trade facilitation, promoting MSMEs, implementing private sector development focused on the doing business reform area and facilitating investments into the productive sectors of our economy.


Mr Chairperson, under the doing business reform area, our plans will put in place the one-stop shops. The ministry will expedite the establishment and operationalisation of one-stop shops in Lusaka, Southern and Copperbelt provinces by the end of 2012. This strategy is aimed at reducing the cost of doing business through streamlining of business start-up procedures. This will also enable business people currently operating informally to regularise their businesses and contribute to the Treasury.


Sir, in the area of investment missions and promotions, the focus will be on attracting investment in the area of energy and transport infrastructure as well as the development of MFEZs and industrial parks. We have to speed up the implementation if we are to have an economy that is able to create jobs for the people, particularly the youths.


Mr Chairperson, to facilitate the MSMEs development, we will focus our energies on the establishment and implementation of industrial clusters. Our plan is to establish, at least, one MSME cluster in each province, starting with Lusaka and the Copperbelt provinces. The implementation of this strategy of industrial clusters is expected to result in value addition to natural resources in various areas. The clusters will allow for the pooling of equipment and skills for micro and small entrepreneurs operating in selected value addition sectors such as wood and wood processing, leather and leather products and metal fabrication and engineering products. This should significantly improve skills and the quality of products among the targeted MSMEs operating in these clusters.


Sir, our ability to enhance the export of Zambian products both in the region and beyond is dependent on how we strengthen the role of quality and the standard of the development agenda. Therefore, the ministry has prioritised the development of legislation, procurement of equipment and establishment of facilities for the National Quality Infrastructure (NQI) institutions. This is expected to strengthen institutions in the NQI in line with the National Quality Policy. These measures will benefit institutions such as the Zambia Bureau of Standards and Zambia Weights and Measures Agency and, ultimately, producers and consumers. The measures will also take us several steps closer to meeting international best practices in quality assurance and standardisation.


Sir, one of the key interventions is that we have included the Trade and Industry Development Fund. This allocation will be utilised to finance the resuscitation or establishment of, at least, two rural industries through the Development Fund of the Zambia Development Agency Act. We could not continue to give excuses for not investing in rural industries. This fund allows the Government to take a lead in ensuring that the strategic industries in rural areas are either resuscitated or established. Our immediate target is the Mulungushi Textiles and other strategic industries in the North-Western and Luapula provinces.


Mr Chairperson, in conclusion, I would like to point out that in terms of policy and policy priorities on industrialisation, MSMEs development, citizens’ economic empowerment, private sector reforms and trade facilitation, there can be little debate in that the priorities outlined by the PF Government are consistent not only within the aspirations of our people, but are also in tandem with the policy position that I have previously heard articulated by my colleagues in the Opposition.


Sir, this Budget represents a practical and realistic way forward on issues we all agree need to be addressed if Zambia is to develop its private sector and create an environment conducive for job and wealth creation.


Seeing that we agree, Mr Chairperson, on the policy priorities in areas under the mandate of my ministry, I expect the full support of hon. Members of this House in approving this budget.


Mr Chairperson, I thank you.


Hon. Government Members: Hear, hear!


Mr Simfukwe (Mbala): Mr Chairperson, I am very grateful for giving me this opportunity to debate this very important Vote for a key ministry in our country.


Sir, from the outset, I wish to take this opportunity to support the Vote on the Floor. I would also like to make a few comments.


Mr Chairperson, the Ministry of Commerce, Trade and Industry, as we all know, is probably one of the most important ministries we have. This is a ministry on which any government that intends to empower its people will have to dwell. This is a ministry which is responsible for job creation. This is a ministry where, if a government wants the wealth of the nation to trickle down, it should be done. If a nation wants to add value to its raw materials by not just exporting raw copper or maize, this is the ministry where this is done. In other words, for a government that wants to please, especially the urban population that depends on commerce, trade and industry, this is the ministry where campaign promises can be delivered.


Mr Chairperson, I will briefly look at domestic trade which is a key wing of this sector. Hon. Members will agree with me that, at the moment, there is serious proliferation of non-Zambians in small businesses. These are small opportunities for our young men and women, such as brick making, growing a few crops to sell in urban markets, even tailoring but, somehow, we have allowed heavy infusion of non-Zambians to compete with our young brothers and sisters.


A few days ago, I was very happy to read in a newspaper about some revised changes to the immigration regulations. The revised regulations seemed to remove small trade permit or sole business permit and replaced them with a different type of permit. I hope that this measure will protect small businesses because domestic trade is a major opportunity for the empowerment of the people because they can earn a living from it.


Sir, in domestic trade, the informal sector is one of the highest employers. Fortunately, we have collectively agreed, as a country, that there is too much casualisation. There are too many informal jobs in our country.


For this reason, I would like to implore the hon. Minister of Commerce, Trade and Industry to go out of his way, with his team at the ministry, and put in place measures, which can be copied from other countries, that will help the young men and women who are currently earning a decent living, but are doing the jobs that are so informal that they do not reassure them of continuity and a stable future. We need to find lasting solutions to formalising some of jobs.


Mr Speaker, what we call informal jobs here are formal jobs in countries such as South Africa. The people holding these jobs have medical insurance, pension schemes, are able to obtain mortgages and get decent housing from the jobs that we refer to as informal in our country. I would like to implore the ministry to take time to find ways of formalising the informal jobs in this country. We cannot keep postponing this. Informal jobs are growing in number because this is a viable sector of our employment market. We just have not provided the necessary institutional framework to formalise informal jobs so that our brothers and sisters can have a stable and reliable future.


Mr Speaker, I would like to talk about shopping malls that have become a new phenomenon in our domestic trade. They look beautiful and have certainly transformed the landscape of Lusaka. They are a pride to walk into and we do not have to use our hard-earned money anymore to fly to South Africa or Namibia where there are similar facilities. This is a very good development and I am quite certain that as our economy continues to grow, more shopping malls will come up. Probably, even in rural towns such as Mbala where I come from and our provincial capital, Kasama, we will see some shopping malls very soon.


However, Mr Chairperson, I am concerned because I have heard from the grapevine that the rentals for shops are discriminatory against Zambians. I am reliably informed that if you are a Zambian business person, it is almost impossible to rent a store in these shopping malls. I would like to ask the hon. Minister of Commerce, Trade and Industry to investigate this problem. There is business racism going on in these shopping malls. While we sit here, our brothers and sisters are being discriminated against.


Hon. Members: Hear, hear!


Mr Simfukwe: Zambians will not be empowered if we do not check this. I know that most hon. Ministers and hon. Members of Parliament in the Ruling Party are grassroots people like myself. Now that some of them are in the Executive, I hope they will still remain in touch with the grassroots. This is where the problems are. Please, do not lose touch with the grassroots because they need you there.


In addition to not having access to rental space, people are charged much higher rentals per square metre than the big shops such as Shoprite and Pick n Pay. I have seen some of the tenancy agreements and have confirmed that local businessmen/women, regardless of their race, are discriminated against as long as they are Zambian. If you go to one of the new shopping malls, you will see that Zambian companies are separated from South African companies. Let us address these problems. Otherwise, we will fail to empower our people.


Mr Chairperson, slightly related to this point is the fact that our shops, even in the compounds where we live, are very well stocked unlike in the past. Unfortunately, over 80 per cent of the goods are imported. The Ministry of Commerce, Trade and Industry needs to review how we are conducting domestic trade. Why are we importing almost everything? In Tanzania, when you go into a restaurant, 90 per cent of the food is locally produced, if not indigenous. Here, when you go into restaurants or hotels, you will find that most of the food is imported or canned.


Hon. MMD Member: Chips.


Mr Simfukwe: Yes, chips are what are mostly served. There is even canned beans, when my home town Mbala is famous for beans. We eat beans for breakfast, lunch and supper and then chicken and beef as an aside.




Hon. Members: Hear, hear!


Mr Simfukwe: Mr Chairperson, I am concerned about this and action has to be taken. For every imported item you see, there is a job created in a foreign country.


Mr Chairperson, another opportunity for empowering the people in domestic trade is by paying attention to the stock exchange. Big companies are refusing to list on the LuSE. I am told the MTN Zambia is not yet listed and Airtel Zambia is trying to de-list itself. This is where we can also invest our small earned pension money or gratuities, instead of every one creating their own ntemba. We can buy shares on the LuSE and secure our future investment or we can pool local companies and list them. I would like to implore the hon. Minister of Commerce, Trade and Industry to seriously look at boosting the LuSE. I know that statistics show that this has been growing, but more needs to be done.


Mr Chairperson, on foreign trade, I would like to mention that the trade agreements that are being signed need to become meaningful. It is an old tradition that they signed, but they are not specific to sectors. Most of them end up merely as trade missions costing a lot of money but, when you ask what benefit they have brought to the agriculture or manufacturing sector, most people will tell you that there is not much. We need to go into sectors and identify their specific problems so that our trade agreements are specific to the needs of the business people in those sectors.


Mr Chairperson, I have just been looking at some Florida (FL) International Trade data of imports into Zambia in 2007. I was very concerned to see that in 2007, we imported cigarettes, wheat, margarine, sugar confectionaries, breakfast cereals, which is basically processed maize, rice and pastry, which is mostly wheat, soya bean oil and peas. Why should we import these things when they can grow so easily in our own country? I do know whether I should lay this FL data on the Table because I am new to this House or it is just part of the speech. It probably has to be laid on the Table.


Mr Chairperson, as I conclude, I would like to quickly comment on the issue of industry. We all know that any economy has to transform from production to manufacturing and eventually to the service industry like it is in the developed United Kingdom and others. We have stayed too long in production. Our forefathers worked hard on the production side, but we need to move quickly into a much larger manufacturing economy and this is the ministry that can take us there. Until we push into a manufacturing stage, we will remain a poor country and there will be fewer jobs for our people. We need to focus on the fact that this is the ministry that can usher us into the manufacturing era. We have to start adding value to our goods. We must stop exporting raw materials such as copper, maize and potatoes. This is the ministry that needs to find solutions to adding value to our goods.


Mr Chairperson, finally, it is our wish that this country creates more employment and empowers our people. However, as I said in my maiden speech, this is the ministry that should be unbundled so that it has a department in every ministry. This will make it more specific and practical and enable it to address the commerce challenges of agriculture, health or even the mining sector. It can have commerce, trade and industry experts rather than general players in the economy.


I think such departments can be more specific and we could probably start seeing the benefits of the Government providing an enabling environment in commerce, like our colleagues in Brazil are doing. Their Government can go out of its way to negotiate trade agreements even against giants such as Europe and America and secure big agricultural deals that allows their country to export soya bean oil and other agricultural produce, including beef.


Mr Chairperson, I thank you.


Hon. Members: Hear, hear!


Hon. Members: Hear, hear! {mospagebreak}


Mr Nkombo (Mazabuka Central): Mr Chairperson, thank you very much for allowing me to also add my voice to the debate in support of the Budget line for the Ministry of Commerce, Trade and Industry. I would like to start by adopting the entire contribution of Hon. Simfukwe as my own. Allow me to also just add one or two of my concerns that I think affect the people whose aspirations and interests we serve and can be addressed by this ministry. We need to formulate a deliberate policy and also enact deliberate legislation to allow indigenous Zambians to benefit from this ministry. We need to change a few things beginning from what, I believe, was called the Zambia Investment Centre and is now the Zambia Development Agency (ZDA), the point at which foreign investors make their first interface with the country. We need to make changes so that at every step of the way, we can allow Zambians to also move a step forward in their economic empowerment trajectory.


Mr Chairperson, many countries that have developed emulate South Africa and Zimbabwe. They have anchored on a policy of getting investors, not bamba zonke which means holding all the capital shares in their companies, and allowing local people to also participate as a deliberate policy. This is done to the extent that if company X wants to come to Zambia, it must be told to first find a Zambian whom it can work with. That way, we can avoid the capital flight from this country that we have always been singing and mourning about. Capital flight is made possible because the regulations and rules that are attached to movements of money from this country are too loose. Many investors and industrialists have come to this country, punched holes into our country, polluted our environment and put their money off-shore, but this does not work for the Zambian person.


Mr Chairperson, as my first line of argument, I would like to ask the hon. Minister to look into that area. South Africa called it Black Empowerment, but it sounded a little bit harsh and so they called it Affirmative Action. In Zimbabwe, they call it Indigenisation, where the Government deliberately supports indigenous people to engage in economic activities. This creates employment for those whose aspirations and interests we serve. They can benefit from that. The ministry also requires to liaise very closely with the Ministry of Finance and National Planning and related institutions such as the Bank of Zambia so that the monetary and fiscal regime can be looked at very closely. This should be done to enable small medium enterprise (SMEs), which we believe is one vehicle that can move any country out of poverty, to borrow money from banks at affordable interest rates. As the situation is, I think that SMEs are struggling because there are too many bottlenecks, including interest rates. The cost of money in this country remains only for those who have established businesses. The start-ups always have difficulties because the cost of money is a bit far from reach.


Mr Chairperson, I would like to now move to the issue of the bottlenecks on licensing of businesses. We have said, time and time again, that the issue of licensing requires to be integrated. For example, the hotelier will require to get several licences from the council, the local jurisdiction where they operate from, and many other authorities. That requires to be integrated so that there is a one-stop shop to get the authority that gives the sanitation licence and the trading licence and thereby reduce bureaucracy. If this is done, it will assist. If it were done at the ZRA, for instance, at the point of registration of a company, one finds an office that gives licences and another that inspects next door, and everything is done under one roof, it would help businessmen to get going faster.


Mr Chairperson, coming back to the issue of indigenisation, in Zimbabwe, there is a deliberate policy, however unwelcome or unpopular it may be, which is serving the indigenous Zimbabweans very well. We know that in Zambia, there are many intelligent people who have gone to serve in other countries simply because they cannot function here in their own country because of these bottlenecks that we are talking about. We have successful business people who have worked in the Diaspora because here in our motherland, the atmosphere is not very conducive. I have a cousin here who went to work in Namibia.


Mr Hamududu: Yes.


Mr Nkombo: Mr Chairperson, the hon. Minister of Finance and National Planning has just come from, I believe, ESCOM, if I am wrong, please, I apologise. This was wasted manpower. If we can make our country receptive to business, we will develop this country much faster. Let us say we try to insist that whoever comes to this country must let go of, at least, 20 per cent. In some countries, they are allowed to retain only 51 per cent and the other 49 per cent remains with the locals. That way, it is easy for the locals to also participate in the application of money and not all of it when it comes in the form of, what is it called mucikuwa ...




Mr Nkombo: … when they share money? Dividends. When it comes in the form of dividends, not all of it will go. Hon. Keith Mukata will invest some of it in Namalombwe because he will retain those dividends, but in a situation where everything is foreign-owned …


The Deputy Chairperson: Order!


Business was suspended from 1805 hours until 1830 hours.





Mr Nkombo: Mr Chairperson, before business was suspended, I had touched on a number of issues.


Sir, I am told that the licensing process has been streamlined to a great extent. I would like the Government to continue on that path so that our people can have less bureaucratic ways of conducting business.


Mr Chairperson, as regards the mainstream industry, in my constituency, we intermittently have a mine. At one time, we have a mine called Albidon and the next moment, we have a mine which is under care and maintenance. I think that on the Copperbelt, there are also a lot of mines that have made huge profits from our country’s natural resources.


Mr Chairperson, I would like the hon. Minister to seriously consider to indigenise suppliers of big industries. The Government should make a deliberate policy to ensure that if, for instance, transporter X has to move bulk cargo, it gives this contract to a Mr Chishimba Kambwili. If he has no capacity, let him go with his order and look for people who have the capacity so that the chain can be broken and some of that money remains in this country.


I am so lucky to have used Mr Chishimba Kambwili as an example because when he was on this side (Opposition), he was a very serious proponent of indigenising suppliers to the big conglomerates.


Mr Chairperson, currently, when mining companies or industrialists come to this country, they come with an invisible bag, full of their own suppliers from South Africa. This is why you have seen my colleague and friend, Hon. Simfukwe, discuss the shopping malls, but I will not deliberate on this matter further. What you see here is a mini South Africa where, when they come and, maybe, money comes from their country, all we see is small Sandton. We should change our attitude towards such affairs and make sure that our people get the first core benefits.


I would like to give you an example of South Africa where these people come from. There is a place called Rustenburg which houses a nickel mine. Fortunately, it is under a very intelligent chief in Bophuthatswana who leads an ethnic group called the Royal Bafokeng. It is deemed to be among the richest tribes on this continent. Why? It is because he engaged properly with these miners.


I am now informing this House, for the sake of those few who may not know, that one of the biggest state-of-the-art stadia that the celebrated World Cup that took place in South Africa used was in Rustenburg. The stadium was built by the money that remained out of that mine investment. The money did not leave the country. There is so much that can be said about this place.


However, I would like to quickly talk about the Zambia Competition Commission. Hon. Minister, through the Chair, this commission needs to tighten up its operations to make sure that the unfair trading practices that we see in this country are brought to a halt.


I will cite one or two companies, and I am speaking factually, that the chain of production has been dominated by the same people. The producer will be the manufacturer, wholesaler, retailer and probably the consumer. Zambeef is one such culprit. You cannot get Zambeef to go into Namwala, buy cows, refrigerate them, process them and sell sausages. What about the ordinary Zambian? What economic activity shall they engage in? Amanita is another company although it is one company.


Therefore, the Zambia Competition Commission must be assisted to make sure that we produce independence of segments of conducting business in our economy. There should be a category of producers, manufacturers, processors, wholesalers and retailers. The same should be applied to companies that deal in airtime business. Companies such as the Zambia Telecommunications Company (ZAMTEL), Airtel and the MTN should be forbidden from selling airtime at their outlets. Let them build capacity in other people. You cannot bumba everything.


Mr Chairperson, with those few remarks, I thank you.


Hon. Opposition Members: Hear, hear!


Mr Mutati (Lunte): Mr Chairperson, I thank you for allowing me to say a few words on a key Vote. It is always very difficult when you held a ministerial portfolio to debate on it. However, I will restrict my debate to some of the remarks that were made by the hon. Minister on the policy framework and policy failure that was mentioned.


Mr Chairperson, the policy framework has been a key driver for jobs and investment. It has been a driver in creating a conducive investment climate, investor confidence and in facilitating the reduction of business transaction.


Just to illustrate issues around policy failure without necessarily being in defence, the review that was made in June, this year says:


“On the legal and institutional reforms, a total of ninety-two licences were eliminated, forty-three reclassified and thirteen amalgamated into form. The resultant saving to the private sector is estimated at K68.8 billion and an additional K76.5 billion through the reclassification of local government licences.”


Indeed, Sir, this will not constitute policy failure. On the one-stop border post, we signed with Zimbabwe at Chirundu, I wish to say that in 2008, we made a simplified trade regime. In 2009, a memorandum of understanding on trade and industrial economic development with South Africa was signed. In 2010, we were in the process of implementing a one-stop border post at Nakonde. Indeed, this may not necessarily be the same as policy failure.


With regard to the MFEZs, the fundamental agreement was that this will take a period of fifteen years. We have done five and, correctly, the hon. Minister said, so far, 50 per cent, which represents about US$1 billion investment has been invested in the MFEZs. Therefore, if, in five years, you can cover 50 per cent when that should have been reached at seven and half years, I think that is not failure. However, I would urge the hon. Minister, correctly so, to continue our efforts by finishing the unfinished business. There is quite a big amount of unfinished business within the commerce and industrial sector. More so, it is unfinished in terms of enhancing the participation of Zambians into the area of commerce and industry.


One of the key elements that the hon. Minister of Finance and National Planning brought out, and I spoke to him about, was that we should permit a deletion of Section 58 of the Zambia Development Agency Act which is on the provision of additional incentives. However, that particular section can be flipped so that where there is a joint venture in terms of investments with Zambians, as defined through the Citizens Economic Empowerment Commission (CEEC) Act, the Zambian-owned companies and Zambian-influenced companies, additional incentives are provided. This will enable Zambians to have something to offer when entering transactions. One of the limitations of our people has been the capacity to bite on big transactions because of the volume of resources required. Empowering them through the use of legislative mechanisms would be one way of helping them to take something to the negotiating table. Therefore, I urge the hon. Minister to persuade his colleague at the Ministry of Finance and National Planning to call for the amendment of Section 58 as opposed to deletion of the entire section. We must continue our efforts to ensure that Zambians take something to the negotiating table. Some of what they take must be legalistic.


Sir, there is also unfinished business, particularly with regard to land ownership. The policy direction that we had initiated is that land should be owned by Zambians, for example, through the ZDA, so that it is used by the participating Zambians as a contribution to the investment. Zambians would own the value of the land as opposed to a situation in which investors from outside come and grab land through the Ministry of Lands, Energy and Water Development. I think that the effort that was started should be consummated so that land is made part of what Zambians are able to take to the negotiating table.


The next business that is unfinished is the issue of venture capital, which has been allowed through the Zambia Development Agency Act. We used a little of it to revive the Kasama Coffee Company. However, it needs an additional injection because that is risky capital that can be used, particularly, for struggling companies, such as the Kasama Coffee Company, Mansa Batteries and the Nitrogen Chemicals of Zambia (NCZ), which are key industries. Unfortunately, the available amount is not sufficient. Therefore, I urge the hon. Minister to engage his colleague at the Ministry of Finance and National and Planning to enhance this fund purely for the purpose of reviving some of the struggling companies. That way, we will create the jobs that are much needed, particularly, for our youths.


Sir, commerce is a very energising and exciting discipline, whose romance, sometimes, is in being out of the country for long periods of time because of activities. The critical issue is to address the challenges, particularly those that the SMEs face.


Sir, in the same report, there are a number of programmes that the ministry has put in place that have been assessed with progress being reported. I will lay it on the Table. The key issue, therefore, is to build from where we left. We will continue to encourage the hon. Minister, just I like have continued to consult with him on various issues. I believe that we are on the same side of the table with the current Government to the extent that we want to create investment and jobs and to advance the fortunes of this country.


In the report, you will note that, within the context of Southern Africa, apart from South Africa and Angola, Zambia is foremost in terms of attracting investment. Therefore, let us maintain that thrust. In the last five years, we were able to attract over US$10 billion worth of investment, which is a colossal amount. This is the platform on which we must build because we will not grow the economy and create opportunities for Zambians unless we bring in investment.


Hon. Member: Ba Lubinda, muleumfwa?


Mr Mutati: So, let us continue to work together.  I also encourage you to find time to read the documents that are available on what has been achieved, what you can build on and the direction to be taken.


With these few remarks, I support the Vote.


I thank you, Sir.


Mr Kampyongo (Shiwang’andu): Thank you very much, Mr Chairperson, for giving me this opportunity to support this Vote.


Mr Chairperson, as an hon. Member of Parliament for a rural constituency, it is extremely difficult for me to understand all the policies that have been propounded here, including those by the former hon. Minister.


The Deputy Chairperson: Order!


Do not debate individuals.


The hon. Member may continue.


Mr Kampyongo: Mr Chairperson, rural constituencies need this service. If you came to my constituency, you would not need to go through the bush to find SMEs because they are along the Great North Road at places such as Matumbo. There are ambitious young people, but they find it difficult to have the basics to get into entrepreneurship and register a small entity. I am trying, as Member of Parliament for the area, to use my own money to register the small enterprises for young people. It is not right to just come here and make policies that are only tailored to suit the urban SMEs. If, for example, the Office of the Registrar of Companies and Societies cannot decentralise its operations, it can easily delegate some of its functions to the local authorities so that the rural people are also empowered. The people in rural areas need to register their entities so that they have business accounts instead of burying their money. Therefore, it is important that our ministry starts focusing on empowering rural SMEs.


Sir, when many people hear about the CEEC, they do not know what it is. If, for example, you go to Ilondola Village and ask someone to borrow money for business from the CEEC, that person will think you are mad. Therefore, it is very important that we start thinking of our rural people also so that they are empowered. They should not continue living in abject poverty. I urge the hon. Minister to start putting in place deliberate measures to cater for the rural people.


Sir, the CEEC is much politicised and there are many issues involved. Some of the money that has been disbursed from the commission might not even be recovered. There are SMEs that, for the reason of being political cadres, were being given money without proper business plans. It also surprises me to learn that there are technocrats who write business plans for people who cannot understand them. All they do is present the plans to the CEEC and money is given. In the meantime, these businessmen do not understand the concepts in the plans. Therefore, all they do is use the plans for someone to certify that it is a viable business. In the meantime, the people who get the money do not own the plans. These are the challenges that are to be faced in the ministry.


It is very important that we, as the PF Government, empower the people in a proper and sustainable way. Believe you me, the CEEC will be chasing after some of the people it has given loans. They will be running away because the money is gone and no businesses were established.


Mr Chairperson, I would also like to talk about the PPP mode. It is also a town policy. How many people from Matumbo know about it? I agree that it is a very good mode of fostering infrastructure development initiative. However, I have looked at some of the concessions that our Government has got into, but they have no entry and no exit plans. The also do not protect the people’s interests. They are open-ended.


Hon. Minister, you have the tough challenge of sorting out some of these issues. The other day, Hon. Mooya talked about empowering contractors. We have Zambian contractors whom we are saying should compete against foreign companies. However, how do you expect them to compete favourably when they have not been empowered? They have no equipment. Yes, it is difficult to give incentives to some of the businesses due to a lack of trust but, if you asked what sort of help they want from the State, they would be more than willing to accept assistance in the form of basic construction equipment. It is time we started empowering our own people in a more sensible way. They do not need to be cadres to be empowered.


Mr Chairperson, we also have investors who have taken advantage of our rural constituencies. They come in the night to visit our chiefs, flash dollars here and there and ask for huge tracts of land without consulting the people.


Hon. Member: Imagine?


Mr Kampyongo: Hon. Minister, we want measures to be put in place to stop this so that our people are protected from the unscrupulous investors who come in just to take advantage of our illiterate people by grabbing land from them.




Mr Kampyongo: Hon. Minister, really …


The Deputy Chairperson: Address the Chairperson.


Mr Kampyongo: I am sorry, Mr Chairperson. I am appealing to the hon. Minister to stop propounding business theories here in Lusaka only, …


Mr Ntundu: Hear, hear!


Mr Kampyongo: … but also take care of our rural people. They were abandoned in the last twenty years of the MMD Government. There is nothing for them. It is shameful.


Dr Chituwo: On a point of order, Sir.


The Deputy Chairperson: A point of order is raised.


Dr Chituwo: Mr Chairperson, I rarely rise on points of order. However, is this most intelligent and well-read young Parliamentarian, as an effective councillor, in order to quickly forget that, before elections, the MMD Government decentralised the licensing of many entities to councils? Is he in order to quickly forget that very important fact? I need your very serious ruling, Sir.


The Deputy Chairperson: The serious ruling is that, if the hon. Member has forgotten that aspect, he should actively take it into account as he continues to debate.




Mr Kampyongo: I thank you, Mr Chairperson. If you heard me, I was just saying …


The Deputy Chairperson: Order!


Do not modify the ruling by the Chairperson. Just debate.


Mr Kampyongo: Mr Chairperson, I take note of your ruling. I will continue to have problems with the policies that are just gathering dust. Sometimes, when people do things in Lusaka and assume that things are getting implemented in the rural areas, it is a problem. I will tell you for a fact that in Chinsali Council, today, there is no officer who knows what a certificate looks like. It is a fact. I do not like to debate issues that are not grounded. These are serious matters, Sir.


The Deputy Chairperson: As the hon. Member debates, may he be reminded that he is also a councillor there. He may have to modify his statement or else he will imply that he is one of those who do not know what a certificate looks like.


 The hon. Member may proceed.




Mr Kampyongo: Mr Chairperson, I am a councillor who knows that this facility does exist.


With these few remarks,.I thank you, Sir.


Mr Mwiimbu (Monze Central): Mr Chairperson, I would like to thank you most sincerely for according me the opportunity to debate the Motion on the Floor of this august House.


Mr Chairperson, the other day, I was watching a caption on television in which I saw an F16 manoeuvring and somersaulting. As I watched, I thought about the situation in this country and the way our colleagues have been somersaulting on their policies on trade with China. Of late, our colleagues have realised that they need an alliance with us in which they will support the policies of China on Zambia.


Mr Chairperson, before and during elections, our colleagues religiously preached against Chinese investment and finance in this country. I am sweetly relieved that our colleagues have realised that they cannot do away with China. They have realised that, if they do not deal with China, it will deal with us. I am happy to note that. I am also happy to note that we have had many emissaries in the last three weeks. As we speak, our dear Vice-President is wining and dining with the Chinese ...




Mr Mwiimbu: … so that he can bring in Chinese investment. As he is in China, there are twinning arrangements being made between the Communist Party of China and the PF because their policies are similar.




Mr Ngonga: On a point of order, Sir.


The Deputy Chairperson: A point of order is raised.


Mr Ngonga: Mr Chairperson, I thank you for allowing me to raise this point of order. Is the hon. Member in order to divert our attention from this serious matter that has been raised on the Ministry of Commerce, Trade and Industry by talking about China? Is this related to what we are doing?


The Deputy Chairperson: The ruling is that the hon. Member debating is reminding us that His Honour the Vice-President is in China, marketing Zambia. Therefore, he is in order.


The hon. Member may continue.


Hon. Members: Hear, hear!


Mr Mwiimbu: Mr Chairperson, I am happy to note that our colleagues have quickly realised that China is a major financial and industrial giant in this world, that we cannot do without it and that we should co-operate and work with it. That is the point I am making.


Mr Chairperson, moving away from somersaulting like an F16 jet fighter, I would like to talk about the CEEC.


Sir, I am a very sad person. When we made laws on the Floor of this House pertaining to the empowerment of our people, we included clauses that were supposed to discriminate positively towards Zambians.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: We intended that the financing that was being provided by this House would go to finance Zambian businesses.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: We, at that time, were made to believe that the CEEC would uplift the standards of living of the people in both the rural and urban areas of Zambia.


Mr Chairperson, I note with sadness that in my constituency, and I tend to also think that even in the constituencies of my other colleagues, very few people, if not none, have benefitted from this fund.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: Sir, even the guidelines that were drafted are discriminatory. They have made it very difficult for our people to access funding from the CEEC.


Mr Chairperson, I would like to appeal to my colleagues on your right side, with whom we used to lament when we were together on the Opposition side, to ensure that these regulations are changed so that the people benefit from the CEEC.


Sir, in this country, it is almost impossible for an ordinary Zambian like me to access financing from the bank. If it is almost impossible for me, how much more can it be for an ordinary person in Shiwang’andu, Imusho or Monze? Despite these difficulties continuing to exist, every year, we appropriate huge sums of money to this fund.


Mr Chairperson, the other day, I read a sad report in the paper about K15 billion of our funds meant for uplifting the living standards of our people being utilised on administrative expenses.


Sir, it is only here in Zambia where our people use their hard-earned income to build houses, buy vehicles or invest in other businesses. In the neighbouring countries such as Zimbabwe, Botswana, Namibia or South Africa, the people do not use their personal savings to start businesses or construct houses. They always rush to financial institutions to borrow money for such purposes but, in this country, it is almost impossible to do so.


Mr Chairperson, I know that it is not allowed to talk about ourselves, but it is also true to state that we know of hon. Members of Parliament who have been in this House before who are now destitute. These are leaders who should have been leading by example in managing businesses and owning houses. We are aware of former hon. Cabinet Ministers who live in shanty compounds. We are also aware of former Vice-Presidents who live in shanty compounds. All this is because of the failure to access finances. I am merely giving examples.


Sir, together with my friends who are now on your right side, we appealed to the previous Government to ensure that it regulated the interest rates in the banks and the businesses that were being established in this country by foreigners to the detriment of Zambians. However, that was not done.


Mr Chairperson, there is a place called Tuesday Market at Waddington Centre, along Burma Road. There are foreigners who are supposed to be called investors who sell chibwabwa and impwa. These investors are said to have been given investment licences. At the moment, it is not unusual to find foreigners cooking nshima in markets.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: It is not unusual to see our hardworking young men selling on the streets. However, when you ask them where they get the things they sell, they will tell you that the items are not theirs. They are merely agents who are paid a commission. Maybe, they do not even get a commission, but are paid a minimal amount of money every month.


Mr Chairperson, we are not regulating the establishment of businesses in Zambia. We are not protecting the interests of Zambians.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: It is not only this country that will regulate laws on capital flight. Even in developed countries such as the United States of America (USA), you are not allowed to make a transfer of more than US$10,000 out of that country.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: You can only do so after following a rigorous procedure. However, these days, in Zambia, most of these multi-national companies, immediately after the close of the day, do their accounts and the following day by 0900 hours, somehow, all the money they earned the previous day is taken out of the country. We let all these practices continue just because we think that this is how things should be in a liberalised economy. If anything, we have also liberalised our intelligence.


Hon. UPND Members: Hear, hear!


Mr Mwiimbu: We should think about this.


Mr Chairperson, my friends have been talking about how Zambians are being discriminated against in workplaces. I know that some people will say this is a strictly labour issue. To the people who think this is a labour issue, I would like to say that labour issues cannot be separated from trade policies.


Sir, in some of the shops owned by foreigners, the sweepers are expatriates. Even my friends, who are now on the right and are now so loudly silent, used to say that they would not allow any foreigners to push wheelbarrows, have let such things continue to happen much to the detriment of many Zambians.


Mr Chairperson, those good policies which we used to discuss when Hon. Mwila was on the Opposition side, …




The Deputy Chairperson: Order!


Mr Mwiimbu: … should be implemented. Once you implement them, we will have a pact with you, Hon. Mwila.




Mr Mwiimbu: I hear ninety days is only six days from now.


Mr Chairperson, we need our colleagues to leave by the promises they made when they were campaigning.




The Deputy Chairperson: Order! Will you allow the hon. Member to debate, please.


Mr Mwiimbu: Once you ensure that those good utopian policies, which you assured the Zambians you would implement, are put in place, I have no doubt, Hon. S. S. Zulu, that we will have a pact with you.


Hon. Government Members: Hear, hear!


Mr Mwiimbu: Mr Chairperson, I have no doubt that in the MFEZs we have in Lusaka South, near the airport and on the Copperbelt, there will be very few Zambians, if any, who will be operating there. Together with you, Hon. Mwenya, we used to say that we should make it possible for Zambians to establish businesses in the MFEZs. I have no doubt that my good elder brother, the learned counsel Hon. S. S. Zulu, will come up with a law to ensure that within these MFEZs, there are areas that are zoned specifically for Zambians who want to start up businesses. Zambians should not be discriminated against.


Mr Chairperson, I will still need to go back and watch the film where there is an F16 jet fighter so that I can think of what my friends do in their somersaulting activities.


I thank you, Sir.




Mr Yaluma: Mr Chairperson, I think Mr Sinfukwe elaborately gave the profile of commerce and industry in his own perspective. I do believe that he is highly passionate about domestic trade and wants to see it run smoothly for the benefit of the Zambians. We are now trying to put in place mechanisms which we will use for a survey intended to measure domestic trade. Through the survey, we hope to create a database which we are going to use to see what needs to be done in order to transform our domestic trade. We are developing a national economic empowerment policy which will address certain aspects of empowerment which includes, how to make our people competitive in various sectors. The casual manner in which some of our people are employed, which was talked about in some debates, is not fair. It is true that people who are employed in that manner do not have benefits ranging from medical schemes to mortgages. I think it is up to us to look into such matters.


Mr Chairperson, the shopping malls which we have in the country, as has been stated on the Floor of the House, look very beautiful. Like others, I like them. It is our duty to investigate if the rentals at the shopping malls are prohibitive to the Zambians. We have taken note of the concerns by the hon. Members regarding the rentals at the shopping malls in question.


Mr Chairperson, Hon. Nkombo touched on quite a number of pertinent issues in his debate. I agree with him that there have been problems regarding the issuance of lincences in the private sector. Hon. Nkombo also talked about the problems in the manufacturing sector. At the moment, we are trying, as much as possible, to ensure that not just foreigners, but also Zambian people go into the manufacturing sector and enjoy some of our incentives. Yes, there is a need to ensure that the Zambians have an edge when they go into the manufacturing sector. This point was also emphasised by Hon. Mutati.  If Zambians want to enter into a partnership with foreigners, but do not have any money, they can go to the negotiating table with a piece of land. We need to find ways of empowering our people so that they can benefit from the investment opportunities which are being created by the foreigners who come into this country.


Mr Chairperson, our target is to reduce the cost of doing business in the private sector and this includes, among other things, a reduction in the number of licences required in a specific business sector. Some one-stop-shops dealing with business licensing have already been established. In Livingstone, there is a one-stop-shop where there is representation of the ZDA, the ZRA and other units which contribute to the easy way of doing business and enhance business viability. This initiative also seeks to protect all the people who enter this country from all sorts of frustrations.


Sir, the Mines and Minerals Development Act requires mining houses to prioritise the use of local contractors and suppliers. The challenge that the country has had is that of implementing some of the good policies it has on paper. I think in the Mines and Minerals Act, there is a good policy which we just need to fully implement so that our people can benefit by participating in this sector. 


Sir, Hon. Mutati, there is a lot of wisdom in the magazine which you said you were going to lay on the Table of this House. I hope you have done that so that we can go and read it. The business activities in the MFEZs have been moving slowly. We quoted the activity at 5 per cent, but it is actually at 10 per cent. From our side, we think we have to work together with everyone, like Hon. Mutati insisted, so that we can see a way forward with regard to the creation of a good business environment for every Zambian and foreign investor. We do realise that quite a good number of initiatives were started under the previous regime with regard to the creation of a good business environment. We are going to continue with the implementation of those initiatives.


Mr Chairperson, I would like to state that what Hon. Kampyongo was saying is not true. Those people who are in the rural areas, the small-scale businessmen do have …


The Deputy Chairperson: Address the Chair.


Mr Yaluma: My apologies, Mr Chairperson. Let me address Hon. Kampoyongo’s concerns properly.


 Sir, we have facilities to ensure that small-scale businessmen register their businesses. The small-scale businessmen in rural areas have equal opportunities to register their business as those in urban areas. It is not true that we do not cater for the small-scale businessmen in the rural areas. Nevertheless, we are still willing to discuss with other stakeholders the ways in which we can help the small-scale businessmen in rural areas to access such facilities.


Mr Chairperson, Hon. Mwiimbu, I do concur with you on your assertion regarding certain failures. I think it is the first time I have seen him siding with the group on your right. Yes, accessing financing from the CEEC has been a problem. The CEEC has been a flop. We are, therefore, trying to see what we can do to ensure that people have sufficient opportunities to access the funding. You said, correctly, that elsewhere, people do not take money from their pockets to built houses. They go to the banks to secure finances. It is important for us to put in place such initiatives so that Zambians can also access finances easily.


I thank you, Mr Chairperson.


Hon. Government Members: Hear, hear!


Vote 33/01 ordered to stand part of the Estimates.


Vote 33/02 ordered to stand part of the Estimates.


VOTE 33/04 – (Ministry of Commerce, Trade and Industry – Industry Department–K 11,809,472,689).


Dr Kazonga: Mr Chairperson, may I have clarification on Programme 1095, Activity 015 – Zambia, Malawi and Mozambique Growth Triangle – Nil. There is no provision made in next year’s Budget. Why has this important activity not been provided for in next year’s Budget?


Mr Yaluma: Mr Chairperson, Programme 1095, Activity 015 – Zambia, Malawi and Mozambique Growth Triangle – Nil, is a provision that caters for the promotion of investment among three countries. This activity is on-going and, for 2012, it has been catered for under the investment mission activity.


I thank you, Sir.


Mr Konga (Chavuma): Mr Chairperson, may I have clarification on Unit 03, Programme 1120, Activity 106 – Monitoring Development of MFEZs and Industrial Parks – Nil. Following the lamentation that there is very little progress being made in the MFEZs and the industrial parks, why has there been no provision put aside for monitoring of this very important exercise next year?


Mr Yaluma: Mr Chairperson, can Hon. Konga repeat the Programme number.


The Deputy Chairperson: Hon. Konga wants clarification on Programme 1120, Activity 106 –Monitoring Development of MFEZs and Industrial Parks – Nil.


Perhaps, for guidance, the hon. Deputy Ministers should pay attention and help you to identify these pages. Please, proceed.


Mr Yaluma: Mr Chairperson, Programme 1120, Activity 106 – Monitoring Development of MFEzs and Industrial Parks – Nil is an on-going activity.


I thank you, Sir.




Vote 33/04 ordered to stand part of the Estimates.


Vote 33/05 ordered to stand part of the Estimates.


Vote 33/06 ordered to stand part of the Estimates.


VOTE 85 – (Ministry of Lands, Energy and Water Development – K631,349,500,075).


Mr Yaluma: Mr Chairperson, I thank you for this opportunity to present the policy statement for Ministry of Lands, Energy and Water Development on the Budget estimates for 2012. The ministry will build on the gains which we have made, so far, in the improvement of service delivery in land alienation and administration as well as energy and water resources development by accelerating implementation of appropriate policies and associated strategies in 2012.


This will, however, only be possible if my ministry is granted corresponding resources to implement specific programmes and activities planned for 2012. I am, therefore, seeking the support of hon. Members for the proposed 2012 budget for my ministry, amounting to K631,349,500,075. I also wish to acknowledge the support that the House extended to my ministry by supporting its estimates for 2011. That gesture enabled us, as a ministry, to attain significant milestones during the current fiscal year.


Mr Chairperson, this Government is in a hurry to advance the development agenda for this country. Improvement of service delivery to our people in order to improve their living conditions is at the heart of strategies to attain this goal. The PF Government has committed itself to promoting sustainable development and management of land, energy and water resources for the benefit of the people of Zambia and for the future generations.


The ministry has carefully selected activities that will make a genuine assault on poverty, especially in rural areas, by creating wealth in the lands, energy and water sectors in 2012. We will focus on the activities with high social returns and direct impact on the wealth creation, especially for the rural communities.


Mr Chairperson, let me now discuss my ministry’s planned activities for 2012, sector by sector.


Mr Chairperson, let me begin with the lands sector. The ministry will continue to pursue activities that will enhance land alienation and administration. We want to ensure that every Zambian national, without exception, has access to land because we, in the PF Government, strongly believe that access to land is a right and not a privilege of our nationals. We also recognise the fact that for every national to make a meaningful contribution to national development, the people must have access to land, which is an important factor of production.


This is the reason, Mr Chairperson, the ministry has set for itself the following clear mission with regard to land:


 “To deliver land efficiently, effectively and equitably maintain accurate and up-to-date land records and provide land information in order to contribute to socio-economic development for the benefit of the Zambian people and the country.”


Sir, to achieve this mission, the ministry aims to enhance and decentralise the land administration system and operations to provincial and district levels in order to facilitate easy access to land information and land.


Mr Chairperson, out of the approved budget of K36 billion for the 2011 fiscal year for the land sector, K15 billion has, so far, been released. With these resources, the ministry has been able to accomplish the physical demarcation of the common border with Malawi in the course of 2011.


The ministry has also continued to step up its revenue collection function, having collected K67.4 billion, so far, this year, against the target of K24.2 billion for the fiscal year of 2011.


The ministry was able to deepen its collaboration with local authorities around the country in an effort to make more land available for development purposes. We disbursed a total of K5 billion to fourteen local authorities, in 2011, from the Land Development Fund to assist local authorities open up new areas for development through preparation of site plans and surveys.


Sir, I am, however, concerned that the local authorities have not taken full advantage of the availability of this fund. I wish, therefore, to appeal to our local authorities, especially those in rural areas, to take full advantage of this fund in order to facilitate development of outlying areas.


Mr Chairperson, the Ministry of Lands, Energy and Water Development will continue to put in place specific measures aimed at taking services close to our people in 2012. We want to create an enabling environment for land development in this country by putting in place an appropriate legal, institutional and policy framework. To this end, the ministry will finalise the Draft Land Policy in 2012. It will also pursue measures to operationalise the Lands Tribunal in 2012, subsequent to its enactment recently.


It will complete the development of the new land information management system in order to improve efficiency in land delivery. In 2012, it will also continue our collaboration with the local authorities and traditional rulers to ensure that more customary land is brought under productive use.


The ministry further intends to undertake land audits in selected parts of the country to determine categories of land which are not utilised for productive purposes with the aim of bringing such land under productive use.


Mr Chairperson, the ministry still has outstanding work regarding the demarcation of Zambia’s common borders with other countries. In 2012, the ministry intends to continue with the international boundary demarcation exercise of the following common borders:


(i)                   Zambia/Tanzania;


(ii)                 Zambia/Namibia; and


(iii)                Zambia/the Democratic Republic of Congo.


Let me now talk about the energy and water sectors. Sir, in the 2012 fiscal year, we want to continue building on the good works we have done, so far, in the energy and water sectors. In this pursuit, the ministry will continue to be guided by the following mission:


 “To promote sustainable development and management of energy and water resources in order to ensure availability of quality, affordable and safe water and energy and enhance national socio-economic development.”


To achieve this mission, the ministry aims to achieve increased accessibility to reliable and safe water, and modern energy by all sectors of the economy in order to enhance economic growth and improve the quality of life.


Mr Chairperson, the PF Government will ensure security of supply of petroleum products as well as availability of the product to the people of Zambia at fair a price. The ministry has already carried out a review of the cost elements in the petroleum pump price with a view to streamlining them. As a result, on Friday, 7th October, 2011, the price of petrol was reduced by 5.7 per cent, from K8,647 per litre to K8,155. Diesel was reduced by K5.9 per cent, from K7,958 per litre to K7,566. Furthermore, kerosene was reduced by 8.6 per cent, from K5,641 per litre to K5,154.


The ministry will continue with this process in order to ensure that further reductions in the pump price of petroleum, where necessary, are achieved. The Government will also continue with the standardisation of fuel prices countrywide in order to accord rural communities an opportunity to access petroleum products at prices comparable to urban consumers. This is unlike in the past, when the urban areas had cheaper petroleum products than the rural areas.


Mr Chairperson, the Budget allocation, in the 2012 Budget, for the petroleum sub-sector is K8,323,182,500. This represents an increment of K7,400,000,000 from the 2011 Budget allocation of K951,925,000. This is to allow the ministry to construct filling stations in rural areas where these services are not available, currently, in order to support uniform petroleum pricing. Further, in 2012, the PF Government will also continue to construct fuel storage infrastructure so as to increase the country’s capacity of keeping strategic petroleum stocks. The Government has embarked on the first phase of the Provincial Fuel Depot Construction Project under which fuel depots in Lusaka, Mongu, Solwezi and Mpika are expected to be completed by the third quarter of 2012. The second phase of this project is envisioned to commence in 2012 and will involve construction of fuel depots in Choma, Chipata, Mansa and Kapiri Mposhi.


Mr Chairperson, in the electricity sub-sector, inadequate generation capacity has been one of the major challenges faced in this sector. In order to address the upsurge in electricity demand, the PF Government will accelerate the completion of various power generation projects in the country with the aim of adding, at least, 1,080 MW of generation capacity to the electricity grid. To this effect, the Government will continue to develop the Kafue Gorge Lower, Itezhi-tezhi, 50 MW Heavy Fuel Oil Plant, in Ndola, 11 MW Lunzua Extension Project as well as the 40 MW Lusiwasi Extension Project. These will be in addition to the on-going works at Kariba North Bank.


Mr Chairperson, as a commitment to promoting private sector participation in the energy sector, the Government will facilitate the implementation of power projects by independent power producers by promoting open access to transmission networks. We will, therefore, ensure the enactment of appropriate standards and regulatory frameworks such as the grid code.


Mr Chairperson, the need to electrify rural areas is a priority of the PF Government as per its party manifesto. We, as a Government, want to extend electricity to many outlying areas in 2012, thus the Budget allocation for rural electrification has been increased from K314,250,000,000 in 2011, to K437,125,580,000. This will enable the Rural Electrification Authority (REA) to accelerate the Rural Electrification Programme.


Mr Chairperson, the PF Government will increase the contribution of renewable energy to the energy mix by promoting the development of renewable energy such as wind, solar, geothermal, mini-hydro power and the use of modern bio mass. The PF Government recognises the strategic role that renewable energy plays in national development, focussing especially on rural development. With the low electricity access levels of 3 per cent, the application of various renewable energy technologies in rural areas will be in water pumping, water heating, street lighting, electricity generation, cooking and lighting, among others. This will enhance productivity in the target areas and reduce dependence on wood fuel resources.


Mr Chairperson, the Government has provided guidance that bio fuels can now be blended with petroleum products at a blending ratio of up to 5 per and 10 per cent for bio diesel and ethanol respectively, in the coming years. We will, therefore, embark on a nationwide programme to provide all expellers to co-operatives at district level. This will not only promote value addition, …




The Deputy Chairperson: Order!


I cannot follow the speech. Please, consult quietly.


May the hon. Minister continue?


Mr Yaluma: ... but also increase income for the small-scale feedstock growers in line with the present promise of more money in the pockets of all Zambians. Therefore, the Budget allocation for bio fuel development in the 2012 Budget has been increased to K6,664,756,000 from last year’s K624,465,000.


Mr Chairperson, the Government will strive to optimally harness and manage water resources for the efficient, equitable and sustainable utilisation of this natural resource to enhance economic productivity and reduce poverty. This will enable the sector to play its meaningful role in the socio-economic development of the country. In order to facilitate best practices in the management and development of the country’s water resources, the Water Resources Management Act was passed in 2011 to replace the Water Act of 1949. The Water Resources Management Act of 2011 provides a framework for the equitable utilisation of water resources as well as sustainable protection, preservation, conservation management and management and development of the resource in its ecosystem.


It will also allow us to manage these issues in an integrated manner as well as address issues of climate change in line with the PF Manifesto. During the 2011, the ministry was able to make significant gains in the implementation of the programmed activities intended to enhance the management and development of water resources. In achieving this, the ministry was guided by the principles of Integrated Water Resource Management (IWRM). This approach recognises and takes into account competing demand and usage of water resources.


Mr Chairperson, the ministry continues to develop water resources infrastructure for productive use in order to increase access to water for domestic use, irrigation, hydro-power production, tourism, and recreation as well as climate change adaptation. With the resources made available to us, we were able to commence construction works on the three earth dams in the Luapula, Eastern and Southern provinces respectively. These projects, when completed, will create small irrigation potential of about thirty hectares each.


Mr Chairperson, the ministry is also winding up the construction works on Nakonde Dam for water supply to Nakonde Township. Construction of this dam commenced in March, 2011. The ministry has also undertaken preparatory work for the construction of Milundu Dam in the Luena Farming Block in Luapula Province, Nkonkola Dam in Mazabuka and Sikasiwa Dam in Monze, Southern Province, where it has either completed the procurement process or is at the mobilisation stage.


Regarding ground water development, this year, the ministry has constructed over 270 boreholes around the country, so far, under the various programmes, including ground water development for drought and cholera-prone areas, health, education and strategic institutions and trachoma control. Prior to what we call infrastructure maintenance, it has rehabilitated and carried out maintenance works on sixty-seven dams countrywide.


Mr Chairperson, the Government will accelerate implementation of projects in the water sector in 2012 in order to fully harness Zambia’s abundant surface and ground water resources for the benefit of the people of this country. We want to ensure that our people have access to safe water for domestic, industrial, agricultural and other uses in adequate quantities. This objective will be achieved through the establishment of an appropriate legal institution and policy framework which will allow various stakeholders and actors to contribute to the development and management of resources in a sustainable manner.


Mr Chairperson, the Government will, particularly, pursue specific intervention measures in the areas of water resource infrastructure development, water resource management and capacity building. In order to improve management of Zambia’s water resources and meet our current aspirations in the sector, a new water resource management law was recently enacted, following the revision of the National Water Policy in 2010. We envisage that this policy and legislative initiative will assist us to adopt best practices in the management of both ground and surface water resources.


We also would like to create a platform for engagement with other countries in the region in the management of trans-boundary water. In this regard, a national strategy is being developed in order to ensure that Zambia’s benefits are adequately represented.


Mr Chairperson, there is an allocation of K12.5 billion in the ministry’s budget for the 2012 fiscal year because we want to continue to scale up investment in the area of water resources infrastructure development by accelerating the construction of dams and waterways in all parts of the country. Of this amount, K11 billion has been allocated specifically to the actual construction of dams at various sites, including Mukonchi, Kasenengwa in Chipata in the Eastern Province, Hajamba in Mazabuka in the Southern Province, Chikulamenda and Funkwe in Kafue District in Lusaka ProvinceNakonde II in Nakonde District in the Northern and Muchinga provinces.


In addition, construction works on the following dam projects that were started by the previous Government will be completed: Nduwi in Chipata in the Eastern Province, Milindu in Luena Farming Block in Kawambwa in Luapula Province, Nkonkola in Mazabuka and Sikasiwa in Monze in the Southern Province, and Nakonde in Nakonde District in the Northern Province.


Mr Chairperson, K2 billion has been allocated in the 2012 Budget for the procurement of dam construction machinery in order to facilitate works on these sites.


Hon. UPND Members: Hear, hear!


Mr Yaluma: Construction of more dams will assist in increasing water storage capacity for agriculture, hydropower production and irrigation and henceforth contribute to increased access to water for various uses, particularly among rural communities. These measures will also enable us to respond effectively to the challenges posed by climate change.


The Government will further carry out maintenance and rehabilitation works on sixty-seven dams and waterways around the country to ensure sustenance of this infrastructure. An allocation of K6 billion has been made for this activity in the 2012 Budget. We will further accelerate ground water development for schools, clinics and rural health centres and other strategic institutions, including chiefs’ palaces. We also would like to eliminate incidences of cholera and trachoma, particularly in drought-prone areas, by developing ground water for domestic use, especially in low rainfall areas. This programme has been allocated K6.9 billion in the Budget 2012.


The ministry wants to establish a fair and more equitable mechanism for allocation of water to competing demands. In this regard, the Government will streamline the administration of water rights to ensure that water is made available for various uses.


Mr Chairperson I, therefore, wish to appeal to this august House to support the ministry’s estimates for 2012, amounting to K631,349,500.075.


I thank you, Sir.


Hon. Members: Hear, hear!


Mr Mweetwa (Choma Central): Thank you very much, Mr Chairperson, for giving me this opportunity to support the Vote on the Floor of this House.


Mr Chairperson, firstly, I would like to commend the hon. Minister for making his policy statement in a subtle and sober manner. Indeed, he is one of the few with such a capacity in this Cabinet ...


Hon. UPND Members: Hear, hear!


Mr Mweetwa: ... and this must be noted.


Mr Chairperson, the ministry being debated is extremely important. Due to the huge nature of the task before it, I wish to restrict myself to the issue of land. In basic economics, land is one of the factors of production. Therefore, the utilisation and transactions around it could have and, indeed, does have a greater impact on the overall economic performance of a country such as ours. Indeed, land in a country such as ours, operates as a viable economic instrument to many who wish to engage in business because it is used as collateral to borrow money. Therefore, its management and utilisation are of utmost importance, especially to this House.


Hon. UPND Members: Hear, hear!


Mr Mweetwa: I am happy that we have a sober hon. Minister in charge of such a very important ministry.


Mr Chairperson, the Ministry of Lands, Energy and Water Development is, today, beset with a number of issues and challenges that I wish ...


The Deputy Chairperson: Order!


(Debate adjourned)






[MR SPEAKER in the Chair]


(Progress reported)



The House adjourned at 1957 hours until 0900 hours on Friday, 16th December, 2011.