DAILY PARLIAMENTARY DEBATES FOR THE FIFTH SESSION OF THE TENTH ASSEMBLY

Wednesday, 16th March, 2011

The House met at 1430 hours

[MR SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

___________________

QUESTIONS FOR ORAL ANSWER

RURAL ELECTRIFICATION PROGRAMME IN NANGOMA

339. Mr Hamusonde (Nangoma) asked the Minister of Energy and Water Development when the Rural Electrification Programme would commence in Nangoma Parliamentary Constituency.

The Deputy Minister of Energy and Water Development (Mr Imasiku): Mr Speaker, according to the Rural Electrification Master Plan, the Rural Growth Centres (RGCs) in Nangoma area are ranked No. 6 out of the nineteen project packages under Central Province, and are scheduled to be electrified in 2013 using grid extension and solar. However, part of Nangoma Parliamentary Constituency is already electrified through grid extensions, especially the area around the mission hospital.

Mr Speaker, I thank you.

Mr C. K. B. Banda, SC. (Chasefu): Mr Speaker, according to the Rural Electrification Master Plan, which has been mentioned by the hon. Minister, the RGC in the Eastern Province under Phase VI is supposed to have electrified Mwata and Sikatengwa areas in 2010. Can you give an explanation since there is nothing happening on the ground?

The Minister of Energy and Water Development (Mr Konga): Mr Speaker, Mwata should have been electrified according to the plan in 2010. Although the plan does not indicate that, it must be supported by financial resources. The Government is still looking for financial resources to undertake the works in that area. Once funds are made available, the works will be executed.

I thank you, Sir.

Mr Chanda (Kankoyo): Mr Speaker, how is the Government balancing between the shortage of power in the country and the Rural Electrification Programme?

Mr Konga: Mr Speaker, indeed, due to the very progressive policies that this Government is pursuing, ...

Hon. Government Members: Hear, hear!

Mr Konga: ... there has been a very big resurgence in the economy of Zambia which has necessitated the need for more energy to drive the economy. Whereas Zambia previously used to be a net exporter of energy, the country now has to import energy. To this effect, this Government has embarked upon various programmes to develop new hydro-electric infrastructure such as the Kafue Gorge Lower, Itezhi-tezhi and Kalungwishi among others so that there will be enough electrical energy to meet the demands of the country, including those of the Rural Electrification Authority (REA).

Mr Speaker, I thank you.

Mr Muntanga (Kalomo Central): Mr Speaker, since there is no money to implement the electrification programme in the Mwata and Sikatengwa areas in the Eastern Province, is there any assurance that rural electrification will take place anywhere? When are you going to ensure that this programme is implemented?

Mr Konga: Mr Speaker, the hon. Member would recall that during this year’s Budget presentation, the hon. Minister of Finance and National Planning increased the allocation to the REA so as to meet the ever increasing demand for electrification in the country, especially in rural areas. Therefore, this Government has embarked on a path, not only as I have indicated, to produce more electricity but also connect more customers to the grid, especially those in the rural areas, among which are projects like Kasaba Bay where the Government has spent in excess of K87 billion. The Government will electrify Nansanga Farming Block. Just last week, the REA handed over the sites for Mumbwa Big Concession as well as Luena Farming Block. So, these, among others, are some of the projects which this very progressive Government is embarking upon.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Msichili (Kabushi): Mr Speaker, in 2005 and 2006, Kabushi benefited from the Rural Electrification Programme. The moment the results were announced, this programme stalled. When is it going to resume?

Mr Konga: Mr Speaker, the hon. Member’s question is not very clear because he has made reference to electrification based on some unspecified results. Let me just advise the hon. Member to define the results and then I will respond appropriately.

I thank you, Sir.

Mr Milupi (Luena): Mr Speaker, with regard to the Rural Electrification Programme, four years ago, your predecessor, Hon. Mutati, announced on the Floor of this House that the Government was going to source US$500 million for the purpose of rural electrification. Why is this Government still talking about lack of funds? What happened to the US$500 million which was supposed to be sourced?

Mr Konga: Mr Speaker, indeed, the Government indicated that it was going to find the money. It is true that the money is being sourced. However, it is not being sourced in one tranche, but over a period of time. For all these projects that I am talking about such as the electrification of Kabushi and Nansanga Farming Block, the US$10 million Mumbwa Big Concession is money that is being sourced by the Government. It is money that will be sourced over a period of time to execute projects over a period of time. The Government is striving to source not less than US$50 million a year because that is the budget for the REA which is equivalent to K250 billion a year. That is the money that the REA should spend and this is the money that we are striving to source each budget year.

Mr Speaker, what the hon. Minister for Energy and water Development stated is correct. We shall source the US$500 million over time.

Mr Speaker, I thank you.

Hon. Government Member: Hear, hear!

Mr D. Mwila (Chipili): Mr Speaker, I would like to find out from the hon. Minister whether he is satisfied with the rate at which we are moving in implementing the Rural Electrification Master Plan.

Mr Konga: Mr Speaker, the Government’s intention is to make this country a middle income prosperous nation by 2030. One of the primary catalysts to achieve this objective is energy. That is the reason the Government set up the REA. However, due to the constraints in financial disbursements, although the plans are there to electrify various rural areas, the challenge is that the REA is not appropriated sufficient funds every year. This is what is holding back the achievement of set goals.

Mr Speaker, that not withstanding, the Government is determined to move forward and mobilise more funds so that we can electrify the rural areas to make our people access energy for them to engage in more commerce and become wealthier.

Mr Speaker, I thank you.

Mr Lumba (Solwezi Central): Mr Speaker, The Japanese International Co-operation Agency (JICA) was supposed to finance the electrification of Mwata in Chasefu Constituency. Can the hon. Minister confirm whether JICA has pulled out from this project?

Mr Konga: Mr Speaker, various rural electrification projects are financed by a consortium of both the Government and other co-operating partners. Therefore, it is not correct to specifically say that JICA was going to finance Mwata in Chasefu because these resources are pooled in the Rural Electrification Fund which then disburses the money. Therefore, there was no specific project identified to be financed by JICA funds.

Mr Speaker, I thank you.

ZESCO OPTIC FIBRE CABLE

340. Mr D. Mwila asked the Minister of Energy and Water Development:

(a) whether the Zambia Telecommunications Company Limited (ZAMTEL) used the Optic Fibre Cable which was laid by the Zambia Electricity Supply Corporation (ZESCO) Limited at a huge cost and, if so, under what arrangements; and

 (b) how much money was outstanding towards servicing the loan obtained by     ZESCO for that purpose.

Mr Imasiku: Mr Speaker, ZAMTEL and ZESCO signed an indefeasible right of use (IRU) lease agreement on 17th December, 2009. The key terms of the agreement are:

 (i) ZAMTEL will be responsible for the commercial operations of the      existing and future ZESCO optic fibre networks;

 (ii) ZAMTEL shall have exclusive and indefinite use of the ZESCO fibre      network; and

 (iii) the revenue from the business on the ZESCO fibre network shall be shared     in a proportion of 80 per cent to ZAMTEL and 20 per cent to ZESCO.

Mr Speaker, ZAMTEL is currently discussing with ZESCO on optimising the IRU agreement.

Mr Speaker, the contract for Phase I was entered into between ZESCO and ZTE Corporation of China in 2005 and the implementation was completed in 2007. Phase I of the ZESCO optic fibre project cost US$10.7 million excluding taxes. For Phase I, ZESCO borrowed US$8 million from CITIC Bank of China. The rest of the project cost of US$2.7 million was paid directly by ZESCO to the contractor as an advance payment.

In total, the amount spent on the project was US$13.7 million inclusive of taxes paid to the Zambia Revenue Authority. The loan has since been liquidated by ZESCO.

A contract for implementing Phase II of the fibre project was signed between ZESCO and ZTE Corporation of China on 30th July, 2010. The cost of Phase II is US$43.9 million exclusive of taxes. ZESCO has already made an advance payment of about US$6.9 million to ZTE. The balance of US$37 million is to be financed with a loan from the Bank of China.

Mr Speaker, I thank you.

Mr D. Mwila: Mr Speaker, my concern is that ZAMTEL is the one using the optic fibre cable, and yet ZESCO has continued to service the loan. Why has the Government allowed ZESCO to continue paying back the loan, and yet the optic fibre is used by ZAMTEL?

Mr Konga: Mr Speaker, I thank the hon. Member of Parliament for Chipili for the follap question.

Hon. Opposition Member: Follap?

Mr Konga: Follow-up question.

Laughter

Mr Konga: As the hon. Deputy Minister has indicated, ZESCO borrowed money to set up the optic fibre network originally for its own internal operations. However, because of the large capacity of the fibre network that exists, the Government found it prudent to allow the two companies to complement each other as opposed to letting another parastatal company roll out another fibre network because there was spare capacity on the fibre network for commercial use by information and communication institutions and lease the extra bandwidth that exists on the fibre network that was originally set up by ZESCO because its technical operation is very small.

The debt contract was signed between ZESCO and the lender. I do not know if, commercially, someone who did not sign for the contract can pay when somebody else signed the contract. Mr Speaker, that is the commercial arrangement that exists currently.

I thank you, Sir.

Mr Beene (Itezhi-tezhi): Mr Speaker, ZESCO partially laid the cable in the country. They did not cover all the provinces. May the hon. Minster indicate whether the second phase will be able to cover all the provinces in the country?

 Mr Konga: Mr Speaker, the figures which were read out by the hon. Deputy Minister, show that Phase 1 cost about US$10 million whereas Phase 2 will cost almost a quadruple of that figure. This is an indication that in Phase 2, ZESCO will roll out the fibre optic network to the remaining parts of the country which were not covered in Phase 1.

Mr Speaker, I thank you.{mospagebreak}

Mr Kakoma (Zambezi West): Mr Speaker, can the hon. Minister help to clear the confusion over the revenue sharing mechanism. ZESCO is the owner of the optic fibre network, but will be getting only 20 per cent of the revenue earned while ZAMTEL is going to be getting 80 per cent. What is the logic behind that revenue sharing mechanism?

Mr Konga: Mr Speaker, it appears as though there is some ambiguity here. However, in line with the IRU, this agreement is between, a transmitter and a distributor. There is the bulk transmission and distribution of data by ZAMTEL and different information and communication technology (ICT) companies in different districts. When financial calculations were worked out, there were more costs associated with the distribution of data using the fibre optic network by ZAMTEL and other ICT companies.

Sir, for instance, if we transmit information from Livingstone to Lusaka, ZESCO will only incur the cost of transmitting it between the towns, but the actual cost of transmitting it within the towns is incurred by ZAMTEL and other ICT users.

Mr Speaker, the costs incurred by ZAMTEL and the other ICT users were found to be higher than those incurred by ZESCO during the transmission process. Thus, it was found prudent that ZESCO takes 20 per cent while ZAMTEL gets 80 per cent of the profits. This is because ZAMTEL would be incurring higher costs in the use of the fibre optic network on the metropolitan network within the towns.

Sir, this is the best I can explain this.

I thank you, Sir.

Mr Lumba: Mr Speaker, I would like to find out how long it will take for ZESCO to pay the outstanding debt to the Chinese bank which helped it meet some of the costs which went into putting together the fibre optic network.

Mr Konga: Mr Speaker, we have indicated that, for Phase 1, the loans have been cleared. For Phase 2, the loans are still running.  Since this is a technical issue, I will find out what the contract says and will inform the House accordingly.

Mr Speaker, I thank you.

Mr Mwiimbu (Monze Central): Mr Speaker, I would like to find out the prudence behind ZESCO continuing to invest in optic fibre cables considering that the exclusive rights of use of these cables are for ZAMTEL. Why should ZESCO continue spending so much money on behalf of ZAMTEL?

Mr Konga: Mr Speaker, as I indicated earlier, ZESCO needs to have a communication network for its operations. First and foremost, we need to accept that fact. Presently, fibre communication is best suited for ZESCO in its telesignaling.

However, because of the extra capacity that this fibre communication network has, ZESCO finds it prudent to lease it out instead of letting it remain redundant. Otherwise, ZESCO would have not invested in something which cannot earn revenue at the end of it all.

Sir, therefore, the ZESCO Board and Management found it prudent that the redundant part be leased out to other users.

I thank you, Sir.

Mr Hachipuka (Mbabala): Mr Speaker, I would like to find out why ZESCO has continued to offer exclusivity to ZAMTEL the use of the fibre optic network under Phase 2, when there are many telephone operators in the country. Why should others not benefit from this redundant space? If this was done, ZESCO may even be in a position to negotiate for a better deal than the 80 to 20 per cent way of sharing profits.

Mr Konga: Mr Speaker, when the agreement was discussed and entered into between ZESCO and ZAMTEL, both institutions were parastatals. Therefore, it was prudent for both institutions to complement each other’s work. Of course, the situation has now changed, but the agreement is still binding.

Interruptions

Mr Konga: The board can revisit this situation if it so wishes. No one is disputing that fact but, as it stands, no one has said that we should revisit the situation.

Sir, a key point worth emphasising is that, at the time the agreement was entered into, both ZESCO and ZAMTEL were parastatals. Therefore, at that time, it was prudent that the two parastatals complement each other.

Mr Speaker, if the situation is different, as it may be now, of course, the agreement can be revisited.

Hon. Opposition Members: Yes!

Mr Konga: Mr Speaker, I thank you.

LIMULUNGA RURAL HEALTH CENTRE

341. Mr Milupi asked the Minister of Health:

(a) when Limulunga Rural Health Centre would be upgraded to a referral 
hospital to cater for the high population in Limulunga and the surrounding areas; and

(b) whether the upgraded hospital would have adequate medical personnel and a 
medical laboratory.

The Deputy Minister of Health (Dr Kalila): Mr Speaker, the Government has no immediate plans to upgrade Limulunga Rural Health Centre to hospital level as the population it serves does not make it qualify for a first level hospital.

Sir, the House may wish to note that the population for a first level hospital is in the range of 80,000 to 200,000. However, Limulunga Rural Health Centre currently operates as a zonal health centre with male and female wards, a maternity annex, mortuary, VCT/ART unit and an outpatient department. The Government plans to upgrade it to a fully-fledged zonal health centre to offer all services, including radiography services. This will be done after completing the construction of Mongu District Hospital.

Mr Speaker, once Limulunga Rural Health Centre is fully upgraded to a zonal health centre, the staffing level will be increased to that of a fully-fledged zonal health centre. Currently, Limulunga Rural Health Centre has the following staff in post:

Cadre  Number

Medical Staff

Zambia Enrolled Nurse  03

Registered Nurse  01

Zambia Enrolled Mid Wife  01

Clinical Officer General  01

Sub-total  06

 

Classified Employees  

Maid  01

Watchman  01

Cleaner  02

Sub-total  04

Grand Total  10

Mr Speaker, once Limulunga Rural Health Centre is fully upgraded to a zonal health centre, it will have the following staff:

Cadre  Number

Medical Staff

Clinical officer  02

Dental Therapist  01

Environmental Health Technician  01

Medical Laboratory Technologist  01

Medical Licentiate  01

Pharmacy Dispenser  01

Pharmacy Technologist  01

Public Health Nurse   01

Registered Nurse    01

Senior Clinical Officer  01

Senior Environmental Health
Technologist  01

Zambia Enrolled Midwife  03

Zambia Enrolled Nurse  06

Sub-Total   21

Administrative Staff

 Medical Records Clerk  01

 Revenue Collector  01

 Security Guard  02

 Cook  01

 Cleaner  03

 Driver  01

 Sub-Total   09

 Grand Total  30

Mr Speaker, I thank you.

Mr Milupi: Mr Speaker, I can assure you that this rural health centre caters for more than 9,000 people. The 9,000 constitutes the royal village and does not include the surrounding areas. Can the hon. Minister be more specific instead of just saying that the upgrading of the health centre will only be done once the Mongu District Hospital is completed? When we come here, we ask for specific information which we can take back to our constituencies. Surely, the Government must be aware as to when exactly the Mongu District Hospital will be completed so that we can establish the period around which the upgrading exercise for the health centre will begin. Can the hon. Minister be more specific?

The Minister of Health (Mr Simbao): Mr Speaker, if the hon. Member heard the answer well, he should have heard that when the health centre is upgraded, the main change will be the number of staff that it will have. We already have all the necessary infrastructure at this place. The only addition there might be the radiography unit. Finishing the works at the Limulunga District Hospital will take us a maximum of three years. We started building this hospital last year and it is likely to finish in 2012.

Mr Speaker: Order!

For the record, do you mean Mongu?

Mr Simbao: Mr Speaker, I am sorry. I mean Mongu.

I thank you, Mr Speaker.

Mr Imenda (Lukulu East): Sir, just last week, the hon. Minister was telling this House that soon after the construction of Mongu District Hospital is completed, the ministry will move on to Lukulu. I would like to find out which hospital will be worked on first. Is it Lukulu District Hospital or Limulunga District Hospital?

Hon. Opposition Members: Hear, hear!

Mr Simbao: Mr Speaker, I think the hon. Member for Lukulu East is becoming a little individualistic. I did not say we are going to build Limulunga District Hospital. I am sure he heard us very well on that one. I do not understand why he is confusing Limulunga Zonal Health Centre with Lukulu District Hospital. I do not understand why there is this confusion.

I thank you, Mr Speaker.
GOVERNMENT DEBT

343. Mr D. Mwila asked the Minister of Finance and National Planning:

(a) how much money the Government owed the following financial institutions from 2006 to 2010:

(i) the African Development Bank (ADB); and

(ii) the International Monetary Fund (IMF);

(b) how much money had been paid towards servicing the debt; and

(c) what measures the Government had put in place to reduce external borrowing.

The Deputy Minister of Finance and National Planning (Mr Phiri): Mr Speaker, from 2006 to 2010, the Government owed money to the ADB and the IMF as follows:

ADB

Year 2006 2007 2008 2009 2010

 Total Amount

 Owed (US$m) 77.9 101.34 152 188.15               176.57

 IMF

Year

Total Amount 2006 2007 2008 2009 2010

Owed (US$m) 41.39 86.95 95.51 344.79               277.01

Mr Speaker, the sharp rise in the total outstanding debt being noticed in the IMF portfolio from US$95,512,143 in 2008 to US$344,786,765 in 2009 is on account of the augmentation resources that the country received in 2009. The reduction in the stock of debt in 2010 is on account of the payment of the principal that the Government made following the expiration of the five-year grace period in 2010.

Mr Speaker, during the period 2006 to 2010, the Government paid a total of US$21,737,059 towards servicing the debt owed to the ADB and IMF. Of this debt repayment service, US$20.1 million was paid to the ADB while US$1.6 million was paid to the IMF.

Mr Speaker, following the reduction of Zambia’s debt under the heavily indebted poor countries (HIPC) and multilateral debt relief initiatives, the Government’s debt strategy is to manage external debt prudently to ensure that Zambia’s debt continues to be sustainable.

Sir, in the medium term, the Government will increase its borrowing from external creditors in order to finance the huge infrastructure needs that Zambia has, especially in the energy and road sectors. The Government’s capacity to carry on with additional external borrowing is limited by its ability to service additional debt as indicated by the debt sustainability analysis which is conducted annually.

Mr Speaker, the Government has taken measures to ensure that external debt is managed prudently and sustainably. These measures include the formulation of a formal debt management strategy and regulatory and legislative review of debt management.

Additionally, capacity building and institutional reforms for effective debt management are undertaken. 
 
Mr Speaker, I thank you.

Mr D. Mwila: Mr Speaker, between 2009 and 2010, the Government borrowed almost US$1 billion. Can the hon. Minister inform this House how much interest this Government is paying on these loans?

The Minister of Finance and National Planning (Dr Musokotwane): Mr Speaker, the hon. Member has asked a question that requires specific figures. These figures must be prepared so that they can be reported in a proper manner. Therefore, I am unable to give a specific amount on the interest paid at the moment. However, the hon. Member is welcome to submit a new question on this.

Mr Speaker, I thank you. {mospagebreak}

PRISON ESCAPEES

344. Mr Chisala (Chilubi) asked the Minister of Home Affairs how many suspects escaped from police custody in the following provinces from January, 2010 to date:

(i) Central;

(ii) Copperbelt;

(iii) Lusaka;

(iv) Northern;

(v) Southern; and

(vi) Western.

The Deputy Minister of Home Affairs (Mr Sichilima): Mr Speaker, I wish to inform the House that the total number of suspects who escaped from police custody from January, 2010 to date is as follows:

Province    No. of Escapees

Central 25

Copperbelt 52

Lusaka 30

Northern 42

Southern 50

Western 65

Mr Speaker, I thank you.

Mr Chisala: Mr Speaker, can the hon. Minister state the major reason for such large numbers of escapees in rural areas?

Mr Sichilima: Mr Speaker, the reasons vary. Some suspects escape when they are taken to court. Some escape while in custody, probably due to the old infrastructure. As you may be aware, some cells were constructed even before the hon. Member for Chilubi was born. In some cases, prisoners connive with officers although that is rare. 

Mr Speaker, since what the hon. Member has asked was anticipated, I wish to state that the police, in whose custody these prisoners are, are not sitting idly. I wish to give examples of what the police are doing to bring the situation under control in the Southern Province.

Mr Speaker, in Livingstone Central, three suspects escaped, but two were re-arrested. At Dambwa North Police Post, a suspect ran away, but he was later re-arrested. At Dambwa Central Police Post, three suspects escaped but, unfortunately, none of them were re-arrested. At Kazungula Police Post, three suspects escaped and none was re-arrested. In Libuyu, there was one escapee and he was never re-arrested. In Linda, one suspect escaped and was re-arrested. In Kalomo, two suspects escaped, but only one was re-arrested. In Choma, twenty suspects escaped, but only one was re-arrested.

Interruptions

Mr Sichilima: Mr Speaker, in Maamba, there were two escapees and one was re-arrested. Pemba reported six escapees and two were re-arrested. Itezhi-tezhi reported four escapees and three were re-arrested. In Monze, three suspects escaped and only one was re-arrested. Finally, Nega-nega reported one escapee and the suspect was later apprehended. 

Mr Speaker, this is an indication that the police are not just seated, but working around the clock to pursue those on the run.

I thank you, Sir.

Mr Beene: Mr Speaker, I would like to find out from the hon. Minister whether there were any foreign nationals among the escapees. If so, how many managed to escape to other countries? 

Mr Sichilima: Mr Speaker, again, as anticipated, I wish to put on record that ten of the escapees were foreign nationals and they were all re-arrested.

I thank you, Sir.

Mr Chota (Lubansenshi): Mr Speaker, the Western Province had the highest number of escapees. Can the hon. Minister tell us why he has not talked about those who were re-arrested? It seems that no one was re-arrested in the province when it had the highest number of escapees.

Mr Sichilima: Mr Speaker, the Ministry of Home Affairs is delighted to know that hon. Members of Parliament are interested in the security of the people.

Mr Speaker, indeed, the Western Province recorded the highest number of escapees. It could be that re-arrests may have been deterred by the terrain of the province. However, I gave an overview of how the police are making re-arrests. I do not have the exact number of those re-arrested here, but I can confirm that many were re-arrested, most of whom were cattle rustlers.

I thank you, Sir.

Mr Kapeya (Mpika Central): Mr Speaker, the hon. Minister said that many escapes were due to poor infrastructure. I would like to learn from him what this Government intends to do in order to rehabilitate this infrastructure.

Mr Sichilima: Mr Speaker, you have guided this House before that hon. Members are part of the budget approval process. Therefore, the hon. Member, who is asking the question, takes part in approving the budget. In this year’s Budget, the amount of money for rehabilitation of such infrastructure is available. It is unfortunate that I cannot come up with a figure at the moment, but I am sure the hon. Member knows it. In short, the ministry is undertaking the rehabilitation of the infrastructure.

I thank you, Sir.

Dr Machungwa (Luapula): Mr Speaker, I wonder if the hon. Deputy Minister is in a position to tell this House whether the number of escaped prisoners from police cells is more or less the same with the number of prisoners escaping from prisons. Do we have more escapes from prisons or police custody?

Mr Sichilima: Mr Speaker, as anticipated …

Hon. Members: Aah!

Mr Sichilima: I am a senior minister.

Laughter

Mr Sichilima: Sir, with regard to the ratios, I wish to confirm to this House that the number is now lower in prisons. There are two types of prisons in this country, namely open prisons and those that are in cells. The number rose in the open prisons, but now it has been controlled due to counselling programmes.

I thank you, Mr Speaker.

DECEASED SOLDIERS

345. Mr Mwango (Kanchibiya) asked the Minister of Defence:

(a) how many soldiers died whilst on duty from 2006 to 2010;

(b) what the causes of death had been; and

(c) what compensation had been given to the bereaved families.

The Deputy Minister of Defence (Mr Mulyata): Mr Speaker, the causes of death varied. Two soldiers died while on Peace-Keeping Missions in Sudan and one of them died from natural causes. Two hundred and forty-five died from natural causes, twenty-one died in road traffic accidents, one died in a plane crash whilst on training flight, two committed suicide while two died in a fatal accident caused by earth moving equipment.

Sir, compensation given to the bereaved families was as follows:

(i) United Nations compensation under peace-keeping missions for those who died from non-natural causes;

(ii)  special death gratuity and compensation;

(iii) based on the provisions of Section 44 as read with Section 3(5) (a); and

(iv) second Schedule of the Public Service Pensions Act No. 35 of 1996 which stipulates the conditions of service relating to death in the course of duty.

Section 44(1) reads as follows:

“Subject to the provisions of Part X, a gratuity shall be paid in respect of an officer who dies, and whose death, in the opinion of the appropriate authority, was not caused by any wrongful act or omission on the part of such officer in discharging the officer’s official duties.”

I thank you, Mr Speaker.

Hon. Government Member: Hear, hear!

Mr Mwango: Mr Speaker, how many military personnel out of the 245 who died from natural causes has the Government compensated?

The Minister of Defence (Dr Mwansa): Mr Speaker, compensation does not come as a matter of course. The circumstances under which each death occurs are investigated through a board of inquiry that determines the amount of compensation to be paid in each particular case, subject to the law as read out by the hon. Deputy Minister.

I thank you, Sir.

Dr Scott (Lusaka Central): Mr Speaker, the question is what compensation was given to the bereaved families. I do not think the intention of that query was what kind of compensation was given, but how much, perhaps, the average or total for the 245 soldiers. Could the hon. Minister tell us how much each soldier was getting for death while on duty?

Dr Mwansa: Mr Speaker, where compensation is available, in accordance with the regulations that are in place, it is usually equal to the officer’s annual pension emoluments at the time of death.

I thank, Mr Speaker.

Mr D. Mwila: Mr Speaker, for clarity’s sake, what formula was used to come up with the amount for compensation? You may say they were paid gratuity, and yet they were paid K1 million each. Can you inform this House, please?

Dr Mwansa: Mr Speaker, for the sake of repeating ourselves, we have said that not every death attracts compensation. Allow me to give a brief background information. Every military personnel, man or woman, is on duty twenty-four hours. If he/she dies when they are going to the office, coming from the office or going to an operational area, this means that he/she has died on duty. Officers can be mobilised without notice to defend the country. Therefore, every cause that compensation may be payable is taken before the board of inquiry which then decides the level of compensation, including circumstances under which a particular officer died. After that, the information is passed on to the Public Service Pensions Board, which will then look at the matter in accordance with the recommendations and then compensation is payable.

Sir, as we said, compensation is usually equivalent to the annual emoluments of the deceased officer.

I thank you, Sir.

Mr Kambwili (Roan): Mr Speaker, it is reported that most of the deaths in the military are caused by HIV/AIDS related infections because soldiers are sent away from their families for a long time. As a result, they engage in extra-marital sex. May the hon. Minister confirm this fact? If it is true, what is being done to fight this scourge?

Dr Mwansa: Mr Speaker, I cannot confirm that the prevalence of HIV/AIDS is higher in the defence forces compared to the general population. However, what I can say is that there are various schemes within the Ministry of Defence under which help is available to those who need it. If officers think that they need help, they are encouraged to come out and have themselves tested. Help is available throughout all military cantonments. We have clinics and personnel to administer these medicines.

I thank you, Mr Speaker.

Mr Chisala: Mr Speaker, could the hon. Minister state why the Government delayed in compensating the soldiers who died while on peace-keeping missions abroad?

Dr Mwansa: Mr Speaker, we have not delayed compensating individuals who died while on peace-keeping duties abroad. We are aware of one case where an officer died in an air crash in Sudan. The crash was caused by a mechanical failure of that aircraft and he was compensated immediately by the United Nations (UN).

I thank you, Sir.

Mr Mukanga (Kantanshi): Mr Speaker, why does it take long for people to be compensated when they die on duty?

Hon. Members: Aah!

Mr Speaker: The hon. Minister has answered that question, at least, five times.

Laughter

KAFUE TEXTILES OF ZAMBIA HOUSES

346. Mr Hamusonde asked the Minister of Commerce, Trade and Industry:

(a) whether former employees of the Kafue Textiles of Zambia (KTZ), who were sitting tenants in the KTZ houses, had been allowed to purchase the houses; and

(b) what measures had been taken by the Government for the benefit of KTZ employees who did not benefit from the Government sale of houses.

The Deputy Minister of Commerce, Trade and Industry (Dr Puma): Mr Speaker, the houses belonging to KTZ have not yet been sold to the sitting tenants. Following the insolvency of KTZ, the houses were transferred to the Government to be sold to sitting tenants on terms to be determined. The Government then transferred the houses to the National Housing Authority (NHA) as it was considered the institution best placed to handle the sale objectively and professionally. The NHA is in the process of completing preliminary work pertaining to the sale of the houses and is expected to sell the houses to the sitting tenants during the course of this year.

Sir, as mentioned earlier, the houses belonging to the former KTZ have not yet been sold to the sitting tenants. However, the former employees of Kafue Textiles of Zambia were paid their redundancy packages in accordance with a Scheme of Arrangements sanctioned by the Lusaka High Court. Under this scheme, the former employees were paid 50 per cent of their redundancy packages. Other creditors of the company received 13 per cent of what was owed to them as the full and final payment in accordance with the Scheme of Arrangement.

I thank you, Mr Speaker.

Captain Moono (Chilanga): Mr Speaker, I would like to find out from the hon. Minister whether there are any plans to send the former President to Kafue to facilitate the easy and quickest sale of houses to sitting tenants of KTZ houses as he did on the Copperbelt.

Laughter

Dr Puma: Mr Speaker, as I have indicated, the process has already started and so there is no need of using other means. The NHA is in the process of ensuring that the houses are sold.

I thank you, Sir.

Mr Habeenzu (Chikankata): Mr Speaker, some of the former employees of KTZ could have died. I would like to find out how the sale is going to be carried out. Are the houses going to be sold to the families of the deceased or what is going to happen?

Dr Puma: Mr Speaker, in the sale of houses, each case is looked at on its own merit. The National Housing Authority will determine whether to sale to the family of the deceased or offer them to other people.

Mr Beene: Mr Speaker, may the hon. Minister confirm to this House that, during the sale, the houses will go at depreciated net value to those who will be able to buy them.

Dr Puma: Mr Speaker, in my reply, I mentioned that when these houses were handed over to the Government, it was decided that the NHA was the best institution to handle the issue. All those issues that are being raised such as the price and depreciation will be looked at by the NHA.

I thank you, Sir.

Mr Kambwili: Mr Speaker, the textile was liquidated nine years ago and employees were paid 50 percent of their terminal benefits. How does this Government think they are going to raise the money to pay for the houses? Is it not right that they are given the houses at no cost?

Dr Puma: Mr Speaker, when someone is paid 50 percent of what is due to them from the scheme of arrangement, it does not mean that, for the past nine years, they have just been waiting for the other half. I am sure most of them have been involved in other meaningful activities to enable them buy the houses. The actual price will be determined by the NHA after considering the depreciation of the houses and the prevailing situation.

I thank you, Sir.{mospagebreak}

BUY A BRICK PROJECT

347. Mr D. Mwila asked the Minister of Defence:

(a) when the Government would fulfil its obligation of giving building materials to its employees whose money was deducted by co-operatives under the “Buy-a-Brick-Project”;

(b) how much money was deducted from the employees from 2008 to 2010, year by year;

(c) how many employees were affected by the above arrangement; and

(d) what had caused the delay in giving building materials to eligible employees.

Mr Mulyata: Mr Speaker, the army will fulfil its obligation of reconciling and honouring the deductions under the “Buy a Brick Project” immediately the proceedings of an audit board are concluded.

The project commenced in November, 2006 and was suspended in September, 2009. The amount of money deducted from employees from 2008 to 2009 will be given by the audit board. However, a total number of 82,626 blocks amounting to K247,875,000 were not delivered to the members as at 17th September, 2009. The financial state of the project on the same date was as follows:

Item     Amount (K)
 
Cash at bank    14,258,844.39
Stock (Cement)    1,375,000
Quarry dust   1,950,000
Total    17,583,844.39

Mr Speaker, the number of personnel affected is:

Personnel   Number

Officers   27
Other Ranks   57
Civilians    04
Total   88

Mr Speaker, the delay in giving building materials to eligible employees is due to the financial irregularities and general mismanagement which were discovered. Subsequently, the cost of production of the building materials increased due to fluctuating prices of raw materials. The members’ contributions could, therefore, not be equal to the agreed quantities of building materials. The project had no capacity to fund the difference. A board of inquiry was convened to investigate the mismanagement. However, due to the complexity of the said irregularities, an audit board has been convened to precisely bring up the correct state regarding the project for the authorities to make the right decision.

I thank you, Sir.

Mr D. Mwila: Mr Speaker, it is clear that the Government has failed to manage this co-operative.

Mr Mubika: Order, iwe, si Government.

Interruptions

Mr D. Mwila: I am talking about the co-operative and not you, Hon. Mulyata.

Do you have any intentions, as a Government, to intervene in this matter so that all the problems are sorted out?

Dr Mwansa: Mr Speaker, firstly, I want to clear the misconception that this is a Government project. It is a voluntary project which was conceived by the Zambia Army Green Buffaloes Club to help its members buy material for the construction of houses cheaply. As stated, it got into difficulties because the demand for building materials was increasing and the cost was also increasing. There were also some administrative challenges which were encountered. So, at the moment, the scheme has been suspended and the board of survey has been going on to determine exactly what happened and how the scheme can be revived in order to assist the individuals involved.

I thank you, Sir.

Mr Kambwili: Mr Speaker, every time there is an irregularity, it is becoming common for this Government to say that the board of survey or auditors have not come up with a report. It is five to six years …

Mr Speaker: Order!

What is your question?

Mr Kambwili: May I know when the board of survey will conclude its findings so that the people who were involved in mismanaging this programme can be brought to book. Why should it take five years to carry out an audit?

Dr Mwansa: Mr Speaker, the Government is very systematic and not spontaneous …

Hon. Government Members: Hear, hear!

 Dr Mwansa: … or random in the way it does things. So, we have to do a thorough job of investigating before we can take the matter further.

I thank you, Sir.

Interruptions

Captain Moono: Mr Speaker, the “Buy-a-Brick Project” under the co-operative in the defence force is an indication that the personnel in the …

Mr Speaker: Order!

You are debating. Ask your question.

Captain Moono: What is the ministry doing to come up with a sustainable project or relief for soldiers who want to build houses other than such makeshift arrangements? What is the Government’s policy on assisting officers in the defence force to build houses?

Dr Mwansa: Mr Speaker, the project that was instituted is a commendable initiative by the Zambia Army Commander to assist his officers access building materials cheaply and build houses. However, the Government is encouraging home ownership schemes of various mechanisms that are in existence, including the NHA facility. In addition, we are also building institutional houses for officers who are in service. Nonetheless, the idea of settling them in their own accommodation is very important and we have spent a lot of time thinking about how to operationalise our plans so that we make life bearable for officers after they leave the service.

CHIPILI AND MWENDA POLICE POSTS

348. Mr D. Mwila asked the Minister of Home Affairs:

(a) when police officers would be sent to Chipili and Mwenda Police posts in Chipili Parliamentary Constituency;

(b) why police officers were withdrawn from the police posts above; and

(c) when the ministry would construct permanent buildings at Chipili Police Post.

Mr Sichilima: Mr Speaker, police officers will be sent to Chipili and Mwenda Police posts in Chipili Parliamentary Constituency when offices and housing units for police officers are acquired. Police officers were withdrawn from the two police posts due to lack of offices and housing units. The offices and houses previously occupied by the officers were repossessed by the owners. Consequently, the officers had to be withdrawn, as there was no alternative accommodation at the time.

Mr Speaker, the Ministry of Home Affairs will construct permanent buildings at Chipili Police Post when funds are made available in line with the Infrastructure Development Plan for the ministry.

I thank you, Sir.

Mr D. Mwila: Mr Speaker, I do not know whether the hon. Minister can inform this House when, specifically, the buildings will be constructed at Chipili Police Post.

Mr Sichilima: Mr Speaker, I have said in my answer that when funds are made available, …

Mr D. Mwila: Lilali?

Mr Sichilima: … permanent buildings will be constructed in line with the development plans that the ministry is undertaking. On the other hand, if the hon. Member deems this urgent, he can use the Constituency Development Fund (CDF) to construct houses for police officers at that particular police post.

Hon. Opposition Members: Aah!

Mr Sichilima: If other constituencies have done this, I am sure Chipili can also do it. I, therefore, urge the hon. Member to take up this special advice.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Mr Chongo (Mwense): Mr Speaker, Chipili Constituency is in Mwense District. Can the hon. Minister indicate where the withdrawn police officers were taken because the district is suffering from a serious shortage of police officers? Where were the officers deployed if not within the district?

 Mr D. Mwila: Hear, hear!

Mr Sichilima: Mr Speaker, when police officers are withdrawn from any exercise that they are undertaking or, indeed, any station, they can be deployed anywhere in this country and not specifically within the district where they were stationed. If Mwense District, through the hon. Members of Parliament, indicates to the ministry that there is now a need for more police officers and accommodation is available, the Government will send more officers to the area.

I thank you, Mr Speaker.

PACRA REVENUE

349. Mr Mwango (Kanchibiya) asked the Minister of Finance and National Planning:

(a) how much money was raised by the Patents and Companies Registration Agency (PACRA) from 2006 to 2010 in the following:

(i) company registration; and
(ii) company returns; and

(b) what percentage PACRA contributed to the nation as revenue in the same period.

Mr Phiri: Mr Speaker, PACRA raised a total of K38.62 billion during the period 2006 to October, 2010. Under company registration, PACRA raised K7.1 billion, K26.36 billion under company returns, K3.8 billion from business names registration and K1.8 billion under business names returns. The agency contributed about 24 per cent to the nation as revenue from its own revenue in Pay-As-You-Earn (PAYE) and dividends from 2006 to 2010. PAYE was K8.4 billion while dividends amounted to K700 million from 2006 to 2010.

I thank you, Mr Speaker.

EXAMINATION MALPRACTICES

350. Mr Chisala asked the Minister of Education:

(a) how many pupils were involved in examination malpractices in 2009 at Grade 7, 9 and 12 levels;

(b) of the cases above, how many were investigated; and

(c) what was the final outcome.

The Deputy Minister of Education (Dr Kawimbe): Mr Speaker, the number of pupils who were involved in examination malpractices is as follows:

Grade   No. of Pupils

   7   Nil
   9   74
12   89

Mr Speaker, the seventy-four pupils at Grade 9 level who were involved in examination malpractices in 2009 had their cases resolved as follows:

(a) the results for seventy pupils were nullified in all the subjects;

(b) the results for two pupils were nullified in one subject only; and

(c) the results for two pupils are still being withheld pending the outcome of the investigations that are still on going.

Mr Speaker, the eighty-nine pupils at Grade 12 level who were involved in examination malpractices in 2009 had their cases resolved as follows:

(a)  results for eighty-three pupils were nullified in all the subjects;

(b)  the results for four pupils who were cleared were released; and

(c)         the results for two illegal pupils were discarded.

Mr Speaker, in addition, the additional penalty applied to pupils who were involved in examination malpractices is that they are barred from taking these examinations for a period of two years.

I thank you, Sir.

Mr Chisala: Mr Speaker, it is a well-known fact that, lately, examination leakages are more common than they were when the examinations were conducted by the Cambridge Examination Board. May I know the major reason behind the current occurrences?

The Minister of Education (Ms Siliya): Mr Speaker, obviously, this scourge of examination malpractices is quite a bad one and I think we all agree on that. As a ministry, we are doing everything possible to sensitise the families, students and teachers regarding the badness of examination malpractices. Now, to state that the malpractices were fewer when examinations were done through the Cambridge Examination Board is not completely right. What has just happened is that, for a long time, there was no investment in education in terms of school construction, but the population continued to grow. Thus, we reached a stage were there was so much pressure on our education system. A situation was created whereby, there were many parents looking for Grade 8 and 10 places for their children and even at tertiary education institutions. This is why our response on this side of the House to the examination malpractices has been to provide more school places so that many parents do not have the pressure of looking for education opportunities for their children. This intervention has led to a reduction in the number of malpractices.

Mr Speaker, obviously, that is not the only solution. Sometimes, teachers do not prepare pupils well for examinations, but still do not want to be seen as coming from a school that produces a lot of pupils who fail examinations. This leads to teachers encouraging examination malpractices so that the teacher or school does not get a bad reputation. So, we are trying to deal with all these issues from many angles by providing access and also encouraging teachers to be well trained so that they are ready to teach well in the classroom. It is also important that the families get involved in ensuring that their children prepare for examinations adequately. I believe that we are also tackling this matter seriously through the on-going sensitisation programmes which are expected to contribute to a reduction in these malpractices.

I thank you, Sir.

Mrs Mwamba (Lukashya): Mr Speaker, from the explanation by the hon. Minister, it is clear that the Government knows the root causes of the malpractices in examinations. Why has the Government failed to completely eliminate the malpractices in examinations?

Ms Siliya: Mr Speaker, I do not think that you can get from a chaotic situation to a normal one overnight. This is why one of our main interventions has been to provide access so that there is no pressure regarding the shortage of places in schools. For example, if you look at the Grade 7 cut-off point, over the years, it has continued to go up. In recent years, it has even reached between 700 to 800. However, when many of us went to school, the cut-off point was very low because the number of pupils matched the number of places available. The situation which has been obtaining in recent times is unfair because the cut-off point has been a direct reflection of the number of places available in schools. This is why, as a Government, we have said that as we have continued providing more places at Grade 8 level, the Grade 7 cut-off point has not become such a major issue in our education system. As long as a pupil has had a full certificate he/she is able to proceed to Grade 8. This is why, on this side of the House, we are very proud that, after twenty years, we saw a progression rate of over 80 per cent at Grade 7 and 9 into the next grade. Thus, insisting on us totally eliminating examination malpractices overnight while overlooking the efforts we are making to handle the situation is unfair.

Mr Speaker, we have a plan to construct 100 high schools by 2012. At this point, already sixty-five schools are under construction. I believe that Zambians have faith that we have a plan to increase access to education. I also believe that Zambians know that we are laying a good foundation and are doing the right thing for their children. We intend to improve the teacher training programme by 2013 so that we cut out the certificate training programme such that it can start at the diploma level. This will mean that most teachers will avoid malpractices because they will be confident having received a high level of training which will make them good teachers.

Mr Speaker, we are also engaging the parents so that they can place a high premium, once again, on education. We want to make the parents recognise the fact that, in one generation, you can reduce poverty because of education. I believe that we are doing well in our efforts to make everybody in Zambia realise that education is truly the gateway to a better life. We, on this side of the House, believe that Zambians agree with us that we are doing the right thing. This is why they will retain us in Government this year.

I thank you, Sir.

Hon. Government Members: Hear, hear!

Hon Opposition Members: Question!

Mr Chongo: Mr Speaker, can the hon. Minister indicate how thorough they are doing the investigation of malpractices to the extent that they involve the culprits so that they are not mistreated as the case happened in Mwense, where two pupils only came to know about the investigation when they were told that their results were nullified when they were expecting to receive them. What efforts are they making to involve the culprits in the investigations?

Ms Siliya: Mr Speaker, indeed, if that was what happened in Mwense, it is quite regrettable. I know that our investigations are very thorough. Just this morning, I was dealing with a case in Sesheke where the results have been withheld because of the malpractices at the school. These investigations involve not just people from the Ministry of Education Headquarters, but also the provincial and district education board secretaries (DEBS), teachers at the school, parents, the community and the police because, remember, this is a criminal offence under the Laws of Zambia. If someone is found wanting, he/she has to go before the courts of law. This is a very serious matter.

Mr Speaker, let me take this opportunity to advise the teachers, parents and students to desist from engaging in malpractices because, at the end of the day, even if it is only a few people who do it, it still brings the whole education system of Zambia into disrepute in the eyes of the regional community and beyond. We must all remember that, today, we are living in a very small world because of various developments. Today you could be here, then move to New York or Tokyo tomorrow. I am sure you would want your qualifications to mean something wherever you go. It is important that we all fight this scourge. It is not just a fight for the Ministry of Education because pupils involved in malpractices come from homes, communities, churches, schools, districts and provinces. We all need to do something about this scourge and continue to work together against it.

I thank you, Sir.

Mr Chazangwe (Choma Central): Mr Speaker, most of the cases of examination malpractices are due to the fact that some schools have weak strong rooms where question papers are kept. When will this Government come up with a plan which will be followed by all the schools to keep examination papers safely?

Mr Speaker: This very question about the need for strong rooms at new schools was asked and answered last week.

Mr Kambwili: Mr Speaker, the issue of examination malpractices is alien to Zambia. Can the hon. Minister confirm that it is because of the low salaries that teachers are earning and poor conditions of service today which is making them steal education materials to sell to the pupils?

Hon. Opposition Members: Hear, hear!

Ms Siliya: Mr Speaker, there are quite a lot of things we are seeing in this country today which are quite alien to Zambia. For example, the promotion of violence by our colleagues in the Opposition. I think that is alien to Zambia.

Hon. Opposition Members: No.

Hon. Government Members: Hear, hear!

Ms Siliya: Mr Speaker, I stated very clearly, and I beg the hon. Member who asked the question to give me chance to explain clearly so that he can follow very clearly. Twenty years ago, there was very little investment in the education sector, but people did not stop having children. Schools were not being built, but children were born. It was obvious that we were going to reach a point in time when we were going to have chaos. We reached a point where we had very few school places, but many children. This put pressure not just on the teachers but also the parents. The parents were the ones who had to bribe the teachers. They were paying teachers any amount of money just to get examination papers so that their children could pass the examinations. This is why, on this side of the House, because we have managed the economy well and there is extra money, we have decided to share that money with Zambians now.

Interruptions

Hon. Opposition Members: No.

Ms Siliya: It is okay for us to ask questions, but at this point what are we questioning? Is it the construction of schools? I believe that many hon. Members have schools being constructed in their constituencies. Are you questioning that? Are you questioning the fact that, in the last four years, we have recruited close to 30,000 teachers? Are you questioning the fact that hon. Members of Parliament in this House have not committed more money to the Ministry of Education than any other ministry?

Mr Speaker, I think it is important for all of us to be together on this issue. We know what the problem is and, on this side of the House, we have no doubt that we are solving it correctly. We also have no doubt that how the teachers of twenty years ago and even in times of the United National Independence Party (UNIP) or before were paid is not the way that they are paid today.

Today, when I visit the various schools in the country, Mr Speaker, I am amazed to see the number of corollas and canter trucks there. This is because ...

Interruptions

Ms Siliya: ... we, on this side of the House, are sharing the wealth of this country with Zambians. Who should we share wealth with more than the teachers who are truly holding the future of this country in their hands? This is why we will continue to provide funds for the education sector of this country because we place a premium on it.

Finally, what the hon. Member of Parliament was stating in order to achieve a few political points that the teachers are not being looked after well is not correct because Zambia is not what it was twenty years ago. Nobody has been left out. We will continue to move forward and not backwards. As my colleague, the hon. Minister of Defence, said we do not do things haphazardly. The people of Zambian know that the Government plans its activities. We are working against the scourge together with all the Zambians.

Thank you, Sir.

Hon. Government Members: Hear, hear!

Interruptions

Mr Speaker: Order!

Laughter

Mr Speaker: Order!

KONKOLA NORTH COPPER PROJECT

351. Mr D. Mwila asked the Minister of Mines and Minerals Development:

(a) what the shareholding structure of Konkola North Copper Project in Chililabombwe was;

(b) how much money had been invested in the project by each shareholder in the company;

(c) what the source of funding for the investment in the project was; and

(d) when fully-fledged production of copper would start at the above project.

The Deputy Minister of Mines and Minerals Development (Mr Nkhata): Mr Speaker, the Konkola North Copper Project shareholding structure is as follows:

(i) Zambia Consolidated Copper Mines (Investment Holdings) (ZCCM-IH) holds 20 per cent of which 5 per cent is free carry; and

(ii) the balance of 80 per cent is held 50:50 by Vale of Brazil and African Rainbow Minerals of South Africa.

The current shareholders will invest US$380 million for the development of the mine broken down as follows:

 Company   Investment in US$ (million)

African Rainbow Minerals   160

Vale of Brazil     160

ZCCM-IH      60

 Total     380

Mr Speaker, shareholders will raise money from various sources, including the stock exchange, borrowing and revenue.

Mr Speaker, copper production is scheduled to start at the end of 2013. Full production is expected by 2015.

I thank you, Sir.

Mr D. Mwila: Mr Speaker, at the time the company shall engage in full-scale production of copper, do we expect it to engage in out sourcing of labour as is the case at Konkola Copper Mines (KCM?

The Minister of Mines and Minerals Development (Mr M. B. Mwale): Mr Speaker, the investors undertaking the Konkola North Copper Project are different from those running KCM, which the hon. Member referred to. Therefore, the Konkola North Copper Project should not be confused with other projects. It should also be understood that every management puts in place the best practices which ensure efficient operations.

I thank you, Sir.

Mr Chongo: Mr Speaker, ZCCM-IH had a golden share in many of the mines that were sold in order to protect the interests of this country. Can the hon. Minister confirm whether, in addition to the 20 per cent which ZCCM-IH holds in the project, there is also a golden share so that the interests of this country are protected?

Mr M. B. Mwale: Mr Speaker, I thank the hon. Member for Mwense for the concern that he continues to show regarding the mining industry that he has a heart for. As the hon. Deputy Minister read out, the Government, through ZCCM-IH, holds 20 per cent shareholding in the project. I am sure that is the golden share.

I thank you, Sir.

Mr Kambwili: Mr Speaker, may I know how much copper deposits this mine has and how long it will take to mine it?

Mr M. B. Mwale:  Mr Speaker, let me inform the House that there must be sustained mineral exploration for any mining developments to take place. The Konkola North Copper Project has, at the moment, slightly over 100 million tonnes. Therefore, mining will be undertaken for over twenty years.

I thank you, Sir.{mospagebreak}

NORTHERN PROVINCE COUNCIL DEBT

352. Mr Mwango asked the Minister of Local Government and Housing what the total debt of the following councils in the Northern Province was as at 30th October, 2010.

(i) Chinsali;

(ii) Isoka;

(iii) Kasama;

(iv) Mpika; and

(v) Nakonde.

The Deputy Minister for Local Government and Housing (Mr Muteteka): Mr Speaker, I wish to inform the House as follows:

District Amount (K)

Chinsali   2, 085, 943, 945.88

Kasama   5, 223, 745, 000.86

Nakonde 3, 808, 127, 462.88

Isoka 4, 005, 989, 968.88

Mpika 8, 402, 019, 405.88

Mr Mwango: Mr Speaker, I would like to find out whether the Government has any intentions of helping the councils liquidate their debt.

Mr Muteteka: Mr Speaker, the Ministry of Local Government and Housing has put in place a budget line to dismantle most of the arrears in individual councils. In that regard, we, as a ministry, have been sending about K1.5 billion each quarter.

I thank you, Sir.

Mr Chisala: Mr Speaker, issues such as this one can easily be lessened if we were going to have qualified …

Mr Speaker: Order!

You have no question to ask.

Laughter

Mr L. J. Mulenga (Kwacha): Mr Speaker, in view of the debt position of the local authorities, I would like to find out from the hon. Minister how they are efficiently taking care of the service delivery for which they are mandated.

Mr Muteteka: Mr Speaker, the Ministry of Local Government and Housing has been sending grants to individual councils, with specific instructions, so that they can attend to the services in their communities.

I thank you, Sir.

PARASTATAL COMPANIES EMPLOYEES’ TERMINAL BENEFITS

353. Mr Hamusonde asked the Minister of Commerce, Trade and Industry:

 (a) whether all former employees of parastatal companies which were      privatised between 1992 and 2010 had been paid their terminal benefits;     and

 (b) if not, when those who were not paid would be paid their dues.

Dr Puma: All former employees of parastatal companies, who we retrenched either before or after privatisation, were paid their full terminal benefits. The point at which the payments were made was dependent on what was stipulated in the sale and purchase agreement of a given transaction.

Sir, in some agreements, it was a requirement that terminal benefits be paid in full by the Government at the point of privatisation of the company while in others, the new owners took over the responsibility to pay outstanding terminal benefits. These were to be paid to the beneficiaries as and when they fell due.

 It should, however, be noted that, in some cases, some employees were not satisfied with their benefits and sought judicial intervention. Such cases are still before the courts of law.

Mr Speaker, as indicated earlier, all terminal benefits were paid. With regard to matters before the courts of law, the ruling of the court is what will determine what is to be paid to the petitioners.

Mr Speaker, I thank you.

Mr Hamududu (Bweengwa): Mr Speaker, why should the ministry wait for people to go to court if it knows that they were underpaid? They are Zambians after all so, why not just pay them a reasonable amount?

Dr Puma: Mr Speaker, the calculations were made according to the situation at the point of sale. So, those to be paid …

Mr Speaker: Order!

Business was suspended from 1615 hours until 1630 hours.

[MADAM DEPUTY SPEAKER in the Chair]

Dr Puma: Madam Speaker, before business was suspended, I was saying that the payment depended on the situation at the point when the companies were privatised. The prevailing conditions of service were also taken into consideration and the calculations were done accordingly. However, those who felt that some of the money such as allowances were not included are free to seek redress.

Madam Speaker, I thank you.

Mr Kambwili: Madam Speaker, may I know the largest composition of the debt council by council?

Dr Puma: Madam Speaker, I do not know what the hon. Member is talking about because the question is on whether the former employees of parastatal companies were paid their dues or not. I do not know where the councils come in.

Madam Speaker, I thank you.

Laughter

Hon. Government Members: Kambwili!

Mr Kambwili: Madam Speaker, I am sorry. I moved backwards.

Madam Deputy Speaker: Order!

Laughter

Mr L. J. Mulenga: Madam Speaker, from the hon. Deputy Minister’s response, former employees of all parastatal companies will be paid their dues. I would, therefore, like to find out the status on the former employees of the United Bus Company (UBZ) and Zambia Tanzania Road Services (ZAMTAN).

Dr Puma: Madam Speaker, at the moment, the information I have is that employees in all the parastatal companies that were privatised were paid. However, if there are specific areas of interest that the hon. Member would like to follow up on, he is free to come to our offices so that we can zero in on specific parastatal companies and update him on the specific situation.

I thank you, Madam.

__________

BILLS

SECOND READING

THE REGISTRATION OF BUSINESS NAMES BILL, 2011

The Vice-President and Minister of Justice (Mr Kunda, SC.): Madam Speaker, I beg to move that the Bill be now read a second time.

Madam Speaker, the proposed registration of Business Names Bill, 2011 seeks to repeal and replace the Registration of Business Names Act, Cap. 389 (Act No. 29 of 1931).

Hon. Members will recall that the Registration of Business Names Act is one of the five statutes administered by the Patents and Companies Registration Agency (PACRA) pursuant to Section 5 of the PACRA Act No. 15 of 2010.

Members of this august House will appreciate that there have been a number of significant changes in the social, political and economic environment in the country since Cap. 389 was enacted in 1931. From 1931 to date, this country has gone through economic transformation.

Madam, at one time, we had a command economy dominated by parastatal companies. Today, we have a liberalised economy which is private sector-driven. In this regard, we are promoting the establishment of private enterprise as the key engine of growth. We also now contend with new challenges such as the emergence and growth of the informal sector.

Clearly, Madam Speaker, the circumstances and situation within which Cap. 389 was enacted are very different today. It should also be appreciated that the main users of this Act are the small and micro enterprises. There is a need, therefore, to simplify the law.

In this regard, more small and medium-scale entrepreneurs prefer to register their businesses as business names due to the lower capital requirements and the relatively simple requirements needed to accomplish the registration process.

Madam, this law is, therefore, of unique importance to small-scale entrepreneurs and, particularly, in facilitating the formalisation of informal sector entrepreneurs.

Madam Speaker, the repeal of the current Act and introduction of a new Bill is intended to improve the registration procedures in general.

The repeal of the current Act will be very instrumental in creating a conducive environment in which businesses will thrive without any insurmountable obstacles.

Madam, this is a progressive and non-controversial Bill. I, therefore, look forward to the House’s support.

Madam Speaker, I beg to move.

Mr Kakoma (Zambezi West): Madam Speaker, the Committee on Economic Affairs and Labour was tasked by this House to scrutinise, in detail, the Registration of Business Names Bill which is before the House today.

Madam, let me begin by stating that available statistics indicate that over 80 per cent of Zambia’s total labour force is employed in the informal sector. The Zambia Business Survey conducted, in 2010, revealed that less than 2 per cent of small and medium-size enterprises were registered with PACRA.

Madam Speaker, the Bill will, without doubt, attempt to formalise Zambian-owned businesses by ensuring that they register their business names.

Your Committee was informed that the Registration of Business Names Act, Cap. 389 of the Laws of Zambia has not undergone any revision other than minor amendments in 2010 on administrative matters.

Madam, repealing of the current statute is broadly intended to:

(i) improve the layout and flow of the proposed Act in accordance with modern drafting style, thereby simplifying the law and making it much more friendly, particularly to micro and small businesses;

(ii) address gaps and grey areas in the current law and ensure more clarity and certainty; and

(iii) streamline administrative procedures and strengthen the role of the registry in ensuring an up-to-date and reliable database of business information.

Madam Speaker, in line with the above, major changes that are being introduced include:

(i) clearly listing persons who qualify to apply for registration of a business name and introducing a penalty within an option to imprisonment for contravention;

(ii) expressly providing for an applicant to reserve a proposed name for three months;

(iii) obligating the registrar to issue a certificate of registration within a period not exceeding fourteen days, if an application meets the requirements;

(iv) clearly specifying the grounds for rejection of an application;

(v) requiring the holder of a certificate of registration of a business name to file an annual return and introducing a penalty for failing to do so;

(vi) prohibiting the transfer of a certificate of business name to a third party without prior approval by the registrar; and

(vii) providing for the registration of an individual or firm whose registration has been cancelled or suspended.

Madam Speaker, while stakeholders generally welcomed the introduction of the new legislation, they expressed concern on its implementation and the severity of the punishment when certain sections of the proposed Act are contravened. For example, failing to register a business, when one is not exempt, attracts a fine of 200,000 penalty units, which is equivalent to K36 million, or face imprisonment for a period not exceeding two years. This is excessive.

While the desire of the Government, as we are told, is to make it easy to conduct business, this Act may introduce a repressive legal framework.

Madam, your Committee is, therefore, recommending that the Ministry of Commerce, Trade and Industry strikes a balance between attaining satisfactory levels of compliance and achieving the objective of formalising the majority of Zambian-owned businesses.

Your Committee is further urging the ministry to introduce a one-off fine of 1,500 penalty units for each successive inspection with no option of imprisonment for contravening Clauses 4, 11, 12, 15, 20 and 23.

In Clause 16, the ministry should introduce an option of a fine when a holder of a certificate of registration fails to take corrective measures after being given notice to do so. Suspending or cancellation of the certificate should be the last option.

Madam Speaker, PACRA, at present, only has four offices in Lusaka, Ndola, Livingstone and Chipata. This will affect the compliance levels, particularly in areas where there is no PACRA office. In order to encourage compliance in such areas, local authorities should be appointed as agents for PACRA.

Madam, your Committee, however, appreciates the effort the ministry has made of utilising other institutions under its ambit, such as the Citizens Economic Empowerment Commission (CEEC), to undertake the registration of business names.

Subject to changing of the penalties, this is a progressive Bill and I urge the House to support it.

Madam Speaker, I wish to thank you and the Clerk of the National Assembly for having accorded us the honour of scrutinising the Registration of Business Names Bill, 2011.

I further wish to thank all the stakeholders who made submissions on the Bill.

I thank you, Madam Speaker.

Mr Muntanga (Kalomo Central): Madam Speaker, I stand to support this progressive Bill. It has been very difficult for people to understand company management and what is needed for one to formulate a company.

Madam, in most cases, the small-scale entrepreneurs have failed to get contracts from the Government because their businesses are not registered. As such, they have resorted to borrowing invoices from their friends with registered companies to have payments issued by the Government.

It is gratifying to have companies such as Lungwangwa University registered. We will have no difficulties in opening universities when our term of office as Members of Parliament ends.

Madam Speaker, one thing that worries me is that we seem to be introducing these good ideas with a whip on the other hand; ready to whip and threatening to kill. Why should we do that? Why should you introduce something good when you have a big axe in your hand so that when someone makes a mistake, you cut off their heads? You cannot do that. We should put laws that should encourage people. These laws should be ably followed by the people. Most of the times, we think more of deterrents. What are you deterring when things are difficult everywhere? Things will be difficult because of these deterrent measures we are trying to introduce. 

Madam Speaker, mind you, once you introduce difficult laws, others will do other things. I am very grateful that your Committee has proposed something and I want His Honour the Vice-President and Minister of Justice to take note that PACRA should not only be in Lusaka, Livingstone and Ndola. It has been very difficult for us in rural areas to come and submit every report to Lusaka. When you are busy at the farm and you forget to bring the papers, they will say you have contravened and you will be imprisoned for two years. Let us make user friendly laws. If you make laws that are full of threats such as ten years imprisonment and attracting thousands of penalties, you are making it difficult for us. We will leave it to you so that you get the contracts with your Government. Once there is corruption, the whole lot of you and your families will be involved. It should be open and friendly to all Zambians. I have often looked at most of these laws you are making and I detest these threats on deterrents.

Madam Speaker, the other time, I heard that they wanted to introduce a law that once something is wrong with your milk, your cows must be confiscated. What sort of laws are those? If the milk is bad, then the cow must go to prison.

Laughter

Mr Muntanga: Madam Speaker, I am trying to put these issues the way we understand them. Surely, you must understand that we will not manage to employ some of these top secretaries, like my friends whose names I do not want to mention do, to record my milk, see how much meat I have sold and how many cows I am selling or buying. We might have those records, but the issue of coming to Lusaka to bring those records is a problem. His Honour the Vice-President and Minister of Justice, in Kalomo, I suggest that we submit these records to Kalomo District Council. It can only take me ten minutes to get to Kalomo District Council. If I have forgotten to submit these papers, I can simply run to beat the time so that I am not arrested. That is a very good proposal that I want to recommend. Lusaka is not Zambia. How can someone from Kaputa be bringing papers to Lusaka every now and then?  It is difficult. Now, we shall register in Kaputa, Luapula.

Laughter

Mr Muntanga: It is a very good thing. His Honour the Vice-President and Minister of Justice, you should make amendments so that we agree. I know that even in Petauke people are also desperate. Therefore, we will make sure that we put these things straight. Do not worry.

Madam Speaker, I thank you.

Laughter

Mr Hamududu (Bweengwa): Madam Speaker, I want to take the words of Hon. Muntanga as mine. I also want to move on to the next point so that I utilise all my time.

Madam Speaker, I think the details in the report and Hon. Muntanga’s contribution have driven the point home that registration must be accessible. Streamlining this law is not enough if it is not accessible to our people. This country is highly informal. We have such a big informal sector due to lack of facilities. There is a big cost in the informal economy and it has an effect on your tax collection. We have been talking about broadening the tax base but, if there are no facilities for our small and medium-size enterprises across the country to register their business names, it becomes difficult to do it because you are not capturing their businesses. If the Government is saying that it is costly to decentralise PACRA offices, then they do not understand the fact that there is a lot of opportunity. If there are a lot of offices across the country, you will really raise more money to run those offices. If you do not do that, you are losing a lot of tax income. We are busy talking about mining taxes and other things when mining is a temporary business. Sooner or later there will be no mining and we shall depend on other businesses to pay tax. This is diversification in practice. Let the citizens pay tax and they can only do that if they are formalised. To say that only 2 per cent of the SMEs are registered is unacceptable. It is a mockery because the whole country is informal. When you drive across this country, you will literally see the informality of this country. It is such an informal country that it looks like it was at war …

Laughter

Mr Hamududu: … because we have not availed facilities to our people. If these companies were registered and had business names, they would begin to adopt the new methods of doing business and become formalised. They will begin to participate in contracts and improve their businesses. That is why you see that people are complaining that most of the contracts in the country are taken up by people from Lusaka. We, hon. Members of Parliament, from the rural areas are not happy because our people are not getting contracts. They are not registered because there are no facilities where they can register from. If you go to my constituency, the people are doing fine in small and medium-size enterprises, but they are not registered due to lack of facilities in Monze. I think the hon. Members of Parliament in this House are aware of this.

Madam Speaker, last year, we had a problem of accessing money from the Ministry of Sport, Youth and Child Development because our youth clubs were not registered. It was a big hassle and I used to go to the hon. Minister’s office. Some hon. Members in this House never accessed the money, but I did. Can you imagine someone from Zambezi West bringing certificates of registration for clubs to Lusaka? Even the office of the Registrar of Societies is highly centralised. That is why the Ministry of Community Development and Social Services is the one now distributing cheques. We do not want to see that. We want our clubs to be registered across the country and we will bring the names to the hon. Minister and not him going round giving cheques selectively. That is not right. With all due respect, he is my uncle. We want all the women to receive that money equitably. Clubs or businesses are not registered due to lack of decentralisation.

In conclusion, I want to tell you that if you do not streamline, this Bill will remain a good piece of paper lying in your office that is not practical.

Madam Speaker, I would like to talk about the issue of service delivery.

Laughter

Mr Hamududu: Madam Speaker, I am live on air right now in Bweengwa Constituency, so I must speak.

Laughter

Mr Hamududu: Madam Speaker, people in Bweengwa and everywhere else want to register their businesses so that they can get contracts. Youth clubs want their names registered. It is such a mockery that this country is highly informal and we do not even realise this. 

Hon. MMD Members: Aah!

Mr Hamududu: Madam Speaker my final point is on service delivery on which I will spend, maybe, ten minutes.

Laughter {mospagebreak}

Mr Hamududu:  Madam Speaker, the biggest problem we have here in Zambia is poor service delivery.

Mr Mulyata: On a point of order, Madam.

Mr Hamududu: You streamline a good piece of law …

Madam Deputy Speaker: Order!

A point of order is raised.

Mr Hamududu: You will see (pointing at Mr Mulyata). Just go ahead.

Laughter  

Madam Deputy Speaker: Order!

No threats in here.

Mr Muntanga: We shall see!

Mr Mulyata: Madam Speaker, is the hon. Member of Parliament for Bweengwa in order to keep repeating himself? He is using the same words over and over again and it is very tedious. It is obvious that he has run out of points but, instead of sitting down, he keeps repeating himself. Is he in order to waste our time …

Laughter

Mr Mulyata: … in this House?

Madam Speaker, I need your serious ruling.

Hon. MMD Members: Hear, hear!

Madam Deputy Speaker: Order!

That is, indeed, a very serious point of order.

Hon. MMD Members: Hear, hear!

Madam Deputy Speaker: Order!

Firstly, we must remember what we are debating and not try to confuse people out there by talking about clubs and societies. What should they register as? People out there will think this Bill is for clubs.

Secondly, we do not repeat ourselves so much that people become weary. This is very important. In here, there is a rule regarding tedious repetition. We do not repeat ourselves. We have to make new points and move on. It is not a matter of debating for a long time but that of making a point.

The hon. Member debating, therefore, will put this into consideration as he debates. He will no longer go back to talking about this country looking like it is at war and being informal.

Laughter

Madam Deputy Speaker: He may move onto the issue of service delivery on which he may spend as many minutes as necessary to make his point. 

The hon. Member may proceed.

Hon. MMD Members: Hear, hear!

Mr Hamududu: Madam Speaker, I thank you for your guidance.

I will now move on to Monze Central.

Laughter

Madam Speaker, in concluding my debate, I wish to talk about service delivery which is a topical issue.

At the moment, many communities are revolting because of poor service delivery by this Government. The problem we have is not that of lack of money but poor service delivery. If people are saying that I am repeating myself …

Madam Deputy Speaker: Order!

That has already been ruled on. Do not repeat yourself.

Mr Hamududu: Madam Speaker, I thank you for your guidance.

Madam Speaker, to improve service delivery is to be realistic. People cannot take matters lightly and begin to laugh because our people out there are facing serious challenges. We allocate lots of money to these agencies, and yet the majority of the people are not receiving the service. In this case, the service I am talking about is the registration of business names. Even women’s groups can be registered as businesses because they do business. If, therefore, it is difficult to register clubs, we can take this route because it is easier.

Madam Speaker, service at PACRA is faster now. Within a day, a business name will be issued. This is an achievement. However, we want this service to be accessed by the many Zambians out there. This is what service delivery is all about. How can you only provide the service to Lusaka and deny the rest of the country this service? This is my point. Our people are begging for this service. This is why I am emphasising that we must improve service delivery, especially in this area so that, tomorrow, the people in Monze Central can easily access the money from the Ministry of Sport, Youth and Child Development, which they could not do before because they could not register their clubs. I am speaking on their behalf.

I thank you, Madam.

Mr Kambwili (Roan): Madam Speaker, I will not be repetitive like my colleague, although I wish to take his and Hon. Muntanga’s debate as my own.

Madam Speaker, I wish to emphasise one point. I wish to state that capturing small businesses will help this country to collect and realise more taxes. More than 90 per cent of traders at the Common Market for East and southern Africa (COMESA) Market do not have business names. In an effort to encourage people to register so that we can easily trace those who default in paying taxes, it would be wrong for this Government to make stringent rules for defaulters.

It is very easy to say that defaulters will go to prison because some of you have never been to prison. Prisons, today, are congested. Are all law breakers going to be sent to prison? Only when you go to prison one day will you realise that it is not right to punish people by sending them there all the time.

Hon. MMD Members: Tell us!

Mr Kambwili: We have said that we will send to prison anyone who defaults on the TV licence fees. Again, you are saying that you will imprison people who will fail to register a business name. This is a very progressive Bill, but we should, by all means, avoid sending people who default to prison. I have been there.

Laughter

Mr Kambwili: It is not a good place to be.

Hon. Members: Hear, hear!

Mr Kambwili: I do not think that we should be punishing our nationals by sending them to prisons which are already congested. If you want to be doing this, you should build more prisons before you bring this law.

Madam Speaker, even the K36 million penalty is too much. Some people with small businesses have never even had K36 million in their lives …

Hon. Opposition Member: Correct!

Mr Kambwili: …and you want them to pay that amount? In fact, even the 2,000 penalty units is too much. I would recommend 200 penalty units.

Hon. Opposition Member: Hear, hear!

Mr Kambwili: We want to encourage people to register their business names and not send them to prison.

Madam Speaker, I support the Bill, believing that His Honour the Vice-President and Minister of Justice will bring amendments to avoid sending people to prison or making them pay a K36 million penalty.

Madam Speaker, I thank you.

Mr L. J. Mulenga (Kwacha): Madam Speaker, I will try to be as brief as I possibly can.

In supporting the Bill, I would like to indicate that a Bill must be progressive, as earlier debaters indicated.

Madam Speaker, our target is the informal sector so that it can be formalise businesses. By so doing, the businesses will have a lot of advantages to the economy because a lot of people will be brought into the net for tax contribution to the National Treasury. 

As much as this is acceptable, I would like to encourage the ministry concerned to educate the people. A lot of people in this country have registered their companies or businesses but are failing to make returns. This can be explained by the amount of money captured at registration as opposed to that collected when declaring the returns. The reason is that most people do not understand what returns are. What people understand is that, once they have registered their company, it ends there. They do not even know how to keep their records. As a result, they have difficulties when it comes to declaring their returns.

Madam Speaker, I wish to urge the ministry responsible to carry out a vigorous campaign and educate the would-be business people so that they understand how to keep the records of their business transactions so as to enable them declare their returns on time and accurately. After all, this is what we need as a country. The more people begin to participate equally, fairly and economically in the economy, the better we are going to see the economy grow.

Times of believing in big conglomerates are long gone. We should be more focused on small and medium-size enterprises (SMEs). SMEs have the potential to drive this economy to higher heights. For this reason, I urge the ministry responsible to help our people understand their obligations.

Madam Speaker, the hon. Minister of Commerce, Trade and Industry will agree with me that when you look at the number of registered companies, for instance, for this year, you would be surprised to find out how many of them filed their returns at the end of the financial year. The number would be below 25 per cent. That, in itself, sends a signal that our people do not understand their obligations when they are doing business. I agree with the stakeholders who suggested that if we put penalties such as two years imprisonment or a fine of K36 million, it will work against the progressive spirit of the Bill.

Madam, I wish to state that this Bill is welcome, but can we review certain aspects of it. As other debaters have indicated, let us review the penalties.

With these few remarks, I thank you, Madam Speaker.

Hon. Opposition Members: Hear, hear!

Mr Kambwili: Mwisho!

The Vice-President and Minister of Justice: Mr Speaker, I wish to thank the hon. Members for the support they have rendered to this Bill, but I also want to put it on record that we have already proposed for the necessary amendments so as to reduce on the penalties as suggested by some hon. Members.

I thank you, Madam Speaker.

Hon. Members: Hear, hear!

Interruptions

Madam Deputy Speaker: Order!

Question put and agreed to and the Bill read a second time.

Committed to a committee of the Whole House.

Committee on Friday, 18th March, 2011.

THE PRESIDENTIAL (Emoluments) (Amendment) BILL, 2011

The Vice-President and Minister of Justice: Madam Speaker, I beg to move that the Bill be now read a second time.

The Presidential (Emoluments) (Amendment) Bill, 2011, seeks to amend the Presidential (Emoluments) Act, Chapter 261 of the Laws of Zambia, so as to revise the criterion for payment of gratuity to a person who has held the Office of President.

Madam, the Office of President is the highest Executive position in the Government of the Republic of Zambia. The President, who is also the head of Government, exercises legislative power. He is also the Commander-In-Chief of the armed forces and an ambassador for the people of Zambia responsible for the harmonious maintenance of relations between Zambia and other States.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Justice: Undoubtedly, the Office of President places imperative duties on its holder.

Madam Speaker, it is common for governments to remunerate holders of such offices in accordance with the laws on their statute books. With respect to the remuneration of the holder of Office of President of the Republic of Zambia, gratuity is payable to a person who, having held the office for at least three years, has ceased to be President or in respect of whom the term of office has expired. This is the current position of the law. Consequently, where a person holds the Office of President for less than three years, before the person ceases to be President or before the person’s term of office expires, the person is not entitled to gratuity.

Madam, this is so notwithstanding that the person has carried out the functions of the Office of President and has been subjected to the pressures and demands of such office.

Madam Speaker, the criterion set out in the Presidential (Emoluments) Act is unfair and constitutes a serious irregularity. It is for this sole purpose of removing the unfairness and curing this irregularity that this Bill is proposed. Once enacted, the law will provide for the calculation of gratuity of a President on a pro rata basis. That is to say, basing the calculations on the actual period served by the person as President. For the sake of leaving no room for people to misunderstand this Bill, let me state that we are not introducing any salary increment, but just want to make the law clearer.

Mr D. Mwila: Question!

The Vice-President and Minister of Justice: Madam Speaker, this Bill is not controversial. It is timely and progressive and, I, therefore, urge the hon. Members to support it.

Madam Speaker, I beg to move.

Hon. Government Members: Hear, hear!

The Vice-President and Minister of Justice: Madam Speaker, I wish to thank the hon. Members for the overwhelming support.

Hon. Members: Hear, hear!

Laughter

The Vice-President and Minister of Justice: Madam Speaker, I thank you.

Interruptions

Madam Deputy Speaker: Order!

Question put and agreed to and the Bill read a second time.

Committed to a committee of the Whole House.

Committee on Thursday, 17th March, 2011.

REPORT STAGE

The Zambia Qualifications Authority Bill, 2011

Report adopted.

Third Reading on Thursday, 17th March, 2011.

THIRD READING

The following Bills were read the third time and passed:

The English Law (Extent of Application) (Amendment) Bill, 2011

The High Court (Amendment) Bill, 2011

The Supreme Court (Amendment) Bill, 2011

__________

MOTION

ADJOURNMENT

The Vice-President and Minister of Justice (Mr Kunda, SC.): Mr Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.
___________

The House adjourned at 1717 hours until 1430 hours on Thursday, 17th March, 2011.

WRITTEN REPLY TO QUESTION

SAFE DRINKING WATER IN MWINILUNGA EAST SCHOOLS

342. Mr Katuka (Mwinilunga East) asked the Minister of Energy and Water Development when the following institutions would be provided with clean and safe drinking water:

(i) Muwozi Community School;

(ii) Kangaya Basic School;

(iii) Lumwana West Basic School;

(iv) Munwa Basic School; and

(v) Sailunga Basic School.

The Minister of Energy and Water Development (Mr Konga): Mr Speaker, the Ministry of Local Government and Housing, together with its co-operating partners under the National Rural Water Supply and Sanitation Programme, has plans to construct ninety-three boreholes in existing schools without safe water supply, including the ones above starting from 2011 to 2015 in Mwinilunga District.

Mr Speaker, I thank you.