Friday, 27^th October, 2017

 

The House met at 0900 hours

 

[MR SPEAKER in the Chair]

 

NATIONAL ANTHEM

 

PRAYER

________

 

ANNOUNCEMENT BY MR SPEAKER

 

CPA ZAMBIA SEMINAR FOR MPS

 

Mr Speaker: Hon. Members, I wish to inform the House that the Commonwealth Parliamentary Association (CPA) Zambia Branch will hold a local seminar for hon. Members of Parliament on Monday, 30^th October, 2017, beginning at 0900 hours, in the auditorium at Parliament Buildings.

 

The purpose of the seminar is to acquaint hon. Members of Parliament with emergent issues on the world forum in relation to the CPA.

 

You are all requested to attend the Seminar.

 

________

 

RULING BY MR SPEAKER

 

POINT OF ORDER RAISED BY MR G. G. NKOMBO, MEMBER OF PARLIAMENT FOR MAZABUKA CENTRAL PARLIAMENTARY CONSTITUENCY ON WEDNESDAY, 25^TH OCTOBER, 2017

 

Hon. Members will recall that on Wednesday, 25^th October, 2017, just before the Committee of Supply to consider the Estimates of Revenue and Expenditure for the Financial Year 1^st January to 31^st December 2018, resumed its work, the hon. Member of Parliament for Mazabuka Central Parliamentary Constituency, Mr G. G. Nkombo, MP, raised the following point of order:

 

“Madam, the problem is big. The problem is mine, but I suspect it is for all of us. The Hon. Mr Speaker just read out results that were not reflecting on our gadgets. What we saw on our gadgets is totally different from what he saw and read. We now think there is a problem with the electronic system.

 

The results I saw and those The Hon. Mr Speaker read out are totally different. We now suspect that the system is malfunctioning because we do not want to hold The Hon. Mr Speaker in doubt.

 

Madam Chairperson, in order to settle this issue, it is within your power that we redeem ourselves simply by keeping the doors closed and conducting a physical count of the people who are here so that we can maintain the integrity of this House. The fact of the matter is that what The Hon. Mr Speaker read out on his screen and what we all saw are different.

 

Madam, I seek your guidance on this matter.”

 

In response, the Chairperson of Committee of the Whole House informed the House that she would bring the matter to the attention of The Hon. Mr Speaker. She accordingly brought the matter to my attention, and when the full House resumed business, I informed the House that I would reserve my ruling to enable me study the matter and deliver a measured ruling.

 

Hon. Members, I have since studied the matter and I am now ready to render my ruling.

 

In rendering my ruling, let me begin by explaining the procedure relating to electronic voting.

 

Hon. Members, the steps in the voting process may be stated as follows:

 

1. first, a paging sound initiated by Information Communication Technology (ICT) officers signifies that the vote has opened;

 

1. second, once the vote opens, the screen displays voting features. Namely, “Yes”, “No”, “Abstain” and “Present.”;

 

1. third, hon. Members are required to press the button corresponding to ‘Present,’ in order to be registered as voters;

 

1. fourth, three options appear on the screen,  namely, “Yes”, “No” or “Abstain”;

 

1. fifth, hon. Members are required to press the button corresponding to their choice; that is, either, “Yes”, “No” or “Abstain”;

 

1. sixth, once hon. Members have exercised their choice, the words “vote has been cast,” appears on the right side of the screen indicating that they have ultimately, voted; and

 

1. lastly, the Speaker or the Presiding Officer proceeds to announce the results and the voting process is ultimately completed by the ICT officers indicating that the poll has been “accepted.”

 

Hon. Members, it is critical to note, however, that the failure for a Member to press the 'Present' button at the outset of the voting process, entails that, that particular Member is unable to vote because, he or she has not been registered as a voter. Similarly, a failure to press on any one of the three options after registering as a voter, entails that a Member has not voted.

 

In the end, the voting process is closed by ICT officers from the Office of the Clerk, who are positioned at the ICT Control Desk, at the back of the Chamber.

 

In view of the foregoing, it is self-evident that in order to vote, hon. Members must indicate that they are present, and thereafter, proceed to cast their vote. It is further evident that if the words, “vote has been cast,” do not appear on the right side of the screen, then it entails that a Member has not voted.

 

At the end of the voting process, the Speaker or the Presiding Officer announces that, “you have just voted”. Once this announcement has been made, the ICT officers are required to close the poll, so to speak.  In the event that the poll is not closed by the ICT officers, hon. Members are still able to cast a vote in spite of the announcement by the Speaker or Presiding Officer that, “you have just voted”.

 

In the poll under consideration, even after the announcement was made that the votes had been cast, four hon. Members proceeded to cast their votes, because the ICT officers had not closed the poll. Hence, the disparity between the results I initially announced as follows:

 

Ayes             -           46

Noes             -           51

Abstentions  -           nil

 

Yet the final poll was as follows:

 

Ayes                         46

Noes                         55

Abstentions  -           nil

 

Therefore, there was no system malfunction and, the votes and proceedings of the poll will in terms of Standing Order Number 16, be distributed to the hon. Members, itemizing the details of the votes.

Hon. Members: Hear, hear!

 

Mr Speaker: Hon. Members, I further analysed the voting results details. The details show that thirty-nine (39) Members did not press on the ‘Present’ option as explained above. As a result, they were recorded as not being present for voting purposes. These are what we may call probably spoilt votes.

 

Laughter

 

Mr Speaker: I will give the analysis of these thirty-nine Members according to party affiliation.

 

The analysis of the 39 Members are as follows:

Patriotic Front (PF)                                                                             -           17

United Party for National Development (UPND)      -                                   12

Independent (IND)                                                                             -           9

Forum for Democracy and Development (FDD)       -                                   1

                                                                                             Total   -           39

 

Hon. Members: What about MMD?

 

Mr Speaker: MMD, they all voted.

 

Laughter

 

Mr Speaker: Hon. Members, there are several possible reasons why the thirty-nine Members may have failed to vote. These include, in my opinion, first, incompetence on the part of some Members of the House how to use the electronic voting system.

Hon. Members: Hear, hear!

 

Mr Speaker: Second, some Members may have deliberately or intentionally shunned the vote. Whatever the case, let me stress that whenever the electronic voting system is used, all Members should always start the voting process by pressing the button 'Present', and thereafter proceed to select one of the three options; that is, “Yes”, “No” or “Abstain”.

 

Interruptions

 

Mr Speaker: Order!

 

Hon. Members, the incident under consideration seems to suggest that they are some hon. Members who may be facing challenges in using the electronic voting system, and understandably so, because the system is relatively new. In view of this, I have directed the Office of the Clerk to mount additional training sessions for hon. Members on the use of the electronic voting system. The date for the training will be communicated to the Members in due course.

 

Thank you.

 

Hon. Members: Hear, hear!

 

_________

 

BUSINESS OF THE HOUSE

 

The Vice-President (Mrs Wina): Mr Speaker, I rise to give the House some idea of the business it will consider next week.

 

Sir, on Tuesday 31^st October, 2017, the Business of the House will begin with questions for oral answer, if there will be any. This will be followed by presentation of Government Bills, if there will be any. The House will then resolve into Committee of Supply to consider the following...

Interruptions

 

The Vice-President: Heads of Expenditure:

 

1. Head 11 – Zambia Police – Ministry of Home Affairs;

 

1. Head 15 – Ministry of Home Affairs; and

 

1. Head 16 – Drug Enforcement Commission.

 

Mr Speaker, on Wednesday 1^st November, 2017, the Business of the House will start with Questions for Oral Answer, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will consider Private Members’ Motions, if there will be any. Then the House will resolve into Committee of Supply to consider the following Heads of Expenditure:

 

1. Head 12 – Office of the Public Protector; and

 

1. Head 13 – Ministry of Chiefs and Traditional Affairs.

 

Sir, on Thursday 2^nd November, 2017, the Business of the House will commence with Questions for Oral Answer, if there will be any. This will be followed by presentation of Government Bills, if there will be any. Thereafter, the House will resolve into Committee of Supply to consider the following Heads of Expenditure:

 

1. Head 14 – Ministry of Mines and Minerals Development; and

 

1. Head 39 – Smart Zambia Institute.

 

Mr Speaker, on Friday, 3^rd November, 2017, the Business of the House will begin with the Vice-President’s Question Time. This will be followed by Questions for Oral Answer, if there will be any. Thereafter, the House will consider presentation of Government Bills, if there will be any. After that, the House will resolve into Committee of Supply to consider the following Heads of Expenditure:

 

1. Head 26 – Ministry of Information and Broadcasting; and

 

1. Head 27 – Public Service Management Division.

 

I thank you, Sir.

 

__________

 

HER HONOUR THE VICE-PRESIDENT’S QUESTION TIME

 

Mr Mukosa (Chinsali): Mr Speaker, ...

 

Mr Ngulube: On a point of order, Sir.

 

Mr Speaker: A point of order is raised. This is the only point of order I will allow so that we do not disturb this session.

 

Mr Ngulube: Mr Speaker, I apologise to my colleague from Chinsali for interrupting his question. However, my point order is similar to the ruling that Mr Speaker has just delivered on the system.

 

Sir, I want to find out why the system was showing a list of hon. Members to ask Her Honour the Vice-President questions when, in actual fact, the session had not yet began. Why I say so is that people are pressing way in advance.

 

Hon. Members: You came late.

 

Mr Ngulube: Mr Speaker, I also want to refer to a ruling rendered by Madam First Deputy Speaker, where the system showed that I asked two questions on one Question for Oral Answer session. I want it to be made clear that this system is not able to detect people who indicate before Her Honour the Vice-President’s Question Time actually comes and it disadvantages some hon. Members who might want to ask questions.

 

Hon. Members: Do not come late.

 

Mr Ngulube: Sir, further, the names of those who do not ask Her Honour the Vice-President questions will remain and will be picked up by the system on the next question. As a result of this, there was a ruling which indicated that I asked two questions on one Question for Oral Answer segment when in fact my name had remained on the list.

 

In thank you, Mr Speaker.

 

Hon. Members: Aah!

 

Mr Speaker: Order!

 

Interruptions

 

Mr Speaker: Unless you want to render the rulings yourselves.

 

Laughter

 

Mr Speaker: I will reserve my ruling because of the technical nature of the issue. Again, I need to ensure that I give a very informed position. However, for the time being, I will go along with what I have in front of me.

 

Mr Chisopa (Mkushi South): Mr Speaker, Konkola Copper Mines (KCM) has started outsourcing. What is the position of the Government with regard to the outsourcing programme?

The Vice-President: Mr Speaker, this is a vexing issue. Apparently, the laws of Zambia allow for outsourcing of labour in the mining industry. However, the outsourcing has to be done in stages. First and foremost, the mining management has to meet labour unions to discuss this matter. When the negotiations fail, ten days have to pass for the Government to intervene. Before the Government intervenes, a dispute has to be declared. One of the grieving parties has to raise the red flag and in this case, KCM has done so. Unfortunately, I do not know whether the ten days have elapsed, but the negotiations are still ongoing. This is current position. This is one of the legal statutes which I think should be revisited. There are certain laws in this country which were made many years ago and we find that in the main, they are disadvantaging our workers, even in other sectors. There is a need to review this law so that our people are protected.

 

I thank you, Sir.

 

Amb. Malanji (Kwacha): Mr Speaker, the desire by Saudi Arabia to get goat meat from Zambia has brought a lot of excitement mostly, to peasant farmers. The peasant farmers are likely to have hurdles in the sense that Islamic countries are very strict with their hygienic Halal Certification and general disease. Is the Government doing anything to try and help these peasant farmers meet the primary conditions?

 

The Vice-President: Mr Speaker, the export of goats to Saudi Arabia is an opportunity for Zambian farmers to earn money and make agriculture a business. I would like to urge the Ministry of Fisheries and Livestock to disseminate more information in the rural areas so that the farmers know that there is this available market in Saudi Arabia, where they can sell their goats and also, to tell the farmers about the hygienic conditions that are required for the goats to be accepted. I am sure the ministry is working on modalities of how to export the quality of goats that the market in Saudi Arabia is looking for.

 

I thank you, Sir.

 

Ms Kucheka (Zambezi West): Mr Speaker, my question is about the unfulfilled promises of constructing a bridge on the Zambezi River to connect Zambezi West to the rest of the districts. I am sure Her Honour the Vice-President knows what I am talking about. In the 2014 by-elections, she came to camp in Zambezi West and told the people there that if they voted for the Patriotic Front (PF) candidate, the bridge was going to be constructed on the Zambezi River. The people of Zambezi West did as they were told. They voted for a PF candidate, but to their disappointment, that bridge has not been constructed. Just this year, …

 

Mr Speaker: What is the question?

 

Ms Kucheka: Mr Speaker, please give me a bit of time.

 

Interruptions

 

Ms Kucheka: Mr Speaker, on 26^th August, 2017, when we had Likumbi Lya Mize Traditional Ceremony, the Minister of Finance promised the people that the bridge was going to be included in the Budget. To my surprise, this bridge is not included in the Budget. Has anyone heard about this bridge? Nobody. Is Her Honour the Vice-President going to reassure the people of Zambezi West that this Government will honour this commitment?

 

Hon. UPND Members: Hear, hear!

 

The Vice-President: Mr Speaker, indeed, I visited Zambezi West and the Kucheka Chiefdom where the hon. Member comes from. Unfortunately, when I was there, perhaps, she was not around.

 

Interruptions

 

The Vice-President: Sir, I have never promised people things that this Government cannot do.

 

Interruptions

Mr Speaker: Order! Continue!

 

The Vice-President: Mr Speaker, what I can inform the hon. Member is that the Government has made a commitment to construct a bridge on the Zambezi River in Zambezi West. As I say always, this is a Government assurance, but what we have decided as a Government is not to start new projects in the 2018 Budget. I believe that the project will come in the Budgets to come. I do not know whether the hon. Member is aware of this Government policy that it has to finish the entire infrastructure that was started long ago in the Movement for Multi-Party (MMD) days and in the period from 2011, to now, before it starts new ones. This is where we are at the moment regarding the bridge on the Zambezi River in Zambezi West.

 

I thank you, Sir.

 

Mr Zimba (Chasefu): Mr Speaker, Her Honour the Vice-President looks lovely this morning.

 

Interruptions

 

Mr Speaker: Hon. Member, there is no need for those inappropriate indulgencies.

 

Mr Zimba: Mr Speaker, I hear you.

 

Interruptions

 

Mr Zimba: In the last two rainy season we experienced a lot of disasters in terms of school roofs being blown off, but nothing has been done up to now. We are again heading to the rainy season. When does Her Honour the Vice-President expect those roofs that were blown off in the last rainy season to be repaired and what mitigating measures are being put in place this season to avert the same problem.

 

The Vice-President: Mr Speaker, let me inform hon. Members that this is a serious House.

 

Mr Kampyongo: Yes!

 

The Vice-President: We should not be patronising in certain things.

 

Mr Lubinda: Hear, hear!

 

The Vice-President: I think we need to be very serious about our deliberations and the way…

 

Hon. Members: Hear, hear!

 

The Vice-President: …we conduct ourselves in the House.

 

Mr Chabi: Hear, hear!

 

The Vice-President: Now, responding to the hon. Member’s question, this issue was covered to a great extent yesterday. Apparently, the hon. Member might not have been in the House, but I can only assure him that the Government is addressing the issue of all the blown off roofs …

 

Mr Speaker: Order, on the right.

 

The Vice-President: …in schools. The Government has to find a mechanism of repairing those schools. It is our responsibility to ensure that our children attend school under conducive environments.

 

I thank you, Mr Speaker.

 

Mr Speaker: Let me just re-echo what Her Honour the Vice-President was making.

 

Hon. Members: Hear, hear!

 

Mr Speaker: I know we come from very different backgrounds and cultures or lack of them.

Hon. Members: Ah!

 

Mr Speaker: This is a very dignified House and you are dealing with a person occupying the second highest position in the land. Due respect must be given.

 

Hon. Members: Hear, hear!

 

Mr Lubinda: Correct!

 

Mr Mwiinga: You see now, Chasefu!

 

Mr Chaatila (Moomba): Your Honour the Vice-President, you are aware that Lusaka is now hit by cases of cholera which is a water borne disease. Now, there is this company called Lusaka Water and Sewerage Company which, for the last five or six days, has not supplied water to residents of Mtendere, Helen Kaunda, Kalingalinga and some parts of Kabulonga, forcing residents to draw water from boreholes. We know that boreholes in Lusaka are contaminated. Now, my question is, is there anything which is being done by Disaster Management and Mitigation Unit (DMMU), since their job is also to mitigate the spread of diseases, to either force this company to supply water in these places or to ensure that maybe we have bulsers to give residents water. Is there anything that is being done by the DMMU?

 

The Vice-President: Mr Speaker the Government is very serious about the provision of water to the people especially here in Lusaka where we have had challenges of cholera is some of our townships. However, in the past few days, there have been some works where some pipes were being laid underground by Lusaka Water and Sewerage Company and this must have interrupted water supply to various parts of Lusaka. The company is also providing water in bulsers in residential areas so that people can have a little water in the households. This service includes areas that were affected by cholera where free water is being provided. I think the people have not suffered as much as it would have been the case.

 

Mr Speaker, I thank you.

Mr Lihefu (Manyinga): Mr Speaker, construction of housing units and administration blocks in the newly created districts has stalled in Manyinga since 2013, despite the Government approving the budget to build this infrastructure. May Her Honour the Vice-President state what has caused the delay?

 

The Vice-President: Mr Speaker, the Government has created around twenty-three new districts. All of the new districts are still under construction. It is not only in Manyinga where infrastructure has not been completed. There are other districts where there is still a lot of work to be done and this budget is addressing that issue of new districts and how the Government can complete the construction of buildings, district hospitals, post offices, police posts and many others that go with a new district including construction of roads to the new districts for purposes of accessibility.

 

Therefore, Mr Speaker, it is work in progress and we hope by the end of 2018, we would have completed the unfinished infrastructure.

 

I thank you, Sir.

 

Mr Miyutu (Kalabo Central): Mr Speaker, the Kalabo/Sikongo Power Line construction has stalled for more than five years and this project has reached a level of being vandalised and the poles are falling off. Due to other reasons best known to Zambia Electricity Supply Corporation (ZESCO), Kalabo District is under critical shortage of voltage disenabling water pumps to pump water. Currently we are receiving very low levels of water supply per day. For many hours we remain without water.

 

Mr Speaker, I would want to know from Her Honour the Vice-President, what measures the Government has put in place to cure this situation which is making lives of the people very difficult in that place.

 

The Vice-President: Mr Speaker, the electricity lines to Sikongo were being laid by Rural Electrification Authority (REA), but somehow work stalled and ZESCO has taken over the responsibility of completing that assignment. In the process ZESCO has advised people in Kalabo to use water prudently and at night so that they are not disadvantaged so much. However, I think the challenge has been lack of adequate capacity to hold more water during the night when water is supposed to be pumped. Therefore, I believe that once ZESCO starts this assignment the situation will improve sooner than later.

 

I thank you, Sir.

 

Mr Mutale (Chitambo): Mr Speaker, the rains will soon start. I am aware that farmers are preparing for the 2017/2018 farming season and the country had a bumper harvest in the last farming season. What has the Government done, in terms of preparations, to ensure that the farming inputs are distributed to the farmers on time?

 

The Vice-President: Mr Speaker, the issue of farming inputs is dear to all of us because we know that the people depend on farming activities or agriculture. For this reason, we need more information on the Government’s preparations for the 2017/2018 Farming Season. However, I know that money has been disbursed to the Ministry of Agriculture to cover the Electronic Voucher (e-Voucher) System and Farmer Input and Support Programme (FISP) and I believe K400 million has been allocated for this purpose. Therefore, this will enable farmers to start their activities early, but at the same time, the hon. Minister of Agriculture will be requested to bring to the House a statement that will detail some of the steps that the Government is currently taking to address the issue of distribution of farming inputs and also the two programmes that it is working on. The House may know that the Government intends to put one million farmers on the e-Voucher System. Therefore, we look forward to another bumper harvest.

 

Mr Mutale: Hear, hear!

 

The Vice-President: I thank you, Sir.

 

Dr Chanda (Bwana Mkubwa): Mr Speaker, there is a worrying trend in the country where some foreign individuals and institutions are interfering in the internal affairs of Zambia and are basically undermining the Government in collusion with some unpatriotic Zambians. What does Her Honour the Vice-President have to say to such people who are basically tarnishing the image of the country with their foreign sponsors?

 

The Vice-President: Mr Speaker, on 24^th October last week, we celebrated our 53^rd independence anniversary. This year’s theme was ‘celebrating our freedom for continued peace, unity, patriotism and development’. This was a befitting theme because these are values that we hold dear to our hearts. However, some politicians come to our country to malign us and discredit the Government and we give them space. I think this is one of the few countries in the world where a political leader from one country can come into another country and say all sorts of bad things about a system and Government. Surely that is undermining the sovereignty of the State. Therefore, the people who are friends to these foreign political leaders should tell them that the Government will no longer allow visitors of that nature. They can go to other countries and carry out their activities there, but not in Zambia. The Government has been very open and is very democratic and that is why such characters come into this country to do what they want to do and get away with it.

 

Mr Speaker, I thank you.

 

Mr Miyanda (Mapatizya): Mr Speaker, I have a challenge as Member of Parliament for Mapatizya because a bridge was washed away in the last rain season. Hon. Kamboni, the hon. Member for Kalomo Central, and I approached the office of the Permanent Secretary and hon. Minister and were told that the budget was quite minimal and that we should wait. The only alternative route to go to Mapatizya is through Zimba and the people pay K150 per trip. I, therefore, would like to find out from Her Honour the Vice-President if the Government plans to work on that bridge before the onset of the rains?

 

The Vice-President: Mr Speaker, the hon. Member of Parliament is telling us that he went to see the hon. Minister. If he wanted the bridge to be constructed quickly and considered it a disaster, surely, he should have gone to the office of the Disaster Management and Mitigation Unit (DMMU) to discuss this matter and he should have been assisted. However, I still urge him to visit the office of the DMMU. They will assess the situation and then take action if need be.

 

I thank you, Sir.

 

Interruptions

 

Mr Speaker: The conversations on the right are rather loud and the Vice-President is on the Floor.

 

Mr Mulenga (Ndola Central): Mr Speaker, debt finance increases pressure on the future earnings of an economy. It also increases production and service delivery to the people. What is the Government’s position on over borrowing?

 

Hon. UPND Members: Hear, hear!

 

The Vice-President: Mr Speaker, borrowing is done at every level, and even at households. Governments borrow to meet the requirements of their social economic development objectives. In the Zambian scenario, the manifesto of the Patriotic Front (PF) has enshrined debt sustainability which aims at curtailing the Government from over borrowing so that it does not borrow beyond its means and, definitely, the Government is alive to that command.

 

The talk of over borrowing has been in the media for some time now. It is an issue that perhaps needs further clarification. The hon. Minister of Finance will be requested to come to this august House to explain, in detail, the situation of debt contraction in this country and how Zambia is fairing in this regard.

 

Mr Speaker, I thank you.

 

Mr Siwanzi (Nakonde): Mr Speaker, the people of Nakonde are concerned with the non-completion of the water reticulation and secondary school projects.

Mr Livune: Hear, hear!

 

Mr Siwanzi: Due to the failure to complete the water reticulation project, there is erratic water supply in Nakonde. All taps are dry in Nakonde.  

 

Mr Livune: Hear, hear!

 

Mr Siwanzi: Further, waterborne diseases have broken out. There is diarrhoea everywhere.

 

Hon. Opposition Members: Ah!

 

Mr Siwanzi: I was not spared. 

 

Laughter

 

Mr Siwanzi: I got diarrhoea when I went there for Independence Day celebrations.

 

Hon. Members: Hear, hear!

 

Mr Siwanzi: With regard to the secondary school, this project was started in 2011. To-date, it is not complete.

Mr Speaker: Hon. Member for Nakonde, spare us those personal details.

 

Laughter

 

Mr Siwanzi: Mr Speaker, my question is: When will the Government complete the secondary school and the water reticulation projects?

 

Hon. Opposition Members: Hear, hear!

 

The Vice-President: Mr Speaker, the challenge of water in Nakonde is historical. As a matter of fact, it is only this Government that has responded to this challenge by working on the water works. Initially, works were being done by the Ministry of Local Government. However, the new Ministry of Water Development, Sanitation and Environmental Protection has taken on the mandate of completing the water reticulation project.

 

Mr Speaker, I want to inform the hon. Member of Parliament for Nakonde that works will continue on the project. They have not stalled forever.

 

I thank you, Sir.

 

Mr Ng’ambi (Chifubu): Mr Speaker, my question is a rider to the question by the hon. Member for Nkana.

 

Sir, the hon. Minister of Finance, on the Floor of this House, indicated that the stock of domestic arrears stands at K13.2 billion. This includes monies owed to transporters for the Food Reserve Agency (FRA) and other suppliers of the Government. This has negatively impacted on the performance of business houses in Zambia.

 

I would like to find out from Her Honour the Vice-President whether or not this Government has any short-term measures to mitigate the K13.2 billion so that there are some business activities which will create more job opportunities for our people.

 

Hon. Opposition Members: Hear, hear!

 

The Vice-President: Mr Speaker, the Government is very concerned about transporters and other small and medium enterprises in the country because most of businessmen and women are engaged in these business activities. It is, therefore, only prudent...

 

Interruptions

 

Mr Speaker: Order, on my left!

The Vice-President: ...that the Government allocates resources to meet the needs of the transporters and other suppliers.

 

The Ministry of Finance has put in the budget quite a substantial amount of money to address arrears because this has been a challenge for the Government for a long time. A lot of money is owed to our own people who cannot do business because either they do not have the capital or the capital is tied up in arrears in different sectors where they delivered services.

 

We are very conscious of this and the Government is doing everything possible to address the problem.

 

Mr Speaker, I thank you.

 

Mr Nyirenda (Lundazi Central): Mr Speaker, I would like to find out from Her Honour the Vice-President what measures the Government has put in place to end the unnecessary electricity power cuts that Lundazi District has experienced for the last three months. Her Honour may wish to know that this power comes from Malawi.

 

Hon. Members: Hear, hear!

 

The Vice-President: Mr Speaker, I was not aware that we have towns in Zambia that enjoy electricity from other countries. This is the first time that we are being told about this problem. If the electricity grid originates from Malawi, we do not have the power, as Government, to dictate to the Malawian authorities what to do with this power here in Zambia.

 

What we should work on is to enhance our own power distribution to rural areas. I know that the Rural Electrification Authority (REA)...

 

Interruptions

 

Mr Speaker: Order, on my right!

 

Continue Your Honour.

 

The Vice-President: ...has already started on this journey of powering the rural areas. I hope that Lundazi will be considered in this programme.

 

Mr Speaker, I thank you.

 

Mr Mwiinga (Chikankata): Mr Speaker, this Government retired medical doctors, teachers and many more civil servants in national interest. I would like to find out from Her Honour the Vice-President when the Government will pay the dues to these brothers and sisters.

 

The Vice-President: Mr Speaker, all the retired civil servants will receive their dues.

 

I thank you, Sir.

 

Mr Kasonso (Solwezi West): Mr Speaker, the secretary-general of the Patriotic Front (PF) was recently in the Western Province where it was reported that he had meetings with civil servants whom he intimidated with various actions if they did not move to new districts. Do you not think that this action politicises the Civil Service?

 

Mr Mutale: Question!

 

Hon. Opposition Members: Hear, hear!

 

Mr Mutale: Question!

 

The Vice-President:  Mr Speaker, I know that the Secretary-General of the Patriotic Front (PF) went to the Western Province to meet party officials. This is what happened in all the districts that he went to. With regard to meeting civil servants, this report has not come to us. I do not know which civil servants he met, but I can categorically state that meeting civil servants was not on his programme. I know for sure that it is not true.

 

Mr Speaker, I thank you.

 

Hon. Government Members: Hear, hear!

 

Mr Mwila (Chimwemwe): Mr Speaker, the Teaching Service Commission (TSC) is demanding that the applicant qualified teachers should first pay K571 as membership fee before they could submit the application letters through the District Education Board Secretary (DEBS).

 

However, the complaint from the applicants of Chimwemwe Parliamentary Constituency is that the amount of K571, which is being demanded, is too high especially that most of the applicants have been unemployed for over five years. I would like to find out from Her Honour the Vice-President whether the Government would consider directing the commission to reduce the membership fee from K571 to some affordable amount and then, compel the commission to recover the balance through the payroll after the applicants have been put on the payroll.

 

The Vice-President: Mr Speaker, I just said that any law that disadvantages Zambians has to be revisit. This is not a law and it is not cast in stone. Therefore, there are possibilities of renegotiating this particular fee that the teachers are supposed to pay. Indeed, I realise that some of the teachers come from the rural areas and have not worked before. Consequently, they may not afford that sort of money, but as a requirement by the Ministry of Education, they need to pay something. Therefore, it is up to the ministry and the concerned unions to perhaps speak on behalf of the applicants to see how this matter can be resolved.

 

I thank you, Mr Speaker.

 

Mr Simbao: (Senga Hill): Mr Speaker, Senga Hill was declared a district over a year ago now. We need to know when the district commissioner (DC) will be appointed for our district.

 

The Vice-President: Mr Speaker, I am sure a DC will be appointed soon because we have to go through the Civil Service Conditions of Service to see who can qualify for that position. When that is finalised, a DC will be appointed.

I thank you, Sir.

 

Mr Fungulwe (Lufwanyama): Mr Speaker, the people of Lufwanyama would like to find out from Her Honour the Vice-President on the status of the Kalengwa/Kasempa Road. During the campaigns, the contractor was on site and work was progressing well, but after the elections, the contractor demobilised from the site. On behalf of the people of Lufwanyama, I would like to find out from the Vice-President the official position of the Government on this issue.

 

The Vice-President: Mr Speaker, this is a very important and an economic road for that matter.

 

Sir, I know that His Excellency, the President, had mentioned something about this road and directed the Ministry of Housing and Infrastructure Development to address this issue. I am sure the ministry is working on it. I also want to advise the hon. Member for Lufwanyama to visit the Ministry of Housing and Infrastructure Development so that he can remind the officials at the ministry to take this matter seriously.

 

I thank you, Sir.

 

_____

 

MINISTERIAL STATEMENT

 

SALE OF 17.3 PER CENT CLASS B SHARES IN THE ZAMBIA CONSOLIDATED COPPER MINE INVESTMENT HOLDINGS (ZCCM-IH)

 

The Minister of Finance (Mr Mutati): Mr Speaker, I would like to thank you for according me the opportunity to appraise the House on the intended sale of 17.3 per cent Class B Shares in Zambia Consolidated Copper Mine Investment Holdings (ZCCM-IH) held by GRG and listed on Lusaka Stock Exchange (LuSE).

 

Sir, the long-term strategic plan is to reposition the ZCCM-IH for growth through strategic partnership and to comply with LuSE requirements. The LuSE listing requirements stipulate that no single shareholder should control more than 75 per cent of the equity in any one listed company. In compliance with the listing requirements, the Government intends to sell 17.3 per cent of its shareholding in ZCCM-IH. My predecessor announced the intended sale of the ZCCM-IH shares in the 2015 Budget Address.

 

Mr Speaker, it is intended that the proceeds of the sale of the 17.3 per cent shareholding in ZCCM-IH will be prudently used for development of more assets such as financing of the infrastructure development fund. This will reposition the Government’s development agenda by ensuring sustainable infrastructure financing, which is the bedrock of the Government’s economic policy thrust.

 

Sir, hon. Members will note tea the proposed sale will leave Government with the majority shareholdings at 60.3 Per cent. As hon. Members may be aware, the National Pension Scheme Authority (NAPSA) holds 15 per cent shares in ZCCM-IH.

 

Mr Speaker, in conducting the sale, we will ensure that the articles of association are amended to:

1. provide that the Development Corporation Development (IDC) shareholding will not at any time fall below 60.3 per cent to serve the National strategic interest; and

 

1. give the right for first refusal to the IDC should NAPSA want to sell its 15 per cent shareholding.

 

Sir, as a transparent and consultative Government, we thought it would be prudent to share with the House and the nation at large the intentions of Government on this issue. The sale is strictly meant to ensure compliance with the LuSE Regulations while firmly protecting the interest of the nation.

 

Mr Speaker, I thank you.

 

Mr Speaker: Order!

 

Hon. Members are now free to ask questions points of clarification on the ministerial statement given by the hon. Minister.

 

Interruptions

 

Mr Speaker: Is the hon. Member for Kabompo ready.

 

Mr Lufuma (Kabompo): Mr Speaker, I would like to clarify because this is from the last - the system must be changed.

 

I thank you, Sir.

 

Mr Speaker: Order!

 

Just make your point clear. We did not rise for questions on this. Hon. Members, just give me a minute to sort this challenge.

 

Interruptions

 

Mr Ngulube indicated.

 

Mr Speaker: Order!

 

It seems the hon. Member for Kabwe Central has joined the Information and Communication Technology (ICT) team.

 

Mr Ngulube (Kabwe Central): Mr Speaker, I am grateful that we now have a new list. Hon. Minister, we are aware that the Industrial Development Corporation (IDC) has so far acquired shareholding in most parastatals. However, why is the IDC taking its time for it to actualise some of the Government initiatives? I have an example of the Mulungushi Textiles in Kabwe. Will the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM–IH) not end up like the Mulungushi Textile?

 

Mr Mutati: Mr Speaker, so far, the Industrial Development Corporation (IDC) has acquired shares in twenty-two parastatals and fifteen more are being transferred to the corporation. The IDC will continue to hold the shares on behalf of the Government. Specifically for the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM–IH), the sale is in compliance with the listing rules at the Lusaka Stock Exchange (LuSE). With regard to Mulungushi Textile, the IDC is in active negotiations with a Chinese partner to revive the company.

 

I thank you, Sir.

 

Mr Mung’andu (Chama South): Mr Speaker, I would like the hon. Minister to clarify. After the listing of the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM−IH) on the Lusaka Stock Exchange (LuSE), what measures have been put in place to ensure that companies that are owned by citizens of this country will have shares in ZCCM−IH, considering that a number of our resources are exploited by foreigners? Very few Zambians participate in mining activities.

 

Mr Mutati: Mr Speaker, I indicated that in the Budget Address by predecessor in 2015, he announced the intention to sell the 17.3 per cent Government shares and, indeed, these shares have been listed on LuSE for over two years now. This has allowed the Zambian public to buy these shares. Therefore, the onus is on the public to access the shares on LuSE.

 

I thank you, Sir.

 

Mr Mbangweta (Nkeyema): Mr Speaker, I had almost withdrawn, but thank you very much.

 

Interruptions

 

Mr Mbangweta: I just wanted to find out the challenges faced from the time the announcement was made to-date, when the Government is now trying to actualise the listing of this company. I mean the period from 2015 to-date.

 

Mr Mutati: Mr Speaker, one of the challenges obviously has been that the trading in ZCCM−IH shares in the last two years has not been inspiring. Therefore, we will mount a campaign to attract those that have intentions to purchase the shares to do so, particularly given the favourable conditions of the copper prices on the international market.

 

I thank you, Sir.

 

Mrs Katuta (Chiengi): Mr Speaker, how well has the public has been informed about this. How much public sensitisation has done because I think there has not been much publicity and that is why the shares have been stuck on the Lusaka Stock Exchange (LuSE).?

 

Mr Mutati: Mr Speaker, we have indicated that we have not mounted competently the awareness campaign thus far. Therefore, starting with this ministerial statement, that programme will start in earnest.

 

I thank you, Sir.

 

Mr Mukumbuta (Senanga): Mr Speaker, when the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM−IH) offloaded shares on the Lusaka Stock Exchange (LuSE), indeed it gave a chance to Zambians to buy the shares and I am one of the dependable shareholders. To me it is a wasted investment because there are few benefits to Zambians. Was this a mockery to the Zambian people?

 

Mr Mutati: Mr Speaker, the shares in question have got value and we have indicated that the proceeds of the sale of the shares will be directed to the Infrastructure Development Fund, which will be used to invest in infrastructure around the country.

 

I thank you, Mr Speaker.

 

Mr Simbao (Senga Hill): Mr Speaker, the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM−IH) is our small footing in the mineral endowment of our country. The Corporación Nacional del Cobre (CODELCO), which is a company in Chile, is a fully state owned parastatal. As we know, Chile is the biggest copper producing country in the world. Why are we failing to run even the smallest footing that this country has despite our biggest resource endowment?

 

Mr Mutati: Mr Speaker, the evidence is that we have not failed to run particularly ZCCM−IH. Indeed, it is one of the few investment that is returning dividends to the Government.

 

I thank you, Sir.

 

Mr A. C. Mumba (Kantanshi): Mr Speaker, I am just seeking clarification. I have noticed that the amount of money that is expected to be realised from the sale of the 17.3 per cent shareholding in the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM−IH) by the Government has not been clearly mentioned. Obviously, this is the best time to sell these shares, owing to the copper prices on the international market.

 

However, my concern is that 83 per cent of the projects that in this country are done by foreign companies. The Infrastructure Development Fund, that the hon. Minister mentioned, is obviously going to be paying for the 83 per cent of the projects in this country that are in foreign hands. What are the Zambians who own this natural resource going to benefit from this investment?

Mr Mutati: Mr Speaker, in terms of pricing for the shares, this is listed on LuSE and currently they are trading at K38 per share. In terms of the use of the funds for infrastructure, when we construct a road, that road will never be taken away by foreign investors. It will remain for the benefit of the Zambian people.

 

I thank you, Sir.

 

Mr Ng’ambi (Chifubu): Mr Speaker, how much benefit or dividends is Zambia going to lose in monetary terms after the sale of these shares?

 

Mr Mutati: Mr Speaker, I have said that we are complying with the law. When you comply with the law, there is no measurement of loss.

 

I thank you, Sir.

 

Dr Kambwili (Roan): Mr Speaker, First Quantum Minerals (FQM) Limited bought Kalumbila Mine and a very large mine in Panama. However, the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM-IH) is not part of that acquisition. Yet, ZCCM-IH is part and parcel of FQM Limited because it has 15 per cent shares in the company. Why has the Government allowed ZCCM-IH to be excluded from the mine in Panama and Kalumbila Mine?

 

Mr Mutati: Mr Speaker, the matter between the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM-IH) and First Quantum Minerals (FQM) Limited is in the courts of law for the exact reason the hon. Member has raised.

 

I thank you, Sir.

 

Dr Malama (Kanchibiya): Mr Speaker, recently, we signed a Double Taxation Agreement (DTA) with Switzerland. I hear 83 per cent of investors in this country are foreign. Why go to a country that you know will make it difficult for us to check on our interests, a country that many other countries are wary of? Why sign a DTA with Switzerland, which will not be open to Zambia checking on the interests of our nationals in that country?

 

Mr Mutati: Mr Speaker, let me just clarify the meaning of a Double Taxation Agreement (DTA). What it means is that the same income will not be taxed twice. This means that if there is an investment by a company from Switzerland, such as Mopani Copper Mines, the profits and dividends that accrue from Zambia will be taxed under the Zambian law, and when they are remitted to Switzerland, they will not be subject to tax in Switzerland. In reverse, if a company owned by a Zambian based in Switzerland accrues profit or dividends, it will be taxed in Switzerland and not in Zambia.

 

The current flow of investment is in favour of Zambia. We have significant investments from foreigners. Therefore, the DTA favours Zambia, and that is the reason we signed it. We can tax dividends in Zambia and we will continue to sign even more DTAs because they are for the benefit of the people of Zambia.

 

I thank you, Sir.

 

Mr Daka (Msanzala): Mr Speaker, I heard the hon. Minister state that certain parastatals have been moved to the Industrial Development Corporation (IDC) Zambia. Can he confirm that the Government has resolved the issues between Lap Green Network and the Zambia Telecommunications Company Limited (ZAMTEL) before ZAMTEL is moved to IDC?

 

Mr Mutati: Mr Speaker, the correct status is that the Zambia Telecommunications Company Limited (ZAMTEL) has been moved to the Industrial Development Corporation (IDC) Zambia. The issue of Lap Green Networks was determined by the High Court, and Lap Green Networks was awarded compensation. The Government is dealing with the matter of compensation.

 

I thank you, Sir.

 

Mr Kabanda (Serenje): Mr Speaker, the Government has been talking about unbundling the non-performing assets. Will the transfer of these companies to the Industrial Development Corporation (IDC) Zambia make them viable?

 

Mr Mutati: Mr Speaker, the mere act of transfer will not make them viable. It is the actions that we will take upon transfer that will make a difference. We are in the process of concluding the evaluation of five of the parastatals that have been transferred to the Industrial Development Corporation (IDC) Zambia through the consultants we have appointed to advise us on how to restructure these parastatals that had difficulties, including selling some of their assets.

I shall bring to the House the output of this process.

 

I thank you, Sir.

 

Mr Kafwaya (Lunte): Mr Speaker, the Movement for Multi-Party Democracy (MMD) Government and its privatisation consultants are very well known for undervaluing Zambian assets. The Zambia Consolidated Copper Mines Limited (ZCCM) was grossly undervalued. The Zambia Telecommunications Company Limited (ZAMTEL) and Finance Bank Zambia were also grossly undervalued. What is the Government doing to ensure that as we sell these shares, we value them correctly in order for Zambians to get value for money?

 

Hon. PF Members: Hear, hear!

 

Mr Mutati: Mr Speaker, for avoidance of doubt, when a company is listed on the stock exchange, its price is determined on the stock exchange. There is no other mechanism of determining the price. Therefore, the issue of overvaluation and undervaluation does not exist when a company is listed on the stock exchange.

 

Sir, commercial transactions are not about politics. At the time when the mine assets were privatised, we were losing, on a daily basis, a million dollars, which the Treasury was paying in order to keep the mines afloat. You also recall that the production of copper was at its lowest. It was at 257,000 metric tonnes. The level of employment had plummeted from 65,000 to 23,000. What does that scenario tell you? Was it better to privatise or continue to divest a million dollar everyday from the Treasury ...

 

Mr Speaker: Order!

 

Business was suspended from 1040 hours until 1100 hours.

 

[MR SPEAKER in the Chair]

 

Mr Mutati: Thank you, Mr Speaker, when business was suspended I was indicating that at the time the mining assets were privatised, we were losing a million dollars a day. The levels of employment were depressive and production was down. Sir, we are now receiving dividends from the mining sector, the levels of employment are in excess of 60,000 and the investment alone in the mining sector has accrued almost US $10 billion.

 

However, in the case of Zambia Telecommunication Company (ZAMTEL), at the time this company was privatised, Government received US $257 million for that particular asset. It was later repossessed, but today, we have to compensate Lap Green over US $380 million compared to $257 million we received.

 

Mr Speaker, it is also important to note that, at the time this company was privatised, we begun receiving the taxes promptly. However, today, since repossession, no taxes have been paid. Instead, Government has had to inject into ZAMTEL over US $300 million to support the company. Now, the question that comes to mind is: which formula is depriving the Zambians? Simply put, Mr Speaker, the numbers do not lie and choices have consequences.

 

I thank you, Mr Speaker.

 

Mr Muchima (Ikeleng’i): Mr Speaker, I have noted two things here, the efficiency of Lusaka Stock Exchange (LUSE) and I also want to ride on the question asked by the hon. Member of Parliament for Kantashi that most of the contracts in Zambia are being given to foreigners meaning all the money will be externalised. Does the hon. Minister think LUSE which is, in my opinion deemed a passive market will yield the results that we intend to create the money for infrastructure development? Was that a good investment decision?

 

Mr Mutati: Mr Speaker, may be just to clarify on the issue of contracts, of the companies that are listed on LuSE, majority of them are private sector companies such as Zambia Breweries, Standard Chartered and Lafarge. Those are the ones that are on LuSE and are not the ones that are dispensing contracts. The proceeds that will come out of the sale of the shares is what is going to go into the infrastructural fund for the purpose of constructing infrastructure. If contracts in the road sector are being given to foreigners, that is a different matter and it has nothing to do with the transaction on LuSE.

 

Thank you, Sir

 

Mr Chibanda (Mufulira): Mr Speaker, Ndola Lime is a company absolutely owned by Zambia Consolidated Copper Mines – Investment Holding (ZCCM-IH). Recently, it was retrenching people owing to the financial constraints it is going through. Does the hon. Minister intend to consider listing Ndola Lime on the stock exchange for the sake of finding money to recapitalise it since it is one of the largest producers of lime stone products in Zambia and in the region?

 

Mr Mutati: Mr Speaker, the financial condition of Ndola Lime is such that it is incapable of being listed on the Lusaka Stock Exchange (LUSE). What we are doing with Ndola Lime is to give it life through a joint venture by placing a new investment for a new cement plant to be constructed using some of the waste materials and other resources for Ndola Lime. We think that it is the most sustainable solution to assure jobs and also assure future liability of Ndola Lime and listing it on the stock exchange is not an option.

 

Thank you, Mr Speaker.

 

Mr Chali (Nchanga): Mr Speaker, the offloading of the 17.3 per cent shares from ZCCM according to his statement is a legal requirement to reduce the shares. Now, it has taken over two years from 2015, should the trend continue where there is a failure to offload those shares, do we have a plan ‘B’ as to comply to the required 60 per cent plus?

 

Mr Mutati: Mr Speaker, we are going to mount an aggressive campaign to ensure that the transaction succeeds. Secondly, with anything with life, you cannot guarantee, all you can offer is your best endeavours.

 

I thank you, Sir.

 

_________

 

QUESTION FOR ORAL ANSWER

 

CONSTRUCTION OF A HOSPITAL IN NGABWE DISTRICT

 

72. Mr Chiyalika (Lufubu) asked the Minister of Health:

 

1. when the Government would construct a hospital in Ngabwe District; and

 

1. when health posts would be constructed in the following areas:

 

1. Luamala;

 

1. Chikonka;

 

1. Chibakabaka;

 

1. Kasu; and

 

1. Kangwingwi.

 

The Minister of Health (Dr Chilufya): Mr Speaker, the Government has planned to commence construction of a district hospital in Ngabwe in 2018.

 

Sir, the Government has taken note of the proposed areas of construction for health posts at the aforementioned sites. An assessment of the needy areas in the district is currently being done. The Government shall conclude after the assessment of the recommended areas.

 

Mr Speaker, the Government intends to construct 108 new health centres country-wide commencing in 2018. Should the proposed areas be found appropriate for prioritisation under the allocation for Ngabwe District, the Government shall proceed to construct health centres in the proposed areas.

 

I thank you, Sir.

 

CONSTRUCTION OF HEALTH POSTS IN CHIFUNABULI CONSTITUENCY

 

73     Mr Mecha (Chifunabuli) asked the Minister of Housing and Infrastructure Development:

 

1. when the construction of the following health posts in Chifunabuli Parliamentary Constituency would resume:

 

1. Nshungu in Kafumbo Ward;

 

1. Kandolo in Masonde Ward; and

 

1. Mwewa in Chinkutila Ward; and

 

1. what the estimated cost of constructing each health post was.

 

The Minister of Housing and Infrastructure Development (Mr Chitotela): The construction of Nshungu, Kandolo and Mwewa Health posts in Chifunabuli Parliamentary Constituency has been earmarked for construction under the India Line of Credit Financing. Works on the heath facilities are expected to resume once the Indian Government approves the Government of Zambia’s application for additional financing on the project.

 

Sir, each health facility shall be completed at an estimated cost of US$100,000.

 

I thank you, Sir.

 

Mr Mecha: Mr Speaker, the people of Chifunabuli would like to find out why none of the three health posts earmarked for construction have been completed.

 

Mr Chitotela: Mr Speaker, the company that was awarded the contract to construct health post in Muchinga, Luapula, Northern and North-Western Provinces had their contract terminated by the Indian Government. The Ministry of Health, which is spearheading the project, told us that they started with a provincial headquarters. The case in Chifunabuli is similar to that in other areas like Pambashe, which is supposed to have four health faculties, but only one has a slab, while the rest have not been attended to. We have been assured by the Ministry of Health and the Ministry of Finance that those facilities will be constructed once they finalise agreements.

 

I assure the people of Chifunabuli that once the financing agreement is concluded, we will see the contractor moving on site. The Ministry of Health has assured us that all the building materials were delivered to various provincial centres and the contractor has been identified. What is remaining is an agreement between the Ministry of Finance and the Indian Government so that funds can be released.

 

I thank you, Sir.

 

__________

 

BILLS

 

[THE CHAIRPERSON OF COMMITTEES in the

Chair]

 

THE COMPANIES BILL, 2017

 

Clauses 1 and 2 ordered to stand part of the Bill.

 

CLAUSE 3 – (Interpretation)

The Minister of Commerce, Trade and Industry (Mrs Mwanakatwe): Madam Chairperson, I beg to move an amendment in clause 3:

 

1. on page 21, in lines 20 to 22 by deletion of the definition of “executive director” and the substitution thereof of the following:

“executive director” means a director who is involved in the day-to-day management of the a company”;

 

1. on page 22 in lines 17 and 21 by deletion of the words “balance sheet” and substitution thereof of the words “statement of financial position”;

 

1. on page 23:

 

1. in line 16 and 18 by the deletion of the definitions of “international financial reporting standards”; and

 

1. in line 19 and 21 by deletion of the definition of “international standards on auditing”; and

 

1. on page 26, in lines 13 to 14 by deletion of the words “repealed as in accordance with section 37”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 3, as amended, ordered to stand part of the Bill.

 

Clauses 4, 5, 6, 7, 8 and 9 ordered to stand part of the Bill.

 

CLAUSE 10 – (Companies limited by guarantee)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 10, on page 30, in line 5 to 34 by the deletion of clause 10 and the substitution thereof of the following:

 

                     Companies                               10.       (1) A subscriber to an application for

                        limited by                                incorporation for a company limited by guarantee                 guarantee                                                            shall make a declaration of guarantee specifying the                                                 amount that the subscriber undertakes to contribute                                      to the assets of the company in the event of the                                                   company being wound-up.

 

                                          (2) A subscriber to an application for incorporation for a company limited by guarantee shall, on incorporation of the company, be a member of the company.

 

                                                                  (3) A declaration of guarantee made under subsection    (1) shall state that a member undertakes to contribute an amount not exceeding the Act No. of           amount specified in the declaration of guarantee made by the member, if the        2017        company is wound-up in accordance with the Corporate Insolvency Act, 2017, or         within one year after the member ceases to be a member.

 

                                          (4) Subject to subsection (2) and any additional requirements imposed by the articles and this Act, a person may –

 

1. becomes a member of a company, on a approval of the members by special resolution, and by signing a declaration of guarantee delivered to the company; or

 

1. ceases to be a member, by delivering to the company a signed to that effect in the prescribed form.

                                          (5) A company limited by guarantee shall, within seven days after a person becomes or ceases to be member of company, lodge with the Registrar the declaration of guarantee and a notice in the prescribed form.

 

                                          (6) A company limited by guarantee shall not carry on business for the purpose of making profit for its members or anyone concerned in its promotion or management.

 

                                          (7) If a company fails to comply with this section, the directors and each officer in default commit an officer and are liable, on conviction, to a fine of not exceeding three hundred penalty units for each day that the failure continues.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 10, as amended, ordered to stand part of the Bill.

 

CLAUSE 12 – (Application for incorporation)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 12, on page 32:

1. in lines 20 to 21 by the deletion of paragraphs (a) and (b) and the substitution thereof of the following:

 

1. amount of share capital of the company;

 

1. the division of the share capital into shares of a fixed amount; and

 

1. number of shares each subscriber has agreed to take.

 

1. in lines 31 to 37 by the deletion of paragraphs (a), (b), (c), and (d) and the substitution thereof of the following:

 

“(a) under eighteen years of age;

 

(b) an undischarged bankrupt; or

 

(c) of unsound mind and has been declared to be so by a court of competent jurisdiction.”

 

Amendment agreed to. Clause amended accordingly.

 

Clause 12, as amended, ordered to stand part of the Bill.

 

Clause 13 ordered to stand part of the Bill.

 

CLAUSE 14 – (Certificate of incorporation and share capital)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 14, on page 33, in line 20 by the deletion of word “fourteen” and the substitution thereof of the word “five”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 14, as amended, ordered to stand part of the Bill.

 

Clauses 15, 16, 17, 18 and 19 ordered to stand part of the Bill.

 

CLAUSE 20 – (Pre-incorporation contracts)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 20, on page 34, in lines 20 and 21by the deletion of the words “the person shall be bound by the contract and entitled to the benefits thereof” and the substitution thereof of the following:

 

“that person is bound by the contract and shall incur any liability and be entitled to the benefits arising therefrom”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 20, as amended, ordered to stand part of the Bill.

 

Clauses 21, 22, 23, 24, 25, 26, 27 and 28 ordered to stand part of the Bill.

 

CLAUSE 29 – (Publication of name of company)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 29, on page 38:

1. in line 30 by the insertion of the words “or a combination of Roman letters with Arabic numerals” immediately after the word “letters”; and

 

1. in line 35 by the insertion of the words “or a combination of Roman letters with Arabic numerals” immediately after the word “letters”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 29, as amended, ordered to stand part of the Bill.

 

Clauses 30, 31, 32, 33 and 34 ordered to stand part of the Bill.

 

CLAUSE 35 – (Service of documents by company)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 35, on page 41 and 42 by the deletion of clause 35 and the substitution thereof of the following:

 

Service of                 35.       (1)        For the purposes of this Act, a document may be served by  documents by                                     company on any member, debenture holder, director or

Company                                          secretary of the company -

           

1. personally;
2. by the sending it by registered post in a prepaid letter addressed to that member, debenture holder, director or secretary or that company at the registered postal address or at any other address supplied by that member, debenture holder, director or secretary to that company for the giving of notices to that member, debenture holder, director or secretary to that company; or

 

(c)        by leaving it for that member, debenture holder, director or secretary of that company at the registered address of that member, debenture holder, director or secretary of that company with a person apparently over the age of eighteen years.

 

(2)        A document may be served by a company on the joint holders of a share or debenture of the company by serving it on the joint holder named first in the register of members or debenture holders in respect of that share or debenture.

 

(3)        A document may be served by a company on the person upon whom the ownership of a share or debenture has devolved by reason of the person being a legal personal representative, receiver, or trustee in bankruptcy of a member of debenture holder-

 

(a)        personally;

 

(b)        by sending it by registered post in a prepaid letter addressed to the person at a postal address notified by the person to the company;

(c)        by leaving it in any manner in which it might have been served if the death, receivership or bankruptcy had not occurred, if the company has not received notice of a postal address for the person;

 

(d)       by leaving it for the person at a place the address of which has been notified by the person to the company, with a person apparently over the age of eighteen years; or

 

(e)        by electronic means.

 

(4)        where a document is sent by registered post, service shall be deemed to be effective by properly addressing, prepaying and posting the letter accompanying the document and to have been effected at the expiration of seven days or, if it is sent to an address outside Zambia, twenty-one days, after the letter containing the same is posted.

 

(5)        where a document is sent by electronic means, service shall be deemed to be effected when the complete data message enters an information system designated or used for that purpose in accordance with the Electronic Communications and Transactions Act, 2009.

 

(6)        for purposes of subsections (4) and (5), where a document is sent to an address outside Zambia, the letter accompanying the document shall be dispatched by registered or electronic mail, as applicable.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 35, as amended, ordered to stand part of the Bill.

 

Clauses 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48 and 49 ordered to stand part of the Bill.

 

CLAUSE 50 – (Conversion of company limited by guarantee into company limited by shares or unlimited company)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 50, on page 48, in line 4 by the insertion of the words “a company limited by shares or’ between the words “to” and “an”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 50, as amended, ordered to stand part of the Bill.

 

Clauses 51, 52 and 53 ordered to stand part of the Bill.

 

CLAUSE 54 – (Process of conversion)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 54, on page 54, in line 24 by the deletion of the word “executive” between the words “each” and “officer”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 54, as amended, ordered to stand part of the Bill.

 

Clauses 55, 56, 57, 58, 59, 60, 61, 62, 62, 63, 64, 65, 66 and 67 ordered to stand part of the Bill.

 

Clause 68 – (Chairperson’s declaration as to result of vote)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in Clause 68, on page 56, in line 13 by the insertion of the words “and secretary” immediately after the word “chairperson”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 68, as amended, ordered to stand part of the Bill.

 

Clauses 69, 70, 71, 72, 73 and 74 ordered to stand part of the Bill.

 

CLAUSE 75 – (Refusal to circulate member’s statements)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 75, on page 59, in line 23 by the insertion of the words “to the Court” immediately after the word “appeal”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 75, as amended, ordered to stand part of the Bill.

 

Clauses 76, 77, 78, 79, 80 and 81 ordered to stand part of the Bill.

 

CLAUSE 82 – (Company secretary)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 82, on page 61, in lines 25 and 26 by the deletion of subclause (1) and the substitution thereof of the following:

 

1. subject to subsection (5), a company shall appoint a company secretary.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 82, as amended, ordered to stand part of the Bill.

 

Clauses 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98,

 

99, 100, 101, 102, 103, 104 and 105 ordered to stand part of the Bill.

 

CLAUSE 106 – (Fiduciary duties of directors) 

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 106, on page 73, in line 15 by the deletion of paragraph (b) and the substitution thereof of the following:

 

(b)        promote the success of the company.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 106, as amended, ordered to stand part of the Bill.

 

Clauses 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137 and 138 ordered to stand part of the Bill.

 

CLAUSE 139 – (Share capital)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in Clause 139, on page 87, in lines 7 and 8 by the deletion of clause 139 and the substitution thereof of the following:

 

139.     (1)       A company other than a company limited by guarantee shall have a share capital as prescribed.

 

                     (2)        A company limited by guarantee shall have a guaranteed amount.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 139, as amended, ordered to stand part of the Bill.

 

Clauses 140, 141, 142 and 143 ordered to stand part of the Bill.

 

CLAUSE 144 – (Pre-emptive rights)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 144, on page 90, in line 24 by the deletion of the words “determined by the Registrar” and the substitution thereof of the words “as may be specified in the Articles”.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 144, as amended, ordered to stand part of the Bill.

 

CLAUSE 145 – (No par value of share)

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 145, on pages 90 and 91 by the deletion of clause 145 and the substitution thereof of the following:

 

         Share                           145.     (1)        Where a company issues shares at a premium,

         Premium                                              whether for cash or otherwise, a sum equal to the                  account                                             total amount of value of the premiums on these

                                                                     shares shall be transferred to an account, to be

                                                                     called “the share premium account”, and the

                                                                     provisions of this Act relating to the reduction of

                                                                     share capital of a company shall, except as provided

                                                                     in this section, apply as if the share premium

                                                                     account were paid up share capital of the company.

 

                                                         (2)        the share premium account may be applied by the

                                                                     Company-

 

1. in paying up unissued shares of the company to be

issued to members of the company as fully paid bonus shares;

 

1. in writing off –

 

1. the preliminary expenses of the company; or
2. the expenses of, the commission paid of the discount allowed on any issue of shares or debentures of the company; or

 

1. in providing for the premium payable on redemption of any redeemable preference shares or of any debenture of the company.

 

Madam Chairperson, I thank you.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 145, as amended, ordered to stand part of the Bill.

 

Clauses 146 and 147 ordered to stand part of the Bill.

 

CLAUSE 148 – (Forfeiture and surrender of shares)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 148, on page 91:

1. in lines 36 and 37

1. by the deletion of the comma after the word “company” and
2. by the deletion of the words “in the prescribed form”; and

 

1. in line 38 by the deletion of the words “or surrender” immediately after the word “forfeiture”.

 

I thank you, Madam.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 148, as amended, ordered to stand part of the Bill.

 

Clauses 149, 150, 151, 152, 153, 154 and 155 ordered to stand part of the Bill.

 

CLAUSE 156 – (Subsequent issue of shares)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in Clause 156, on page 98, in lines 23 to 26 by the deletion of sub clause (1) and the substitution thereof of the following:

 

1. the board of directors shall not, without the consent of a shareholder, issue new shares that increase the liability of that shareholder to the company.

 

I thank you, Madam.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 156, as amended, ordered to stand part of the Bill.

Clauses, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186 and 187 ordered to stand part of the Bill.

 

CLAUSE 188 – (Transfer of shares)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 188, on page 120, in lines 20 to 22, by the deletion of subclause (9) and the substitution therefor of the following:

 

“(9)      If a company fails to comply with subsection (5), the company and each officer in default, commits an offence and is liable, on conviction, to a fine not exceeding twenty thousand penalty units.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 188, as amended, ordered to stand part of the Bill.

 

CLAUSE 189 – (Restrictions on transferability)

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 189, on page 121, in lines 1 to 3, by the deletion of paragraph (d).

 

Amendment agreed to. Clause amended accordingly.

 

Clause 189, as amended, ordered to stand part of the Bill.

 

Clause 190 ordered to stand part of the Bill.

 

CLAUSE 191 – (Evidence of transmission of shares by operation of law)

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 191, on page 122, in lines 8 to 9, by the deletion of subclause (3) and the substitution thereof of the following:

 

“(3)      A person who fails to comply with subsection (2) is liable to administrative penalty.

 

Amendment agreed to. Clause amended accordingly.

 

Clause 191, as amended, ordered to stand part of the Bill.

 

Clauses 192, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239 240, 241, 242, 243 and 244, ordered to stand part of the Bill.

 

Mrs Mwanakatwe: Madam Chairperson, I beg to move an amendment in clause 245, on page 151, in lines 13 to 32, by the deletion of clause 245 and the substitution thereof of the following: