Tuesday, 11th May, 2021

Printer Friendly and PDF

Tuesday, 11th May, 2021

 

The House met at 1430 hours

 

[MR SPEAKER in the Chair]

 

NATIONAL ANTHEM

 

PRAYER

 

_______

 

RULING BY MR SPEAKER

 

POINT OF ORDER RAISED BY MR G. G. NKOMBO, HON. MEMBER OF PARLIAMENT FOR MAZABUKA CENTRAL CONSTITUENCY, ON WHETHER HER HONOUR THE VICE-PRESIDENT WAS IN ORDER TO MISLEAD THE HOUSE BY STATING THAT SHE HAD ONLY GIVEN MONEY TO ONE PERSON DURING HER TOUR OF A MARKET IN KASEMPA WHEN VIDEO EVIDENCE ALLEGEDLY SHOWED THE CONTRARY

 

Mr Speaker: Hon Members, you will recall that on Friday, 30th April, 2021, when the House was considering Question for Oral Answer No. 187 and Mrs M. C. Chinyama, hon. Member for Kafue Constituency, was on the Floor, Mr G. G. Nkombo, hon. Member for Mazabuka Central Constituency, raised the following Point of Order:

 

Mr Speaker, I am grateful to you for allowing me this opportunity to raise a point of order on Her Honour the Vice-President.

 

“Sir, during the Vice-President’s Question Time, Her Honour the Vice-President indicated that her activity of giving out money at the market was limited to a young person whom she gave what she termed ‘the little change’ from her shopping spree at the market.

 

“Mr Speaker, we are guided by Cap 12 of the Laws of Zambia, which is directive, that as much as possible, a witness on the Floor of the House or in a Committee room must not misguide this House. According to the video that I am looking at now on my phone, Her Honour the Vice-President was dishing out money not to one individual, but through an individual who is wearing a green shirt. In the stampede, the security officers honoured Her Honour the Vice-President because she is the second most important person in this land. According to what I am seeing here now, there are more than eight people, not children, but women and men, to whom the man in green was passing what she calls ‘the little change’, but is the biggest denomination bank note in this country.

 

“Mr Speaker, is Her Honour the Vice-President, therefore, in order to mislead the House that she only gave one small boy what she calls ‘the little change’?

 

“I will lay this phone on the Table of the House for you to see the clip I am referring to. I would like to have the phone back as soon as you dispense with it. 

 

“Mr Speaker, I need your serious ruling on this matter.”

 

Hon. Members, in my immediate response, I reserved my ruling to enable me to study the matter carefully and view the video footage in question.

 

Hon Members, I wish to report that before the Office of the Clerk of the National Assembly could retrieve the video footage from Mr G. G. Nkombo’s phone, he requested for his phone back and undertook to avail the Office the footage on a flash drive. However, he has not submitted the footage to date. I, nonetheless, had recourse to the relevant verbatim record of the proceedings of that day and found it sufficient for me to base my ruling on the point of order on it.

 

Hon Members, the point of order raised by Hon. G. G. Nkombo raises the issue of a member’s duty to ensure that the information he or she provides to the House when debating is factual and verifiable, and this is a matter on which I have guided the House on several occasions. I will, therefore, not belabour the point, suffice it for me to say there are rules that govern debate in the House. Of relevance to this matter is the rule requiring hon. Members to debate factually. In this regard, Order 53(1) of the National Assembly of Zambia Standing Orders, 2016, provides as follows:

 

“53. (1) A member shall, in debating any matter, ensure that the information he or she provides to the House is factual and verifiable.”

 

Additionally, Chapter 3 of the National Assembly Member’s Handbook, 2006, at page 13, states that:

 

“Members must not allege specific matters of fact as being true unless they are able to substantiate them.”

 

Hon Members, the basis of Hon. G. G. Nkombo’s points of order is a response by Her Honour the Vice-President to a question that had been asked by Mr K. S. Michelo, hon. Member for Bweengwa Constituency, during the Vice-President’s Question Time on Friday, 30th April, 2021. The relevant excerpt of the discourse is as follows:

 

Mr Michelo: Mr Speaker, in the recent past on the Floor of this House, Her Honour the Vice-President mentioned that the people who were dishing out money to the people are from the opposition political parties, in particular, the United Party for National Development (UPND).

 

“Mr Speaker, last week, I saw, with my two eyes, Her Honour the Vice-President dishing out money in Solwezi, trying to woo voters. Last time on the Floor of the House, she did mention that the people who were engaged in dishing out money are from the UPND. Is she telling the people of Zambia, today, that she is now a UPND member, as she has started dishing out money, as the Vice-President?

 

The Vice-President: Mr Speaker, I am extremely shocked by the manner this issue has been sensationalised by some sectors of the country, including some politicians. I challenge those that are sensationalising this matter to watch everything that transpired that day, not just a part of the video out of which they want to make capital.

 

“Mr Speaker, during my tour of the North-Western Province, I was in Kasempa that day and, on my way back, I decided to stop at the market to buy some items from there. Indeed, when I stopped, I immediately bought some groundnuts from a lady who was carrying a basket on her head and then I saw a small boy with a bucket of vitumbuwa or scones. I bought those scones. Since the marketeers were coming to me and demanding that I bought things from them, I gave the money that was left in my hands, some small change in K100 and K50 notes, to the marketeers.

 

“Mr Speaker, that I do whenever I travel to provinces; I stop in markets to buy vegetables, sweet potatoes and whatever I want to buy. That is not so different from what transpired that morning. However, what I noticed is that I was captured giving something to somebody, just one person, instead of someone taking a video of everything else that transpired. This is mainly politicking and a chance for some Opposition leaders and non-governmental organisations (NGOs) aligned to political parties to malign my name.

 

“Mr Speaker, some hon. Members who have followed my life know that I have been fighting for the rights of people and that demeaning people is the last thing I would do. Further, corruption is not in my system.

 

“Sir, I would like to find out from all the political players whether none of them has ever given some little change to anyone at the market or bus stop if they are requested to buy something.

 

“Mr Speaker, I respect Zambians, and I would not be in a position to demean their integrity. I also respect women and visit markets to support fellow women. If that is a crime, I am ready to be crucified for it.”

 

Hon Members, in his point of order, Hon. G. G. Nkombo raised the specific issue of whether Her Honour the Vice-President was in order to mislead the House by stating that she had only given one small boy what she called “the little change” when, in fact, she had given more than eight people who were not children, but women and men.

 

Hon Members, in response to Hon. Mr K. S. Michelo’s question, Her Honour the Vice-President stated, inter alia, the following:

 

“I decided to stop at the market to buy some items from there. Indeed, when I stopped, I immediately bought some groundnuts from a lady who was carrying a basket on her head, and then I saw a small boy with a bucket of vitumbuwa or scones. I bought those scones. Since the marketeers were coming to me and demanding that I bought things from them, I gave the money that was left in my hands, some small change in K100 and K50 notes to give the marketeers.”

 

Hon Members, from the foregoing excerpt, it is clear that, in her response, Her Honour the Vice-President said that on her way back from a tour of the North-Western Province, she stopped at a Market in Kasempa to buy some items and that, immediately, she bought some groundnuts from a lady who was carrying a basket on her head. She then saw a small boy with a bucket of scones and bought some scones from him. She did not, at any time, state that she had only given one small boy ‘little change’ as alleged by Hon. Nkombo. Further, she stated that after making her purchases, she gave the money that had remained in her hands, which she described as “small change”, to some marketeers who were pressuring her to buy their merchandise. She, therefore, acknowledged that she had given money to more than one person, contrary to Hon. G. G. Nkombo’s assertion that she had misled the House by saying she had only given little change to a small boy when she had given it to more than eight men and women.

 

Her Honour the Vice-President, firstly, did not say she had given money to only a small boy, but that she had bought scones from the boy and, secondly, she acknowledged that she had given money to more than one person. In view of the foregoing, she was factual in her statement on the Floor of the House and did not mislead the House as alleged. Consequently, I find that she was not out of order.

 

Hon Members, from the foregoing, it is clear that at the time Hon. G. G. Nkombo raised his point of order, he appeared not to have been seized with accurate or precise information of the response by Her Honour the Vice-President. I, therefore, seize this opportunity to guide you to ensure that you are in possession of accurate and complete information or facts surrounding the procedural breach you wish to bring to the attention of the House before you raise a point of order, as failure to do so might result in your misleading the House and the public at large.

 

Thank you.

 

Hon. Government Members: Hear, hear!

 

_______

 

MOTION

 

SUSPENSION OF STANDING ORDERS 6, 7 AND 100

 

The Vice-President (Mrs Wina): Mr Speaker, I beg to move that Standing Order 100 of the National Assembly of Zambia Standing Orders, 2016, and Standing Orders 6 and 7 of the National Assembly of Zambia (Coronavirus Disease 2019) Temporary Standing Orders, 2020, be suspended to enable the House to consider more than one stage of a Bill at the same Sitting and to sit from 0900 hours on Wednesday, 12th, and Thursday, 13th, May, 2021, until business on the Order Paper for each day is completed.

 

Mr Speaker, as I indicated last Friday, the House is expected to adjourn sine die on Thursday, 13th May, 2021. For this reason, it is necessary to suspend Standing Order 100, which prohibits the House from considering more than one stage of a Bill at one Sitting. As hon. Members are aware, the House currently has several Bills at different stages of enactment. These Bills need to pass through all the stages before the House adjourns sine die and, considering the short amount of time remaining before the adjournment, it is necessary to suspend Standing Order 100 to enable all the business before the House to be concluded. Further, Standing Order 6 of the National Assembly of Zambia (Coronavirus Disease-2019) Temporary Standing Orders, 2020, provides for the House to sit at 1430 hours on Tuesday, Wednesday and Thursday, and at 0900 hours on Friday, while Standing Order 7 of the same Temporary Standing Orders provides, inter alia, that the automatic adjournment of the House shall be at 1700 hours on Tuesdays, Wednesdays and Thursdays, and 1200 hours on Fridays. For the reasons already stated above, it is important to suspend Standing Orders 6 and 7 to enable the House to sit at 0900 hours on Wednesday, 12th, and Thursday, 13th, May, 2021, until all the business on the Order Paper for each day is completed.

 

Mr Speaker, this Meeting started on Tuesday, 30th March, 2021, and on its adjournment, the House would have sat for twenty-six days. At close of business today, sixty questions, one Private Member’s Motion and twenty-four Motions to adopt Parliamentary Committee reports and would have been considered by the House. Further, at its rising sine die, the House would have passed nineteen Bills. During the same period, fifty-two annual reports from Government and quasi-Government departments, and one action-taken report were tabled, while three ministerial statements explaining and clarifying Government policies on various issues were presented to the House. Considering the amount of business transacted during this meeting, I can confidently state that the purpose for which the House convened has been achieved.

 

Mr Speaker, as hon. Members are already aware, this Meeting is the last of the Twelfth Parliament. The House will soon be dissolved to pave way for the general elections later in the year. Allow me, therefore, to thank all hon. Members of this august House for their tireless service to their constituencies in the past five sessions. This has, indeed, been an insightful, exhilarating and rewarding time. As Leader of Government Business in the House, and on behalf of His Excellency the President of the Republic of Zambia, Mr Edgar Chagwa Lungu, I thank the Backbenchers for their active involvement in debates and in probing the Executive through questions and Motions. I also thank the hon. Ministers for enlightening the House and the general public on various issues of national concern through ministerial statements and responses to questions.

 

Sir, the role of Parliamentarians goes beyond the Sittings of the House during Meetings. In serving their constituents, the hon. Members of this august House are actively involved in various portfolio and ad hoc Committees of Parliament that exercise oversight on behalf of the Assembly to ensure that national functions are carried out with the efficiency and diligence that the people of Zambia expect. For this, I commend all hon. Members, especially the Backbenchers, who tirelessly sought information from the Executive and took time to visit various Government offices to solicit information and support for their constituencies.

 

Mr Speaker, allow me to express my sincere gratitude to you, the Hon. First Deputy Speaker and the Hon. Second Deputy Speaker for the efficient, effective and tolerant, yet firm manner in which you presided over the Business of the House during the past five years.

 

Hon. Members: Hear, hear!

 

The Vice-President: I further commend the Clerk of the National Assembly and her staff for the services they continue to render to the House. In the same vein, let me acknowledge, with gratitude, the important work done by officers in the Office of the Vice-President, the Parliamentary Liaison Officers and the entire Public Service in facilitating the work of the House.

 

Mr Speaker, as we go out to seek new mandates from the citizenry, allow me to make a passionate appeal to all hon. Members and the public at large to conduct themselves in a peaceful manner before, during and after the polls. Let us all denounce all forms of electoral violence so that the whole electoral process will be peaceful. I also remind all hon. Members that the Coronavirus Disease-2019 (COVID-19) is still prevalent and dangerous to all of us, especially in crowded areas. Therefore, they should adhere to the three golden rules of masking up, hand sanitising and washing, and social distancing. Finally, I wish all the hon. Members seeking re-election to this august House the best of luck during the 12th August, 2021, Elections.

 

Mr Speaker, I beg to move.

 

Hon. Members: Hear, hear!

 

The Vice-President: Mr Speaker, I thank all hon. Members for their unanimous support for this Motion.

 

I thank you, Sir.

 

Question put and agreed to.

 

_______

 

BILLS

 

SECOND READING

 

THE INSURANCE BILL, 2021

 

The Minister of Finance (Dr Ng’andu): Mr Speaker, I beg to move that the Bill be now read a second time.

 

Mr Speaker, this Bill aims at building a vibrant, orderly and growing insurance industry in this country, which requires the development of adequate and sound regulations and stronger regulatory and supervisory authority. The rationale for enacting the Insurance Bill No. 36 of 2021 is to rectify the identified deficiencies, repeal and replace the Insurance Act No. 27 of 1997, and give the Pensions and Insurance Authority (PIA) the authority necessary for effective regulation and supervision of the insurance industry. In addition, the Bill will enhance the insurance industry by safe-guarding insurance policy holders and provide market players with adequate parameters within which to operate. Some of the major changes are:

 

  1. the Bill introduces perpetual licences, meaning that insurance entities will no longer be required to apply for licences on an annual basis as has been the case;
  2. the Bill creates a new solvency framework that allows for the prescription of minimum capital requirements in respect of risk inherent to assets, liabilities, classes, and volumes of insurance business;
  3. the Bill creates an ad hoc insurance appeals tribunal whose rules of procedures are to be prescribed by the Chief Justice; and
  4. the nature and scope of the PIA’ supervisory mandate has been expanded to include the power to take possession as part of its supervisory responsibilities.

 

Mr Speaker, with those comments on the Bill, I beg to move.

 

Dr Musokotwane (Liuwa): Mr Speaker, the Committee on National Economy, Trade and Labour Matters was tasked to scrutinise the Insurance Bill No. 36 of 2021 pursuant to its mandate as set out in Order No. 157(2) of the National Assembly Standing Orders, 2016.

 

Sir, the insurance industry, which accounts for a significant portion of the financial sector in Zambia, has been growing steadily over the years and it has evolved with the creation of new products to cater for the growing needs of Zambian businesses and individuals. That, in turn, has brought to the fore the weaknesses and gaps in the legislative, regulatory and supervisory framework of the insurance sector, generally, and the Insurance Act No. 27 of 1997, in particular. For example, new trends and practices have emerged in the insurance industry that are not covered by the Insurance Act No. 27 of 1997.

 

Mr Speaker, the Insurance Bill No. 36 of 2021 was introduced to cater for the advancements in the insurance industry and address the weaknesses that have been identified in the regulation of the industry. The proposed new law is intended to, among other objectives, provide for the regulation of the insurance industry and the supervision of insurers, reinsurers and intermediaries. Improved regulation of the insurance sector will help to safeguard consumers of insurance products and provide adequate parameters within which the players in the market have to operate. The Bill, therefore, aims to protect both the insurer and the insured.  

 

Sir, although a number of stakeholders made proposals to amend some of the provisions of the Bill, they all supported it. As I am confident that all the hon. Members have had an opportunity to familiarise themselves with the contents of the report, allow me to only highlight some of its pertinent contents.

 

Sir, the functions of the Pensions and Insurance Authority (PIA) currently do not facilitate a robust regulation of the insurance industry. There is, therefore, a need to strengthen the authority’s functions in order to allow it to operate efficiently and enable it to regulate the players in the industry.

 

Mr Speaker, one of the innovations of the Bill is the introduction of micro insurance, which is a mechanism to protect low-income households against risks like illness, death in the family or crop failure. The costs and benefits of this kind of insurance are specifically adapted to the needs and incomes of low-income households. Micro insurance is particularly important for those in the informal economy, who tend to be underserved by mainstream insurance schemes. The Committee takes note of this innovation and welcomes it.

 

Mr Speaker, Clause 34 of the Bill provides for the protection of beneficiaries of a life policy.  The Committee observes that while the clause is well intended and protects beneficiaries from being liable for the debts owed by a deceased policy holder, there may be instances in which a genuine case exists for settling such debts from the life policy. The Committee, therefore, recommends that instances of legitimate claims, such as may be determined by the courts, be provided for in the Bill.

 

Sir, a provision on which there were overwhelming submissions from players in the insurance sector both locally and internationally is Clause 49, which relates to the shareholding structure of insurance, reinsurance and insurance brokerage entities. Various stakeholders submitted that the provisions of this clause posed a major threat to the insurance industry, in particular, and Zambia’s standing as a destination for foreign direct investment (FDI), in general, and proposed that there be no limit to the percentage of shareholding by locals and foreigners. The Committee’s considered position is that the spirit of the provision is to encourage Zambian ownership in the insurance sector. The Committee is also of the view that the provision will help to maintain sufficient FDI and, at the same time, promote the interests of indigenous Zambians. It, therefore, welcomes the provision, but also recommends the inclusion of a grandfather clause limiting the applicability of the provisions of Clause 49 to companies that will be established after the coming into effect of the legislation so as to not disadvantage the interests of existing shareholders.

 

Sir, noting that Clause 77(1) provides for the establishment of a national reinsurance company, the Committee is cognisant of the fact that the performance of parastatal companies continued to be marred by operational issues, as evidenced in the reports of the Auditor-General over the years. Therefore, the Committee does not welcome the proposal, as it will result in unnecessary strain on the country’s Treasury, and strongly recommends that this provision be deleted.

 

Mr Speaker, in conclusion, the Committee fully supports the Bill and thanks all stakeholders who made both written and oral submissions before it. Your Committee also places on record its gratitude for the guidance and support services provided by the Office of the Speaker and the Clerk of the National Assembly throughout its deliberations.

 

Mr Speaker, I thank you.

 

Mr Mbulakulima was inaudible.

 

Mr Speaker: We seem to have a technical problem because I cannot hear the hon. Member for Milenge.

 

Hon. Member for Milenge, you are not audible. There is some intervention that is being made. So, you may want to put your contribution on hold until we reconnect you.

 

Dr Malama was inaudible.

 

Mr Speaker: Hon. Members, I advise the House that we have a technical problem. The technocrats and technicians are working on it. So, we will put our proceedings in abeyance for a few minutes to enable the technicians to overcome whatever challenge is asserting itself.

 

Business was suspended from 1516 hours to 1519 hours.

 

Mbulakulima: Mr Speaker, are you able to get me now?

 

Mr Speaker: Yes, you are audible. Go ahead.

 

Mbulakulima: Mr Speaker, what a good coincidence that I can –

 

Mr Muchima: On a point of order, Sir.

 

Mr Speaker: A point of order is raised.

 

Mr Muchima: Mr Speaker, I think it is in the same vein.

 

Am I audible?

 

Mr Speaker: Yes you are. Go ahead.

 

Mr Muchima: I am in the same (inaudible). At the time my question lapsed, you could not hear me because, unfortunately, I was faced with this same challenge. I do not know what you are going to do to reinstate my question.

 

Mr Speaker: I acknowledge that we have had a technical problem this afternoon. Therefore, I will restore your question. Be on standby.

 

Mr Mbulakulima: Mr Speaker, what a good coincidence that I am ending my Parliamentary tour of duty on a subject I cherish so much. Fifteen years ago, I left the insurance industry to join politics. My fifteen years in Parliament and twenty years in the insurance industry give me thirty-five years of public service.

 

Sir, my debate is captioned “Capital Flight in the Insurance Industry”.

 

Mr Speaker, the first item is management of shareholders for insurance, reinsurance and insurance brokers.

 

Sir, history tells us that from 1964 to 1969, the insurance sector was free market driven, insurance companies were foreign-owned and Zambians were just commission agents. However, in 1969, there was nationalisation, and we remained with the Zambia State Insurance Corporation (ZISC) and the Zambia National Insurance Brokers (ZNIB). The effect of that is what we are able to see today; there were no capital flight and no externalisation of profits. Today, from Livingstone to Mansa or Mongu to Chipata, the buildings we see, which we avoid mentioning, were built by ZSIC, ZNIB or National Pension Scheme Authority (NAPSA).

 

Mr Speaker, from 1991, free market policies were reinstated and, despite the unprecedented gross premium, what we have seen is that the brokering industry has fifty-five licensed companies of which only three are foreign owned. However, the three companies own up to 70 per cent of the industry’s brokerage. What compounds the problem is that the nominal capital is only K50,000. I think the issue of 51 per cent must be removed. Let citizens, not the foreigners, own the brokering firms. Out of the thirty-four insurance companies, only eight are indigenous companies; the rest are multinationals, and capital flight in the name of managing expenses is rampant in this industry.

 

Mr Speaker, there are four reinsurance companies which, apart from the PTA Reinsurance Company (ZEP-Re), which is under the Common Market for Eastern and Southern Africa (COMESA) and in which Zambia has shares, are foreign-owned. In this vein, I wish to differ with the sentiments of the chairperson of your Committee and suggest that we need a national reinsurance company so that are able to retain capital in our country. Out of the US$2.8 billion premium, US$1.6 billion is reinsurance and, of that, only 15 per cent is retained in the country. Where does that leave us? There has been too much capital flight in this industry and there is a need for the Government to tighten the rules.

 

Mr Speaker, the suggestion that insurance companies pay withholding tax does not hold water because a broker is authorised to remit premiums collected, be they net or commission. So, that paying withholding tax will be very difficult, and I think that should not be the issue.

 

Sir, let me also talk about the qualifications for junior officers, which have been mentioned, yet those of the Chief Executive Officer (CEO) have been omitted. The qualifications of the CEO must be spelled out.

 

Mr Speaker, in conclusion, I thank the people of Milenge for having given me the opportunity to serve them for three terms, which is an unprecedented situation. I am also grateful to the Patriotic Front (PF) and the Head of State for giving me the opportunity to serve under the PF in the last five years. I further thank the Movement for Multi-party Democracy (MMD) for having given me the opportunity to serve for two terms on its ticket. Finally, I follow Her Honour the Vice-President in thanking you, the Presiding Officers, for the professional and impartial manner in which you presided over this House.

 

I thank you, Mr Speaker. 

 

Mr Speaker: I am advised that the hon. Member for Kanchibiya is not available now.

 

Hon. Member for Chilubi, you may take the Floor.

 

Mr Fube (Chilubi): Mr Speaker, I thank you for giving the people of Chilubi the opportunity to contribute to debate on this very important Bill. I would like to talk about the protection of beneficiaries.

 

Sir, the insurance industry is growing in Zambia and it is directly linked to many issues in the financial sector. That being the case, when it comes to the protection of the beneficiaries, the regulations in the proposed Bill will take care of the many loopholes that currently exist.

 

Mr Speaker, in supporting the Bill, I wish to state that the Bill, among other objectives, gives teeth to the Pensions Insurance Authority (PIA). Currently, there are some requirements in our insurance policy that are not being observed by different insurance companies, and the clauses that have been proposed in the Bill, such as Clauses 61 to 73, which talk about the financial regulations of the insurance business, address that challenge. Further, Clauses 79 to 86 address mergers and takeovers in the insurance business. Currently, there are many litigations on mergers and takeovers, and we have seen the PIA and some of its officers get involved. That was because of some of the loopholes that this Bill is trying to close to ensure that there is hygiene in the insurance sector.

 

Mr Speaker, having emphasised some of the factors that I have looked at, I would also like to indicate that, reading through the Bill, I find it to be biased, in certain areas, towards commercial insurance as opposed to health insurance – my vocabulary might be limited on this subject. Please, forgive me – I know that the Bill favours privately sector-driven insurance more than public sector-driven insurance. I have in mind the National Health Insurance (NHI) scheme, which has been established by the Government in different health facilities. I feel that, in some way, the commercial bias of the Bill will prevent the Bill from adequately addressing issues specific to the National Health Insurance Management Authority (NHIMA). Unfortunately, time cannot allow me to tabulate the issues in the NHIMA arrangement.

 

Mr Speaker, another issue that comes to mind in line with the protection of beneficiaries is that the asset value has risen around the country thanks to the good policies of the Patriotic Front (PF). Today, if you went round the country, even in my village, you would find people building houses. However, I think we need to raise the bar and encourage Zambians to invest in insurance because the properties that we have acquired in ten years, including assets like vehicles, are not properly insured.

 

Mr Speaker, people need to start looking at insurance as value addition to their property. However, in view of the current insurance policy environment, many people have problems when making claims from different insurance companies, and I think this has contributed to many people’s not being interested in insurance. Having said that, I must say that the proposed Bill, which has more than nine objectives that I cannot go through, takes care of many issues; it takes care of the loopholes in the Insurance Act No. 27 of 1997. What we remain with is the important responsibility of raising awareness among both State and non-State actors that insurance –

 

Mr Speaker: Order!

 

The hon. Member’s time expired.

 

Mr Ng’andu: Mr Speaker, let me start by thanking Hon. Dr Musokotwane and the Committee on National Economy, Trade and Labour Matters for their very thorough examination of the report. The recommendations and observations of the report are very helpful to us, and I can report that we have agreed with all but three of the eleven amendments the Committee proposed. We shall, therefore, effect the recommended amendments accordingly.

 

Sir, among the recommendations of the Committee we have accepted is the need to distinguish between insurance products and medical schemes. Additionally, we have agreed to provide for private reinsurance companies to compete fairly with the national insurance company. The idea is not to create a monopoly that knocks out everybody, but to give capacity for Zambia to retain a substantial part of the insurance premium paid in this economy rather than seeing it go out of the country. We have also accepted the proposal to recognise insurance benefits as part of the estates of deceased people so that those who are entitled to claim against the estate can do so. The Bill did not provide for this, and the Committee was very strong in recommendation its inclusion. Finally, we have provided for the composition of boards of insurance broker firms, as is the case with insurance and reinsurance companies.

 

Mr Speaker, I would like to end by stating that Hon. Mbulakulima made a very important observation when he talked about the need for us to deal with capital flight, and we have attempted to do this through a number of measures that include local ownership of insurance, brokerage and reinsurance companies. As long as such entities are owned entirely exclusively by foreigners, they will be an avenue for taking resources out of this country. We need to understand that if this country is to be prosperous, whichever way we look at it, we have to do two things: firstly, we need to generate wealth and, secondly, we need to retain wealth that we generate in this country so that it works for us. We hope that a number of the measures that we have introduced in the new Bill will go a long way in seeing us take that direction.

 

I thank you, Sir.

 

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

 

Committed to committee of the Whole House.

 

Committee on Wednesday, 12th May, 2021.

 

THE ELECTRONIC GOVERNMENT BILL, 2021

 

The Minister of Justice (Mr Lubinda): Sir, I beg to move that the Bill be now read a second time.

 

Mr Speaker, the Bill before you is very progressive, as it seeks to ensure the effective management of electronic Government services and application of information and communication and technology (ICT) innovations in the public sector. The salient provisions of the Bill, among others, are to:

 

(a)to provide for the management and promotion of electronic Government services and processes;

 

(b)establish the Electronic Government Division in the Office of the President and provide for its powers and functions; and

 

(c)facilitate access to electronic Government services to improve service delivery, administrative functions and productivity in order to enhance citizens access to Government services and information.

 

Sir, the overview of the proposed law above presents a progressive turn in ensuring the effective management of electronic Government services and application of ICT innovations in the public sector.

 

Mr Speaker, like I said, the Bill is very progressive, as it is in tandem with developments globally. The Government of the Republic of Zambia, under the tutelage of His Excellency Mr Edgar Chagwa Lungu, would not like to see Zambia remain behind. This is the current trend in industry, the Legislature and Judiciary. Indeed, it ought to be the trend in the Executive. I, therefore, present this very progressive Bill which, in my humble view, should be supported by all progressive hon. Members, as it is a result of wide stakeholder consultations.

 

Mr Speaker, I beg to move.

 

Ms Kucheka (Zambezi West) (on behalf of Mr Imbuwa (Nalolo)): Mr Speaker, Standing Order No. 157 sets out the terms of reference of the Committee on Media, Information and Communication, and provides that the Committee may consider any Bill referred to it by the House. In this regard, the Committee was tasked to consider the Electronic Government Bill No. 39 of 2021. In order to acquaint itself with the ramifications of the Bill, the Committee sought both written and oral submissions from stakeholders.

 

Sir, let me commend the Government for introducing the Electronic Government Bill No. 39 of 2021. The Bill seeks to:

 

  1. enhance the management and promotion of electronic Government services and processes,

 

  1. establish the Electronic Government (e-Government) Division in the Office of the President and provide for its powers and functions; and

 

  1. facilitate access to electronic Government services to improve service delivery, administrative functions and productivity in order to enhance citizens’ access to Government services and information.

 

Mr Speaker, all the stakeholders who appeared before the Committee supported the Bill, but they also had a few concerns.

 

Sir, while acknowledging that the proposal to establish the e-Government Division is highly progressive, the Committee is of the view that placing it under the Office of the President will present challenges of institutional capabilities remaining fragmented in the Government. The Committee also contends that a lack of harmonisation in portfolio functions is likely to result in a duplication of roles between the division and the Ministry of Transport and Communication, and is well aware that policy pronouncements and operational supervision are the preserve of Cabinet Office. It, therefore, implores the Government to ensure that policies in the information and communication technology (ICT) sector, including e-Government, are harmonised as a matter of urgency in order to enhance the provision of e-Government services in the country.

 

Sir, the Committee notes with great concern that the national co-ordinator of the division will be appointed by the President through the Public Service Commission (PSC), but the Bill is not clear on the ranking of the position in the Government hierarchy. The fear is that if the position is placed at a lower level, the office holder could face challenges in performing his/her supervisory role vis-à-vis e-Government operations over higher ranking public officials. In view of the foregoing, the Committee strongly recommends that the National Co-ordinator’s ranking be appropriately high and that the position be assigned a title indicative of its position in the Government hierarchy to enable the office holder to hold and exercise appropriate authority over e-Government operations.

 

Mr Speaker, in conclusion, allow me to render my sincere gratitude to you and the Clerk of the National Assembly for the guidance and support rendered to the Committee throughout its deliberations. My gratitude also goes to all the stakeholders who appeared before the Committee.

 

Mr Speaker, I thank you.

 

Mr Lubinda: Mr Speaker, in thanking Parliament for its unanimous support for the Bill, allow me to comment on the two issues raised by the chairperson of your Committee.

 

Sir, firstly, the hon. Member raised the issue of fragmentation, from which she fears that there will be implementation challenges and duplication of roles between the Ministry of Transport and Communication and the e-Government Division that this law proposes to establish. Let me make it clear to the honourable Committee, through its chairperson, and the various stakeholders who appeared before it and registered this concern that the role of the Ministry of Transport and Communication is not limited to the operations of the Government. The ministry is a policy body that is responsible for the regulation of the transport and communication sector, meaning that it supervises the operations of both private and public players in the sector; it is not responsible for running Government transactions, which is a totally separate function under Cabinet Office. So, the idea is that the e-Government Division be placed in the Office of the President where there will be co-ordination throughout the Public Service, with all the ministries being obliged to use e-Government platforms for all their transactions. This is not a policy matter to be handled by the Ministry of Transport and Communication. Instead, it is an operational issue that should be handled at the centre of Government operations. So, there should be no fear, whatsoever, about duplication of roles because the roles are separate.

 

Sir, the second issue that the chairperson raised is the positioning of the National Co-ordinator in the hierarchy of the Public Service. In this regard, I remind your Committee that such positions are administrative in nature. We cannot write the actual position of the National Co-ordinator into the law as though it were a constitutional office. The office ought to remain administrative so that there is flexibility in its movement. I also remind your Committee that the Smart Zambia Institute, which has been running e-Government services in the country, started as a unit at Cabinet Office and that the person superintending over it started with the title of National Co-ordinator. As the work of the unit increased, the position was elevated to the level of Permanent Secretary (PS) and, as the whole country became connected to Smart Zambia, the position was further raised to the level of Deputy Secretary to Cabinet. That was possible because the position is not enshrined in the law. Otherwise, it would have been difficult to move it depending on the volume of work done. So, I would like to allay the fears of your Committee by saying that it is proper for us to not lock the position in any way so that we can move it up or down from time to time.

 

 Finally, Sir, let me seize this opportunity to thank all the hon. Members of Parliament for supporting this very progressive Bill. I have no doubt in my mind that as soon as the Bill is assented to by the President, we will see an improvement in the delivery of services to the people through e-Government platforms. That, together with the erection of communication towers that the Ministry of Transport and Communication is carrying out everywhere, and as Zambians get hooked on electronic technologies – a few days ago, I said that more than 15.8 million Zambians are now registered subscribers, and they will be able to access Government services using this very important e-Government platform.

 

Sir, I thank you.

 

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

 

Committed to a committee of the Whole House.

 

Committee on Wednesday, 12th May, 2021.

 

_______

 

HOUSE IN COMMITTEE

 

[THE DEPUTY CHAIRPERSON OF COMMITTEES in the

Chair]

 

THE LANDS AND DEEDS REGISTRY (Amendment) BILL, 2021

 

Clauses 1, 2, 3 and 4 ordered to stand part of the Bill.

 

Title agreed to.

 

THE LAND SURVEY (Amendment) BILL, 2021

 

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

 

CLAUSE 3 – (Insertion of Sections 31A and 31B)

 

The Minister of Lands and Natural Resources (Ms Kapata): Mr Chairperson, I beg to move an amendment in Clause 3, on page 4, in lines 3 and 5, by the deletion of subclause (1) and the substitution therefor of the following:

 

“(1)      A document authorised or required to be filed with, or delivered to, the Surveyor-General in accordance with this Act, may be filed or delivered by means of a device or facility that records or stores information electronically as prescribed.”

 

Amendment agreed to. Clause amended accordingly.

 

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

 

Title agreed to.

 

_______

 

HOUSE RESUMED

 

[MR SPEAKER in the Chair)

 

The following Bill was reported to the House as having passed through Committee without amendments:

 

The Lands and Deeds Registry (Amendment) Bill, 2021

 

Third Reading on Wednesday, 12th May, 2021.

 

The following Bill was reported to the House as having passed through Committee with amendments:

 

The Land Survey (Amendment) Bill, 2021

 

Report Stage on Wednesday, 12th May, 2021.

 

REPORT STAGE

 

The Cannabis Bill, 2021

 

Report adopted.

 

Third Reading on Wednesday, 12th May, 2021.

 

The Zambia Correctional Service Bill, 2021

 

Report adopted.

 

Third Reading on Wednesday, 12th May, 2021.

 

THIRD READING

 

The following Bills were read the third time and passed:

 

The Industrial Hemp Bill, 2021

 

 

The Narcotic Drugs and Psychotropic Substances Bill, 2021

 

_______

 

QUESTION FOR ORAL ANSWER

 

MEALIE MEAL DISTRIBUTION EXERCISE IN IKELENG’I

 

201. Mr Muchima (Ikeleng’i) asked the Vice-President:

 

  1. which Government institution was distributing mealie meal to residents of Ikeleng’i District;

 

  1. why the residents were being asked to produce their voter’s registration cards and National Registration Cards (NRCs) before receiving the mealie meal; and

 

  1. what urgent measures the Government was taking to stop that vice.

 

The Minister in the Office of the Vice-President (Mrs Mwansa): Mr Speaker, the District Disaster Management Committee (DDMC), working with Life Church Network as the implementing partner, has been distributing mealie meal in Ikeleng’i District in line with the provisions of the Disaster Management Operations Manual.

 

Mr Speaker, the House may also with to note that the practice of implementing partners who distribute relief on behalf of the Government is to use National Registration Cards (NRCs) as a tool for identification of all beneficiaries, as it is a requirement of the Government that implementing partners account for all the relief resources they are given to distribute. The Disaster Management and Mitigation Unit (DMMU) and its implementing partners do not request for voter’s cards, as the relief distribution exercise is not in any way supposed to be politicised because it is meant to serve all Zambian citizens hit by disasters. In this case, Ikeleng’i District was hit by floods.

 

Mr Speaker, despite the fact that no such vices are taking place in the district, my office has been in touch with the DDMC led by the District Commissioner (DC) to remind it of the procedures and regulations for distributing relief food.

 

I thank you, Sir.

 

Mr Muchima: Mr Speaker, does the Vice-President know that in April, Ikeleng’i received 4,000 x 10 kg bags of mealie meal, which have been distributed, and that the people from the District Commissioner’s (DC’s) Office were asking people for voter’s registration cards before distributing the maize? I have evidence I can lay on the Table. Unfortunately, it is not possible for me to do so through this system. However, I can bring it. The officers in Ikeleng’i were asking people to carry voter’s cards and NRCs when going to get the mealie meal. Is the Vice-President’s Office aware of this vice?

 

Mrs Mwansa: Mr Speaker, we are not aware of that. If that is happening, let the hon. Member of Parliament give us the evidence so that we can make follow ups.

 

I thank you, Sir.

 

Dr Musokotwane (Liuwa): Mr Speaker, just like in Ikeleng’i, in Liuwa, relief mealie meal is given out only after the recipient has produced a voter’s card and a National Registration Card (NRC), and details from both documents are taken down by the people who provide the mealie meal. These issues should be known by the hon. Minister because we talk about them. Further, there are intelligence officers in the districts who must be reporting these things to hon. Minister. So, why is she pretending to not know that mealie meal is only given in exchange for voter’s cards? 

 

The Vice-President (Mrs Wina): Mr Speaker, there is nowhere in Zambia where relief food is distributed on condition of production of a voter’s card and a National Registration Card (NRC). What is happening on the ground is that there is a tendency by our people to sometimes dip their fingers twice, meaning that they get a bag of mealie meal and go back for another. So, the Disaster Management and Mitigation Unit (DMMU) has requested the implementing agencies to ensure that anyone who is given a bag of mealie meal, maize or whatever relief is distributed produces an NRC, not a voter’s card. This is in accordance with the Disaster Management Operations Manual. Asking people to produce voter’s cards has never been done. The NRC is presented to the agency at the time of distribution, and that happens in all the provinces, not only in Ikeleng’i and Liuwa.

 

I thank you, Sir.

 

Mr Fube (Chilubi): Mr Speaker, my question is on part (c) of the principal question. The Disaster Management Act prescribes among the members of the District Disaster Management Committee (DDMC) the District Commissioner (DC), who is the chairperson, and Members of Parliament. I want to establish whether such a process at district level can be referred to as a vice because the outcome is distribution.

 

Mr Speaker: Could you repeat your question.

 

Mr Fube: Mr Speaker, part (c) of the question reads, “What urgent measures the Government was taking to stop that vice.” From my little understanding of English, the word ‘vice’ cannot be applied to a distribution of relief food that is backed by the law, particularly the Disaster Management Act, which stipulates that the DC is the chairperson of the DDMC and makes the Member of Parliament a member of the committee. The product of that – the Vice-President has confirmed that the distribution is being done by the DMMU. I heard the hon. Member of –

 

Mr Speaker: Hon. Member for Chilubi, let us save time. I can distil your question.

 

Resume your seat.

 

Your question is simple. You are trying to find out from Her Honour the Vice-President whether distribution of relief food is a vice.

 

Mr Fube: Mr Speaker, thank you so much for that guidance.

 

Mr Speaker: Surely, what answer do you expect from the Vice-President? That the distribution of relief food is a vice? This is a rhetorical question, and it will not be answered.

 

Mr Fungulwe (Lufwanyama): Mr Speaker, the scenario in Ikeleng’i is the same as the one in Lufwanyama. The distribution of relief food by the District Commissioner (DC) should be condemned.

 

Her Honour the Vice-President said that only the National Registration Card (NRC) is needed. However, the DC also requests for voters’ cards. At one point, I called him to ask why he was acting in that manner and he said that he did not want to engage with the Jehovah’s Witnesses, who do not vote. Since Her Honour the Vice-President has said that only the NRC is considered, what will be done to DCs who were asking for voters cards?

 

The Vice-President: Mr Speaker, District Commissioners (DCs) are chairpersons of the District Disaster Management Committees (DDMCs), but they do not physically distribute relief food. When there is a small disaster where a family loses its house or some property, that is when the DC, in certain cases, goes directly to distribute some relief items. Therefore, they cannot ask for voters cards from the beneficiaries of the relief.

 

I thank you, Sir.

 

Mr Muchima: Mr Speaker, I assure Her Honour the Vice-President that the situation I am talking about is real. If I produce evidence that the DC is demanding voters cards, what action will Her Honour the Vice-President take?

 

The Vice-President: Mr Speaker, we can only take action when we get there; if the evidence is brought to the DMMU.

 

I thank you, Sir.

 

_______

 

MOTION

 

ADJOURNMENT

 

The Vice-President (Mrs Wina): Sir, I beg to move that the House do now adjourn.

 

Question put and agreed to.

 

_______

 

The House adjourned at 1613 hours until 0900 hours on Wednesday 12th May, 2021.

 

____________