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Ministers Statement on Zra Commission of Inquiry

Ministers Statement on Zra Commission of Inquiry

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Published by Zambian-Economist

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Published by: Zambian-Economist on Jan 26, 2012
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11/05/2014

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REPUBLIC OF ZAMBIA
CABINET ACCEPTS RECOMMENDATIONS OF THE COMMISSION OF INQUIRY INTO THE OPERATIONSOF THE ZAMBIA REVENUE AUTHORITY 
Cabinet at its sitting on Wednesday 25
th
January, 2012 accepted without reservations the report on the findingsof the Commission of Inquiry into the operations of Zambia Revenue Authority. Cabinet has deemed it desirableand expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts withBradwell International, and Cargo Scan. Further, Cabinet has directed the reversal of the concession of theborders namely; Kasumbalesa, Nakonde, Jimbe, Kipushi, Mwami and Chanida and the reversal of tax concessionoffered to Varum Beverages Limited, the promoters of the Pepsi Zambia Project. In addition, Cabinet has directedthe implementation of other administrative measures incidental to the same as recommended by the Commissionof Inquiry.Consequently, Cabinet has ordered with IMMEDIATE EFFECT:a)
 
That the Cargo Scan contract on the operations and maintenance of Smith Detection scannersbe terminated;b)
 
That the Bradwell contract on the operation and maintenance of Nuctech scanners beterminated;c)
 
That Nuctech be compelled to perform their contractual obligations of installation, operationand maintenance of eight scanners;d)
 
That the pre-requisites for the installation and operations of scanners be met by governmente)
 
That ZRA assumes ownership of the scanners and work out appropriate measures for loanrepayment for the scanners;f)
 
That the Government takes over the Kasumbalesa border project and reverses the concessionof the border;g)
 
That five border concessions of Jimbe, Nakonde, Chanida, Kipushi and Mwami to oneconcessionaire be cancelled and that government takes up the responsibility of developmentof infrastructure at those borders;h)
 
That Government immediately takeovers the Nakonde Border infrastructure developmentproject which was concessioned under a PPP arrangement when it had reached 75 percentcompletion (roof level) worth K23 billion of certified works using government resources;i)
 
That all policies and pieces of legislation that deal with awarding of public contracts be revisedin particular the PPP policy and its Act is defective and at variance with the Public Procurement Act; j)
 
That the role of the Council of Ministers under PPP Act should be reviewed and reduced topolicy guidance while awarding of contracts should be retained by ZPPA in consultation with
the Attorney General’s office;
 k)
 
That the PPP Unit in the Ministry of Finance be immediately restructured and administrativelyre-organised to pave way for its directiveness and effectiveness;

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