You are on page 1of 782

VOLUME 20

CONTENTS Chapter 347. Chapter 348. Chapter 349. Chapter 350. Chapter 351. Chapter 352. Finance (Control and Management) Act Treasury Bills Act Minister of Finance (Incorporation) Act General Loan and Stock Act Loan Act Savings Certificates Act

Chapter 353. Local Loans (Registered Stock and Securities) Act Chapter 354. Chapter 355. Chapter 356. Chapter 357. Chapter 358. Securities Act Loans (Authorisation) Act Tax Reserve Certificates Act Government Securities Act General Loans (Guarantee) Act

Chapter 359.Vacant Chapter 360. Chapter 361. Chapter 362. Chapter 363. Chapter 364. Chapter 365. Bank of Zambia Act International Development Association Act Decimal Currency System (Arrangements) Act Development Bank of Zambia Act Taxation (Provisional Charging) Act General Loans (International Bank) Act

Chapter 366. Chapter 367. Chapter 368. Chapter 369. Chapter 370.

Loans and Guarantees (Authorisation) Act Bretton Woods Agreements Act International Finance Corporation Act Rhodesia Railways Loans Guarantee Act Specific Loan (Rhodesia Railways) Act

Chapter 371. International Bank Loan (Rhodesia Railways) Act Chapter 372. International Bank Loan (Approval) Act

Chapter 373. Development (United Kingdom Government) Loan Act Chapter 374. Central African Power Corporation (Financial Provisions) Act Chapter 375. Chapter 376. International Bank Loan Act General Loans (Mediobanca) Act Gorge Hydro-Electric Power

Chapter 377. Loans (Kafue Project) Act Chapter 378. Chapter 379. Public Audit Act

Development Bond Act

Chapter 380.Vacant Chapter 381.Vacant Chapter 382.Vacant Chapter 383.Vacant Chapter 384. Vacant CHAPTER 347 THE FINANCE (CONTROL AND MANAGEMENT) ACT

(Repealed by Act No. 15 of 2004)


ARRANGEMENT OF SECTIONS

PART I PRELIMINARY Section 1. 2. Short title Interpretation

PART II CONTROL AND MANAGEMENT OF PUBLIC FINANCE 3. 4. 5. 6. 7. 8. 9. 10. Functions of Minister Controlling officers Accounting officers Bank accounts Gross revenues to be paid into bank accounts Establishment of funds and working accounts Recoverable advances Losses of money or stores and disposal of stores

PART III SURCHARGE OF SALARIES AND PENSIONS AND SECURITY ATTACHMENTS 11. 12. 13. Surcharge Interim and final orders of surcharge Security attachment of property of officer

PART IV MISCELLANEOUS 14. 15. 16. Secretary to the Treasury to have access to accounts Internal audit Functions of Auditor-General in respect of statutory

corporations, etc. 17. 18. Unauthorised use of public moneys or public stores Regulations

CHAPTER 347

FINANCE (CONTROL AND MANAGEMENT)

24 of 1969 7 of 1980 31 of 1996

An Act to provide for the control and management of the public finances of the Republic of Zambia and for matters connected therewith. [8th August, 1969] PART I PRELIMINARY 1. This Act may be cited as the Finance (Control and Management) Act. 2. In this Act, unless the context otherwise requires"accounting officer" has the meaning ascribed to it by section five; "advance" means any recoverable sum of money issued pursuant to section nine; "appropriate Minsiter" means the Minister administering any statutory board, commission or fund established under any written law; "Auditor-General" means the Auditor-General appointed pursuant to the Cap. 1 Constitution; "controlling officer" means any officer designated as such pursuant to section four; Short title

Interpretation

"Government agency" means any unincorporated person or body of persons to which functions exercisable on behalf of the Republic, involving the use of public moneys or stores, are delegated by or under any written law; "Government building" means any building owned or occupied by the Republic and used for governmental purposes, but does not include any building used and occupied as residential quarters by officers or military personnel; "head of expenditure" means a head of expenditure shown in the estimates of revenue and expenditure in respect of a financial year approved by the National Assembly pursuant to the Constitution; "imprest" means a fixed sum advance, disbursements from which are repaid at specified intervals; "internal auditor" means any person designated as such pursuant to section fifteen; "officer" means any public officer; "public accounts" means all accounts required under law to be kept by Ministries, Departments or statutory corporations in respect of transactions involving assets or liabilities of the Republic; "public moneys" includes(a) all revenues and all moneys raised or received for the purposes or benefit of the Republic; and (b) all stamps, bonds, debentures and other securities raised or received by or on behalf of or for the benefit of the Republic; "public stores" means all chattels of whatsoever nature belonging to or in the possession of or under the control of the Republic; and "Secretary to the Treasury" means the Secretary to the Treasury of the Ministry responsible for finance and economic development. (As amended by Act No. 31 of 1996) Cap. 1

PART II CONTROL AND MANAGEMENT OF PUBLIC FINANCE 3. The Minister shall, subject to the provisions of the Constitution and Functions of this Act, have the management, supervision, control and direction of all Minister matters relating to the financial affairs of the Republic which are not by Cap. 1 law assigned to any appropriate Minister. 4. (1) The Minister shall designate, in respect of any head of Controlling expenditure provided for in any financial year, an officer who shall be a officers controlling officer. (2) Every controlling officer shall be charged with the duty of controlling, subject to any directions by the Secretary to the Treasury, the expenditure on any service in respect of which public funds have been appropriated under that head. (3) Every controlling officer shall be the Chief Accounting Officer in respect of all public moneys collected, received or disbursed and in respect of all public stores received, held or disposed of by or on account of the Ministry or Department or service for which such head is provided. (4) Every such controlling officer shall, subject to the provisions of this or any other written law, define in writing the extent to which the functions conferred or imposed upon him may be exercised or performed on his behalf by any accounting officer under his control and shall give to every such accounting officer such directions as may be necessary to secure the proper exercise or performance of such functions by such accounting officer. (5) Every such controlling officer shall, if so required by the Secretary to the Treasury, to the extent that he is responsible for the control of public moneys, certify under his hand, subject to such explanation or qualification as he may think necessary, the correctness of such accounts as may be under his control, and the propriety of any charge

shown therein. (6) Every controlling officer shall, in respect of each financial year, prepare for the examination and certification of the Auditor-General, appropriation accounts for each head of expenditure under his control, giving adequate explanations for variations between estimated expenditure and actual expenditure, if any. (7) Upon certification by the Auditor-General, the controlling officer Cap. 1 shall submit forthwith the appropriation accounts referred to in subsection (6) to the Secretary to the Treasury for incorporation in the financial report required to be laid before the National Assembly under Article 124 of the Constitution. (8) Every controlling officer shall, in respect of each financial year, prepare for the examination and certification of the Auditor-General, a classified statement of revenue for heads of accounts under his control, giving full details of the appropriate heads and sub-heads of revenue, the actual revenue collected during the year in relation to the estimated revenue yield, and any excess or short-fall. (9) Upon certification by the Auditor-General, the controlling officer shall submit forthwith the classified statement of revenue referred to in subsection (8) to the Secretary to the Treasury for incorporation in the financial report specified in subsection (7). (As amended by Act Nos. 7 of 1980 and 31 of 1996) 5. Every officer or other person concerned with or responsible for the Accounting collection, receipt, custody, issue or payment of public or other moneys, officers stores, stamps, investments, securities or negotiable instruments, whether the property of the Republic or entrusted to the Republic or to any officer in his capacity either alone or jointly with any other officer or person, shall be an accounting officer who shall, subject to the provisions of this Act, perform such duties, keep such books and render such accounts as may be prescribed, or as may be directed by the Secretary to the Treasury. (As amended by Act No. 31 of 1996) 6. No person shall, in respect of public moneys, open any account with Bank accounts any bank without the written approval of the Secretary to the Treasury

or pursuant to the provisions of section seven, and no bank shall permit an overdraft on any such account unless such overdraft has been authorised in writing by the Secretary to the Treasury. (As amended by Act No. 31 of 1996) 7. (1) Subject to any express direction of the Secretary to the Treasury Gross revenues in respect of the operation of any fund or working account established to be paid into pursuant to section eight, moneys received by any accounting officer bank accounts shall be deposited at the earliest opportunity with such bank or banks as the Secretary to the Treasury may direct. (2) All moneys paid into a bank pursuant to subsection (1) shall be deemed to be public moneys, the property of the Republic lent by the Republic to the bank. (3) Moneys standing to the credit of the Republic with any bank and not immediately required for any other purpose may be invested by the Secretary to the Treasury, subject to such directions in that regard as may from time to time be given by the Minister. (As amended by Act No. 31 of 1996) 8. (1) Where the Secretary to the Treasury deems it expedient so to do, Establishment he may establish funds or working accounts for the purpose ofof funds and working accounts (a) the purchase of stores, equipment or livestock for subsequent use or resale; or (b) services rendered or to be rendered by any Department to any other Department or to any individual where it is desirable to recover the cost of such services from such other Department or individual; or (c) the making of grants or loans for purposes specified in the estimates of expenditure, or where moneys are made available from any other source for any of the above stated purposes, and to each such fund or working account shall be credited its receipts, earnings and accruals, together with any moneys appropriated by Parliament for the purposes for which it was established and also any moneys which otherwise may be made available therefor; and moneys may be expended therefrom on

the purposes for which it was established. (2) The Secretary to the Treasury may give directions as to the manner in which any fund or working account established pursuant to subsection (1) may be operated. (3) Save where the Secretary to the Treasury otherwise directs, the receipts, earnings or accruals of any fund or working account established pursuant to this section, and any balance standing to the credit of any such fund or working account at the close of each financial year, shall be retained in the said fund or working account, as the case may be, and the said fund or working account shall not be closed. (As amended by Act No. 31 of 1996) 9. (1) The Secretary to the Treasury may, from time to time, authorise the issue, from the general revenues of the Republic, of sums which shall be reasonable and which may be used for the following purposes: (a) to meet payments due for public services which, for reasons the Secretary to the Treasury deems sufficient, cannot presently be charged to any vote; (b) to provide imprest accounts for the use of departments or individuals; (c) to make payments for and on behalf and at the request of any other government or any person, the said amounts so paid to be recoverable from such other government or person; (d) to make provision for any payment which has been made under any head of expenditure and which has been disallowed as a charge against the head of expenditure in the approved estimates; (e) to advance public moneys to any person where such advance is in the public interest and is either(i) (ii) repayable at some future date; or subsequently chargeable against any head of expenditure; or Recoverable advances

(iii) in part repayable as provided by sub-paragraph (i) and in part chargeable as provided by sub-paragraph (ii); and, for such purposes,

separate records (herein referred to as "advance accounts") shall be maintained: Provided however that any such advance shall not be made in anticipation of an appropriation by the National Assembly. (2) Save where the Secretary to the Treasury otherwise directs, any balance outstanding and unpaid in any advance account at the close of any financial year shall not be charged to appropriated expenditure in respect of that financial year. (As amended by Act No. 31 of 1996) 10. (1) WhereLosses of money or stores and disposal of stores

(a) (b)

any public moneys have been lost or misappropriated; or any public stores have been lost or misappropriated;

then, subject to the express provisions of this or any other written law, such loss may, with the approval of the Secretary to the Treasury, be charged against moneys appropriated by the National Assembly for the purpose. (2) The Secretary to the Treasury shall(a) have power to-

(i) write off deficiencies of public moneys and the value of deficient, condemned, unserviceable or obsolete public stores; (ii) abandon irrecoverable amounts of revenue, debts and overpayments, save where, by any other Act, such power is expressly conferred upon any other public officer in respect of any specified class of public revenue, debts or overpayments; (b) cause details of all write-offs and abandonments effected by him pursuant to paragraph (a) to be published in the annual financial report. (3) Where any public stores are no longer required, the Secretary to the Treasury may direct the sale thereof by public auction or public tender

and payment of the proceeds of sale into the general revenues of the Republic: Provided that the Minister, in his absolute discretion, may direct that any item of such public stores be donated to any educational or charitable institution, welfare association or co-operative society specified by him, and a record of such donations shall be included in the financial reports. If, however, any intended donation under this proviso exceeds in value ten million kwacha, the Minister shall obtain the prior approval thereof of the National Assembly. (As amended by Act No. 31 of 1996)

PART III SURCHARGE OF SALARIES AND PENSIONS AND SECURITY ATTACHMENTS 11. (1) If through any act of wilful default or gross neglect of duty any Surcharge officer(a) whenever it is his duty as such officer to collect when due any moneys owing to the Government, fails to collect the same and by reason of such failure such moneys cannot be collected; or (b) makes, causes or permits any improper payment of public moneys, or any payment of such public moneys which is not duly vouched; or (c) causes or permits any loss or deficiency in respect of any public moneys under his control and for which he is bound to account; or (d) causes or permits any damage to or destruction or loss of any public stores; or (e) causes or permits any personal injury or property damage in circumstances which give rise to liability of the Republic to third persons in respect of such injury or damage; or (f) causes or permits damage to or loss of any Government building,

or any fixtures, fittings or furniture therein; the said officer shall be liable to the Government in such amount in respect of such failure to collect, improper payment, loss, deficiency, damage or destruction, as the case may be, as may be determined pursuant to subsection (4) and, subject to the provisions of this section, any liabilty so determined may be recovered at the suit of the Attorney-General in that behalf. (2) If the Secretary to the Treasury is of opinion that loss has been suffered by the Government because of any act of wilful default or gross neglect of duty of any officer, as referred to in subsection (1), he may assess, as attributable to such act, an amount, being not greater than the actual loss suffered, and he shall forward to the said officer a notice in writing of his said assessment of claim and of the amount thereof. (3) Within twenty-one days after the receipt by him from the Secretary to the Treasury of a notice of assessment of claim pursuant to subsection (2), the said officer may make representations direct to the Secretary to the Treasury, in writing, with respect to(a) his liability under subsection (1); or

(b) the amount assessed pursuant to subsection (2) as attributable to his act of wilful default or gross neglect of duty; and the Secretary to the Treasury shall give due consideration to any representation so made by the said officer. (4) If(a) after the expiration of twenty-one days from the date upon which notice of assessment of claim was forwarded to the said officer, pursuant to subsection (2), the Secretary to the Treasury receives no representation from such officer pursuant to subsection (3); or (b) after giving due consideration to any representation made by the said officer pursuant to subsection (3), the Secretary to the Treasury is of opinion that the said officer should be held liable to the Government as stated in the notice of assessment of claim; the Secretary to the Treasury may determine the amount of the liability of the said officer at the amount assessed pursuant to subsection (2), or, if he deems fit, at a lesser amount, and shall make demand in writing

upon the said officer for payment of the amount so determined. (5) If, after giving due consideration to the representations made by the said officer pursuant to subsection (3), the Secretary to the Treasury is of opinion that the said officer was not guilty of any act of wilful default or gross neglect of duty in respect of the matters grounding the assessment of claim made pursuant to subsection (2), he shall thereupon cancel the said assessment of claim and notify the said officer, in writing, of the said cancellation. (6) Upon receipt of the demand for payment referred to in subsection (4), the said officer may, in writing(a) admit liability in the sum stated in the demand for payment, or in such lesser sum as may be agreed by the Secretary to the Treasury; and (b) consent to the recovery of the said admitted or agreed sum by equal monthly instalments by way of deduction from the salary or pension of the said officer in a stated monthly sum, to be fixed by the Secretary to the Treasury, not exceeding one-fourth of the monthly salary or pension, as the case may be, of the said officer. (7) Where any officer has admitted liability in any admitted or agreed sum and consented to the recovery of such sum as provided by subsection (6), and his employment by the Republic is terminated, whether by resignation, dismissal, death or otherwise, before the entire sum admitted or agreed has been fully recovered, the said admission of liability shall be deemed to be, and shall have effect as a consent to judgment in favour of the Republic in the amount of any outstanding balance of the said admitted or agreed sum remaining unpaid at the date of the termination of his said employment, and such consent to judgment shall be effective in any proceedings brought in respect of the said liability against the said officer or his legal representatives, as the case may be. (8) If, after the expiration of ten days after receipt of the demand for payment referred to in subsection (4), the said officer has failed to admit liability pursuant to subsection (6), the Attorney-General may institute proceedings for the recovery of the amount so demanded.

(9) Anything done in pursuance of this section shall be without prejudice to the exercise of disciplinary control over such officer by any lawful authority in respect of such act of wilful default or gross neglect of duty. (As amended by Act No. 31 of 1996) 12. (1) In any action brought for the recovery from any officer of any liability to the Government under the provisions of section eleven, the court may, at any time after action brought, grant on the ex parte application of the Attorney-General an interim order of surcharge pursuant to subsections (2) and (3). (2) An application for an interim order of surcharge pursuant to subsection (1) shall be grounded upon the affidavit of the Secretary to the Treasury setting out the facts upon which the claim is founded and exhibiting copies of the notice of assessment of claim and demand for payment, issued and forwarded to the defendant pursuant to subsections (2) and (4), respectively, of section eleven. The affidavit shall further disclose the official status of the defendant, his length of service, his monthly salary, and how long he was employed in the position he held at the time when the alleged loss, incorrect payment, deficiency or damage occurred. (3) An interim order of surcharge made pursuant to this section shall empower the Secretary to the Treasury to cause to be deducted from the salary of the defendant a stated sum each month, not exceeding one-fourth of the monthly salary of the defendant, and, pending the final determination of the action, to apply the said deducted sums towards the liquidation of the amount claimed. (4) If any action, in which an interim order of surcharge was obtained pursuant to this section, is discontinued, or is dismissed by the court, the said interim order shall, upon the filing of the notice of discontinuance, or upon the judgment of dismissal becoming final, as the case may be, cease to have any force or effect, and the Secretary to the Treasury shall, within seven days thereafter, cause such sums as had been deducted from the monthly salary of the defendant on foot of the said interim order to be refunded to the said defendant in full. (5) Where in any action, in which an interim order of surcharge was Interim and final orders of surcharge

obtained pursuant to this section, judgment is decreed in the amount claimed, or in any lesser amount, and costs, the court may, on the application of the Attorney-General, make an order of surcharge in respect of the balance due on the said judgment after deducting therefrom all sums theretofore deducted from the monthly salary of the defendant pursuant to the said interim order, and any order of surcharge made pursuant to this subsection shall be in such terms as the court may deem meet and shall empower the Secretary to the Treasury to deduct from the salary of the judgment debtor a stated sum each month, not exceeding one-fourth of the monthly salary of the judgment debtor, until all sums outstanding on foot of the said judgment and costs have been paid in full. (6) If in any such action judgment is decreed in an amount which together with any costs allowed is less than the total sum deducted pursuant to an interim order of surcharge made under this section, the Secretary to the Treasury shall, within seven days after such judgment becomes final, cause to be refunded to the judgment debtor any sum deducted in excess of the amount of the said judgment and costs. (7) Where a final surcharge order made pursuant to this section is in force in respect of any officer, and the employment of the said officer by the Republic is terminated, whether by resignation, dismissal, death or otherwise, the Secretary to the Treasury may, against any moneys payable to the said officer by the Government, set-off any balance remaining unpaid on foot of the judgment in respect of which the said surcharge order was made. (8) Any judgment decreed pursuant to this section shall be without prejudice to the exercise of disciplinary control over such officer by any lawful authority in respect of the act of wilful default or gross neglect of duty giving rise to the action in which such judgment was decreed. (As amended by Act No. 31 of 1996) 13. (1) Where any officer wrongfully steals or converts to his own use any public moneys or any public stores and an action is brought against him at the suit of the Attorney-General for the recovery of such moneys or stores or for damages for their loss, the Attorney-General may apply ex parte to the court, either at the time of the institution of the action, or at any time thereafter until final judgment, for an order directing that any property belonging to the defendant shall be attached until the further order of the court, and such order of attachment shall be executed Security attachment of property of officer

according to its tenor. (2) Where the property sought to be attached pursuant to subsection (1) is(a) land, or any interest in land, the application shall contain a description of the land sufficient to identify the same for the purposes of registration of the order directing the attachment in the Lands Registry pursuant to subsection (4), together with a statement of the interest of the defendant therein required to be attached; (b) movable personal property, the application shall contain a description of the property required to be attached, the estimated value thereof so far as can reasonably be ascertained, and the place where the said property may be found; (c) a bank or building society account, the application shall contain the name of the bank or building society and the address of the office or branch thereof at which the said account is believed to be kept and, if the said account is not in the name of the defendant, the name in which it is kept and a statement of any reason why such account is believed to be the property of the defendant; (d) a Post Office Savings Account, the application shall contain the name under which such account is kept, and if the said account is not in the name of the defendant, the name in which it is kept and a statement of any reason why such account is believed to be the property of the defendant; (e) a debt owing to the defendant, the application shall contain the name and address of the debtor; (f) shares in a company, the application shall contain the name of the company and the address of its registered office in Zambia. (3) In any order directing the attachment of property pursuant to subsection (1), the court may direct the attachment of the whole of the property specified pursuant to subsection (2) or such portion thereof as the court deems sufficient to satisfy any judgment which may be decreed in the action.

(4) Where the property directed to be attached pursuant to this section is Cap. 185 land or an interest in land, such attachment shall be effected by lodging a certified copy of the order directing the attachment in the Registry of Lands and Deeds, for entry in the register, and any such attachment so effected shall be in the nature of a ceveat by the Attorney-General in respect of the lands attached, and the provisions of Part VI of the Lands and Deeds Registry Act shall apply, mutatis mutandis, to any such attachment. (5) Where the action brought is one for the return of specific goods claimed to be public stores unlawfully detained by an officer, the order made pursuant to subsection (1) may provide that the said goods, upon being attached pursuant to the court order, be delivered to the Government to be retained by the Government until the further order of the court: Provided that no such delivery shall be ordered pursuant to this subsection unless the Attorney-General gives an undertaking on behalf of the Government that the said goods shall be returned to the defendant in the event of the dismissal of the said action. (6) Any attachments made pursuant to this section shall not affect the rights in the attached property of persons who are not parties to the action, and in the event of any claim being preferred to the said attached property, such claim shall be investigated in the manner prescribed for the investigation of claims to property attached in execution of a judgment of the court. (7) In all cases of attachment pursuant to this section, the court shall, at any time, remove the same upon the defendant furnishing sufficient security to satisfy any judgment which may be decreed against him in the action together with security for the costs of the attachment. (8) Where in any action in which property is attached pursuant to subsection (1) final judgment is decreed(a) in favour of the defendant, the court shall remove the attachment, and order, where necessary, the restoration of the property to the defendant;

(b) in favour of the plaintiff, the court shall issue execution against the said attached property to the extent of the judgment and costs, and upon such execution being effected the attachment shall cease to have any further force or effect. (9) The Attorney-General may at any time, in the prescribed form, consent to the removal from attachment, pursuant to this section, of the whole or any part of any property so attached, and such consent shall have effect according to its tenor. (10) Where the order directing attachment has been registered in respect of any lands pursuant to subsection (4), any consent to the removal of such attachment pursuant to subsection (9) in respect of such lands or any part thereof shall be registered and shall have effect as a withdrawal pro tanto of the said attachment of the said lands. (11) The provisions of any Act or rule of law suspending any civil remedy in respect of the subject-matter of any criminal proceedings pending the determination of such proceedings shall not apply so as to limit or suspend the obtaining of an order of attachment pursuant to this section.

PART IV MISCELLANEOUS 14. (1) Save where otherwise expressly precluded by any written law, the Secretary to the Treasury shall have full access to all such accounts, documents, books and records of any Ministry, Government Department, Government agency or statutory corporation as is necessary for the exercise of his functions under this Act or any other written law. (2) In the event of any dispute arising as to whether access to any account, document, book or record is necessary for the exercise by the Secretary to the Treasury of any of his functions under this Act or any other written law, the dispute shall be referred to the Secretary to the Cabinet for adjudication and the decision of the Secretary to the Cabinet thereon shall be final. Secretary to the Treasury to have access to accounts

(As amended by Act No. 31 of 1996) 15. The Secretary to the Treasury may designate as internal auditors officers or persons who are not members of the staff of the Auditor-General, to exercise such powers of the Secretary to the Treasury as are delegated to them by him in respect of any particular Ministry, Government Department, Government agency or statutory corporation to whose accounts, documents, books and records the said Secretary to the Treasury has access pursuant to section fourteen. 16. (1) Where under any written law a statutory corporation is established and no provision is made in such law for the appointment of auditors to such corporation, the Auditor-General shall be, and is hereby appointed as, auditor to such statutory corporation and as such he shall audit the accounts of such corporation at such times as he deems fit so to do, and shall, at all times, have access to all such accounts, documents, books and records of such corporation as he deems necessary for the exercise of his functions under this subsection. (2) The Auditor-General shall have full access to all such accounts, documents, books and records of any statutory corporation or Government agency as he deems necessary for the exercise of his functions under the Constitution or any written law. Internal audit

Functions of Auditor-General in respect of statutory corporations, etc.

Cap. 1

17. No officer or other person shall use any public moneys or public Unauthorised stores for any purpose not authorised by this Act or by any other written use of public law. moneys or public stores 18. The Minister may, by regulations made by statutory instrument, provide for the better carrying out of this Act and, without prejudice to the generality of the foregoing, such regulations may make provision for(a) the collection, receipt, custody, issue, expenditure, due accounting for, care and management of all public moneys and public stores, save where and to the extent otherwise expressly provided in that behalf by any written law; (b) the keeping of records, the examination, inspection and checking of all receipts and payments and the keeping of all necessary books and accounts; Regulations

(c) the forms of accounts, books, records and other documents required pursuant to this Act; (d) the purchase, safe custody, issue, sale or other disposal or writing-off of public stores and the proper accounting for, and stock-taking of, such public stores; (e) the preparation and form of estimates of the revenues and expenditure of the Republic; (f) the authorisation of rates of payment of public funds for specific purposes, where such rates of payment are not provided by this or any other written law; (g) the making of advances to public officers and other persons and the rates and limits of such advances and the rates of interest thereon; (h) the refund to persons of moneys or property retained from them in error; (i) the appointment of persons other than officers as financial or purchasing agents of the Republic.
SUBSIDIARY LEGISLATION

FINANCE (CONTROL AND MANAGEMENT) THE FINANCIAL REGULATIONS [ARRANGEMENT OF REGULATIONS]

PART I PRELIMINARY
Regulation 1. 2. 3. 4. Title Effective date Interpretation Regulations

PART II

AUTHORITIES FOR EXPENDITURE


5. Available funds authorities

PART III ESTIMATES PROCEDURE


6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Form of estimates Draft estimates Presentation of estimates to National Assembly Appropriation Act Treasury Authorities Provisional Warrant Finance circular of authority (provisional) Treasury Authority Procedure if provision inadequate Supplementary expenditure Transfer of savings Supplementary estimates Copies to Auditor-General Restrictions on expenditure Annual recurrent authorities Capital estimates

PART IV GENERAL ACCOUNTING RESPONSIBIILITIES


Regulation 22. Accounting units

23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51.

Returns and reports Inspections Responsibilities of controlling officers Reports by accounting officers Claims of questionable validity Responsibilities of accounting officers Erasures in accounts Mutilated currency Register of cheques and cash Approval of accounting systems and forms Observance of orders by controlling officers Delegation of responsibility Audit queries Below-the-line accounts Balancing of below-the-line accounts Banking of cheques and cash Reconciliation of bank accounts Checking of cash Checking of computer documents Dates and times of submission of computer documents Payments at end of financial year Procedure at end of financial year Public Accounts Committee Memoranda for Public Accounts Committee Internal audit Controlling officers not relieved of responsibility Responsibilities of internal auditors Reports by internal auditors Preservation of accounting records

PART V

SAFES, STRONG BOXES, CASH BOXES AND SPECIE BOXES


Regulation 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. Definition of "safes" Responsibility for obtaining safes Care of safes Responsibility for keys Duplicate keys Handing over of keys prohibited Original keys Control over duplicate keys Inspection reports Transfer within Ministries Transfer between Ministries Loss of keys Private moneys in public safes Register Weekly check Cash in transit

PART VI BANK ACCOUNTS AND CHEQUES


68. 69. 70. 71. 72. 73. Bank accounts and bank signing arrangements Instructions to banks Use of public money Cheque forms Security of unused cheques Lost cheques

74. 75. 76. 77. 78. 79. 80. 81. 82. 83.

Signing of cheques Overdraft Acceptance of cheques Security of cheques received Dishonoured cheques Cancellation of licences Cheques on accounts outside Zambia Cashing of Government cheques Bank statements Audit of cheques

84. Security of cheques in payment for goods supplied on Local Purchase Orders

PART VII RECEIPT FORMS


85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. Definition of "receipt form" Issue of receipts Obtaining receipt forms Auditor-General to be informed Checking receipts received Register of receipt forms Transfer of receipts Consecutive issues Unused and surplus receipts Destruction of obsolete receipts Recording of destruction of obsolete forms Reporting of loss of or damage to receipt forms Monthly check of unused receipt forms Handing over certificates to record receipt forms Notice to public about official receipts Completion of receipts

101. 102. 103. 104. 105. 106. 107. 108.

Cancelled receipts Method of cancelling receipts Office of issue of receipts Consecutive receipts Free issue of receipt form Duplicate licences Certified copies of receipt forms Transfer and destruction of receipt forms

PART VIII RECEIPT OF REVENUE


Regulation 109. 110. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. Private use of revenue prohibited Receipts to be issued Receipt forms Legal tender Foreign currencies Remittance of foreign currency Classification of revenue Cash books Bringing revenue to account Deposits to the Main Account Cash surplus Revenue collectors not to open mail Recovery of overpayments Revenue not to be credited to suspense account Abandoned revenue

PART IX REFUNDS OF REVENUE

124. 125. 126. 127. 128.

Authority for refunds Refunds of stamp duty Vouchers for refunds Court fees and fines Classification of refunds

PART X CONTROL OF EXPENDITURE AND PAYMENTS


129. 130. 131. 132. 133. 134. 135. 136. 137. 138. 139. 140. 141. 142. 143. 144. 145. 146. 147. 148. 149. Authorities by warrant Authorities on vouchers Record of commitments Payments on behalf of other Ministries Date of payment Payment vouchers Details on payment vouchers Preparation of vouchers Signing of vouchers Panel of signing officers Responsibilities of officers signing vouchers Recoverable payments Suppliers' invoices to be attached Mislaid invoices Mislaid requisition forms Payments on incorrect certificates Payees outside Zambia Methods of payment Security of open cheques Periodic payments Responsibilities of cheque signatories

150. 151. 152. 153. 154. 155. 156. 157.

Delivery of cash or cheques Identification of payees Daily accounting for payments Issue of travel warrants Responsibility of officers signing warrants, etc. Extraordinary payments Custody of original documents Loss of payment vouchers

PART XI PAYMENT OF SALARIES AND WAGES


158. 159. 160. 161. 162. 163. 164. 165. 166. Day of payment Calculation of salary Salaries and wages not to be paid in advance Adjustment of salary or other moneys due to death, etc. Salaries of convicted officers Method of payment and deductions: Divisions I and II Method of payment Despatch of salary cheques Deduction of rent for official quarters

167 Payment scales and rates: officers other than those in Divisions I and II 168. 169. 170. 171. 172. 173. Gross salary and deductions to be charged Salary records Unclaimed wages Security precautions with regard to payment of wages Leave salary Attendance records

PART XII

IMPRESTS
174. 175. 176. 177. 178. 179. 180. 181. 182. 183. 184. 185. 186. 187. Types of imprest Special imprests outside Zambia Authority to issue imprests Sub-imprests Amount of standing imprest Amount of special imprest Special imprests: limitation Restriction in use of imprests Register of Imprests Banking of imprests Field Cash Book Reimbursement of standing imprests Retirement of special imprests Retirement of standing imprests

PART XIII HANDLING AND TAKING OVER


188. 189. 190. 191. Handing-over procedure Safe keys Discrepancies on handing over Handing-over certificate

PART XIV LOSSES OF PUBLIC MONEY AND STORES


Regulation

192. 193. 194. 195. 196. 197. 198. 199. 200. 201. 202. 203. 204.

Definition of "losses" Investigation of loss Write-off by controlling officer Report by controlling officer Write-off by Secretary to the Treasury Assessment of claim against defaulting officer Representations by officer Decision of Secretary to the Treasury Admission of liability Failure to admit liability Monthly deductions Officers leaving the service Statement to Attorney-General

PART XV REMITTANCES OF CASH


205. 206. Remittances to a bank or other office Remittances received

PART XVI
207-223. Revoked by S.I. No. 102 of 1991

FIRST SCHEDULE-Revoked by S.I. No. 102 of 1991 SECOND SCHEDULE-Report on a loss of public money/stores SECTION 18-THE FINANCIAL REGULATIONS Regulations by the Minister Statutory Instruments 398 of 1969 156 of 1971 186 of 1979 97 of 1987 69 of 1990

36 of 1991 102 of 1991

PART I PRELIMINARY
1. These Regulations may be cited as the Financial Regulations. 2. These Regulations come into operation on the 12th September, 1969. 3. In these Regulations, unless the context otherwise requires"accounting officer" means any officer or other person concerned with the collection, receipt, custody, issue or payment of public or other moneys, stores, stamps, investments, securities or negotiable instruments, whether the property of the Republic or entrusted to the Republic or to any officer in his capacity either alone or jointly with any other officer; "accounting unit" means a section established on the authority of the Secretary to the Treasury to maintain the accounts of a Ministry or of a number of Ministries or a branch of a Ministry which has an official designated in the estimates of expenditure as a controlling officer; "advance" means any recoverable sum of money issued to any person where such advance is in the public interest and is repayable at some future date; "below-the-line accounts" means suspense accounts which include advances, deposits, imprests, remittances and special funds; "collector of revenue" means any officer charged, temporarily or permanently, with the duty of collecting any type of Government revenue; "controlling officer" means an officer designated by the Minister as officer in charge of a head of expenditure in any one financial year and Title Effective date

Interpretation

charged with the duty of controlling expenditure on any public service under that head; "internal auditor" means any person designated as such by the Secretary to the Treasury; "Ministry" means the Ministry of Finance; "personal emoluments" means the salaries and allowances of all monthly paid civil servants and members of the Teaching Service. 4. These Regulations and such subsequent regulations as may be issued from time to time under the authority of the Act supersede previous Financial Orders and Financial Regulations. Regulations

PART II AUTHORITIES FOR EXPENDITURE


5. A controlling officer may not cause or permit any expenditure to be Available funds incurred, unless funds are available under one or more of the following authorities authorities: (a) The issue of a circular by the Secretary to the Treasury to the effect that a Provisional Warrant has been signed by the President. (b) A Treasury Authority (Recurrent Expenditure) (Finance Form 5) issued by the Secretary to the Treasury when the General Warrant has been signed. (c) A Treasury Authority (General) (Finance Form 4) issued by the Secretary to the Treasury conveying authority for the transfer of funds between items or for the provision of additional funds for a sub-head/item. (d) A Treasury Authority (Establishments) (Finance Form 13) issued by the Secretary to the Treasury in respect of variations in posts or provisions in the "personal emoluments" sub-head. (e) An approved Capital Expenditure Requisition (Finance Form 1)

signed by the Secretary to the Treasury.

PART III ESTIMATES: PROCEDURE


6. The estimates of capital and recurrent expenditure laid before the National Assembly in accordance with the provisions of the Constitution shall be set out as follows: (a) The total expenditure shall be shown under the head of expenditure in respect of which a controlling officer shall be designated. (b) Under each head of expenditure there shall be shown sub-heads. (c) The first sub-head under each head of recurrent expenditure shall be the estimated expenditure on personal emoluments in respect of such head of expenditure and there shall be annexed to the estimates a supporting document entitled an "Establishment Register" which shall be deemed to be part of the estimates and which shall show, in respect of each head of expenditure, the grades and salary scales of the posts included in the sub-head for personal emoluments. (d) Except in the case of the sub-head "personal emoluments", there shall be shown items of expenditure in respect of each sub-head of recurrent expenditure. 7. The submission of draft recurrent estimates will be called for in an Draft estimates annual estimates circular issued by the Secretary to the Treasury. Controlling officers will frame their draft estimates in the form in which they are to be rendered, including supporting schedules and other details required in the circular. 8. The draft estimates will be examined in the Ministry and, where necessary, amendments will be made before the estimates are laid before the National Assembly by the Minister. Presentation of estimates to National Assembly Appropriation Act. App. 1 Form of estimates Cap. 1

9. Following the passing of the Appropriation Act under section 109 (2) of the Constitution and the issue of the General Warrant by the President, expenditure shall be limited to the amounts included in the

approved estimates. 10. Treasury Authorities for expenditure will be issued by the Secretary to the Treasury. 11. Under Article the Constitution, the President may issue a Provisional Warrant to cover expenditure necessary to carry on the services of the Government for any period, not exceeding four months beginning at the commencement of a financial year, before the Appropriation Act for that financial year is passed. This warrant will authorise payment of all personal emoluments, pensions and other charges which become due in respect of expenditure for existing establishments, of inescapable, recurrent commitments and any other items which are specifically defined in the Treasury Authorities. No other expenditure may be incurred outside these limitations. Furniture, stores, vehicles or equipment of any kind will not be bought, nor will new posts be filled until the Secretary to the Treasury has issued a Treasury Authority to controlling officers, even if provision for these services and purchases has been included in the estimates. Treasury Authorities Provisional Warrant. Cap. 1

12. The fact that the Provisional Warrant has been signed will be Finance circular conveyed to controlling officers by a circular issued by the Secretary to of authority the Treasury. This circular will constitute the authority for controlling (provisional) officers to incur or permit expenditure within the limitations in regulation 11. 13. On receiving the General Warrant from the President, the Secretary Treasury to the Treasury will, by the issue of a Treasury Authority (recurrent Authority expenditure), authorise controlling officers to incur and commit expenditure during the current financial year within the amounts set out in the estimates for that year. 14. The Appropriation Act authorises expenditure under separate main Procedure if heads, but payments will be allocated to the individual sub-heads and provision items shown in the printed estimates. Should it become apparent that the inadequate provision is inadequate, action must be taken in accordance with regulations 15, 16 and 17. 15. When the expenditure is of a nature which was not envisaged when Supplementary the estimates were prepared, or when the excess expenditure on an item expenditure

cannot be met from savings on another item under the same sub-head, the controlling officer will submit to the Secretary to the Treasury an application for Supplementary Provision, together with a Treasury Authority (General) completed at Part 2. This application will show savings from any other sub-head under the same head, or evidence that the additional expenditure will result in a corresponding increase in revenue. 16. If the excess expenditure on one item can be met from savings on another item within the same sub-head, an application for Treasury Authority will be submitted for approval to the Secretary to the Treasury. Transfer of savings

17. Applications for Supplementary Provision which have the support Supplementary of the Secretary to the Treasury will be submitted by him to the National estimates Cap. 1 Assembly in accordance with the Constitution. When the National Assembly has approved the Supplementary Provision and a Warrant has been signed by the President, the Secretary to the Treasury will issue an appropriate Treasury Authority to the controlling officer concerned. Copies to 18. The Secretary to the Treasury shall send copies to the Auditor-General of all Supplementary Provision Warrants and Treasury Auditor-General Authorities immediately after authorisation. 19. The Secretary to the Treasury may impose a restriction on Restrictions on expenditure under any sub-head or item appearing in the estimates. The expenditure controlling officer will be informed of the reason for the restriction and the circumstances under which he can apply to have the restriction removed or varied. Approval for complete or partial removal of a restriction will be conveyed by the issue of a revised Treasury Authority (recurrent) by the Secretary to the Treasury. 20. All authorities to incur expenditure under the recurrent estimates Annual expire on the last business day of the financial year to which they refer. recurrent No payment may be made against these authorities after that date. authorities 21. Instructions regarding the capital estimates will be issued from time to time by the Secretary to the Treasury. Capital estimates

PART IV GENERAL ACCOUNTING RESPONSIBILITIES


22. Each accounting unit shall be under the control of the controlling officer. 23. Controlling officers shall submit from time to time such returns and reports, as may be required by the Secretary to the Treasury, of revenue collected by them or funds expended under a head for which they are responsible. This will include "below-the-line accounts" under their control. Accounting units Returns and reports

24. Controlling officers will make arrangements for periodic checks of Inspections cash and stamps held by accounting units or branches thereof under their control. These checks should be carried out at irregular intervals and as frequently as possible, preferably at least four times a year. Checking officers will be required to sign legibly at the point of check in the cash book or register covering the check. 25. The controlling officer shall be responsible for keeping accounts in Responsibilities accordance with any order issued or approved by the Secretary to the of controlling Treasury; for the accuracy of these accounts and for the safe custody of officers all public money entrusted to him. He shall ensure that officers accounting for revenue and expenditure for which he is responsible, comply with these Regulations and any supplementary instructions issued by him pursuant to these Regulations. 26. Accounting officers shall be responsible forReports by accounting officers

(a) reporting to the controlling officer if it appears that any head, sub-head or item is likely to be overspent; (b) drawing the attention of the controlling officer to delays and shortages in the collection of revenue, for which the controlling officer is responsible; to any advance or imprest account which they are unable to clear at the time that it should be cleared; to any deposit account

which has become dormant and to any weakness in the accounting system employed, or in the internal checks applied to accounting transactions. 27. Accounting officers shall refer to their controlling officers any Claims of claim of an unusual nature, or any claim the validity of which is doubtful questionable and any claim in respect of expenditure which, in their opinion, is not validity provided for in the approved estimates. In the event of an accounting officer receiving instructions to make a payment which he is not satisfied is covered by a financial authority, he shall state his objection in writing to his controlling officer: Provided that, if an instruction is then given in writing by the controlling officer, a payment may be made or accepted, and responsibility for the payment then rests with the controlling officer, who will be held personally liable. After making the payment, the accounting officer shall inform the Auditor-General and the Secretary to the Treasury of the circumstances. 28. The responsibilities of an accounting officer shall beResponsibilities of accounting officers

(a) to account for receipts and disbursements of public money in accordance with these Regulations; (b) to see that proper arrangements are made for the safekeeping of public moneys, securities, stamps, stamp dies, revenue counterfoil receipts, licences, warrants and all forms of requisition; (c) to collect punctually all revenue and other public money which it is his duty to collect; (d) to bring to account promptly under the correct head and sub-head all public money which he collects or which is paid to him; (e) to check regularly all cash and stamps in his charge and to verify the amounts with the balances shown in the cash book or stamp register; (f) to bring to account promptly any revenue in cash or stamps found in his charge in excess of the balances shown in the cash book or stamp register; (g) to make good any shortage in cash or stamps for which he is responsible; (h) to ensure that all disbursements made or incurred by the issue of payment vouchers, orders, warrants, requisitions or any other documents are properly authorised;

(i) to charge in the accounts under the proper head or accounting allocation all expenditure when it occurs; (j) to ensure the satisfactory control of the funds warranted to him by maintaining a record of commitments incurred by his controlling officer; (k) to prepare and despatch promptly all financial statements and returns in the form and manner prescribed; (l) to see that his books of account are correctly posted and kept up to date; (m) to report in writing to his controlling officer any apparent defect in the procedure of revenue collection, any apparent waste and any extravagance in expenditure which comes to his notice in the course of his accounting duties; (n) to produce when required by the Secretary to the Treasury, or by the Auditor-General, all books and records or accounting documents in his charge; (o) to reply promptly and fully to any observations or queries received from the Auditor-General, from the Secretary to the Treasury or from his controlling officer; (p) to exercise strict supervision over all officers under his authority, and by the maintenance of efficient checks to take precautions against fraud and nugatory expenditure; (q) to bring to the notice of his controlling officer any incompetence, carelessness or insubordination on the part of his staff; (r) to study the convenience of the public and institute such arrangements as may be properly made to facilitate the transaction of business with the public. 29. No erasures may be made in accounts. Corrections must be made Erasures in by striking out the incorrect figures and writing the correct figures above accounts them. The corrections must be made in such a way that the original figures are still legible. Corrections must be initialed by the officer who makes them. On no account may alterations be made to figures which have already been audited. 30. Accounting officers should not accept mutilated Zambian Mutilated currency, but they may assist the public by informing them where to currency obtain a replacement of any mutilated currency of which they are the lawful owners. Mutilated notes and coins can be replaced on application to the Bank of Zambia. An "Application for Replacement of Mutilated

Currency" Form (obtainable from local banks) should be sent with the mutilated currency to the General Manager, Bank of Zambia, P.O. Box 80, Lusaka. 31. Officers responsible for dealing with incoming mail which Register of contains money shall keep a Register of Cheques and Cash (Accounts cheques and Form 61A) for the purpose of recording details of remittances received. cash 32. (1) The procedures and systems, including the use and introduction of forms, adopted by Ministries for controlling their expenditure shall be subject to the prior approval of the Secretary to the Treasury. Each accounting unit will keep such books of account as are prescribed from time to time by the Secretary to the Treasury. (2) A register of all official accounting documents will be kept by the Secretary to the Treasury. 33. Controlling officers are personally responsible for the observance of all instructions issued by the Secretary to the Treasury. Observance of orders by controlling officers Delegation of responsibility Approval of accounting systems and forms

34. When it is necessary for any officer to delegate to another officer any financial duty for which he is responsible, he will ensure that the delegation, its scope and duration, is in clear and specific terms.

35. All observations or queries raised by the Auditor-General must be Audit queries answered promptly and fully. 36. With the approval of the Secretary to the Treasury, controlling Below-the-line officers may operate such "below-the-line accounts" as are necessary for accounts the efficient management of the financial operations under their control. "Below-the-line accounts" will not be used, in any circumstances, for receipts and payments which can properly be allocated to revenue or expenditure in the first place, nor will they be used for holding amounts charged to recurrent expenditure in one year for subsequent payment in the next financial year. 37. The balancing and reconciliation of "below-the-line accounts" Balancing of

must be carried out, and all outstanding items cleared, at the end of each below-the-line month. accounts 38. All cheques and cash received will be banked not later than the business day following the day of receipt. In no circumstances will funds be allowed to accumulate in accounting units. Banking of cheques and cash Reconciliation of bank accounts

39. Controlling officers will forward to the Secretary to the Treasury within fourteen days of the end of each month the following form of reconciliation: K Cheques outstanding for the previous month Add cheques drawn during the month Sub-total .. .. _________ _________ Less cheques presented during the month Cheques outstanding at the end of the month _________ n

The total of cheques outstanding at the end of the month must agree with the total of the schedule of unpresented cheques attached to this reconciliation. The date of issue and the number and amount of each unpresented cheque will be shown. 40. Controlling officers will check, not less than once monthly, any Checking of cash held by their accounting units and will ensure that the cash balance cash is at all times correct. Personal cheques which are cashed from an imprest will be redeemed for cash or credited to the Imprest Banking Account on the first banking day after the cashing of the cheque. Post-dated cheques will not be accepted. 41. (1) Documents will be submitted by each accounting unit for computer processing in the manner prescribed from time to time by the Secretary to the Treasury. Only documents required for punching purposes will be submitted. Supporting documents not intended for punching will be retained by the originating accounting unit. (2) A register will be kept by each accounting unit of all documents submitted to and returned by the Data Processing Unit in the Ministry, showing the dates and times of despatch and receipt of documents. 42. Dates and times of submission of documents will be laid down Dates and times Checking of computer documents

from time to time by the Secretary to the Treasury. These dates and of submission times must be strictly adhered to and must not be altered except with the of computer approval of the Secretary to the Treasury. documents 43. (1) All accounts received before the last day of the financial year Payments at end must, as far as possible, be paid before the accounts are closed. This of financial year means that, where reimbursements are required from other accounting units or other organisations, they will be notified in time to permit those organisations to make payment before the end of the financial year. Similarly, all moneys received before the end of the financial year must be brought to account before the accounts are closed. (2) Special arrangements will be made by the Secretary to the Treasury to ensure that transactions appearing in Agents' Accounts are notified to accounting units up to the latest possible date that will enable the transactions in the last month of the financial year to be charged to the correct votes before the accounts are closed. (3) The Stores Department will normally close its accounts with accounting units on the 14th December and will send out invoices accompanied by a statement up to the closing date. These invoices will be charged against Ministerial suspense accounts and will be cleared by accounting units against expenditure votes before the closing of the main accounts for the financial year. (4) Requisitions held by the Stores Department which cannot be filled before the date of closing of the Stores Accounts will be a first charge against the accounts of requisitioning Ministries in the following financial year. 44. The procedures to be followed by accounting units at the close of the financial year are set out hereunder. It will be the responsibility of the controlling officer to see that action called for is taken at the appropriate times and that returns are submitted within the stated periods: (a) At the close of business on the last day of the financial year, all cash books will be ruled off, signed and dated by the responsible officers. (b) The accounts will be closed in the normal manner, as for an ordinary month end, but supplementary accounts will be opened by Procedure at end of financial year

accounting units only for the purpose of adjusting misallocations, for the transfer of revenue and/or expenditure to other accounting units and for final entries on the closing of the accounts. (c) Any revenue or expenditure (recurrent or capital) which appears in the accounts of one accounting unit but which is controlled by another, will be transferred. Only revenue and expenditure actually controlled by an accounting unit will appear in the accounts of that unit for clearance to the "Surplus and Deficit Account" maintained in the books of the Ministry under the procedure described in paragraph (g). (d) Dummy codes will not be used in any circumstances or for any reason. (e) Should the recoveries under items of "Appropriations-in-Aid" be in excess of the approved estimate for the year, the amount of the excess will be credited to the revenue item "Excess Appropriations-in-Aid". (f) The final closing of the accounts will be made not later than one month after the last day of the financial year. (g) Immediately after the final closing of the accounts, accounting units will transfer all items of Recurrent and Capital Revenue and Expenditure to the "Surplus and Deficit Account" in the books of the Ministry. The final control balance for each unit will reflect only the balances outstanding on "below-the-line accounts". (h) Within two months of the end of the financial year, statements of revenue and expenditure and "below-the-line accounts", together with balance sheets and accounts of all funds, will be submitted in quadruplicate by all accounting units to the Ministry for inclusion in the Financial Report. All statements, balance sheets and accounts will be signed personally by controlling officers. A circular minute detailing special requirements will be issued by the Secretary to the Treasury. 45. Controlling officers may be required to submit to the Public Accounts Committee memoranda on subjects which concern their Ministries and which are mentioned in the Report of the Auditor-General on the accounts for the preceding year. 46. Controlling officers who are required to submit memoranda to the Public Accounts Committee will ensure that these memoranda reach the Clerk of the National Assembly fourteen days before the notified date on which the Public Accounts Committee is to sit. The following form of memorandum will be used, and controlling officers will personally sign all such memoranda: Public Accounts Committee

Memoranda for Public Accounts Committee

PUBLIC ACCOUNTS COMMITTEE Report of the Auditor-General on the Public Accounts for the year ended ................., 19 ........ (memorandum by the Controlling Officer, Ministry of .....................................) Paragraph No.* ..................... Subject ............................ .................................. Body of Memorandum Date ........................... ................................ Controlling Officer *This refers to the appropriate paragraph in the Auditor-General's Report. Twenty copies of each memorandum will be sent to the Clerk of the National Assembly who will be responsible for forwarding copies to the Secretary to the Treasury and the Auditor-General. 47. Internal audit teams will be provided for specified accounting units Internal audit by the Secretary to the Treasury. 48. The existence of internal audit teams will not relieve controlling officers or any other accounting officers of their individual responsibilities, nor will it remove the need for normal checks within Ministries or Departments. Controlling officers not relieved of responsibility

Responsibilities 49. Internal auditors will be directly responsible to the controlling officers of the Ministries in which they are provided. The programme of of internal auditors checks to be carried out by internal auditors will be laid down by the Secretary to the Treasury in consultation with controlling officers and with the Auditor-General, and will cover all accounting procedures and documentation. Generally, internal auditors will ensure(a) that the work entailed in the receipt and payment of public money has been properly carried out under proper supervision; (b) that the safeguards for the prevention or prompt detection of fraud or loss of stores, cash or other Government assets, are adequate; (c) that accounting forms are properly protected, recorded and regularly checked; (d) that the duties of members of accounting staff are changed from time to time;

(e) that a satisfactory system exists for the checking of computer input and output; (f) that the system for the control of the receipt, issue and use of stores is adequate; (g) that the recording of the assets is up to date and correct; (h) that returns of revenue or expenditure required by controlling officers are correctly prepared and promptly submitted. 50. Although internal auditors are expected to correct on the spot any Reports by errors discovered, thereby reducing the necessity for written reports, any internal auditors reports which are made in writing by internal auditors will be addressed to the controlling officer of the Ministry concerned, the Secretary to the Treasury and the Auditor-General. 51. The following accounting records will be preserved for the periods Preservation of shown: accounting records (a) Main cash books and ledgers-ten years. (b) (c) Receipts of all types-ten years. Payment and Journal Vouchers-seven years.

(d) Establishment and salary records required for super-annuation purposes-sixty years from the date on which a pensionable officer leaves the service. These documents will be sent to the National Archives two years after they have ceased to be in use for either audit or other purposes. Controlling officers will ensure that documents are in proper order before they are sent to the archives.

PART V SAFES, STRONG BOXES, CASH BOXES AND SPECIE BOXES


52. The following instructions refer to safes, strong boxes, cash boxes, Definition of specie boxes issued for the safe custody of cash and similar forms of "safes" secure containers issued by Government, all of which shall be referred

to as "safes" for the purposes of these Regulations. 53. Controlling officers are responsible for obtaining safes from the Ministry for use in their offices and branches. Responsibility for obtaining safes

54. The following conditions cover the care and maintenance of safes: Care of safes (a) No work or alteration of any kind may be carried out on a safe except with the permission of the Secretary to the Treasury. (b) Small safes and strongboxes used as safes must be built into the structure of the building in which they are housed. (c) Cash boxes must be locked in a safe or a fixed container when not in use. (d) Any safe boxes in use by an officer on tour must be secured against theft by means of a chain and padlock fixed to some immovable or heavy object. 55. Officers are personally responsible for keys of safes in their charge. Responsibility for keys

Duplicate keys 56. When a safe or vault door is fitted with two or more locks, no single officer will in any circumstances hold all keys. More than one key to a safe will be issued only when there are two or more officers at the office in which the safe is installed. In the event of the departure of one of the key-holders before a relief arrives, the officer leaving the station will unlock the lock for which he holds a key and personally return this key under registered cover to the controlling officer of his Ministry. 57. A key will not be handed to a person who is not the official key-holder and a safe will not be opened except by the officer responsible for it. He must be present for the whole of the time it remains open. 58. Only original keys issued by the Secretary to the Treasury will be held. In no circumstances may any officer have a duplicate key made. Handing over of keys prohibited

Original keys

59. Except as may be otherwise authorised, all duplicate keys of safes Control over

will be held by the Secretary to the Treasury.

duplicate keys

60. Inspection reports by internal auditors or other inspecting officers Inspection must include a list of safes in the offices under inspection. The serial reports numbers of keys must be recorded in these reports. 61. All transfers of safes between Departments must be notified immediately to the Ministry. 62. The transfer of safes between Ministries is not permitted without the prior approval of the Secretary to the Treasury. Transfer within Ministries Transfer between Ministries Loss of keys

63.

When the key to a safe is lost-

(a) the loss will be reported immediately to the controlling officer concerned, and to the local police; (b) the safe will be sealed and the room in which it is kept must be locked. If an exceptionally large sum is in the safe, arrangements must be made for the posting of a guard; (c) the officer responsible for the safe custody of the key may be called upon to make good the cost of repairs and replacement of the key. 64. No private money or articles may be kept in a safe provided for the Private moneys safe-keeping of public moneys. in public safes 65. A register must be kept of articles other than cash, account books Register and receipt forms deposited in a safe. The register must be signed by the depositing officer (other than the key-holder) when depositing or withdrawing any such article. 66. Officers responsible for safes must verify the contents at least once Weekly check each week. The register will be initialed on each occasion of check. 67. Whenever cash is taken to or collected from a bank or other office, Cash in transit the responsibility for safe custody of the cash in transit rests with the officer charged with conveying the cash to or from the bank or other office.

PART VI BANK ACCOUNTS AND CHEQUES


68. The opening of, or a change in, any signatory of an official bank account for any purpose requires the authority of the Secretary to the Treasury on Accounts Form 49. The purpose for which the bank account is required must be stated in a minute submitted with Accounts Form 49 by the controlling officer. 69. No instructions in regard to the operation of an official bank account may be issued except by the Secretary to the Treasury. 70. In no circumstances may public money be credited to a private bank or savings account. 71. Cheque books and cheque forms for use with official bank accounts will be obtained through controlling officers from the Strongroom Superintendent of the Ministry. 72. Cheque books and cheque forms must be kept secure under lock and key when not in use. An officer will be made responsible for the custody and control of the stock of unused cheque forms. That officer will maintain a record of receipts and issues in a register (Accounts Form 103), and will ensure that all unused cheques are retained in his custody. Bank accounts and bank signing arrangements

Instructions to banks Use of public money Cheque forms

Security of unused cheques

73. (1) In the event of a cheque being lost, whether the cheque is Lost cheques unused or has already been issued, the accounting officer must notify all local banks and head offices of all banks. In the case of the loss of a cheque which has been issued, a "stop order" must be sent to the bank on which it was drawn.

(2) Before a replacement cheque is issued for an open or crossed cheque which has been lost, or stolen from the payee, he is required to sign an indemnity in the following form: CERTIFICATE OF INDEMNITY In consideration of the issue to me of a replacement cheque No. ................................ for the sum of .............................. in payment of ................................ which I have lost (or which has been stolen), I agree to indemnify the Government against any loss whatsoever in connection therewith and I agree to refund the sum of ...................................... in the event of the original cheque No. ........................ being negotiated. Signed .............................................................................

NAME IN BLOCK CAPITALS .............................................. Date ..............................................................., 19 .......... Official Address .............................................................. ......................................................................................... ......................................................................................... ......................................................................................... The value of the replacement cheque must be debited to expenditure. 74. (1) Cheques drawn against official bank accounts must be signed by two or more authorised signatories except where, with the approval of the Secretary to the Treasury, cheque signing machines are used; in which case one authorised signatories will suffice. (2) The responsibilities of signatories are laid down in Part X. (As amended by S.I. No. 69 of 1990) 75. Government bank accounts must not be overdrawn, and a temporary advance must not be obtained from a bank without the prior written permission of the Secretary to the Treasury. In the event of an official account becoming overdrawn without proper authority, the officer responsible will be called upon to refund any bank charges Overdraft Signing of cheques

incurred by Government as a result of the overdraft. 76. Cheques may, at the discretion of accounting officers, be accepted Acceptance of in payment of licences, fees, taxes and other payments due to cheques Government. Before acceptance of a cheque, an officer will satisfy himself as to the identity of the person presenting the cheque and ensure that(a) (b) (c) the cheque is not post-dated or out of date; the amount in words and figures agree; the cheque is correctly signed and dated by the drawer;

(d) alterations of any kind are covered by the full signature of every signatory to the cheque. 77. Cheques received should be made payable to the Government of Zambia and crossed "Account payee only". Security of cheques received Dishonoured cheques

78. When a cheque is dishonoured, the amount of the cheque will be debited to "Advances-Dishonoured and Returned Cheques" in the accounts of the Ministry concerned. Immediate action will be taken to secure prompt reimbursement of the amount owed, which must be credited to the account "Advances-Dishonoured and Returned Cheques".

79. If a dishonoured cheque was originally received in payment of a Cancellation of licence or permit and the officer issuing such licence or permit has been licences unable to effect recovery within such time as is considered reasonable, but not exceeding fourteen days from the date of return of such cheque, he shall declare the licence or permit to be invalid, on the grounds of non-payment of the prescribed fee, and, at the same time, he shall inform the police or other appropriate authority. In cases where it proves to be impossible to obtain reimbursement of a dishonoured cheque, the matter shall be referred to the Solicitor-General. 80. Cheques, travellers' cheques or other negotiable instruments drawn Cheques on on banks outside Zambia may be paid into local bank accounts. If, for accounts any reason, foreign cheques are not acceptable to local banks, these outside Zambia cheques shall be sent to the accounting unit for clearance through the Ministry. In all cases, the receiving officer shall issue a receipt for the amount paid by cheque.

81. (1) At stations where there are no banking facilities, Government cheques may be exchanged for cash by accounting officers.

Cashing of Government cheques

(2) Controlling officers may authorise in writing limited facilities for the encashment of officers' private cheques where this is conducive to efficiency. Accounting officers will, however, act with great care as they may be called upon to make good the amount of any dishonoured cheque for which they are unable to obtain reimbursement. The privilege should be withdrawn immediately from any officer whose cheque is dishonoured. (3) With the exception covered by sub-regulation (1) collectors of revenue or other accounting officers who receive public money may not cash cheques from public money held by them. 82. All officers authorised to keep official bank accounts must arrange Bank statements for statements to be provided regularly by the bank. Bank statements made up to the close of business on the last day of every month will be obtained. All entries on the bank statement will be checked with the cheque backing sheet and, at the end of each month, a return will be prepared in the form prescribed in regulation 39 giving a reconciliation of the balance of the bank account with the balance shown in the cash book. This return will be submitted to the controlling officer. 83. Paid and cancelled cheques will be held for audit. Audit of cheques Security of cheques in payment for goods supplied on Local Purchase Orders

84. All cheques drawn in payment for goods supplied on Local Purchase Orders should be crossed "Account payee only". The only exception to this rule is in the case of a payee known to have no banking account. Stamps showing this restrictive crossing will be supplied on application by the Government Printer.

PART VII

RECEIPT FORMS
85. The term "receipt form" includes all receipts, licences, permits, certificates, discs or tokens used in the collection of revenue or other moneys. 86. (1) All licences, permits, certificates, discs, tokens and other documents for which payments are received will be issued on or with the prescribed forms. (2) A "General Receipt" (Accounts Form 40) will be used in cases where a special receipt form is not prescribed. 87. (1) Supplies of receipt forms will be obtained only from the Obtaining receipt forms Strongroom Superintendent of the Ministry, by the submission of a requisition. In no circumstances will any officer make arrangements for the printing or alteration of receipt forms other than through the Secretary to the Treasury. (2) Receipt forms will be issued only to Government accounting officers or to local authorities. 88. The Auditor-General will be informed of all issues and transfers of Auditor-General receipt forms. to be informed 89. All receipt forms must be checked immediately they are received Checking to ensure that they are complete and correctly numbered. Any forms receipts which are defective must be returned to the Strongroom Superintendent received without delay. The Advice of Issue of Licences, Revenue Stamps and Receipt Books (Accounts Form 45) must be receipted and returned immediately to the Strongroom Superintendent with a report of any discrepancies, which must be copied to the Auditor-General and the controlling officer. 90. Every officer required to hold receipt forms will keep a Register Register of (Accounts Form 103) in which the receipt and issue of all receipts forms receipt forms must be promptly entered. These registers will be obtained from the Definition of "receipt form"

Issue of receipts

Government Printer. 91. Books of receipt forms will normally not be transferred from one Transfer of holder to another. If in an emergency such a transfer becomes necessary, receipts the transfer must be reported immediately to the Auditor-General and the controlling officer. 92. Receipt forms will be used in consecutive order, within the sequence of numbers of receipts held by one officer. 93. Surplus stocks of completely unused receipt books which are not obsolete should be listed and returned by registered parcel post to the Strongroom Superintendent. Copies of lists will be sent to the Auditor-General and to the controlling officer. Consecutive issues Unused and surplus receipts

Destruction of 94. Complete unused books of obsolete receipts will be destroyed at the office in which they are held. The destruction of the receipt books obsolete receipts will be carried out in the presence of the accounting officer in charge, and another officer who will check that the unused receipt books are complete, and that all receipts are in fact unused. Certificates of destruction, listing the serial numbers of all receipt forms destroyed, must be signed by both officers. The original of the certificate of destruction will be filed by the officer responsible for the custody of the forms and copies must be sent to the Auditor-General and the controlling officer. 95. Whenever surplus stocks of receipt books are returned to the Strongroom Superintendent or whenever obsolete forms are destroyed, the fact should be recorded in the Register (Form 103). Recording of destruction of obsolete forms

96. If a book of receipts or part of a book is lost or damaged, the holder Reporting of will report immediately to his controlling officer with copies to the loss of or Auditor-General and to the Secretary to the Treasury. damage to receipt forms 97. A check of unused receipt forms will be carried out at least once a Monthly check month by the holder, who must record in the Register the date of check of unused and sign the entry. receipt forms

98. When one officer hands over to another, handing/taking over Handing over certificates must be signed by both officers for receipt forms. The officer certificates to taking over should sign immediately below the last entry in the Register. record receipt forms 99. A printed notice obtainable from the Ministry must be displayed in Notice to public all offices where revenue of any type is received, to bring to the about official attention of the public the need for them to obtain an official receipt for receipts every payment made by them. 100. Receipt forms must be completed either in ink or in indelible pencil. Counterfoils will contain exactly the same details as appear on the original receipt form. They should be date-stamped at the time of issue and will not be altered in any way. Completion of receipts

101. If a wrong entry is made on a receipt, the form must be cancelled Cancelled and dealt with in the manner prescribed in regulation 102. receipts 102. When a receipt is cancelled, the original and all the copies must Method of be cancelled, and the cancellation signed by the holder of the book. The cancelling original receipt will be kept in the receipt book. The duplicate will be receipts included with other duplicate receipts which accompany the Revenue Cash Book. 103. Every receipt form and counterfoil will be printed or stamped with the official stamp of the office of issue and will be signed by the issuing officer. 104. Officers receiving payments from collectors of revenue must ensure that numbers of receipt forms issued by the collectors run consecutively. If no satisfactory explanation is forthcoming for any missing forms, the matter will be reported without delay to the controlling officer of the Ministry concerned. Office of issue of receipts

Consecutive receipts

105. When a free issue is made of a receipt form for which a fee would Free issue of normally be payable, the following certificate will be endorsed by the receipt form issuing officer on the form and its counterfoil or copies:

"I certify that this (licence) is issued free under the provisions of ......................................................................................... ........................................................... 106. In no circumstances may a duplicate of a licence be issued unless Duplicate approval for such issue is specifically provided in any law or regulation. licences 107. If a certified copy of a receipt form is required, this will be made Certified copies on plain paper and headed "certified copy". In no circumstances will of receipt forms another receipt form be used as a copy for an original receipt previously issued. 108. It is strictly forbidden to transfer used receipt forms from one accounting unit to another, or to destroy the counterfoils and copies of used receipt forms until after they have been examined by the Auditor-General. Transfer and destruction of receipt forms

PART VIII RECEIPT OF REVENUE


109. Officers are not permitted to use public revenue, temporarily or otherwise, for any private purpose whatsoever. Private use of revenue prohibited Receipts to be issued

110. A receipt form must always be issued by the receiving officer whenever a sum of public money is received.

111. All receipts must be vouched for on the form prescribed by statute Receipt forms or regulation. 112. The notes and coins issued by the Bank of Zambia constitute legal Legal tender tender in the Republic. No other currencies may be accepted without the specific authority of the Secretary to the Treasury. 113. Applications must be made to the Secretary to the Treasury for Foreign

general permission to accept specified foreign currency notes, travellers' currencies cheques or cheques drawn on foreign banks at current rates of exchange. 114. Foreign currencies which are not acceptable to local banks will be Remittance of remitted to the accounting unit for onward transmission to the Ministry, foreign and may not, under any circumstances, be paid to a commercial bank or currency exchanged for Zambian currency. 115. All revenue will be brought to account under the appropriate sub-head of the revenue estimates. 116. Collectors of revenue will keep a cash book which must be written up daily. Accounts Form 47B provides for the collection of revenue under four headings but where more columns are required Accounts Form 47A will be used. 117. Collectors of revenue are required to bring to account daily the whole amount of their collections. Controlling officers will institute checks to ensure that this is done. Classification of revenue Cash books

Bringing revenue to account

118. The following facilities will be used to enable deposits to be made Deposits to the to the Main Banking Account with the Bank of Zambia. Revenue will be Main Account deposited(a) where daily banking facilities exist, either directly with the Bank of Zambia or indirectly by mail transfer through a commercial bank; (b) where a banking agency or mobile banking service exists, by mail transfer through the agency to the Bank of Zambia on every opening or visit; (c) where no banking facilities exist, by obtaining a commission-free money order for the cash received. This money order and any cheques will be sent by registered post to the Bank of Zambia for deposit to the Government's Main Account. 119. If it is found that a collector of revenue has a surplus of cash, this Cash surplus must be brought to account and credited to the "Miscellaneous" sub-head of the revenue estimates under "Finance" ("Fees of Court", etc.).

120. An officer who is responsible for issuing receipts must not be concerned in opening mail or keep a register of incoming remittances.

Revenue collectors not to open mail

121. Receipts in respect of the recovery of overpayments or erroneous Recovery of payments should be credited to the vote from which the payment was overpayments made, unless the payment was made in a previous financial year, in which case the receipt should be credited to the item provided in the revenue estimates "Finance-Miscellaneous" (under "Fees of Court", etc.). Recoveries of overpayments or erroneous payments made from the Capital Fund should be credited to the Capital sub-head from which the payment was made, unless that sub-head has been closed, in which case the credit should be made to the "Other Miscellaneous Receipts" head of Capital Revenue. 122. Revenue collected in any one year shall not be credited to a deposit account with the object of transferring it to revenue in the following year. Revenue not to be credited to suspense account

Abandoned 123. Revenue may be abandoned only with the approval of the Secretary to the Treasury. An application for this authority must give the revenue sum of the revenue, the date on which it was due, the action taken to collect it and the reasons why it was not possible to collect it. A copy of the application will be forwarded to the Auditor-General. Should the Secretary to the Treasury authorise the abandonment of the revenue, a copy of his authority will be forwarded to the Auditor-General.

PART IX REFUNDS OF REVENUE


124. A controlling officer may authorise a refund of revenue only if(a) approval for a refund of revenue is made under legislation or other authority for which his Ministry is responsible; (b) a refund must in equity be made, e.g. where a tax or a fee has been paid twice in error. Authority for refunds

125. Applications to the Ministry for authority to refund stamp duty will be supported, whenever possible, by the stamped documents in respect of which the refunds are sought.

Refunds of stamp duty

126. Payment vouchers relating to refunds of revenue must quote the Vouchers for authority for the refund. The number of the receipt on which the revenue refunds was originally collected will be quoted on the payment voucher. The original of the receipt should be attached to the payment voucher. 127. Court fees and fines may be refunded by the Registrar of the High Court fees and Court or by the Judge or magistrate of the court to which the fees or fines fines were paid. Classification 128. (1) Refunds of revenue for the Department of Taxes and the of refunds Department of Customs and excise shall be debited to the sub-head of revenue to which the the amount to be refunded was originally credited. (2) All other refunds of revenue shall be charged against the expenditure vote "Finance Recurrent Department Charges: Refunds of Revenue". No payment shall be charged against this vote without prior authority of the Secretary to the Treasury. (As amended by S.I. No. 42 of 1976)

PART X CONTROL OF EXPENDITURE AND PAYMENTS


129. As the Approved Estimates of Recurrent and Capital Expenditure Authorities by are not in themselves authority to spend funds, any payments which are warrant charged to expenditure provided for in the estimates may only be made by warrant-holders who are officers holding one of the following authorities: (a) A Treasury Authority or warrant issued by the Secretary to the

Treasury. (b) A warrant issued by a controlling officer to a warrant-holder in his Ministry. (c) A sub-warrant issued by a warrant-holder. Authorities on vouchers Records of commitments

130. All payment vouchers must contain the authority against which expenditure is incurred, e.g. warrant number, or law or special minute. 131. There is no necessity to keep a commitment ledger. A box-file will be used instead as follows: (a) one or more box-files will be kept for the purpose of filing the triplicate copy of each Local Purchase Order, the "number 3" copy of each stores requisition, and a copy of each indent, contract, or other record of commitment; (b) once the order has been paid, the relevant Local Purchase Order, etc., will be removed from the commitment file to its final storage place. The commitment file should be kept at the office where payment is made but, if this is not appropriate, it should be kept at the ordering office and the copy order removed from the file at the time an approved payment voucher is despatched to the paying office; (c) a part-payment will be recorded as such on the face of the relevant Local Purchase Order, indent, etc.; (d) a manual or machine list will be prepared at each month-end, showing the total value outstanding against each item of a sub-head. When added to the expenditure to date, the totals will be compared with the "Amount Authorised" column of the estimates. 132. No payments will be made against the vote of another Ministry without an authority, usually in the form of a warrant or sub-warrant issued by that Ministry. This prohibition applies to Zambia Missions abroad which will not make payments to officers without specific authority in writing from the Ministry concerned.

Payments on behalf of other Ministries

133. The date of payment will govern the date of record of a Date of transaction in the accounts, unless specific authority to the contrary is payment given by the Secretary to the Treasury. Unexpended portions of a vote during the year may not be drawn and placed on deposit for the purpose of setting aside funds as a reserve to meet payments in the next financial year. On the other hand, expenditure properly chargeable to the accounts of a financial year will, so far as possible, be made within that year and

will not be deferred for the purpose of avoiding an excess on the authorised provision for the year in which authority should have been obtained by Supplementary Provision. 134. (1) All payments must be vouched for on one of the following forms: Accounts Form 2: A wages payment voucher. Accounts Form 5: A general payment voucher. Accounts Form 44: A claim and payment voucher used for travelling on duty including mileage and subsistence. (2) Accounts Form 69 which provides payees with details of the payments should be used in conjunction with Accounts Form 5. 135. All vouchers must be complete and all details must be filled in, Details on including coding allocations, dates, numbers, quantities, rates, distances payment vouchers and authorities. 136. Vouchers will be typewritten or made out in ink or indelible pencil. All copies must be legible. Preparation of vouchers Payment vouchers

137. The original of a payment voucher will be signed by a controlling Signing of officer, a warrant-holder or by any officer authorised by them to sign on vouchers their behalf. The name of the officer signing and his designation will be printed below his signature. Copies will be initialed by the signing officer or stamped with his name stamp. 138. A list of accounting or other officers authorised in writing to sign Panel of signing vouchers on behalf of warrant-holders will be sent by controlling officers officers to the Auditor-General and amended from time to time. Normally, these signing officers should not be below "executive" rank. 139. The officer signing a voucher or document certifies the accuracy Responsibilities and validity of the payment. He must therefore ensure thatof officers (a) all deductions due to be made from salaries or wages have in fact signing -vouchers been made;

(b) the goods have been supplied or the services provided as certified by the receiving officer; (c) the prices charged are either according to contract or approved rates, or are fair and reasonable according to current local rates; (d) the payment is covered by proper authority and is a proper charge to public funds; (e) the calculations are correct; (f) the persons named as payees are those entitled to receive payment; (g) the voucher is properly allocated to a head, sub-head and item; (h) payment of the amount stated on the voucher will not cause an excess over the amount allocated to him. 140. Officers signing vouchers which relate to payments which are recoverable are responsible for ensuring that proper arrangements exist for the recoveries to be made. Recoverable payments

Suppliers' 141. Vouchers relating to purchases must be supported by the suppliers' invoices. Payment will not be made on statements of account invoices to be attached only. On no account will requisitions for local supplies be issued in arrear if goods have already been supplied. In such cases, the responsible officer will certify the voucher giving reasons for the failure to issue a requisition. 142. Should an original invoice be mislaid, a duplicate will be obtained Mislaid from the supplier. The duplicate will be clearly marked "Copy Invoice". invoices A certificate that payment has not previously been made will be recorded on the voucher by the officer making the payment, after he has satisfied himself that payment of the account has not in fact been made. 143. In no circumstances will a duplicate requisition form be issued if Mislaid an original has been mislaid. Payment will be made against the requisition supplier's copy invoice which will be endorsed with the serial number of forms the requisition form against which the supply of goods or services was made, and the certificate required by regulation 142 will be recorded on the payment voucher. 144. In the event of any unauthorised payment being made in Payments on

consequence of an incorrect certificate on a voucher, the certifying incorrect officer may be held responsible and may be surcharged with the amount certificates involved. 145. (1) With the exceptions stated in sub-regulation (2), the normal method of payment to payees outside Zambia will be through the Secretary to the Treasury. Ministries with inter-departmental clearance (IDC) facilities will forward to the Secretary to the Treasury the following documents duly completed: (a) (b) (c) Accounts Form 5. Accounts Form 69. An appropriate IDC. Payees outside Zambia

Originators without IDC facilities will substitute a cheque for an IDC in paragraph (c). (2) Payments by missions abroad for the maintenance and staff salaries of those missions are made direct by them. 146. Payments will be made by cheque or cash, whichever is the more Methods of economical and convenient. If made by cheque, the cheque will be made payment payable to those to whom payment is due. Each cheque must be crossed, except in the following circumstances: (a) Open cheques may be issued in the case of standing imprests and for the net total of vouchers in respect of wages to be paid in cash to junior employees and labourers. These cheques will be made payable to the order of the title of the post held by the officer responsible for drawing the cash and paying the wages. For the guidance of banks and Government offices at which cheques will be cashed, the name of the responsible officer will be added in brackets. (b) Open cheques payable to the order of the payee may be issued for personal imprests and, on request, for salaries, wages and other personal payments due to Government employees. 147. When an open cheque is issued, a receipt or acknowledgment of Security of the cheque will be obtained from the payee before the cheque is handed open cheques over or, if the cheque is sent by mail, it will be sent by registered mail and the number of the registered slip recorded on the payment voucher.

148. Provided that there is no loss of discount for prompt payment, Responsibilities accounts for the same supplier may be grouped and paid at least once of cheque every month. Should any discount be lost owing to delay in the passing signatoties of accounts for payment, the officer responsible may be called upon to refund the amount to Government. 149. All signatories of cheques are responsible, when signing, for ensuring(a) that original documents (invoices, salary sheets, claim forms, etc.) are attached; (b) that the original documents are all stamped "Paid" by means of a special stamp obtainable from the Ministry, and that the cheque number is correctly shown within the "Paid" stamp; (c) that the relevant Payment Voucher (Accounts Form 5) is fully and properly completed; (d) that the cheques are correctly made out in every respect. Delivery of cash or cheques Periodic payments

150. Only in the following circumstances may payments be made other than to the persons or firms to whom payment is due: (a) On the written authority of the person or firm to whom the payment is due or on the production of a power of attorney or letter of administration. (b) In cases where the timely payment of wages to an employee is impracticable and delay would cause hardship, a paying officer may on his own responsibility make payment to a third party who will give a receipt for the payment. The paying officer will also satisfy himself that the payee receives the payment due to him. (c) In cases where payment is made to a duly appointed receiver, an official receiver, a trustee in bankruptcy or to a third person under a court order.

151. Paying officers and officers who are witnesses to a payment will Identification of satisfy themselves that the person claiming the payment is in fact the payees person authorised to receive the money. If necessary, they will require the production of a National Registration Card. 152. All payments will be entered into the books of account on the day Daily

the payments are made.

accounting for payments

153. (1) Fares and transport charges for travel or the consignment of Issue of travel stores will be met by the issue of the following warrants or requisitions: warrants Rail-Rail warrant: Accounts Form 29 (Passengers); Accounts Form 30 (Goods). Road-Road transport requisition; Accounts Form 33 (b). Air-Requisition for Official Passage by Air: Accounts Form 33 (c). (2) These warrants and requisitions must be fully and accurately completed, particularly with regard to the following details when applicable: (a) The purpose of the journey must be stated and it is not sufficient to use only the words "on duty" (b) The ages of all children must be entered.

(c) Whenever a concession fare can be claimed, completed concession vouchers must be attached to the warrant when it is presented for the issue of a ticket. (d) The conditions of service on which the officer travelling is employed must be clearly endorsed on the warrant/requisition. (e) The actual weight of baggage to be carried must be entered on a warrant/requisition. It is not sufficient merely to indicate on the warrant/requisition the maximum amount of baggage which can be transported at Government's expense. (f) Where it is stated in General Orders, or any other regulation, that an officer may transport a limited amount of baggage by passenger train and the remainder by goods train, separate warrants will be issued. The number of the warrant issued for the transport of personal effects by goods train must be entered in the appropriate space on the warrant

issued for the effects to be carried by passenger train. 154. Officers signing warrants, requisitions and stores orders are approving the expenditure of public funds and they will be responsible, therefore, for seeing that the proper authority exists for the expenditure thus incurred. They will also be responsible for ensuring, in the case of passenger fares, that officers are entitled to the free fare and that all appropriate concessions are claimed. Any excess expenditure incurred as a result of the failure to observe regulations may be surcharged against the officer who signed the warrant, requisition or stores order. Responsibility of officers signing warrants, etc.

155. Payments which are extraordinary in that they are not covered by Extraordinary normal regulations or procedures, e.g. compensation for loss of or payments damage to private property, require the prior approval of the Secretary to the Treasury. 156. (1) Payment vouchers with supporting documents, and any other forms which support a charge entered in the accounts, will be carefully filed, secured against loss, and be readily available for audit. (2) Access to the documents should be restricted to those officers authorised by the accounting officer to make reference to them. In no circumstances will the documents be removed from the files in which they are kept. 157. If a payment voucher is lost a properly certified duplicate will be Loss of obtained. If this is not possible, the expenditure will be treated as payment unvouched and written application must be made immediately to the vouchers Secretary to the Treasury, with a copy to the Auditor-General, for authority for the payment to stand as a charge to public funds. The application will provide the following details: (a) (b) (c) (d) (e) (f) (g) the number and date of the voucher; the amount of the payment; the allocation of the charges; the name of the payee; the nature of the payment; an explanation as to why the voucher was lost; whether the cheque issued was crossed or open; Custody of original documents

(h) (i) (j)

whether the cheque was endorsed or receipted by the payee; the purchase order number and date; the invoice number and date;

and in respect of purchases:

(k) a certificate that the goods have been received and brought on charge. The controlling officer is required to certify that, after making a thorough check, he has been satisfied that the payment is authentic and that the payee has received the payment which the original voucher covered.

PART XI PAYMENT OF SALARIES AND WAGES


158. Salaries and monthly wages will be paid on the last working day Day of payment of each month or according to any staggered dates which the Secretary to the Treasury may from time to time approve. 159. Salaries are payable in monthly instalments calculated at one-twelfth of the annual rate. Salaries for a part of any month will be calculated in proportion to the number of days in that particular month, e.g. salary for eight days in April would be eight-thirtieths of the monthly rate. 160. Except as provided for in General Order 205, an officer will not be granted an advance of salary or wages. Calculation of salary

Salaries and wages not to be paid in advance Adjustment of salary or other moneys due to death, etc.

161. Any contingency which is likely to affect an officer's salary (e.g. his death, suspension or dismissal) will be notified immediately by the controlling officer to the senior officer in charge of salaries in the Ministry. The latter will then be responsible for ensuring that timely and correct adjustments are made to the officer's salary, pension or gratuity.

162. Any balance of salary or other moneys due to an officer who has Salaries of been convicted of misappropriation of Government funds or theft of convicted Government property or who has been dismissed, leaving sums owing officers to Government (including losses of cash or stores which are under investigation), may not be paid without the authority of the Secretary to the Treasury. 163. A separate salary record card for each Division I and II officer in the Service will be kept by the Ministry. The salaries of Division I and II officers are paid by the Ministry on the basis of information supplied by the Secretary to the Treasury (Establishments) and the controlling officer of the Ministry in which those officers are serving. Officers will make arrangements regarding the method of payment, and the permissible voluntary deductions, through their controlling officers. Method of payment and deductions: Divisions I and II

164. Payment of salary may be made direct to the credit of an officer's Method of payment account at any commercial bank or building society in Zambia, or by cheque. Payment of the net amount due, after statutory and permissible deductions have been made, will be made in one sum; there will not be a part-payment to the credit of a bank account with the balance paid by cheque or otherwise. Despatch of 165. All open cheques will be despatched under registered cover or delivered against personal signatures. Salary cheques will be forwarded, salary cheques in bulk, from the Ministry to controlling officers. A signature, followed by the signing officer's printed name and rank, will be required for the total number of cheques received. These will be listed by serial numbers. Controlling officers will be responsible for the distribution of these cheques and for obtaining the payees' signatures in acknowledgment of receipt of the cheques. When cheques are despatched to officers in charge of out-stations, for redistribution, Distribution Lists (Accounts Form 139) will be used and addressees will be responsible for obtaining the payees' signatures. The lists, when completed, will be returned immediately to the sender who will retain them as a permanent record. If it is necessary to post the cheque direct to the actual payee, the remittance will be posted under registered cover and the registration number will be inserted against the entry in the Distribution List. 166. Rent for official quarters will be deducted from salary at the full Deduction of

rate unless exemption or reduction has been claimed and approved. The rent for official responsibility for claiming reduced rent or exemption, including quarters exemption during periods of vacation leave, rests with the officer concerned. Claims will be made direct to the Ministry with a copy to the officer's controlling officer. Accounts Form 133, 134 or 135, as appropriate, will be used for this purpose. Recovery of rent in respect of non-civil servants will be the responsibility of the employing Ministry. 167. Salaries and wages of employees other than those in Divisions I and II of the Civil Service will be paid by the Ministries in which they are employed, in accordance with scales and rates laid down by the Permanent Secretary (Establishments). Payment scales and rates: officers other than those in Divisions I and II Gross salary and deductions to be charged

168. All authorised deductions will be entered on the payment vouchers in the appropriate column against the name of each employee concerned. The gross emoluments will be charged against the relevant sub-head and deductions will be credited to the appropriate account.

Salary records 169. (1) Controlling officers will arrange for salary records to be maintained in respect of all employees who are not officers in Divisions I and II. A Salary Record Card will be maintained. (2) When an employee is transferred and the transfer involves a change of pay office, his salary record will be made up to date and transferred to his new office. 170. If an employee does not draw his wages at the normal time of Unclaimed payment, the wages due to him will be held for a period of seven days. If wages still unclaimed, the cash will be brought to account. A general receipt will be issued, crediting the unpaid wages to the expenditure vote from which the wages were drawn. 171. (1) Controlling officers will ensure that standing instructions are issued in writing for security precautions to be taken in the handling of money for the payment of wages. Security precautions with regard to payment of wages

(2) Except in the case of offices staffed by only one accounting officer, controlling officers will ensure that proper instructions are issued covering the internal check over the preparation of wage sheets and the payment of wages. In particular(a) officers responsible for entries on the wage sheets, for checking and for paying will sign for their particular responsibilities on the face of the wage sheets; (b) each operation in connection with the preparation of wage sheets will be checked by an officer other than the officer who carried out the original operation; (c) payment will take place in the presence of an officer who knows the recipients. The paying officer should, where practicable, be an officer not concerned with the preparation and checking of wage sheets. 172. Net salary for the full period of leave will be paid by cheque not Leave salary less than fourteen days before the officer goes on leave, and will be calculated up to the last day of the month preceding his return from leave, unless he elects to receive his salary in the normal manner (i.e. to a local bank). 173. Controlling officers will ensure that there is an adequate system Attendance of control over the employment of labour. In particular, they will ensure records that detailed instructions are issued to record and check the attendance of employees and that overtime is recorded separately, showing the hours authorised and the hours actually worked.

PART XII IMPRESTS


174. There are two types of imprest: (a) Standing imprests-which are normally issued to facilitate the payment of wages and to enable minor local purchases to be made when it is not possible for payment to be made through an accounting unit; Types of imprest

(b) Special imprests-which are of a temporary nature, are issued for the purpose of providing officers with funds to meet expenses when travelling on duty. 175. Special imprests may not be issued in respect of tours outside Zambia without the authority of the Secretary to the Cabinet to the Government. 176. Standing imprests may be issued by controlling officers. Both types of imprest must be limited in total to the amount which the Secretary to the Treasury has authorised for this purpose to each Ministry. Special imprests outside Zambia Authority to issue imprests

177. Holders of standing imprests may, on their own authority, issue a Sub-imprests part of their imprest to a subordinate to be used as a sub-imprest for the purpose for which it would have been proper for the holder of the standing imprest to have used it. Sub-imprests must be recouped from and retired to the holder of the standing imprest and will always be retired when the holder of the standing imprest hands over to another officer. Holders of sub-imprests will maintain a Field Cash Book (Accounts Form 39) to record payments and receipts in the same manner as holders of standing imprests. 178. The amount of each standing imprest should normally be limited Amount of to the monthly requirements in each case, but if it is desirable to recoup standing the imprest more frequently, this is permissible. imprest Amount of 179. The amount of a special imprest issued to meet expenses while travelling on duty will be limited to the amount which an officer will be special imprest eligible to claim for the period of absence from his station. If the period of absence on duty outside Zambia is not definitely known, the officer may be given an official Letter of Credit which will authorise any Zambian Mission abroad to pay the amount shown on the Letter of Credit as due to the officer. The Letter of Credit may include any official entertainment allowance authorised before the officer leaves Zambia. 180. In no circumstances will any officer be issued with another Special special imprest when there is already a special imprest outstanding in his imprests: name. Any officer authorising a second imprest before the first is retired limitation will be liable to be surcharged with the whole amount of both imprests.

181. Imprests will be used only for the purposes for which they are issued and on no account will they be used for personal expenditure or for making advances of salary or wages. 182. A record will be kept in a Register of Imprests (Accounts Form 17) of the issue and retirement of all imprests. The instructions printed on the front cover of the Register will be complied with by all officers authorised to issue imprests.

Restriction in use of imprests

Register of Imprests

183. Where banking facilities are available, officers authorised to hold Banking of a standing imprest of two hundred kwacha or more will open an official imprests bank account unless authority to the contrary is given by the controlling officer of the Ministry concerned. Official bank accounts may also be opened for imprests of less than two hundred kwacha if this is considered desirable. Imprest bank accounts may not be overdrawn. An imprest holder is responsible for the safe custody of his imprest cheque book. 184. Holders of standing imprests must record all payments and reimbursements in a Field Cash Book (Accounts Form 39). On each occasion that a reimbursement of the imprest is requested, the total of expenditure since the last reimbursement and the balance of cash on hand will be entered. These two amounts will equal the value of the original imprest issued. Revenue receipts will not be entered into the Field Cash Book, but will be deposited with the Government Main Account with the Bank of Zambia in accordance with the procedure outlined in regulations 116 to 118. Field Cash Book

185. Standing imprests will be reimbursed by the submission of the Reimbursement tear-off copies of the Field Cash Book folios, supported by properly of standing completed original payment vouchers, to the office from which the imprests imprest was obtained. The amount reimbursed to the imprest holder will equal the total sum of the vouchers submitted less any rejected vouchers. 186. Special imprests will be retired immediately the purpose for Retirement of which they are issued has been fulfilled. Provided that an imprest issued special imprests to an officer to meet expenses when travelling on duty is restricted to the amount which he will be entitled to claim on return to his station, the claim voucher will clear the imprest. If the imprest is not cleared within

twenty-four hours of the imprest holder's return, the issuing officer will instruct, in writing, the officer in charge of the Salaries Section of the Ministry (in the case of Divisions I and II) and other imprest holders paid by the Ministry to deduct the whole of the amount outstanding from the salary of the imprest holder for the next month. In the case of Division III, the same arrangements will be made for local recovery. 187. Standing imprests will be retired at the end of the financial year, unless authority for their retention into the next financial year has been given by the controlling officer who authorised their issue. In these cases, it is necessary for the imprest holder to produce proof of his imprest as at the close of business on the last working day of the financial year. Accounts Form 16 will be used for this purpose. Retirement of standing imprests

PART XIII HANDING AND TAKING OVER


188. The following procedure will be followed on every occasion on which an accounting officer hands over to another accounting officer: (a) Any cash books and stamp registers for which the handing-over officer is responsible will be ruled off and balanced with cash and stamps on hand, and the balance of the cash book or stamp register will be entered, dated and signed by both officers. If possible, all cash should be banked by the handing-over officer before the hand-over. (b) The officer handing over will hand to the officer taking over, a list of all "below-the-line account" balances, made up to the end of the previous month showing dates, names, amounts and types of transaction. (c) A check will be made by both officers that the balance of unused receipt books recorded in the Receipt Book Register is on hand and both officers will sign and date the register to this effect. A note should be made of all unused fixed-fee receipts on issue to collectors of revenue which are not available for examination at the time of handing and taking over. It will be the duty of the officer who is taking over to see that all used receipt forms have been brought to account. (d) Stores records will be ruled off, and both officers will check that these agree with the physical stocks on hand; individual stock sheets will then be dated and signed by both officers. Handing-over procedure

(e) The officer handing over is responsible for seeing that the expenditure and commitment records in his control are up to date and these records will be dated and signed by both officers. 189. The key of each safe (as defined in Part V) will be handed to the Safe keys officer taking over as soon as the contents have been verified. 190. Any discrepancies revealed in the course of handing over will be Discrepancies acknowledged in writing by the officer handing over. The officer taking on handing over over will make a report to his controlling officer. 191. On completion of the hand-over, a certificate will be signed to the Handing-over effect that the requirements of this Part have been fulfilled. One copy of certificate this certificate will be kept by the officer taking over; the others will be retained by the officer who has handed over.

PART XIV LOSSES OF PUBLIC MONEY AND STORES


192. (1) For the purposes of this Part, losses of public money may occur Definition of when an officer, through wilful default or gross neglect of duty"losses" (a) fails to collect any money, whether revenue or other payment, due to Government; (b) makes, causes or permits an unauthorised, unvouched or incorrect payment of public money for which he is responsible by virtue of his office; this includes fraud, forgery, misappropriation, theft and burglary; (c) causes or permits damage to or destruction or loss of any public buildings, equipment, vehicles, stores, fittings or furniture: (d) causes or permits personal injury or damage to property in

circumstances which render Government liable to third parties in respect of such injury or damage. (2) Immediately a loss of any kind is discovered, the officer in whose office the loss occurred will(a) advise his immediate supervising officer, by the quickest means, of the nature, extent and date of the loss. This will then be confirmed by him in writing; (b) institute investigations on the spot;

(c) report the loss to the local police when this is necessary, e.g. in the case of a burglary. 193. This officer will carry out an investigation. At the conclusion of the investigation he will report the loss on Accounts Form 92 to his controlling officer, attaching a Police Report where necessary (see the Second Schedule). Investigation of loss

194. The controlling officer will consider the case in the light of the Write-off by circumstances set out in Accounts Form 92. If the loss amounts to fifty controlling kwacha or less, the controlling officer may authorise the loss to stand as officer a charge against public funds if he considers that there is no case for a charge of wilful default or gross neglect of duty against any officer concerned with the loss. The case file will be retained by the controlling officer for inspection by the Auditor-General and by the Secretary to the Treasury, and a copy of Accounts Form 92 will be sent to each of those two officers for information. 195. If the loss amounts to over fifty kwacha or if the controlling Report by officer considers that the loss was due to the wilful default or gross controlling neglect of duty of any officer, whatever the amount of the loss, then he officer will forward his recommendations in paragraph 12 of Accounts Form 92 to the Secretary to the Treasury, with a copy to the Auditor-General indicating whether, in his opinion, there is a case for a surcharge against the officer or officers concerned. 196. The Secretary to the Treasury may, if he considers that there has Write-off by been no wilful default or gross neglect of duty by any officer, authorise Permanent

the loss, or part thereof, to be charged to public funds. 197. If the Secretary to the Treasury considers that the loss was due to wilful default or gross neglect of duty, he will assess what amount should, in his opinion, be attributed to default or negligence of any officer, and he will send to the officer a notice of assessment of claim and the amount thereof. In no circumstances will this assessment exceed the amount of the actual loss suffered. 198. The officer to whom the assessment is sent may, within twenty-one days after receipt by him of the assessment, make representations in writing direct to the Secretary to the Treasury(a) (b) (c) admitting the liability in full; admitting the liability in part; denying the liability.

Secretary Assessment of claim against defaulting officer

Representations by officer

In the cases of paragraphs (b) and (c), he may make representations with a view to obtaining a full or a partial cancellation of the liability attributed in the notice of assessment to his own wilful default or gross neglect of duty. Decision of 199. (1) If the Secretary to the Treasury does not receive representations within twenty-one days, or if he receives representations Permanent from the officer and he considers that the officer should be liable in Secretary terms of the notice of assessment, he will determine whether the liability shall be in full or whether it shall be reduced in the light of the representations made by the officer. In either case, the Secretary to the Treasury will send a demand in writing for payment of the sum for which he considers the officer liable. (2) If the Secretary to the Treasury considers that the circumstances of the case justify a cancellation of the full assessment against the officer, then he shall notify the officer of this cancellation in writing. 200. If, upon receipt of the demand for payment, the officer admits his Admission of liability in writing he may either pay the sum assessed in one sum, or he liability may consent to recovery of the sum assessed from his salary or pension, or both. 201. If an officer to whom a demand has been sent fails to admit Failure to admit

liability within ten days after receipt of the demand, the Secretary to the liability Treasury will prepare a statement setting out the facts upon which the demand was based, attaching copies of the notice of assessment of claim and the demand for payment. The statement will disclose the status of the officer concerned in the loss, his length of service, his monthly salary and pension and his length of employment in the position held at the time of the loss. 202. The Secretary to the Treasury will fix the monthly rate of deductions which shall not exceed one-quarter of the gross monthly salary or pension, or both. Monthly deductions

203. If an officer who has consented to recovery of an assessed sum Officers leaving under regulation 197 dies, resigns or is dismissed from the service of the the service Government before the full sum has been recovered, then any balance still due shall be a charge against any sum owing to him or to his estate. 204. The Secretary to the Treasury will send the statement referred to Statement to in regulation 201 to the Attorney-General. Attorney-General

PART XV REMITTANCES OF CASH


205. When it is necessary to remit notes or coin to a bank or to another Remittances to a bank or other office and it is not convenient or possible to use the commission-free office money order service, the following instructions will apply: (a) A remittance will be made up by the officer responsible for the cash and, whenever possible, will be checked and signed for as correct by a second officer. Remittances will be securely packed and, if sent by post, the packages will be registered. Specie boxes will be supplied at the beginning of each financial year on application to the Secretary to the Treasury for use in transporting coin. (b) At the time when the remittance is made, advice of the remittance will be sent separately to the bank or office to which it has been despatched, and a copy will be enclosed with the remittance. The advice will contain the official designation of the sender and the addressee, the total amount of the remittance, its composition by

denominations of notes and coin, the date of despatch, and the method of despatch. 206. Remittances received from a bank or other office will be checked Remittances at once by the officer responsible for receiving the cash, if possible in received the presence of a second officer. Any discrepancy will be reported immediately by telephone or telegraph to the bank or office from which the remittance has been received, and will be confirmed at once in writing. If there is an irrecoverable shortage in a remittance received, or if the remittance does not arrive at its destination, then the remitting officer will take immediate steps to report the shortage in or non-arrival of the remittance as a loss of public money under Part XIV. PART XVI-Revoked by S.I. No. 102 of 1991.

FIRST SCHEDULE-Revoked by S.I. No. 102 of 1991. SECOND SCHEDULE


(Regulations 193 and 195) ACCOUNTS FORM 92
REPORT ON A LOSS OF PUBLIC MONEY/STORES (To be used for losses of money, stamps or stores; damage to Government property, buildings, equipment and vehicles; losses caused by failure to collect revenue; unauthorised or unvouched payment of public money. NOT to be used for damage to the person or property of third parties; these will be dealt with by memorandum. To be submitted in triplicate by the Supervising Officer.) Supervising Officer's File No.. .................................... MINISTRY/DEPARTMENT .....................................
PART A-Report by Supervising Officer to Controlling Officer under Regulation No. 193 FULL NAME of Supervising Officer 1. Official Designation and Address 2. Office and/or place where the loss occurred 3. Date on which the loss occurred Date loss was reported to me Nature of loss Money 4. 5. 6. 19 ..... 19 ..... K n

1. 2. 3. 4. 5. 6.

Stamps Stores Property Sub-Total less amount recovered or repaid Net value of the loss 7. (a) (b) (c) POLICE REPORT Was the loss reported to the Police? If it was, give the date of report If it was not reported, explain why not, e.g. petty loss already made good 7. (a) YES/NO* (b) . 19 ........... (c)

If Police Report available If not available, give date of written request or a Report 8. COURT PROCEEDINGS (a) Was anyone prosecuted? (b) If so, who? (c) With what result? If Court Record available If not available, give date of written request for Court Record 9. RESULT OF INVESTIGATION What were the precise circumstances in which the loss occurred? Were normal precautions taken to prevent it? If not, why not and which officers were involved? Were there any unusual circumstances which led to the loss? What checks were carried out and when? What security arrangements were in existence, and were they adequate? Give any further information which is relevant, including measures taken to prevent a recurrence. NOTE: The acid test of negligence is whether an officer deals with public property and money as carefully as he would deal with his own private property or money. 10. RECOMMENDATION Give the full names and official designations of officers involved in the loss (d) (e)

(d) (e)

(d) 3 copies to be attached (e) 19 ....... 8. (a) YES/NO* (b) (c) . (d) 3 copies to be attached (e) 19 ...... 9.

10.

*(a) *(b)

I recommend penalised in any way. I recommend surcharge of:

(a) (b)

that no officer be surcharged or/ Officer's name K n

*(c) 11.

I recommend disciplinary action of Signature of Supervising Officer: Official Designation: Date:

(c 11.

19 ........

* Delete whichever is not applicable.

PART B-REPORT BY CONTROLLING OFFICER TO SECRETARY TO THE TREASURY, MINISTRY OF FINANCE, UNDER REGULATION NO. 195 (To be submitted to the Secretary to the Treasury, Ministry of Finance, for consideration, with a copy to the Auditor-General, for all losses of K50 or more and in all cases in which a surcharge is recommended. In the case of a loss of less than K50, if the Controlling Officer's decision is that it should "stand as a charge to public funds", a copy will be sent to the Permanent Secretary, Ministry of Finance, and the Auditor-General for information, endorsed to that effect in 12 (c) below.) Controlling Officer's File No. ....................................... 12. *(a) I agree with the recommendation/s in PART A. *(b) I disagree with the recommendation/s in PART A, for the following reasons:

(c)

my recommendations are:

Signature of Controlling Officer . Official Designation Date * Delete whichever is not applicable.

THE FINANCE (CONTROL AND MANAGEMENT) (PUBLIC STORES) REGULATIONS [ARRANGEMENT OF REGULATIONS].

ARRANGEMENT OF REGULATIONS PART I PRELIMINARY


Regulation 1. 2. 3. Title Interpretation Supersession of previous Regulations

PART II GENERAL PROVISIONS


4. 5. 6. 7. 8. 9. 10. Responsibility for accounting arrangements Responsibility of controlling officers Personal responsibility of purchasing officer and stores officer Officers to exercise strict economy in use of public stores Loss of public stores Authority for unallocated stores Inspection of public stores, etc.

PART III PURCHASES AND TENDERS


11. 12. Application of Financial Regulations Liability of purchasing officers

13. 14. 15.

Sources from which public stores shall be obtained Local purchases in Zambia Purchases from outside Zambia

PART IV BOOKS AND FORMS OF ACCOUNTS


16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. Responsibility of officers to account for public stores Books and forms of accounts Allocated Stores Ledger Arrangement of stores accounts Local Purchase Order Numbering of payment vouchers Stock Bin Cards and Kardex system Register of Stores Ordered and Received Register of Consumable Stores Return of Consumable Stores Stores Demand, Issue and Receipt Voucher Stock Receipt Cost Sheet Posting of stores ledgers Preparation of stores requisitions, local purchase orders, etc. Signing of requisitions, local purchase orders, etc. Safeguarding of requisitions, local purchase orders, etc.

Regulation

PART V SUPERVISION AND CUSTODY OF PUBLIC STORES

32. 33. 34. 35. 36. 37. 38. 39. 40.

Supervisory officers Protection of public stores Arrangement of public stores accommodation Inspection of stores accounts Submission of records Annual verification of public stores Report of loss, damage, etc., by heads of department Return of unserviceable or excess public stores Action on report of loss of, damage to, etc., public stores

PART VI RECEIPT OF PUBLIC STORES


41. 42. 43. 44. 45. 46. 47. 48. Checking of public stores received Entries to be made in figures and words Acknowledgement of receipt of public stores Public stores required for immediate use Returned public stores Converted or manufactured stores Stock Discrepancy Report and Claims Register Authority for payment for stores received

PART VII ISSUE OF PUBLIC STORES


Regulation 49. 50. 51. 52. 53. Purposes for which public stores may be issued Prohibition of issue of public stores for private use Issue of public stores Issue of public stores for sale or write-off, etc. Transfers of allocated stores

54.

Packing of public stores

PART VIII UNALLOCATED STORES


55. 56. 57. 58. 59. 60. 61. 62. 63. Authority for and limit of unallocated stores Receipt and costing of unallocated stores Issue of unallocated stores Cash sales accruing from sale of unallocated stores Revision of issue price Unallocated stores account Monthly financial statement Annual Tabular Summary Annual Stock Valuation Certificate

PART IX PLANT AND VEHICLES


64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. Interpretation Purchases of plant and vehicles Plant and vehicles records Ministerial and Departmental records Transfer of plant or vehicles Transfer within Department Inspection of plant, vehicles and records Responsibility for supervision of plant and vehicles Unserviceable plant or vehicles Wilful neglect or misuse Maintenance of plant and vehicles Periodic checks Servicing of vehicles Director to issue bulletins

78. 79.

Maintenance and repair by private firms Officers liable for excess costs

PART X TOOLS AND EQUIPMENT


80. 81. 82. 83. 84. 85. 86. 87. 88. Interpretation Tools and Equipment Control Officer Tools and Equipment Control Ledger Inventory of Plant, Tools and Equipment Personal responsibility of officers Periodic checks of tools and equipment Loss of tools or equipment to be reported Write-off of tools or equipment Hand-over of tools or equipment

PART XI OFFICE AND MACHINERY


89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. Interpretation Plant, Tools and Equipment Control Ledger Transfer of office machinery Purchase of office machinery Applications for supply of office machinery Issue of office machinery Office Equipment Maintenance Service Repairs and overhauls Minor repairs and adjustments Unserviceable office machinery Register of office machinery on charge Cost of transporting office machinery Surplus office machinery

102. 103.

Removal of office machinery from Government offices Loss or theft of office machinery

PART XII BOARDS OF SURVEY, STANDING ACCIDENTS BOARD AND PROVINCIAL STANDING ACCIDENTS COMMITTEE
Regulation 104. 105. 106. 107. 108. 109. 110. 111. 112. 113. 114. 115. Boards of Survey Special Boards of Survey Appointment of Boards of Survey Composition of Boards of Survey Notifications Forms to be used Attendance of officer in charge of stores Ledgers, etc., to be entered up-to-date Duties of Annual Boards of Survey Inspection of storage premises Report of Board of Survey Request for appointment of Annual Board of Survey

116. Procedure for disposal of unserviceable and surplus stores at Foreign Missions 117. Copies of authority for disposal of unserviceable or surplus stores to be sent to Auditor-General 118. 119. 120. 121. Circumstances where Annual Board of Survey not necessary Request for Special Board of Survey on unserviceable stores Standing Board of Survey Composition of Standing Board of Survey

122. 122A. 122B. 122C. 122D. 122E.

Report of Standing Board of Survey Standing Accidents Board Composition of Standing Accidents Board Proceedings of Standing Accidents Board Procedure for reporting Accidents Representations of police officer

PART III WRITE-OFF AND DISPOSAL OF UNSERVICEABLE STORES, DISCREPANCIES, LOSSES, ETC.
123. 124. 125. 126. 127. 128. 129. 130. Unserviceable expendable stores Other unserviceable stores Stores surplus to requirements Report on losses of, or damage to, public stores Processing of loss report Discrepancies Authority to write off stores Action on receipt of authority to write off

PART XIV SALE OF PUBLIC STORES


131. 132. 133. 134. 135. Authority for sale of public stores Sales to be on cash basis Classification of sale proceeds Sale of surplus and unserviceable stores Trading accounts

PART XV

TRANSPORT OF PUBLIC STORES, LOSSES IN TRANSIT, CLAIMS, ETC.


136. 137. 138. 139. 140. 141. 142. 143. 144. 145. Clearing of public stores arriving from outside Zambia Responsibilities of officers for clearing consignments Responsibility for lodging claims Time limit for claims Minimum amounts to be claimed Discrepancies to be entered in Claims Register Follow-up of claims Transport of public stores to be economical Return of public stores Responsibility of officers dispatching public stores

PART XVI FURNITURE, FURNISHINGS AND EQUIPMENT


' A' Household Equipment 146. 147. 148. 149. 150. 151. 152. 153. 154. 155. Appointment and duties of Quarters Officer Appointment and duties of Furnishings Officer Responsibility of tenant Occupation of quarters Vacation of quarters Deficiencies or damages, etc. Security of contents of unoccupied quarters Distribution and control of furniture, etc. Marking of furniture Write-off of unserviceable furniture

' B' Office Furniture 156. 157. 158. 159. 160. 161. 162. 163. 164. 165. Interpretation Office furniture for institutional buildings Office furniture for non-institutional (common-user) buildings Internal control of office furniture Supply of air-conditioning units Supply of safes, strong boxes and strongroom, doors, etc. Fixtures and fittings not to be removed on movement of offices Handing over by Ministry or Department Scales of office furniture Repairs and renovations

' C' Specialised Furniture and Equipment for Institutions 166. 167. Institutional furniture and equipment Control of office furniture

PART XVII HANDING OVER OF PUBLIC STORES


168. 169. 170. 171. 172. 173. Handing and taking over of public stores List of surpluses or discrepancies Request for Board of Survey before taking over Checking of public stores in absence of out-going officer Hand-over of tools and equipment Hand-over of furniture

PART XVIII IVORY AND OTHER GOVERNMENT TROPHY

174. 175. 176. 177. 178. 179. 180. 181. 182. 183. 184. 185.

Interpretation Categories of ivory and trophy Registration stations for ivory and trophy Ivory and trophy records Certificate of ownership Registration of "legal" ivory or trophy Registration of "illegal" ivory or trophy Registration of imported ivory or trophy Disposal of Government ivory or trophy Fixing of prices for ivory or trophy Losses arising from deterioration of ivory or trophy Sale proceeds to be credited to revenue

PART XIX MEDICAL SUPPLIES


186. 187. 188. 189. 190. 191. 192. 193. Interpretation Responsibility for medical supplies Registers to be maintained Requisition of medical supplies Losses or damages to consignments in transit Handing over and taking over of medical supplies Appliances Application of other provisions of Regulations

SCHEDULE SECTION 18-FINANCE CONTROL AND MANAGEMENT (PUBLIC STORES) REGULATIONS Regulations by the Minister Statutory Instrument 122 of 1983 127 of 1986 204 of 1986

69 of 1995

PART I PRELIMINARY
1. These Regulations may be cited as the Finance (Control and Management) (Public Stores) Regulations. 2. In these Regulations, unless the context otherwise requires"accounting unit" means a section responsible for the maintenance of the accounts of a Ministry or a number of Ministries or a branch of a Department of a Ministry; "allocated stores" means public stores purchased for use in connection with specific works or for departmental purposes, the cost of which is immediately chargeable directly to the appropriate head, sub-head and item of expenditure; "Auditor-General" means the Auditor-General appointed under the provisions of the Constitution; "Board" means the Standing Accidents Board established under paragraph (d) of regulation 122A. "Committee" means the provincial Standing Accidents Committees established under paragraph (b) of regulation 122A and "Committee" shall be construed accordingly; "controlling officer" means an officer designated by the Minister as officer in charge of a head of expenditure in any one financial year and charged with the duty of controlling expenditure on any public service under that head; "head of department" means an officer in charge of a branch or Department within a Ministry; "internal auditor" means any person designated as such by the Secretary Cap. 1 Title

Interpretation

to the Treasury; "Minister" means the Minister responsible for finance; "Secretary to the Treasury" means the Secretary to the Treasury, Ministry of Finance; "purchasing officer" means an officer who is authorised to sign an order for the purchase of any goods or for the requisition of any service; "store-keeper" means any officer responsible for the receipt, custody and issue of public stores; "stores officer" means any officer whose responsibilities include(a) supervision of store-keepers;

(b) checking the records, registers and accounts of store-keepers or verifying the stocks held by them; and (c) maintenance of stores accounts;

"stock verifier" means any person designated as such by the Secretary to the Treasury; "vote holder" means any officer to whom a controlling officer has delegated responsibility for the expenditure under a particular sub-head or sub-heads; "unallocated stores" means stores of a general nature which are not required at the time of purchase for specific work or departmental purposes but which are acquired as stock to be issued and charged to various works and services as required. 3. These Regulations shall supersede all previous Stores Regulations and Stores Orders and shall be read in conjunction with the Financial Regulations. Supersession of previous Regulations. Cap. 347

PART II GENERAL PROVISIONS


4. (1) The Secretary to the Treasury shall be responsible for general Responsibility stores accounting, but, a controlling officer may, with the written for accounting approval of the Secretary to the Treasury and subject to the provisions of arrangements these Regulations, issue supplementary instructions governing public stores of any particular nature held under his control. (2) Copies of all supplementary instructions issued under sub-regulation (1) shall be sent to the Secretary to the Treasury and the Auditor-General. 5. Every controlling officer shall be responsible forResponsibility of controlling officers

(a) observance of all instructions issued by the Secretary to the Treasury; (b) ensuring that an efficient system exists for the administration and control of public stores under his supervision; and (c) ensuring that all his subordinate officers whose duties involve responsibility for public stores are conversant with these Regulations. 6. Every purchasing officer and stores officer shall be personally responsible for the due performance of his duties and for any inaccuracies in the accounts rendered by him or under his authority.

Personal responsibility of purchasing officer and stores officer Officers to exercise strict economy in use of public stores

7. Every officer shall exercise strict economy in the use of public stores and all supervising officers shall ensure that expenditure of a wasteful or extravagant nature on public stores is not permitted.

8. (1) For the purpose of this Part, loss of public stores shall be deemed Loss of public to have occurred if an officer, through wilful default or neglect of duty, stores causes or permits damage to, or destruction or loss of, any public stores,

equipment, vehicles, fittings or furniture. (2) Immediately a loss of public stores is discovered, the officer in charge of such public stores shall(a) advise his immediate supervising officer, by the quickest means, of the nature, extent and the date of the loss; (b) (c) confirm his advice in writing; institute investigations on the spot; and

(d) report the loss to the local police where an offence is suspected to have been committed. 9. (1) Subject to the provisions of sub-regulation (2), unallocated stores Authority for may only be held by a controlling officer or any other officer under his unallocated control if he is specifically authorised in that respect under Part VIII of stores these Regulations. (2) The Secretary to the Treasury may prescribe conditions for the receipt, custody and issue of, and accounting for, unallocated stores and may also modify or revoke, at any time, the authority so given. 10. (1) The following categories of officers shall at all reasonable times Inspection of have the right to inspect public stores and books, records and accounts public stores, relating to such public stores, that is to say: etc. (a) (b) (c) (d) the Auditor-General or any officer authorised by him; an internal auditor; a stock verifier; or any officer authorised by the Secretary to the Treasury.

(2) Every officer concerned shall give the inspecting officer the necessary facilities for inspecting such public stores and relevant

documents. (3) The officer carrying out an inspection shall give a receipt to the person from whom any books, records and other documents have been taken away for further investigations.

PART III PURCHASES AND TENDERS


11. Except as otherwise provided for in these Regulations, the provisions of Part XVI of the Financial Regulations and the First Schedule thereto shall apply to procedures governing purchases and tenders under these Regulations. 12. (1) Every purchasing officer must ensure thatApplication of Financial Regulations. Cap. 347 Liability of purchasing officers

(a) funds are available for the purchasing or requisitioning of public stores under a properly authorised provision of heads of expenditure; (b) the public stores ordered shall not be in excess of normal departmental requirements; and (c) due care is exercised in the preparation of all requisitions, orders and indents. (2) Any purchasing officer who fails to comply with the provisions of this regulation may be held liable for any excess costs incurred as a result of such failure. (2) Any purchasing officer who fails to comply with the provisions of this regulation may be held liable for any excess costs incurred as a result of such failure.

13. (1) All public stores, vehicles, plant and other items shall be obtained from the following sources:

Sources from which public stores shall be obtained

(a) in the case of items shown in the Government Stores Catalogue for the time being in force, from the Government Stores or from the nearest depot of the Government Stores, as the case may be, by submitting a requisition on the Requisition, Issue and Receipt Voucher (Misc. Form 1B); (b) in the case of motor vehicles, plant, machinery, device, tools and spare parts, from the Mechanical Services Department by submitting a requisition on the Requisition, Issue and Receipt Voucher (Misc. Form 1B); (c) in the case of specially headed stationery or printed forms, from the Government Printing Department by submitting a requisition on Misc. Form 1; (d) in the case of medical supplies and drugs, from the Medical Stores of Zambia Limited, a limited company registered under the Companies Act; (e) in the case of typewriters and office machines, from the Office Equipment and Maintenance Section by submitting a requisition on the Requisition, Issue and Receipt Voucher (Misc. Form 1B); (f) in the case of any other items not mentioned in this sub-regulation, from the Department which has been authorised by the Government to stock such items by submitting a requisition on the Requisition, Issue and Receipt Voucher (Misc. Form 1B). (2) Save as provided for in sub-regulation (1), no purchasing officer shall obtain public stores from any other source except in the following circumstances: (a) where such public stores are not available at the Government Stores or other authorised sources of supply and a certificate to that effect is obtained from the officer in charge of the organisation concerned; Cap. 388

(b) where circumstances are so urgent as to render it not reasonably practicable to purchase public stores from the Government Stores or other authorised sources of supply and the reasons therefor are recorded in writing. (3) Where an officer purchases public stores from another supplier in terms of paragraphs (a) and (b) of sub-regulation (2), he shall, forthwith, make a report to that effect to his immediate supervisor and where it appears that the circumstances under which he acted were not so urgent as to justify the action taken, or that the need for public stores in question could have been foreseen in time for them to be purchased normally from authorised sources, the purchasing officer may be held liable for any additional expenditure which may have been incurred as a result of his action. Local purchases 14. (1) Subject to the other provisions of these Regulations, local purchases of public stores shall be made on Local Purchase Order (Misc. in Zambia Form 1A) which shall be completed in quadruplicate and copies thereof shall be distributed as follows: (a) the original and duplicate copies shall be sent to the supplier of the goods; (b) the triplicate shall be filed in accordance with the instructions contained in the Financial Regulations; and (c) the quadruplicate shall remain in the book. Cap. 347

(2) The agreed or quoted prices obtained by a pro forma invoice where necessary shall be inserted in the appropriate column. (3) The requisitioning officer shall ensure that he obtains from the supplier the original copy of the Local Purchase Order (Misc. Form 1A) together with the invoice for the goods which shall be used to support the payment for the goods. (4) In the case of purchases by the Mechanical Services Department, the Local Purchase Order (Misc. Form 1A) shall be completed in

quintuplicate and the copies thereof shall be distributed as follows: (a) the original and duplicate copies shall be sent to the supplier of the goods; (b) the triplicate shall be filed to support the commitment ledger;

(c) the quadruplicate shall be sent to the Mechanical Services Department (Stores Receipt Section); and (d) the quintuplicate shall remain in the book. Purchases from outside Zambia

15. (1) Requests for public stores to be obtained from sources outside Zambia shall be processed in accordance with the procedure laid down in the Schedule to the Financial Regulations. (2) Wherever possible, supplies shall be procured through Government appointed purchasing agencies. (3) Indents for supplies from Government purchasing agencies shall be signed by the controlling officer personally before submission to the Central Supply and Tender Board.

PART IV BOOKS AND FORMS OF ACCOUNTS


16. Every stores officer or any other officer having in his charge any Responsibility public stores or other articles of public property must keep and maintain of officers to records of the receipt and issue of such public stores. account for public stores 17. The books and forms prescribed in the Schedule hereto shall be the Books and books and forms of accounts which shall be used by every Ministry and forms of

Department for the purposes of these Regulations.

accounts

18. The Allocated Stores Ledger (Misc. Form 54) shall be the principal Allocated book of accounts where entries shall be made from the original Stores Ledger documents relating to all public stores transactions. 19. (1) A separate account shall be maintained for each item of the public stores and the accounts shall be arranged in accordance with the groups and classifications adopted for the public stores. (2) Each account shall be given a folio number or other distinguishing mark. 20. Subject to the other provisions of these Regulations, the Local Local Purchase Purchase Order (Misc. Form 1A) shall be used for all the local purchases Order of public stores. 21. (1) All payment vouchers supporting entries in the Allocated Stores Numbering of Ledger (Misc. Form 54) shall be serially numbered, filed and bound in payment numerical sequence. vouchers (2) There shall be maintained separate files for each type of payment vouchers. (3) Every payment voucher shall bear a reference to the stores ledger folio to which it relates. 22. (1) Every store-keeper shall maintain a Stock/Bin Card (Accts Forms Nos 148 and 148A) for each item of stock on which shall be recorded all movements and balances of stock-in-hand, and in the case of a large organisation, a Kardex or other similar system may, with the approval of the Secretary to the Treasury, be used instead of the Stock/Bin Card (Accts Forms Nos 148 and 148A). (2) Every Stock/Bin Card shall be attached to the bin, shelf or container where the public stores are held or in a container kept close to the stock. Stock Bin Cards and Kardex system Arrangement of stores accounts

(3) All movements of public stores shall be recorded on the Stock/Bin Card (Accts Forms Nos 148 and 148A) as soon as any transaction has been effected and the entries so effected shall be in addition to those made in the Allocated Stores Ledger (Misc. Form 54). 23. There shall be kept and maintained a Register of Stores Ordered Register of and Received (Accounts Form 151) in which shall be recorded details of Stores Ordered all public stores received. and Received 24. (1) Every officer in charge of a hospital, hostel, school, prison or Register of other similar Government institution shall keep and maintain a Register Consumable of Consumable Stores (Accounts Form 159) in which shall be recorded Stores details of all consumable stores and fuel received. (2) Public stores recorded in the Register of Consumable Stores (Accounts Form 159) may not be recorded in the Allocated Stores Ledger (Misc. Form 54) or the Register of Stores Ordered and Received (Accounts Form 151). 25. Every officer-in-charge of a hospital, hostel, school, prison or other Return of similar Government institution shall, at the end of each month, prepare Consumable and forward to the head of department concerned, a Return of Stores Consumable Stores (Accounts Form 159) (reverse). 26. (1) A Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154) shall be prepared for all allocated stores received from whatever source, except where the supply is from a Government agency in which case the Requisition Issue and Receipt Voucher (Misc. Form 1B) shall be prepared instead. (2) The Stores Demand, Issue and Receipt Voucher or the Requisition Issue and Receipt Voucher as the case may be, shall be returned to the issuing officer immediately after the public stores have been received and checked. 27. A Stock Receipt Cost Sheet (Accounts Form 160) shall be prepared Stock Receipt for every consignment of unallocated stores. Cost Sheet Stores Demand Issue and Receipt Voucher

28. The posting of stores ledgers shall, where possible, be carried out Posting of by accounting officers who are not responsible for the actual custody of stores ledgers the public stores. 29. When preparing requisitions, local purchase orders, or other similar documents, a line initialled by the officer signing the document shall be drawn across the form immediately below the last item and a diagonal line shall be drawn through the remaining blank portion of the form so as to prevent any unauthorised additions being made to the entries already appearing on the form. 30. All requisitions, local purchase orders or other similar documents shall be signed by two officers one of whom shall be the officer immediately responsible for the requisition of public stores required and the other, whose name and designation must be shown on the order, shall be of a supervisory rank. 31. Books containing requisitions, local purchase orders or other similar documents shall only be issued to controlling officers who shall keep and maintain a record of their serial numbers and details of their distribution. Preparation of stores requisitions, local purchase orders, etc.

Signing of requisitions, local purchase orders, etc.

Safe-guarding of requisitions, local purchase orders, etc.

PART V SUPERVISION AND CUSTODY OF PUBLIC STORES


32. (1) Controlling officers shall appoint officers at their respective Supervisory headquarters to be directly responsible for the supervision and control of officers departmental stores. (2) In the case of outstations, the senior representative of each Department shall be directly responsible for the supervision and control of the departmental stores within his Province or District.

33. (1) Every stores officer or other officer having charge of public stores shall be personally responsible for the safe custody and preservation of such public stores and shall guard against damage and deterioration. (2) Care shall be taken to ensure that dangerous and highly inflammable goods are kept in a safe manner and that laws or regulations governing the storage of fuels, chemicals, explosives, or dangerous drugs are complied with. (3) Where the storage facilities provided are considered to be inadequate or unsatisfactory in any respect, the officer-in-charge of such storage facilities shall report to the controlling officer immediately.

Protection of public stores

34. Officers-in-charge of public stores must ensure that stores are kept Arrangement of in the neatest, cleanest and most easily countable manner and that public stores accommodation adequate steps are taken to preserve and protect such public stores against deterioration from climatic conditions or destruction from vermin and other harmful things. 35. (1) Every supervising officer shall inspect the stores accounts of his Inspection of Department as frequently as necessary and in any case not less than stores accounts twice in a year. (2) The frequency of inspections shall be determined by the size of the public stores and the number of transactions taking place in that Department. (3) The inspection shall include(a) a test verification of the additions in the Allocated Stores Ledgers and a comparison of the ledger entries with the relevant issue and receipt vouchers; (b) a test comparison of the Allocated Stores Ledger and balances shown on the Stock/Bin Cards; (c) a check of the condition of the goods in stock and the manner in

which they are stored. (4) Additional frequent checks of items shall be made by a controlling officer or such other officer delegated by him in writing to ascertain the correctness of the stores records. 36. (1) An officer appointed to carry out inspection and check shall submit a full report of the findings to his controlling officer. (2) Copies of the reports submitted under sub-regulation (1) shall be sent to the Secretary to the Treasury and to the Auditor-General and the appropriate regional head of the Auditor-General's Office. 37. All stocks of public stores shall be completely verified at least once Annual in a year by a duly appointed stock verifier or Board of Survey. verification of public stores 38. Heads of department shall report immediately to their controlling officers any loss, damage or deterioration of public stores in their charge and shall similarly report any discrepancy between the ledger or inventory balance and the actual stock. Report of loss, damage, etc., by heads of department Submission of records

39. Officers-in-charge of public stores shall render to their controlling Return of officers at such intervals as may be necessary and in any case at the end unserviceable of every financial year, a detailed return ofor excess public stores (a) unserviceable stores held by them; and (b) public stores held in excess of requirements.

40. Controlling officers receiving reports made under regulations 38 Action on and 39 shall take such action as may be required under Part XIII of these report of loss of, Regulations to adjust the loss or discrepancy as the case may be. damage to, etc., public stores

PART VI

RECEIPT OF PUBLIC STORES


41. (1) All public stores received shall be unpacked carefully, checked Checking of as to quantity and condition, and details thereof shall be entered in books public stores of account immediately such public stores are received. received (2) The checking shall be carried out against the relevant packing or delivery note and issue note where appropriate. (3) In the case of the Lusaka depot of the Government Stores the delivery note shall be obtained from the supplier in quadruplicate and the copies thereof shall be distributed as follows: (a) the original copy shall be retained by the Receipts Section;

(b) the duplicate shall be sent to the Accounts Section together with the Stock Receipt Cost Sheet (Accounts Form 160) and the Daily Receipt Register (Stores Form No. 71); (c) the triplicate duly, receipted, shall be sent to the supplier to enable him to raise the necessary invoice; and (d) the quadruplicate shall be given to the supplier for his record.

(4) The Stock Receipt Cost Sheet (Accounts Form 160) shall be prepared for every consignment of unallocated stores received. (5) In the case of the Lusaka depot of the Government Stores, copies of the Stock Receipt Cost Sheet (Accounts Form 160) shall be prepared in quintuplicate and copies thereof shall be distributed as follows: (a) the original copy shall be sent to the Machine Room for posting;

(b) the duplicate shall be sent directly to the Accounts Section together with the Daily Receipt Register Stores Form No. 71; (c) the triplicate shall be taken to the Accounts Section through the

Chief Stores Officer concerned; (d) (e) the quadruplicate shall be sent to the buyer for his record; and the quintuplicate shall remain with the Receipts Section.

42. All entries relating to quantities and prices of goods supplied and Entries to be entered in local purchase orders, delivery notes, invoices, daily registers made in figures and the Stock Receipt Cost Sheets shall be written in both figures and and words words. 43. Where public stores are despatched by a Government agency, the receiving officer shall acknowledge receipt of the items by signing a copy of the Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154). Acknowledgement of receipt of public stores

44. (1) Public stores received for immediate use on a work or service Public stores such as building materials, motor vehicle spare parts or foodstuffs shall required for be recorded in the Register of Stores Ordered and Received (Accounts immediate use Form 151) or the Register of Consumable Stores (Accounts Form 159) as appropriate and the Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154) shall be certified to the effect that such public stores have been taken into immediate use. (2) A reference to the work or service for which the public stores have been used shall also be endorsed on the voucher. 45. (1) Unused and used allocated public stores returned, if suitable for Returned public re-use for their original purpose, shall again be taken on charge in the stores Allocated Stores Ledger. (2) If such public stores are found not to be suitable for re-use, they shall be kept separately and brought on charge in a separate "Surplus Stores Account" in the Allocated Stores Ledger (Misc. Form 54) pending authority for disposal in accordance with Parts XIII and XIV of these Regulations. 46. The receipt voucher for converted or manufactured articles received shall quote, wherever practicable, the number of the Stores Converted or manufactured

Demand, Issue and Receipt Voucher on which the original articles or stores goods for conversion were issued. Care must be taken to ensure that the quantities of articles or goods received are correct and consistent with the quantities originally issued. 47. (1) A Stock Discrepancy Report (Accounts Form 152) and Claims Register (Accounts Form 173) shall be prepared by the officer receiving public stores in respect of loss, shortages or breakages of consignment received. (2) The Stock Discrepancy Report (Accounts Form 152) shall be entered into the Claims Register (Accounts Form 173) and shall be pursued until the claim is settled. 48. (1) The Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154) or, in the case of unallocated stores, the Stock Receipt Cost Sheet (Accounts Form 160), shall constitute the authority for the payment for suppliers' invoices or the acceptance of debits for public stores. (2) Every accounting officer responsible for passing invoices for payment or accepting debits for public stores must ensure that such public stores have been received and taken on charge before approving payment or accepting the debit therefor. Authority for payment for stores received Stock Discrepancy Report and Claims Register

PART VII ISSUE OF PUBLIC STORES


49. Public stores may only be issued in the following circumstances(a) (b) (c) (d) and (e) for the execution of civil works or other Government services; for transfers between stores depots; for authorised conversion into manufactured articles; for sale where such sale is authorised under these Regulations; for destruction or write-off where such destruction or write-off is Purposes for which public stores may be issued

authorised under these Regulations. 50. The issue of public stores on loan for private use is prohibited except on written authority of the Secretary to the Treasury in which case the borrower shall be held liable for any loss or damage to such public stores as may be assessed by the Secretary to the Treasury. Prohibition of issue of public stores for private use

51. (1) Every officer issuing public stores shall ensure that he obtains Issue of public from the receiving officer a receipted copy of the Requisition, Issue and stores Receipt Voucher (Misc. Form 1B). (2) The issuing officer shall ensure that public stores are handed over to the requisitioning officer or his authorised representative and, where necessary, he may demand proof of identity of the requisitioning officer or his representative and may record particulars of such identity on all copies of the Requisition, Issue and Receipt Voucher (Misc. Form 1B). 52. The issue of public stores for sale or write-off is prohibited except Issue of public as provided for in Parts XIII and XIV of these Regulations. stores for sale or write-off, etc. 53. Transfers of allocated stores from one Ministry or Department to another shall be dealt with in the same way as the issue and receipt of public stores, and entries in the records shall be supported by Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154). Transfers of allocated stores

54. (1) All officers issuing public stores shall ensure that articles are Packing of suitably packed and correctly labelled to prevent damages in transit and public stores facilitate safe delivery. (2) Packing cases, hessian and other packing materials received by Government Ministries and Departments and which are suitable for re-use and which are no longer required by the receiving Ministries and Departments shall be sent to the nearest Government Stores depot as soon as possible after receipt.

PART VIII UNALLOCATED STORES


55. (1) The establishment of stocks of unallocated stores shall require prior approval of the National Assembly after due application therefor has been submitted by the controlling officer. Authority for and limit of unallocated stores

(2) Such applications shall state(a) (b) the reasons for making such applications; and the nature of the public stores required.

(3) Where the National Assembly approves the application it shall be the responsibility of the controlling officer to ensure that the maximum value of stocks authorised to be held is not exceeded. 56. (1) The costing of unallocated stores shall be carried out at the time Receipt and of receipt. costing of unallocated stores (2) The Stock Receipt Cost Sheet (Accounts Form 160) shall be prepared for such consignment taking into account the landed cost of the goods and overhead expenses. 57. (1) All issues of unallocated stores shall be recorded on Requisition, Issue and Receipt Voucher (Misc. Form 1B). Issue of unallocated stores

(2) The Requisition, Issue and Receipt Voucher (Misc. Form 1B) shall be prepared in sextuplicate and distributed as follows:

(a) the original shall be sent to the Accounting Section of the issuing officer. (b) the duplicate shall support monthly statements to Departments with request for payments; (c) the triplicate shall be used as the purchasing slip which shall be receipted by the officer receiving the goods and then returned to the issuing officer; (d) the quadruplicate shall be sent to the Auditor-General or the appropriate regional head of the Auditor-General's Office; (e) the quintuplicate shall be sent to the Accounts Unit of the Ministry of the officer to whom the public stores have been issued; and (f) the sextuplicate shall be retained as a file copy for posting to the public stores Stock/Bin Card. (3) Officers-in-charge of unallocated stores who wish to return part of such stores may only do so on prior authority of the officer-in-charge of issuing stores and may only return such stores to where they were first obtained. (4) Returned unused stores shall be taken on charge again in the Stock Receipt Cost Sheet (Accounts Form 160) at the original or current issue price, whichever is the lesser, and their value shall be debited to the "Purchase of Unallocated Stores" sub-head of expenditure, credit being given to the appropriate departmental vote or such other account to which the original charges were debited. 58. Cash receipts accruing from sale of unallocated stores in excess of Cash sales the total value of the unallocated stores fund shall be credited to revenue accruing from sub-head "Sales of Unallocated Stores". sale of unallocated stores 59. (1) The issue price of unallocated stores shall be revised whenever Revision of purchases are made to replenish existing stocks of public stores by issue price adding the total cost of the new supply to the total issue value of the

existing stock of that item and calculating the average cost per unit of the combined old and new stocks of the item. (2) The price calculated in accordance with sub-regulation (1) shall become the new issue price of that particular item of public stores and shall remain in force until such time as fresh stocks are acquired and the prices are revised again in accordance with sub-regulation (1). 60. (1) There shall be maintained a separate account for each item of the unallocated stores stock. (2) Such account shall reflect the quantity, unit issue price, and total value of the stock in hand. (3) The Unallocated Stores Control Account shall be maintained by the responsible officer in respect of each authorised holding of unallocated stores and shall be posted monthly from the monthly summaries of transactions and shall record the total value of all receipts, issues and other transactions for each month. 61. Officers authorised to hold unallocated stores shall at the end of each month but before the end of the following month, submit to their controlling officers, a Monthly Financial Statement of Unallocated Stores (Accounts Form 170) reflecting the totals of the transactions during the month. 62. Controlling officers shall, at the close of each financial year prepare and submit to the Secretary to the Treasury with a copy of the Auditor-General, in respect of each authorised stock, Annual Tabular Summary of Unallocated Stores Account (Accounts Form 171). Monthly financial statement Unallocated stores account

Annual tabular summary

Annual Stock 63. Every Annual Tabular Summary of Unallocated Stores Account shall be supported by an Annual Stock Valuation Certificate (Accounts Valuation Form 172) prepared from the Stores Ledgers showing the quantities and Certificate values of each commodity or item remaining in stock, the total value of which must correspond with the value of stocks as reflected in the Unallocated Stores Control Account and in the Annual Tabular Summary of Unallocated Stores Accounts.

PART IX PLANT AND VEHICLES


64. For the purpose of this Part, unless the context otherwise requires- Interpretation "vehicle" includes all cars, trucks, trailers, motor cycles and pedal cycles, and any accessories thereof; "plant" includes bulldozers, tractors, graders, cranes, boats, craft, generators, motors, engines, compressors, mixers, boilers, agricultural machines, pumps, lathes, presses, welders, air-conditioners, refrigerators or any similar immobile or static equipment, or accessories thereof; "Director" means the Director of Mechanical Services Department. 65. (1) All purchases of plant and vehicles shall be made by or through Purchases of the Director. plant and vehicles (2) All vehicles and plant purchased for the use of Government Ministries and Departments irrespective of the vote from which such purchases are made shall, in the first instance, be received by the Director who shall arrange to have such plant and vehicles properly inspected and allocated with a distinct Government serial number. (3) All plant values of which exceed K200 per item and all vehicles irrespective of their value, must bear a Government serial number allocated by the Director. (4) Where a plant has a value of less than K200, a local domestic serial number must be allocated and a central record maintained by the Ministry or Department owning it. 66. The following records shall be maintained by the Director for all Plant and

Government plant and vehicles, irrespective of their location: (a) the Central Register (Form MSD 37A) in which shall be recorded the description of the item, the cost, the number and date of the purchase order, manufacturer's serial number, its Government serial number, the date of receipt, the number and date of the issue voucher on which it has been issued and the official designation and station of the officer to whom it has been issued; and (b) the Census Register (Form MSD 37B) which shall contain a complete record of all plant and vehicles on issue to each Ministry or Department.

vehicles records

67. The following records shall be maintained at the headquarters of Ministerial and every Ministry and Department and at each Provincial or District office Departmental records of the Department where plant or vehicles are held: (a) the Plant and Vehicles, Ledgers (Forms MSD 10A and MSD 10B) which shall contain a record of every unit held by the Department in each of the above-mentioned areas of its authority; (b) the Log Book (Form MSD 9) which shall provide a record of all journeys undertaken or work done, and records relating to issues of fuel, oil and lubricants to each plant or vehicle and which shall always remain in the plant or vehicle, and the driver or operator of the plant or vehicle shall be responsible for ensuring that full particulars of the operations or journeys are entered therein; (c) a Monthly Plant/Motor Vehicles Return (Form MSD 40) showing total figures for each vehicle and plant, as the case may be, of kilometres or hours worked and total amount of litres of fuel consumed; (d) a Vehicle History Register (Form MSD 49) for each vehicle, which shall always remain in the vehicle. The driver of the vehicle shall be responsible for its safe custody. 68. (1) Transfers of plant or vehicles between Ministries or Departments shall require the approval of the controlling officer responsible for the Mechanical Services Department. (2) Such transfers between Ministries and Departments shall be notified immediately to the Director, and the departmental records shall be amended accordingly. 69. Transfers of plant or vehicles from one station to another within the Transfers same Department shall be notified immediately to the Director who within Transfers of plant or vehicles

shall enter the details of such transfer in his record. 70. Inspecting officers of the Mechanical Services Department shall have the right to inspect all Government plant and vehicles as well as records relating thereto, and shall be afforded all facilities to enable them to carry out their duties.

Department Inspection of plant, vehicles and records

71. Every head of department shall ensure that adequate arrangements Responsibility exist for the supervision of all plant and vehicles on charge to that for supervision Department. of plant and vehicles 72. Unserviceable plant or vehicles shall be disposed of or dealt with on the basis of recommendations of the Board of Survey appointed under Part XII of these Regulations. 73. Drivers and officers-in-charge of plant or vehicles shall be responsible for ensuring that damage is not caused or aggravated by neglect or misuse. 74. (1) The Mechanical Services Department shall provide a maintenance and repair service for all Government vehicles under the control of the Director only. (2) Where Departments have been specifically authorised to operate their own workshops, they shall carry out all maintenance and repair of their plant and vehicles and shall only seek the assistance of the Mechanical Services Department when the work involved is extensive, or complicated. (3) Every plant or vehicle in need of repair shall, where possible, be delivered to the nearest Mechanical Services Department workshop under cover of a workshop order. (4) Tools and accessories should not normally accompany the equipment unless such equipment is to be boarded or transferred and where a vehicle is delivered with a spare wheel or tools or accessories, a receipt shall be obtained to that effect. Unserviceable plant or vehicles Wilful neglect or misuse

Maintenance of plant and vehicles

(5) Where it is not possible to send the plant or vehicle to the Mechanical Services Department workshop, the officer responsible for the equipment shall send a request to the workshop for a mechanic or spares required to be sent to the location of the plant or vehicle. Requests for such service shall give a brief description of the nature of the problem and, if possible, an indication of the spares likely to be needed. (6) The Director shall from time to time, issue to all Ministries and Departments with copies to the Secretary to the Treasury, the Auditor-General and the regional head of the Auditor-General's Office a list of stations where Mechanical Services Department workshop depots are situated. 75. (1) Heads of department shall ensure that officers responsible for the supervision of all plant and vehicles carry out inspection not less than once every month. (2) Where during such inspection a plant or vehicle is found to be unserviceable, the officer-in-charge of the nearest Mechanical Services Department workshop shall be notified to that effect without delay. 76. (1) Drivers and officers-in-charge of vehicles shall be responsible for ensuring that such vehicles are carefully maintained and regularly serviced. (2) Daily servicing tasks laid down by the Director shall be carried out under the supervision of the responsible officer. (3) Vehicles shall be sent to the nearest Mechanical Services Department workshop at such intervals as are prescribed by the Director for routine servicing and inspection. Officers responsible for plant and vehicles shall advise the nearest Mechanical Services Department workshop of all additions or reductions of plant or vehicles strength under their supervision. (4) Where it is noted in the Mechanical Services Department workshops that a vehicle is not being regularly serviced, the officer-in-charge of the workshop shall report the fact to the head of department concerned and Servicing of vehicles Periodic checks

to the Director, with a view to taking disciplinary action against the officer responsible for the failure. (5) In the absence of a satisfactory explanation, the driver or officer in charge of the vehicle may be held liable for any damage to the vehicle which may occur as a result of the failure by such driver or officer to send the vehicle for servicing whenever due. 77. (1) The Director shall, from time to time, issue bulletins laying down procedures in connection with the running, maintenance and repair of plant and vehicles. (2) The instructions contained in the bulletins must be carefully observed by all officers responsible for plant and vehicles. 78. (1) Plant and vehicles shall not be taken to private firms or garages Maintenance and repair by for maintenance or repairs except with the written authority of the Director. The Director shall authorise the maintenance or repair of plant private firms or vehicles by private firms only in the following circumstances(a) where tenders have been invited; Director to issue bulletins

(b) if there exists circumstances which render it impracticable to carry out the work in the Mechanical Services Department's workshop. (2) A record of all jobs entrusted to private firms shall be kept showing Government numbers and details of the work done and the amounts paid. 79. Officers shall be held liable for any excess costs incurred by them Officers liable in the maintenance and repairs of vehicles and plant which are for excess costs attributable to their failure to comply with the foregoing regulations and Cap. 347 the Financial Regulations.

PART X

TOOLS AND EQUIPMENT


80. For the purpose of this Part, unless the context otherwise requires- Interpretation "tools and equipment" means all hand tools, implements, camp equipment, drawing office and survey instruments, medical and surgical instruments and all articles of similar nature, whether or not they are of an expendable nature, which are not normally issued to officers personally for use in carrying out their official duties. 81. (1) Every head of department shall designate an officer to be a Tools and Tools and Equipment Control Officer (hereinafter in this Part referred to Equipment as the "Control Officer") either for the Department or for any Provincial Control Officer or District office of the Department. (2) Every officer so designated shall maintain a Tools and Equipment Control Ledger (Form MSD 95). Tools and 82. (1) All tools and equipment shall be taken on charge in the Tools Equipment and Equipment Control Ledger (Form MSD 95) in which shall be recorded all items acquired, issued to particular officers or written off or Control Ledger retained in the stores section. (2) The number of tools and items of equipment issued to individual officers shall be entered into the relevant distribution column in the Tools and Equipment Control Ledger (Form MSD 95) which shall show the quantities issued to each officer and for which he must account. (3) All issues and receipts by the Control Officer shall be supported by the Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 54) which shall be serially numbered. 83. (1) All officers to whom tools and equipment are issued by the Inventory of Control Officer shall maintain an Inventory of Plant, Tools and Plant, Tools and Equipment (Form MSD 59A) which shall give details of all articles in Equipment their possession and which must correspond with the quantities stated to be in their possession in the Tools and Equipment Control Ledger (Form

MSD 95). (2) The Inventory of Plant, Tools and Equipment (Form MSD 59A) shall be posted from the issue and receipt vouchers maintained by the Control Officer. 84. (1) Every officer to whom tools and equipment are issued shall be Personal personally responsible for their safe custody and use until they are responsibility of returned to store, or authority has been given for them to be written off. officers (2) All officers shall take all reasonable precautions for the safe custody of the tools and equipment under their control and shall ensure that items issued to workmen under their supervision are returned promptly to their store. 85. Control Officers shall arrange for periodic checks at intervals of not less than twice in a year, of the tools and equipment in current use, either personally or by an independent officer designated by the controlling officer or head of department as the case may be. Periodic checks of tools and equipment

86. (1) All losses of tools or equipment shall be reported immediately Loss of tools or to the Control Officer and an explanation of the circumstances in which equipment to be the losses occurred shall be submitted by the officer responsible for the reported custody of such tools or equipment. (2) A copy of the preliminary report shall be sent to the Ministry of Finance, Losses Section, Lusaka, and to the Auditor-General. (3) The Control Officer shall investigate the loss and forward a full report to the head of department. 87. When the necessary authority has been received to write off deficient or unserviceable tools or equipment as provided for in Part XIII of these Regulations, such tools or equipment shall be recorded as having been returned to store before being written off and the authority for the write-off shall be quoted in the Tools and Equipment Control Ledger (Form MSD 95). Write-off of tools or equipment

88. (1) Where an officer is required to hand over tools or equipment in Hand-over of his charge to another officer prior to proceeding on leave, transfer or tools or termination of appointment, as the case may be, all tools and equipment equipment in the custody and charge of the outgoing officer shall be checked and a list of the tools and equipment handed over shall be signed by both officers and handed to the Control Officer. (2) Where the Control Officer is satisfied that there are no shortages or that the outgoing officer is not responsible for any shortage which may appear at the time of the handing over, he shall issue a clearance certificate to such outgoing officer. (3) Controlling officers and heads of department shall ensure that no final payment is made to an officer whose appointment is to be terminated unless such clearance certificate has been provided in respect of that officer. (4) Where it becomes necessary for an officer to transfer any tools or equipment on his charge to another officer on occasions other than a complete hand-over, or prior to proceeding on leave, a list of the items handed over and signed by both officers shall be submitted to the Control Officer who shall make the necessary correcting adjustments in the Tools and Equipment Control Ledger (Form MSD 95). (5) The officer handing over the items shall be responsible for ensuring that the provisions of this regulation are complied with.

PART XI OFFICE MACHINERY


89. For the purpose of this Part, "office machinery" includes Interpretation typewriters, adding machines, calculating machines, duplicators, stencil scanners, document copiers, dictating and transcribing machines, laminating equipment, postal franking machines, shredding machines and such other machines as are used in Government offices.

90. (1) The Supervisor of the Office Equipment and Maintenance Services (hereinafter referred to as the "Office Equipment Supervisor") at Lusaka shall maintain a Plant, Tools and Equipment Control Ledger (Misc. Form 59) of all Government office machinery. (2) There shall be recorded in the Plant, Tools and Equipment Control Ledger (Misc. Form 59) the serial number, make, type and model of each machine, the Department having charge of the machine and the station at which it is located. (3) A Government serial number shall be allocated to each machine by the Office Equipment Supervisor, which shall be stencilled or painted on the machine and shall be quoted in all correspondence or documents relating to such machine. 91. All transfers of office machinery between Ministries, Department or stations must be notified immediately to the Office Equipment Supervisor by the head of department concerned. 92. (1) The purchase of office machinery is the responsibility of the Office Equipment Supervisor.

Plant, Tools and Equipment Control Ledger

Transfer of office machinery Purchase of office machinery

(2) Every Ministry shall notify their requirements of office machinery including machines required by Departments operating trading accounts, to the Office Equipment Supervisor not later than the date on which the Ministry of Finance calls for the first draft estimates for the ensuing financial year. 93. Applications for the supply of any type of office machinery must Applications for be made by heads of department through their controlling officers to the supply of office Office Equipment Supervisor on the Application for Office Machines machinery (Accounts Form 137). 94. (1) All office machinery shall be issued to Departments by the Office Equipment Supervisor who shall check and prepare the machinery for fitness prior to issue. Issue of office machinery

(2) The Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154) issued in duplicate shall accompany each machine, the original of which must be signed by the receiving officer and returned to the Office Equipment Supervisor without delay. (3) Ministries and Departments shall receive from the Office Equipment Supervisor details of all new machines issued to their Ministries and Departments and should record them in the Plant, Tools and Equipment Control Ledger (Misc. Form 59). 95. (1) The Office Equipment Maintenance Service is established for the purpose of carrying out all repairs and overhauls of Government office machinery and to provide a regular inspection and maintenance service for all machines. The Office Equipment Supervisor shall arrange inspection tours as frequently as possible and shall notify stations concerned in advance of the inspector's visit. (2) No office machinery shall be taken to a private firm or a private mechanic for repairs without prior authority of the Office Equipment Supervisor in writing. 96. (1) Typewriters and other small machines in need of repair or overhaul shall be despatched to the Office Equipment Maintenance Service in Lusaka or the nearest provincial workshop for the necessary work to be carried out. (2) Every office machinery sent for repairs shall be carefully packed and moveable parts firmly secured to prevent damage in transit. (3) Every office machinery sent for repairs shall be accompanied with the Office Machine Repair Order/Consignment/Receipt Note (Form OE. 1) giving the following information: (i) (ii) (iii) (iv) Ministry/Department; Station; type of machine and manufacturer's serial number; the Government Number of the machine; Repairs and overhauls Office Equipment Maintenance Service

(v)

details of known faults and defects;

(4) Where office machinery is sent from an out-station, a copy of this note and details of date of despatch and mode of transport must be forwarded by post to the Office Equipment Supervisor or his provincial representative who, on receipt of this advice, shall list the machine as "In transit" and institute enquiries if it is not received within a reasonable time. (5) Failure to advise the Office Equipment Supervisor of despatch may result in the loss of machinery in transit being discovered too late for a claim against the railway or transport contractor to succeed and where this occurs, the despatching officer shall be held personally and pecuniarly responsible for any loss which may be suffered by the Government. (6) In the case of large machinery which cannot be packed and despatched to Lusaka or the provincial workshop, a full report on the machinery shall be forwarded to the Office Equipment Supervisor or his provincial representative, as appropriate, who shall advise on what action to be taken. (As amended by S.I. Nos. 127 and 204 of 1986) 97. (1) All office machinery located in Lusaka shall be sent to the Minor repairs Office Equipment and Maintenance Service Workshop when any repair and adjustments of adjustment is required. (2) In the case of office machinery situated outside Lusaka, minor repairs may be made locally if facilities are available and subject to the following conditions: (a) where the cost in each case does not exceed K25 (a quotation having been obtained in each case); and (b) where the cost is to be met from the vote of the Department having charge of the machine. (3) If the estimated cost exceeds K25, the machinery must be dealt with as laid down in regulation 96.

(4) Where the Office Equipment Supervisor considers it uneconomical for defective machinery to be sent to the nearest workshop for repairs he may authorise such repairs to be carried out locally provided the cost does not in each case exceed K50. 98. (1) All office machinery considered unserviceable shall be sent to Unserviceable office the Office Equipment Supervisor for examination immediately such machinery ceases to be of use. If the Supervisor finds that the machinery machinery is beyond economic repair he shall inform the head of department accordingly and hold the machinery for inspection by a Board of Survey. (2) Where the Office Equipment Supervisor if of the opinion that a particular machinery is beyond economic repair, he shall authorise the head of department to strike the machinery off charge and shall amend the Ministry's Plant, Tools and Equipment Control Ledger (Misc. Form 59) accordingly. (3) Unserviceable office machinery shall remain on charge to the Office Equipment Supervisor pending a Board of Survey's recommendations. (4) Boards of Survey shall not recommend the disposal of any unserviceable office machinery presented for examination by any officer other than the Office Equipment Supervisor. 99. Controlling officers shall be responsible for all office machinery on charge to their Ministries or Departments and shall maintain at each Ministry and departmental headquarters, a register of such items showing Government and manufacturer's serial numbers, make, type and location of all machines on their charge. Register of office machinery on charge

100. All charges incurred in the transportation of office machinery Cost of between the Office Equipment Workshop and Departments shall be met transporting by the Department forwarding the machinery. office machinery 101. Any office machinery not in use should be returned to the Office Surplus office Equipment Supervisor for re-allocation. machinery

102. (1) Office machinery which is the property of Government should Removal of not be removed from Government offices for use in private homes office without the specific authority of the head of department in writing. machinery from Government offices (2) Before any office machinery is removed from a Government building, full details of the officer taking such machinery and the address to which it is being taken must be recorded in the departmental register of office machinery. 103. (1) In the event of theft or loss of office machinery, the Office Equipment Supervisor and the police must be informed of the full particulars of such machinery without delay. (2) A copy of the preliminary report shall be sent to the Ministry of Finance, Losses Section, Lusaka, and to the Auditor-General and the regional head of the Auditor-General's Office. (3) Any authority for write-off subsequently received in respect of the loss shall be recorded in the Plant, Tools and Equipment Control Ledger (Misc. Form 59) maintained by the Ministry or Department concerned and an advice sent to the Office Equipment Supervisor. Loss or theft of office machinery

PART XII BOARDS OF SURVEY, STANDING ACCIDENTS BOARD AND PROVINCIAL STANDING ACCIDENTS COMMITTEE
104. (1) All public stores shall be examined by a Board of Survey at least once in a year. Boards of Survey

(2) The examination of public stores shall take place(a) (b) year. in the case of allocated stores, at any time during the year; in the case of unallocated stores, at the close of each financial

105. Special Boards of Survey may be appointed to examine and report Special Boards on unserviceable or surplus public stores whenever it is considered of Survey necessary so to do. 106. All Annual or other Boards of Survey shall be appointed as follows: (a) in the case of the Annual or Special Board of Survey at Lusaka, by the Secretary to the Treasury; (b) in the case of the Annual or Special Boards of Survey in other Provinces, by the Provincial Secretary to the Treasury of the Province concerned; and (c) in extreme cases of urgency where it is necessary to deal with perishable articles without delay in order to avoid possible loss to Government, Town Clerks may appoint a Board, under advice to the Provincial Permanent Secretary, concerned. 107. Every Annual Board of Survey or Special Board of Survey shall Composition of consist of a Chairman who must be a senior officer not below the rank of Boards of Executive Officer and not less than two other members. Survey 108. A notification for convening a Board of Survey shall be sent to the Notification Chairman and members of the Board concerned and the Chairman shall be responsible for arranging the time and venue of the meeting with the members (As amended by S.I. No. 204 of 1986) 109. The following forms shall be used, except where Departments Forms to be have their own special forms, and shall be sent by the convening officer used to the Chairman of the Board: Appointment of Boards of Survey

(a) (b) (c)

Board of Survey on Stores (Misc. Form No. 37); Statement of Discrepancies (Misc. Form No. 38); Surplus/Redundant/Unserviceable Stores (Misc. Form No. 39);

(d) Surplus/Redundant/Unserviceable Stores to be transferred to other Organisations (Misc. Form No. 39); and (e) Report on Storage Accommodation (Misc. Form No. 40).

110. The officer in direct charge of the stores under survey shall Attendance of personally be present while the Board is being held and shall give every officer-in-charge facility to members of the Board. of stores 111. All stores ledgers and inventories shall be entered up-to-date by the responsible officers before the Board of Survey begins its work. Ledgers, etc., to be entered up-to-date

112. (1) Every Annual Board of Survey shall make a physical count of Duties of the stores held and compare the actual quantities found with the Annual Boards of Survey balances shown in the stores ledgers or inventories. (2) At the close of every examination of public stores, the Annual Board of Survey shall record its findings on the appropriate forms. (3) All unserviceable and obsolete stores shall be removed to a separate place where they shall be retained until directions are issued for their disposal. (4) When discrepancies in public stores are discovered, the officer-in-charge of such stores shall be requested to give a full report on such discrepancies. 113. (1) All Boards of Survey shall inspect the storage premises for Inspection of public stores paying particular attention to its cleanliness, suitability and storage security, the arrangement and classification of the stock, and the general premises condition of the storage premises and the public stores therein. (2) Special care should be taken in testing the security of firearms, other

classified items of stores and dangerous drugs. 114. (1) The Chairman of the Board of Survey shall forward all the Report of Board copies of the Board's Report, duly signed and stamped with his official of Survey departmental stamp, to the Secretary to the Treasury by whom the Board was appointed. (2) A Board of Survey appointed by a Provincial Permanent Secretary, shall report to him about any officer who has contributed to the loss, damage or unserviceability of any public stores. 115. Where an officer in charge of public stores discovers, at the end of a financial year, that public stores in his charge have not been examined by an Annual Board of Survey during that year and that no arrangements have been made for such an examination to take place, he shall, without delay, report to the Secretary to the Treasury in the case of Lusaka, or the Provincial Permanent Secretary, in the case of other Provinces, who shall then appoint a Board of Survey immediately. 116. (1) At all Zambia Foreign Missions, applications for the disposal of unserviceable and surplus stores shall be forwarded to the Secretary to the Treasury through the Permanent Secretary in the Ministry responsible for foreign affairs, who shall endorse his own recommendations thereon. Request for appointment of Annual Board of Survey

Procedure for disposal of unserviceable and surplus stores at Foreign Missions

(2) In the case of vehicles and other equipment a technician's report on the condition of the vehicle or equipment must accompany the application. (3) The Secretary to the Treasury shall consider the recommendations and shall decide whether or not a Board of Survey should be appointed. (4) Where it is decided to dispense with a Board of Survey, the Secretary to the Treasury shall issue such directions as he considers appropriate in the circumstances for the disposal of the public stores in question.

117. Whenever authority is issued by the Secretary to the Treasury for Copies of the disposal of unserviceable or surplus stores, copies of such authority authority for shall be sent to the Auditor-General. disposal of unserviceable or surplus stores to be sent to Auditor-General 118. In the case of public stores which have been completely verified at least once during the year by a duly appointed stock verifier, an Annual Board of Survey may be dispensed with but only on the specific authority of the Secretary to the Treasury concerned. Circumstances where Annual Board of Survey not necessary Request for Special Board of Survey on unserviceable stores

119. (1) Where for any reason an officer holding unserviceable stores deems it expedient that certain items should be disposed of before the next Annual Board of Survey, he shall submit an application in writing for a Special Board of Survey to be convened to examine such items.

(2) Every application for a Special Board of Survey shall be accompanied by a list of the public stores concerned on the Surplus/Redundant/Unserviceable Stores (Misc. Form No. 39) which shall be submitted through the head of department to the Secretary to the Treasury for public stores located in Lusaka or to the Provincial Permanent Secretaries in the case of other Provinces, who shall appoint such a Board. (3) Where perishable public stores at out-stations are involved and immediate action is required to avoid loss to the Government, the officer-in-charge of the public stores may apply directly to the Provincial Permanent Secretary or the Town Clerk concerned; and where a request is made to the Town Clerk, the Provincial Permanent Secretary shall be informed. (4) All Boards of Survey appointed in accordance with the foregoing provisions of this Regulation shall examine only the stores listed on the Surplus/Redundant/Unserviceable Stores (Misc. Form No. 39) submitted for such purpose and the storage premises thereof and shall complete Misc. Forms Nos 39 and 40 only.

120. There shall be a Standing Board of Survey based at Lusaka for unserviceable mechanical plant, vehicles and other items of costly equipment located in the Lusaka District. 121. The Standing Board of Survey shall consist of a Deputy Permanent Secretary from the Cabinet Office, who shall be the Chairman and the following members: (a) an officer not below the rank of Deputy Permanent Secretary from the Ministry responsible for finance; (b) an officer not below the rank of Deputy Permanent Secretary from the Ministry responsible for works and supply; (c) an officer not below the rank of Senior Valuations Officer, from the Provincial and Local Government Administration Division; (d) an officer not below the rank of Senior Superintendent of Police from the Ministry responsible for home affairs; and (e) an officer not below the rank of Senior Mechanical Inspector from the Mechanical Services Department. 122. (1) The Chairman of the Standing Board of Survey shall forward all the copies of the Board's report, duly signed and stamped with the official stamp, to the Secretary to the Treasury. (2) Where during any inspection, it becomes evident that plant, vehicles, or equipment have become unserviceable owing to misuse or negligent acts of any officer or failure of any officer to adhere to standing instructions with regard to the operation or maintenance of such plant, vehicles, or equipment, the inspecting officer shall draw attention to this fact in his inspection report and it shall be the duty of the controlling officer concerned to instruct the officer-in-charge of the plant, vehicles or equipment to investigate the matter and report to the Standing Board of Survey. (3) The report submitted under sub-regulation (2) must clearly indicate whether any person or persons should be held liable for the loss or damage caused to such plant, vehicles or equipment and whether disciplinary action is called for where misuse or negligent operation or maintenance has materially contributed to the unserviceability of the plant, vehicles or equipment.

Standing Board of Survey

Composition of Standing Board of Survey

Report of Standing Board of Survey

122A. There shall be the following Board and committees for the purpose of considering accident cases involving plant and vehicles belonging to the Government: (a) a Standing Accidents Boards for Lusaka; and (b) nine provincial standing accidents committees to deal with cases arising in the respective provinces. (As amended by S.I. No. 69 of 1995) 122B. (1) The Board shall be composed of-

Standing Accidents Board and committees

Composition of Standing Accidents Board

(a) a Permanent Secretary from the Cabinet Office, who shall be Chairman; (b) an officer not below the rank of State Advocate from the Ministry responsible for legal affairs; (c) an officer not below the rank of Senior Personnel Officer from the Personnel Division; (d) an officer not below the rank of Superintendent from the Zambia Police Force; (e) an officer not below the rank of Senior Mechanical Engineer from the Ministry responsible for works and supply; and (f) an officer not below the rank of Senior Stock Verifier from the Ministry responsible for finance. (2) The committee shall be composed of(a) the Permanent Secretary of the Province who shall be Chairman;

(b) the Deputy Permanent Secretary of the Province who shall be Vice-Chairman;

(c) (d) (e) (f)

the Provincial Superintendent of Police; the Provincial Commissioner of Works; the Provincial Agricultural Officer; and the Provincial Education Officer.

(3) The Boards shall have a full-time Secretary, while a committee shall have a part-time Secretary, who shall take no direct part in the proceedings of the Board or committee, as the case may be. (4) The Secretary to the Treasury in the ministry responsible for finance shall notify members of the Board of their appointments and shall also inform the Secretary of the Board of those appointments. (5) The Permanent Secretary of each Province shall notify members of the committee of their respective appointments and shall also inform the Secretary of the committee of those appointments. (As amended by S.I. No. 69 of 1995) 122C. (1) The Board shall meet at least twice in every calendar month Proceedings of while a committee shall meet at least once in every calendar month. Standing Accidents Board (2) At any meeting of the Board or a committee, four members shall constitute a quorum. (As amended by S.I. No. 69 of 1995) 122D. (1) All accidents in Lusaka involving plant and vehicles shall be Procedure for reported to the police, the Secretary to the Treasury in the ministry reporting responsible for finance and the Board. accidents (2) All accidents which take place outside Lusaka shall be reported to the police, the committee, the Provincial Commissioner of Works, and the Permanent Secretary for the province.

(3) The driver, or the officer who had charge of the vehicle when the vehicle was involved in an accident shall make a preliminary report on the Preliminary Accident Report Form M. E. 1 (b) within forty-eight hours of the accident and shall submit Traffic Accident Form No. M. E. 1 (a) Parts I and II to the Board or the committee concerned within seven days of the submission of the Preliminary Accidents Report Form M. E. 1 (b). (4) As soon as a police officer has visited the scene of the accident and recorded statements from the parties involved in the accident, the ministry that owns the damaged plant or vehicle shall take that plant or vehicle to the nearest depot of the ministry responsible for works and supply where a mechanical inspector shall carry out a detailed inspection of the plant or vehicle. (5) A mechanical inspector shall, immediately after carrying out the inspection referred to in paragraph (a), submit a report on the Initial Plant Inspection Report Form No. MSB 65 or Initial Vehicle Inspection Report Form No. MSB No. 64, as the case may be, and Repair Assessment Form No. M. E. 28 to the head of the Department whose plant or vehicle was involved in the accident. (As amended by S.I. No. 69 of 1995) 122E. (1) A police officer referred to in sub-regulation (4) of regulation Representations 122D shall make representations concerning the accident to the Board or of police officer a committee and shall when doing so present the following documents: (a) Initial Plant Inspection Report Form No. MSB 65, or Initial Vehicle Inspection Report Form No. MSB 64, as the case may be, and Repair Assessment Form No. M. E. 28; (b) a report from the traffic police regarding the accident;

(c) a sketch plan of the scene of the accident where this is not already incorporated in the police report; (d) if prosecution of the driver of the vehicle involved in the accident has taken place, a copy of the judgment of the Court;

(e) a statement made by the operator of the plant or the driver of the vehicle giving an account of the accident; (f) a statement made by any witness to the accident;

(g) a statement of the officer who had charge of the vehicle prior its involvement in the accident; and (h) any other information which may be of assistance to the Board or the committee in disposing of the case. (2) The Board or a committee shall consider each case on the weight of the evidence available and make a recommendation to the Ministry or Department which had charge of the plant or vehicle. (3) The decisions of the Board or a committee shall be recorded in its minutes book and shall be communicated to the Head of Department and the Controlling Officer in the Ministry or Province which had charge of the plant or vehicle, and to the Secretary to the Treasury, on Form SAB. 10. (As amended by S.I. No. 69 of 1995)

PART XIII WRITE-OFF AND DISPOSAL OF UNSERVICEABLE STORES, DISCREPANCIES, LOSSES, ETC.
123. (1) Heads of department may authorise the write-off, at periodic Unserviceable intervals, of expendable stores which have become unserviceable due to expendable fair wear and tear or any other cause not attributable to negligence or stores improper use, subject to the following limits: (i) the original value of any one item to be written off does not

exceed K100; and (ii) the total original value of items to be written off does not exceed K200 in any particular category. (2) If in any case it is expected that the above values shall be exceeded, then the public stores in question must be examined by a Board of Survey. (3) Applications to write-off unserviceable expendable stores shall be made by the officer-in-charge of the stores on the List of Expendables to be written off (Misc. Form No. 41) which shall be completed in quadruplicate and forwarded through the departmental stores supervisory officer to the head of department who shall then record his decision on the forms and dispose of the copies as follows: (a) (b) (c) (d) original to the officer-in-charge of stores; duplicate to the Secretary to the Treasury; triplicate to the Auditor-General; quadruplicate to be retained by head of department.

(4) The completed original List of Expendables to be Written off (Misc. Form No. 41) shall constitute authority to write-off the articles listed thereon and shall be numbered and used as a voucher to support the necessary entries in the stores ledger and inventories. The public stores concerned shall then be destroyed or otherwise disposed of in accordance with the instructions of the head of department. (5) If the write-off of any item listed is not approved by the head of department, such items must be set aside for examination by a Board of Survey to be appointed. (6) For the purpose of this Regulation, "expendable stores" means crockery, linen, blankets, clothing, hand tools and foodstuffs but shall not include furniture and furnishings.

124. (1) The following classes of public stores shall be examined by a Board of Survey and may only be written off and disposed of in accordance with the final decision recorded on the Board of Survey papers: (a) (b) unserviceable non-expendable stores; or obsolete stores.

Other unserviceable stores

(2) Heads of department holding public stores stated above shall, in the case of general public stores, call for a Special Board of Survey or, if delay in the examination of such stores is not likely to lead to loss or inconvenience, hold the public stores separately for presentation to the next Annual Board of Survey. (3) In the case of vehicles or plant, application for a Board of Survey shall be made in accordance with the provisions of Part XII, and in the case of office machinery an application for a Board of Survey shall be made in accordance with the provisions of Part XI. 125. Departments holding serviceable stores which are in excess of Stores surplus their requirements, whether used or unused, shall consult the Director of to requirements Supplies regarding their disposal. The fullest possible details must be given to enable the Director to recommend the best method of disposal. 126. All losses of, or damage to, public stores shall be reported immediately to the Secretary to the Treasury through the controlling officer. Report on losses of, or damage to, public stores

127. Every loss report submitted shall be processed in accordance with Processing of the instructions contained in Part XIV of the Financial Regulations. loss report. Cap. 347 128. (1) Discrepancies between ledger and inventory balances and actual stocks found on checking public stores shall be investigated immediately by the responsible officer. Discrepancies

(2) If after investigation such discrepancies have been found to be the result of accounting errors, necessary adjustments shall be made. (3) Where the discrepancies cannot be attributed to accounting errors and only minor shortages or surpluses are involved and there is no reason to suspect fraud or negligence, the following action shall be taken: (a) deficiencies shall be dealt with as losses of stores in terms of regulation 126; (b) surpluses shall immediately be taken on charge in the stores ledger or inventory and a stores receipt voucher prepared to support the entry. (4) Adjustments of the deficiencies in the stores ledger or inventories shall be made only on receipt of the authority to write off. 129. (1) The authority to write off deficient and unserviceable stores, provided theft, fraud, negligence, etc., are not involved, has been delegated by the Secretary to the Treasury as follows: (a) in the case of unserviceable expendable stores, heads of department may authorise the write-off as laid down in regulation 123; (b) in the case of deficient and, unserviceable stores, the write-off shall be done by controlling officers on the recommendation of a Board of Survey and only in case where the total original value under one category of public stores does not exceed K200 and the original value of any individual item thereof does not exceed K100. (2) Where the limits specified in paragraph (b) of subregulation (1) are exceeded, and in every case where theft, fraud or negligence is involved, write-off shall not be effected without prior authority of the Secretary to the Treasury. 130. (1) On receipt of the completed papers of a Board of Survey or other authority to dispose of public stores, action must be taken immediately in accordance with the final decision recorded therein. Action on receipt of authority to Authority to write off stores

Ledger entries for written off public stores or surpluses taken on charge write off must be supported by the Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154) quoting the relevant authority. (2) Where a Board of Survey recommends the sale of unserviceable or surplus stores, the head of department having charge of such stores shall sell them accordingly and shall record the following information on Misc. Forms Nos 39 and 41: (a) prices realised for each item; and

(b) details of the official receipt on which the proceeds have been brought to account to revenue.

PART XIV SALE OF PUBLIC STORES


131. Public stores shall not be sold without the prior approval of the Secretary to the Treasury which will be given only when the sale is considered to be in the public interest and provided that such public stores cannot be repaired and are not for re-sale. Authority for sale of public stores

132. Sales of public stores shall normally be made on a cash basis and Sales to be on cash basis such public stores shall not be handed over until payment has been received. Details of the receipt issued for the sum paid shall be recorded on the Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154). 133. (1) Proceeds from sales of public stores shall be allocated to revenue accounts as follows: (a) full landed cost or the current issue price as the case may be shall be credited to revenue head, "fees of court or office" sub-head-"sale of Government Stores"; Classification of sale proceeds

(b) customs duty to revenue head "customs and excise" sub-head "Customs Duty"; (c) Value Added Tax to revenue head-"Customs and Excise", and sub-head-"Value Added Tax"; (d) Departmental charges to-revenue head and sub-head as in (a) above. (2) Where the stores are of a significant amount and have been purchased during the financial year in which they are sold and, in consequence of the original purchase the provisions under that sub-head of expenditure is likely to be inadequate for the service of the whole year, an application for supplementary provision not exceeding the total of the amounts credited to revenue accounts under paragraphs (a), (b), (c) and (d) in sub-regulation (1) may be submitted to the Secretary to the Treasury. 134. (1) The sale of surplus and unserviceable stores shall only be made by auction or by tender after public advertisement except where the approval of the Secretary to the Treasury has been obtained for their being sold otherwise. (2) Ledger entries in respect of public stores disposed of by sale, auction or by any other method, must be supported by details of the receipts issued for the proceeds. 135. The provisions of regulation 133 shall not apply to Ministries operating an approved Trading Account. Trading accounts Sale of surplus and unserviceable stores

PART XV TRANSPORT OF PUBLIC STORES, LOSSES IN TRANSIT, CLAIMS, ETC.

136. (1) Except where separate arrangements exist for Ministries or Departments to clear their own public stores, clearance through customs and from carriers of all public stores arriving from outside Zambia shall be undertaken at Lusaka, Livingstone and Ndola by the Chief Stores Officer at those stations. In the case of other stations, clearance shall be effected by a representative of the Ministry or Department concerned. (2) Departments must ensure that documents such as Bills of Lading or import licences which are required by the officer whose duty is to clear the goods are sent to such officer in good time. 137. (1) Heads of department to whom public stores are consigned must clear and take delivery of such public stores immediately they receive advice of arrival of the consignment from the carriers.

Clearing of public stores arriving from outside Zambia

Responsibilities of officers for clearing consignments

(2) Demurrage, storage and other charges incurred as a result of failure to clear consignments shall be surcharged against the officer responsible if such officer is found to have been negligent. (3) Before delivery is accepted, packages must be carefully checked against the relevant railway, airways or other transport advice note and where applicable, the goods should be weighed and the weights compared with those marked on the packages or stated on the invoice. Special attention should be given to packages containing fragile articles. (4) Packages showing signs of damage or having been tampered with should be treated with caution and should be opened and examined in the presence of an official of the carrier before delivery is accepted and the contents checked against the packing note or invoice. (5) If articles are found to be missing or damaged, a certificate of loss or damage must be obtained from the carriers and a qualified receipt given before accepting delivery. (6) When delivery has been accepted and detailed examination of the goods has not been possible, the receipt given to the carrier shall be endorsed "unexamined". Such public stores shall be examined immediately following acceptance and any damage or discrepancy

reported immediately to the carrier or supplier. (7) Officers charged with the duty of clearing all consignments must ensure that all the regulations of the carriers in this respect are complied with. 138. (1) The officer taking delivery of public stores shall be responsible Responsibility for notifying the carrier or supplier of such public stores of any damage for lodging or loss in a consignment received. claims (2) In the case of damage or loss in transit being sustained, the officer receiving the consignment shall immediately prepare a Stock Discrepancy Report (Accounts Form 152) and advice of claim and submit the original to the carriers concerned with two copies to his head of department. (3) A detailed report of the circumstances relating to the damage or loss must be given on the reverse of the copies sent to departmental headquarters. (4) Where a claim lies against the supplier, the receiving officer shall immediately advise the supplier of the discrepancy, in writing, and shall forward a copy of his letter to the head of department together with a detailed report, in duplicate. (5) The responsibility for lodging the detailed claim with the carriers or suppliers or authorised Government agencies shall, in each case, be with the appropriate officer at the departmental headquarters. 139. (1) Detailed claims for loss or damage in transit must be lodged without delay and in compliance with the regulations of the carriers. (2) Where the exact amount cannot be accurately ascertained a claim should nevertheless be submitted. 140. (1) Claims for loss of or damage to consignments received need Minimum not be made where the amount involved in any one case is less than K10. amounts to be claimed Time limit for claims

(2) Where a claim is for less than K10, the Stock Discrepancy Report (Accounts Form 152) countersigned by the senior officer of the department at the receiving station shall constitute authority to strike the missing or damaged articles off charge and shall be used to support the Stores Demand, Issue and Receipt Voucher Allocated/Unallocated (Accounts Form 154). 141. (1) Details of all discrepancies or damaged articles in Discrepancies consignments received shall be entered into a Claims Register to be entered in (Accounts Form 173) in which shall be recorded the action taken, details Claims Register of the settlement of the claim and all other relevant information. (2) Entries in the Claims Register (Accounts Form 173) shall be supported by(a) (b) (c) (d) a copy of the Stock Discrepancy Report (Accounts Form 152); a copy of the advice of claim; details of settlement of claim; and details of write-off where applicable.

142. Heads of department must examine their Claims Registers Follow-up of (Accounts Form 173) at regular intervals to ensure that positive action is claims being taken to follow up and clear all claims and that no claim becomes time-barred. 143. Public stores shall normally be despatched by the most economical mode of transport. Transport of public stores to be economical

144. (1) Where it becomes necessary to return public stores from an Return of public out-station to the issuing stores depot, care must be taken to ensure that stores transport charges incurred shall not be disproportionate to the value of the public stores transported.

(2) Where it is proposed to return public stores, the officer concerned shall report the full circumstances to the issuing stores officer who shall give instructions for the disposal of the public stores or shall authorise transport charges to be incurred. 145. (1) Officers responsible for the despatch of public stores must Responsibility ensure that all regulations and conditions relating to the transportation of of officers goods are complied with. dispatching public stores (2) The consignee must be notified immediately after the public stores have been despatched.

PART XVI FURNITURE, FURNISHINGS AND EQUIPMENT


' A' Household Furniture and Equipment 146. (1) The maintenance, repair, issue and withdrawal of furniture, supervision and general control of Government quarters, except departmental or institutional quarters, shall be the responsibility of a Quarters Officer designated as such at each station by the Head of the Buildings Branch of the Ministry responsible for works and supply. (2) The Quarters Officer shall(a) check inventories and ensure proper handing over of keys whenever a change of tenancy occurs; (b) issue, collect and ensure security of keys to all the quarters under his control; (c) lock up and ensure security of quarters being vacated when there Appointment and duties of Quarters Officer

is no immediate occupation by an incoming tenant; (d) report deficiencies or damage to quarters or the contents thereof to the head of department; and (e) perform such other duties as may be delegated by the head of the Buildings Branch at each station. 147. (1) There shall be a Furnishings Officer at each station who shall be designated by the Ministry responsible for works and supply and who shall be responsible for maintaining a Record of Furniture, Tools, Equipment, Issued and Received (Misc. Form 58A) in which receipts and issues of household furniture and equipment shall be recorded. (2) The Furnishings Officer shall prepare a Record of Household Furniture, Issued and Received (Misc. Form 22). (3) Green Copies of Misc. Form 22 shall be retained by the Furnishings Officer and shall constitute the master inventory while the Red Copies shall be retained in the quarters and shall be signed by the tenant in the presence of the Quarters Officer. (4) The Furnishings Officer shall(a) be responsible for ensuring that furniture and equipment issued is not in excess of the scale laid down for any particular type of house or flat; (b) accept delivery and arrange for storage of fresh or surplus supplies of furniture and household equipment; (c) deliver to the quarters furniture and equipment approved for issue; and (d) check house inventory against the master inventory and the contents of the quarters on every change of occupant and at such other times as may be necessary. 148. An officer occupying Government quarters shall be responsible Responsibility Appointment and duties of Furnishings Officer

for the custody and care of all Government furniture, fittings and equipment allocated to such quarters and may be liable in the event of any loss, deficiency or damage due to such officer's negligence.

of tenant

149. Before any officer takes possession of the keys to the quarters Occupation of allocated to him, the inventory relating to such quarters shall be checked quarters by the Quarters Officer in the presence of such officer. 150. (1) Officers wishing to vacate Government quarters must notify the Quarters Officer at least one month before the intended date of departure. (2) On receipt of such notification, the Quarters Officer shall arrange for the contents of the quarters to be checked against the signed copy of the inventory in the quarters which should in turn be checked against the master inventory held by the Furnishings Officer. (3) The vacating officer should be present at the time of checking the inventory. (4) After cheking the inventory in the quarters, the Quarters Officer shall take possession of the keys, ensure that the premises are securely locked and shall henceforth be responsible for such quarters and its contents until they are occupied. 151. (1) In the event of deficiencies or damage which cannot be attributed to fair wear and tear, the Quarters Officer shall obtain from the outgoing officer a written explanation as to the causes of the deficiencies or damage. (2) A report on the deficiencies or damage shall be submitted by the Quarters Officer to the Permanent Secretary in the Ministry responsible for works and supply, who shall if he considers the officer's explanation to be unsatisfactory, take steps to recover the cost of the missing or damaged articles. (3) Where the officer refuses to pay for the deficiency or damage, action Cap. 347 to recover the loss will be taken in accordance with Part XIV of the Financial Regulations, and the officer shall be informed accordingly. Deficiencies or damages, etc. Vacation of quarters

152. (1) When there is no officer ready to take over quarters at the time Security of it is vacated, the Quarters Officer shall make such arrangements as he contents of considers necessary for the security of the quarters and its contents. unoccupied quarters (2) When an officer is temporarily absent from his quarters, he shall make such arrangements as he considers necessary for the security of such quarters and the contents therein. 153. (1) Stocks of furniture and household equipment shall be held by the Director of Supplies in the Government Stores depots at Lusaka, Ndola and Livingstone. (2) Every Furnishings Officer shall make direct requisitions of furniture from the nearest Government Stores depot. The requisition form shall be signed by the Furnishings Officer and the approval countersigned by the officer-in-charge at the requisitioning station. (3) On receipt of furniture, Requisition, Issue and Receipt Voucher (Misc. Form 1B) shall be used to support the entries bringing such furniture on charge in the Record of Furniture, Tools, Equipment, Issued and Received (Misc. Form 58A). (4) Whenever new furniture or equipment is supplied to Government quarters, the inventory in such quarters shall be amended accordingly and the tenant shall sign the inventory as amended by the Furnishings Officer. 154. All items of furniture belonging to the Government must be clearly marked with the distinguishing letters "GRZ" on an inconspicuous part of the object to identify it as Government property. 155. (1) Unserviceable household furniture of an expendable nature may be written off up to the values stipulated in regulation 123 by the head of department. (2) Expendable public stores in excess of the value stipulated in Marking of furniture Distribution and control of furniture, etc.

Write-off of unserviceable furniture

regulation 123 and all other unserviceable non-expendable or obsolete stores including furniture and household equipment may only be considered for write-off on recommendation of a Board of Survey. (3) The authority of the Secretary to the Treasury, is required for such write-off except to the extent that he has delegated his authority in this respect to controlling officers as set out in regulation 129. (4) It shall be the responsibility of the Furnishings Officer to arrange for storage of such unserviceable or obsolete stores pending their examination by a Board of Survey. 'B' Office Furniture 156. For the purpose of this Part, unless the context otherwise requires- Interpretation "institutional office buildings" means buildings built or acquired solely for use by a particular Ministry or Department and under the control of that Ministry or Department; "common-user office building" includes all non-institutional buildings which are either owned by the Government or leased and which are maintained wholly and exclusively by the Ministry responsible for works and supply for the use of Ministries and Government Departments; "office furniture" includes all items of furniture but does not include fixtures and fittings and office equipment; "office fixtures and fittings" include lights and lighting fixtures, curtains and blinds, shelving, coat hooks, mirrors, map and pin boards, air-conditioning units, fire fighting units, built-in safes and cash boxes and other items which are fitted permanently to the building; "office equipment" includes filing cabinets, cupboards, typewriters, dictaphones, calculating machines, adding machines, waste paper baskets, letter and file trays, electric fires and fans, ink and pencil stands, duplicating machines, copiers and other moveable items or specialised equipment such as drawing boards, plain filing cabinets, registry file racks, despatch racks, portable shelving, safes and cash boxes.

157. (1) The supply and control of office furniture and specialised Office furniture equipment shall, in the case of institutional office buildings be the for institutional responsibility of the controlling Ministry which shall also be responsible buildings for maintaining control ledgers and inventories in accordance with these Regulations. (2) Requisitions for office furniture shall be made directly from the Director of Supplies or obtained by running contracts in respect of locally made furniture. (3) Where, however, the furniture is required in connection with a new capital project, the requisitioning of such furniture shall be done by the Ministry responsible for works and supply. 158. (1) The Ministry responsible for works and supply shall be responsible for the provision and control of office furniture for the following buildings: Office furniture for non-institutional (common-user) buildings

(a) non-institutional (common-user) office accommodation in Lusaka, including the allocation of such accommodation; (b) non-institutional (common-user) administrative offices outside Lusaka, the allocation of which shall be the responsibility of the Provincial Permanent Secretary; (c) office premises for general Government purposes throughout Zambia. (2) Where office premises allocated under paragraph (c) of sub-regulation (1) are supplied with furniture, the Ministry or Department to which such premises are allocated shall be responsible for the maintenance of such furniture. 159. It shall be the responsibility of every head of department to ensure Internal control thatof office furniture (a) a furniture control officer is designated for each building who

shall exercise internal control of the furniture therein by means of a master inventory and room inventories; (b) each item of furniture belonging to the Government is clearly marked "GRZ"; (c) a Record of Furniture, Tools, Equipment, Issued and Received (Misc. Form 58A) is kept at the headquarters and each Provincial or District office; (d) an inventory of the contents of each room, set of rooms or office, as the case may be is maintained, signed by the officer-in-charge, and exhibited in the room or office, which shall be signed whenever there is a change-over of the officer in charge of the room; (e) furniture is not transferred from one office to another without the approval of the furniture control officer and that any approved transfers are properly recorded in the master and room inventories; (f) furniture is not transferred from one building to another without prior notification to, and approval of, the Ministry responsible for works and supply; (g) inventories are checked periodically and in any case not less than once in a year against the items recorded in the furniture control ledger; (h) any deficiencies are investigated and treated as loss of public stores in accordance with these Regulations and reported in accordance with the procedure set out in Part XIII of these Regulations; and (i) an annual return of staff and office furniture holdings is submitted on or before the 30th June in each year to the Permanent Secretary in the Ministry responsible for works and supply with a copy to his own Ministry headquarters. 160. Air-conditioning units are normally supplied only to Ministers, Supply of Deputy Ministers, Permanent Secretaries and officers holding air-conditioning equivalent ranks. Authority for the installation of units in common-user units office buildings shall be obtained from the Ministry responsible for works and supply which is responsible for the maintenance of common-user office buildings. 161. (1) The Ministry of Finance shall be responsible for the supply of safes, strong boxes, cash boxes and strongroom doors and all requisitions for supplies of these items shall be submitted to that Ministry. (2) Safes, strong boxes and cash boxes shall be built into the building in Supply of safes, strong boxes and strongroom doors, etc.

which they are housed so as to prevent them from being moved. (3) Where due to certain circumstances it is not practicable to have the strong boxes and cash boxes built-in, such articles shall be secured to fixed objects such as concrete or iron pillars by the use of a steel chain and padlock. 162. (1) When an officer of a Department or Ministry moves from one building to another, he may not remove the fixtures and fittings therein unless the building is due to be demolished immediately in which case the Public Works Department shall make such arrangements as may be deemed necessary. (2) Safes and cash boxes may be moved along with office furniture when movement of an office takes place: Provided that such movement is authorised by the Advisory Committee on Office Accommodation and provided further that the safes and cash boxes are not built-in. (3) Where a safe or cash box is built-in, it shall not be removed to another premises without the written authority of the Secretary to the Treasury. 163. (1) Where a building is to be vacated by one Ministry or Department in favour of another, prior notice must be given to the Ministry responsible for works and supply, who shall arrange for a detailed hand-over between the outgoing and the incoming furniture control officers. (2) In the event of discrepancies, the outgoing Ministry or Department, as the case may be, shall take appropriate action in accordance with these Regulations. 164. (1) A basic scale of furniture which should be allocated to offices Scales of office shall be determined by the Ministry responsible for works and supply furniture from time to time. Handing over by Ministry or Department Fixtures and fittings not to be removed on movement of offices

(2) Furniture held in excess of the scale should be returned to the Ministry responsible for works and supply or the need for its retention shall be explained in detail. 165. Every Ministry or Department shall pay for the expenses of repair Repairs and or renovation of office furniture in its offices and the normal procedure renovations of sending such furniture to Public Works Department workshops for repair and renovation under cover of departmental requisitions shall be followed. 'C' Specialised Furniture and Equipment for Institutions 166. (1) Every Permanent Secretary shall be responsible for requisitioning and control of specialised furniture, furnishings and equipment for hospitals, schools, hostels and other similar Government institutions falling under the control of his Ministry. (2) Supplies of specialised furniture shall be obtained by tender or indent through the Central Supply and Tender Board or, if and when available, by direct requisition from Government Stores. 167. The provisions of regulation 159 shall apply mutatis mutandis to Control of the control of specialised furniture and equipment. office furniture Institutional furniture and equipment

PART XVII HANDING OVER OF PUBLIC STORES


168. (1) On every occasion when it is necessary for public stores to be Handing and handed over from the charge of one officer to another, a physical count taking over of of the public stores in hand shall be made and the actual balances shown public stores in the stores ledgers. (2) Both officers concerned must be present during the check and shall

complete a Form of Certificate of Handing and Taking Over of Stations and Departments (Misc. Form 3) in triplicate. The original certificate shall be forwarded to the head of department and a copy thereof shall be retained by each officer. (3) In cases where, owing to the large number of items in stock and time does not permit a complete check of all the stores, test checks may be made and, if the officer taking over feels satisfied, the Form of Certificate of Handing and Taking Over of Stations or Departments (Misc. Form 3) shall be endorsed to the effect that so far as can be judged, the physical stocks agree with the ledger balances. 169. (1) A detailed list of any surpluses or discrepancies must be signed List of by both officers and be forwarded to the head of department with the surpluses or outgoing officer's explanation of the discrepancies. discrepancies (2) The head of department shall deal with the list of discrepancies in accordance with Part XIII of these Regulations. (3) Where the outgoing officer is leaving the service of the Government, the head of department must ensure that all deficiencies are satisfactorily accounted for before final payment of salary is made to the officer. 170. Where an officer taking over public stores is not satisfied with the condition of the stores or finds serious discrepancies, he may request that such public stores be checked by a Board of Survey before taking over. 171. If the outgoing officer is unable to handover personally, the head of department shall arrange for one or more officers not connected with such public stores to check such stores along with the officer taking over in which case, Form of Certificate of Handing and Taking Over of Stations and Departments (Misc. Form 3) shall be completed and forwarded to the head of department with a detailed statement of discrepancies, if any. Request for Board of Survey before taking over Checking of public stores in absence of outgoing officer

172. The hand-over of tools and equipment on inventory charge shall Hand-over of be carried out in accordance with the instructions contained in Part X of tools and

these Regulations. 173. The hand-over of furniture from one Ministry or Department to another shall be effected in accordance with regulation 163.

equipment Hand-over of furniture

PART XVIII IVORY AND OTHER GOVERNMENT TROPHY


174. For the purpose of this Part, unless the context otherwise requires Interpretation "Act" means the National Parks and Wildlife Act; "ivory" shall have the meaning assigned thereto in the Act. "trophy" shall have the meaning assigned thereto in the Act. 175. Ivory and trophy shall be classified into the following categories: Categories of (a) legal ivory or trophy, where a licence to kill an elephant or other ivory and trophy animal has been properly acquired; (b) controlled ivory or trophy, where the ivory or trophy is acquired as a result of killings by an authorised Government hunter; (c) illegal ivory or trophy, where the ivory or trophy is confiscated from persons who are unable to produce any evidence of legal ownership; (d) found ivory or trophy, where the ivory or trophy has been found in any area in any circumstances; (e) imported ivory or trophy, where the ivory or trophy has been legally imported into Zambia. 176. All ivory and trophy shall be registered at the nearest Ivory and Trophy Registration Station, where registration facilities exist. Registration stations for ivory and Cap. 201

trophy 177. (1) Each registration officer shall maintain a record of all ivory and trophy registered by him. (2) Such records shall comprise: (a) a Master Register of Ivory and Rhinoceros Horn (Form NPW 33A); (b) Subsidiary Register of Government Ivory and Rhinoceros Horn (Form NPW 33B); (c) Subsidiary Register of Ivory and Rhinoceros Horn belonging to individuals (Form NPW 33C); and (d) Register of Government Trophies other than Ivory and Rhinoceros Horn (Form NPW 33D). 178. When the ivory or trophy has been duly weighed, marked and registered in accordance with these Regulations, the lawful owner shall be given a Certificate of Ownership prescribed under the Act. 179. When a licence holder produces legal ivory or trophy for registration, the Registration Officer shall(a) ask for the production of the relevant licence, examine it and ensure that it has been appropriately endorsed on the reverse side; (b) check that the ivory or trophy has been produced for registration within one month from the date of killing or such other period as may be prescribed in the Act; (c) if it is obvious that the ivory or trophy is not fresh and could not have been killed under the authority of the licence produced, take action in accordance with section one hundred and five of the Act; (d) check whether the elephant or other animal was killed in the areas for which the licence was issued and if it was not, the ivory or trophy shall be confiscated and a report made to the nearest Wildlife Officer or police officer for investigation. Certificate of ownership Ivory and trophy records

Registration of "legal" ivory or trophy

180. (1) Where ivory or trophy has been confiscated, the name of the person from whom it was confiscated shall be entered in the Register and the letters "GRZ" entered to denote Government ownership. (2) Where ivory or trophy has been found from an elephant or other animal which has died in a normal manner and has been found by a licence holder or any other person, it shall be treated as "found" ivory or trophy and shall be regarded as Government trophies. (3) Such ivory or trophy shall be weighed, marked and registered in the normal way and the words "found ivory" or "found trophy" be endorsed in the Register.

Registration of illegal ivory or trophy

181. (1) Where ivory or trophy has been legally imported into Zambia Registration of imported ivory and the appropriate import permit is produced for inspection, registration shall be effected in the normal way within one month after or trophy the date of importation and a Certificate of Ownership of Trophy or Ivory shall be issued. (2) Where no import permit is produced, the ivory or trophy shall be treated as illegal and shall be confiscated. 182. (1) All ivory or trophy shall be despatched to the Director of Disposal of National Parks and Wildlife, at Chilanga, and the Requisition, Issue and Government Receipt Voucher (Misc. Form 1B) shall be used for this purpose. ivory or trophy (2) All ivory or trophy sent to the Director of National Parks and Wildlife shall be held by him in safe custody until such time as they can be disposed of: Provided that in the case of ivory, no disposal shall take place without prior authority of the Central Supply and Tender Board. 183. Prices of ivory or trophy shall be fixed by the Director of National Fixing of prices Parks and Wildlife with the approval of the Secretary to the Treasury for ivory or having regard to the quality of the ivory or trophy and the amount of trophy care taken for their preservation.

184. Losses arising from the deterioration of ivory or trophy shall be dealt with in the manner prescribed in Part XIII of these Regulations.

Losses arising from deterioration of ivory or trophy Sale proceeds to be credited to revenue

185. Proceeds realised from the sale of Government ivory and trophy shall be credited to revenue under the appropriate head and sub-head given in the annual estimates.

PART XIX MEDICAL SUPPLIES


186. For the purpose of this PartInterpretation

"medical stores" includes drugs, dressings, biologicals, vaccines, medical equipment and instruments, x-ray films and chemicals, medical diagnostic materials and gases and any other items of an exclusively medicinal nature. 187. The Secretary to the Treasury in the Ministry responsible for health shall be responsible for the procurement and distribution of and accounting for all medical supplies. 188. (1) All officers charged with the responsibility for medical supplies shall maintain separate registers for consumable and non-consumable medical supplies. (2) In addition to the documents kept under sub-regulation (1), the following registers shall be kept: (a) the Allocated Stores Ledger (Misc. Form 54) for recording all medical supplies received or issued out to main dispensaries or other locations such as wards or rural health centres; (b) the Plant, Tools and Equipment Control Ledger (Misc. Form 59) Responsibility for medical supplies Registers to be maintained

for recording specialist equipment and instruments held on charge for issue. 189. (1) All medical supplies shall be obtained from the Medical Stores Requisition of (Zambia) Limited (hereinafter referred to as the "Company". medical supplies (2) The requisition of the medical supplies shall be made on the Medical Stores Requisition Form No. PH.81 Revised. (3) In the case of poisons and dangerous drugs a requisition shall be made in compliance with the Pharmacy and Poisons Act and the Dangerous Drugs Act as the case may be. 190. (1) On receipt of a consignment of medical supplies, receiving officers must avoid to give a "clear" signature whenever it appears that the consignment appears to be in a doubtful condition. Cap. 299 Cap. 95

Losses or damage to consignments in transit

(2) Any discrepancy between the goods received and the packing or delivery note shall be reported to the transporter or the supplier or the Company within seven days of receipt of the consignment or such other time limit as may be specified in the delivery note. (3) Claims for losses or breakages in transit must be made by the receiving unit for the value of the items lost or damaged and shall include incidental expenses. (4) On receipt of a refund for losses, accounting units shall pay any amounts received into an account under the appropriate sub-head and non-accounting units shall forward any refunds suitably endorsed to the officer responsible for the payment of their accounts from the Company. 191. The procedure for handing over or taking over of medical stores shall be as stated in the Ministry of Health's Administration Handbook. Handing over and taking over of medical supplies

192. (1) Where appliances such as orthopaedic appliances or spectacles Appliances either manufactured in the workshops of the Ministry responsible for health or purchased from commercial sources are supplied to patients either for a limited period or for permanent use, a charge as may be determined by the Ministry responsible for health from time to time shall be made. (2) Where the appliance is issued to a patient on a permanent basis, the charge recovered from him shall be paid into the appropriate revenue head and sub-head shown in the annual estimates. (3) In any case where the appliance is only issued to a patient for a limited period, such patient shall be required to pay a reasonable deposit to cover the cost of the item and such deposit shall be refunded to him on the return of the appliance in a reasonably good condition. In all cases, the amount of the deposit payable which will cover the estimated value of the appliance shall be determined by the hospital authorities from time to time. (4) Where the circumstances of the patient are such that he cannot afford to pay the charge or deposit for any appliance, part or whole of the charge or deposit may be waived by the hospital authorities on the recommendation of a social welfare officer or hospital social worker. (5) Where a deposit account is operated for the supply of appliances to patients for limited periods, a register shall be kept of all deposits received and refunded showing particulars of general receipts on which the deposits are received and the vouchers on which the amounts are refunded. 193. Where under this Part, no specific provision has been made to deal with any particular type or category of medical supplies or to prescribe procedures for specific operations, the general provisions prescribed in other Parts of these Regulations shall apply. Application of other provisions of Regulations

SCHEDULE
(Paragraph 17)

MISC. FORM 1B Stocked by Ministry of FinanceNo. .........................


REQUISITION, ISSUE AND RECEIPT VOUCHER

To. Government MSD Stores Put Departmental Stamp here Lusaka, Ndola, Livingstone

(add or delete as necessary GRZ No. .............................. Make .......................................... Model .................................................... Job or Account No. ..........................................Station Code .................................................................. Quantity Demanded

Part or Catalogue No.

Description (one item only)

Unit

Delivery Instructions: ...................................................................... ...................................................................................................... .............................................................................................. Submit Account to: .............................................................................................................................. Vote ...................................................................................................................................................... Requisition Office .......................................... Approved .....................................................................

FOR STORES USE ONLY Extracted from Requisition No. Quantity Supplied Quantity Received

Folio

Posted

Stock Control No. Issued by: Date Supplier LPO No.

Unit Price

Total Value

Do not put Departmental Stamp in this space

Misc. Form 1
Stocked by Govt Printer REPUBLIC OF ZAMBIA Department ................................................................................. Station ........................................................................................ Date. ........................................................................................... To: REQUISITION ........................................ ........................................ ........................................ ........................................ No. .......................

Full description of article Fold back along this line Work for which required

Estimated cost K

Account or Head and sub-head to be charged

Quantity

Fold

Fold

Certified that the above articles are required for Government purposes, and that the estimated cost of the issue is covered by the provision under the Account of the Head and Sub-head quoted. Approved: ................................................................ Head of Department ................................................................. Name in block letters .................................................................. Officer-in-Charge .................................................................. Name in block letters

ORIGINAL (To be returned with Supplier's invoice)

Misc. Form 1A
Stocked by Ministry of Finance

All Packages and

Invoices must be marked: To ...................................... .................................................................................................................................

REPUBLIC OF ZAMBIA Purchase Order

No. ...........................

Please *render the undermentioned *Stores in accordance with *contract/your quotation dated supply services

....................................................... and despatch carriage paid

to: ............................................................................................................................................................................................. ....... .......................................................................................................................................................................................... ....................................................................................................................................... Your invoice together with the original of this Order Form should be submitted for payment to. ......................... ................................................................................................................................................................... ........................ Customs forms must be sent direct to the Chief Stores Officer, Government Stores, Lusaka/Ndola/Livingstone

Item Quantity

Description of Stores or Service

Part/Folio No.

Rate or Unit price

The price shown is based on- *(i) *(ii) Delivered *(iii) Duty paid.

for (Station) Sub Total (Station) Loss Discount Net .. ..

*(iv)

In bond. Transport Total .. Approved by Title

Signature of Issuing Officer Title Date

Certified that the *good/services covered by this order/*have been *rendered/received in good order and have been taken on ledger charge/issued for direct consumption* with the exception of those items which I have deleted/*subject to Discrepancy Report No. .................../*have not been received but a copy of Carriers Consignment Note is held. Signature of Receiving Officer.................................... Title...................................................... Date..................................................... Note Parcel under 5 kilogrammes to be consigned by post. Transport charges for goods consigned by rail or road must be supported by Rail/Road Carriers Consignment Note. *Delete whichever is inapplicable.

REPUBLIC OF ZAMBIA ALLOCATED STORES LEDGER

Misc. Form 54
O N

O R D E R

S t o c k e d

b y

G o v t . P r i n t e r

Date

Reqn. No.

Article

Unit ............................... Max. Stock ..............................

Group ....... Class........

Supplies to be obtained from.. RECEIPT OR Issue Voucher No. DATE

Ordering Level .............................. FROM WHOM Received or to whom ISSUED RECEIPTS ISSUES BALANCE DATE RECEIPT OR Issue Voucher No. FROM WHOM Received or To whom ISSUED

DATE

RECEIPT NO. ISSUE VOUCHER No.

FROM WHOM RECEIVED OR TO WHOM ISSUED

RECEIPTS

ISSUES

BALANCE

DATE

RECEIPT OR ISSUE VOUCHER NO.

FROM WHOM RECEIVED OR TO WHOM ISSUED

ACCOUNTS FORM 148


STOCK/BIN CARD Stocked by Govt Printer Date Ref. No. To or From Received Issued Balance Check Date Ref. No. To or From

Receiv

PART REF. ND. 11 CODE 1

FOLIO No.

DESCRIPTION

MAKE

Portfolio No.............................

Description.. .....

2 3 4 5 Date
S. Code

ORDERED Order No.

Prov. Slip No.

QUANTITY Ordered

Received

Monthly Jan. Feb. Mar. Apr. May June July Aug. Sept Oct Nov. Dec. Total Year Consumption

Date

Ref. No.

To or From

Received

Issued

Balance

Check

Date

Ref. No.

To or From Bal. B/fwd

Received

Accounts Form 151


Stocked by Govt Printer REPUBLIC OF ZAMBIA REGISTER OF STORES ORDERED AND RECEIVED Vote: Head, sub-head and item number

Date ordered

Order number

Description of stores ordered

Purpose for which stores are required

Quantity ordered

Quantity received

Date received

REGISTER OF CONSUMABLE STORES

Accounts Form 159


Stocked by Govt Printer ................................................................... MINISTRY ............................................................ DEPARTMENT OR ORGANISATION MONTH OF:..... ................19 ......... Daily Milk *Meat *Bread Feeding Qty Value Qty Value Qty Value Strength 1 2 3 4 Total for month *Butter Value *Tea Qty Value * Qty Value Qty * Value Qty ....................................................... INSTITUTION

Qty

Date

RATION ISSUE/RECEIPTS SUMMARY FOR MONTH ENDING ................................................................. 19 .... Balance brought forward .. .. Total received during the month .. Total .. .. .. .. .. Total issued .. .. .. .. Balance carried forward ..

*Details will be given of the following commodities-milk, meat, bread, butter, tea, sugar, eggs, soap, fuel, fruit and vegetables, tinned foods and other food-stuffs (values only will be recorded for the last three items). Average daily feeding strength ......................................................

ACCOUNTS FORM 154


REPUBLIC OF ZAMBIA STORES DEMAND, ISSUE AND RECEIPT VOUCHER ALLOCATED/UNALLOCATED PLEASE SUPPLY THE FOLLOWING STORES TO: Part/Folio No. Quantity Unit Description of Stores Quantity required No. ............... Stocked by Govt P

issued

Model .......................................................................................................... GRZ ............................................................................................................ Head ............................................................................................................ ..................................................................................................... Sub-head Station ......................................................................................................... Signature...................................................................................................... Date, ........................................................................................................... Approved...................................................................................................... I acknowledge receipt of the above-mentioned stores which have been*Taken into immediate use. *Taken on Ledger/Inventory charge. *Delete as necessary. For use by stores section only, OFFICE DATE STAMP Stores issued by:

Make ...........................................

.....................................................

........................................

........................................

................................................................................................

Recorded in Ledger/Inventory. ................................................................................

Checked by .............................................................................................................. 1st Copy: To Storekeeper 2nd Copy: To Requisitioning Officer 3rd Copy: Retain in book

ACCOUNTS FORM 160


Stocked by Govt Printer REPUBLIC OF ZAMBIA STOCK RECEIPT COST SHEET Date Supplier Description of goods ............................................ Model/Type .......................................................... Part/Code No. ...................................................... Rail A/N No. Delivery Note No. K Freight . . Railage . . Agency . . Insurance . . Inspection Sundry Charges n Month SL Materials . . Unpaid Stock .. Claims . . .. Sundry Charges Landed Cost .. Description ....................................................................... Unit Folio Quantity Ship D.R.R. Receiving Store ................................................... Discrepancy Report No. K n Month SL Invoice No. Indent or Order No. No. .............................

..

...................................................................
Order Position Code Certified that the quantities and description of the goods received above are as detailed and that the materials are serviceable for stock

.................................. S.R.C.S. No.


.................................................................. Unit Price Total Value

..................................
Receipts Officer Certified that the materials detailed above have been taken into stock and brought on charge on the Bin Cards in accordance with the Folio shown. ................................. Stores Officer

Stores Form No. 71


Stocked by Govt Printer STORES DEPARTMENT-DAILY RECEIPT REGISTER DATE ........................... 19 .........STATION ......................SHEET ............................... Inward Advice No. Order No. Transport Vote Received Despatch

Received from

Description

Weight

Consignee

Date

Accounts Form 152


Stocked by Govt Printer Ministry ................................................................... Department ............................................................

...................................................

Stores ..................................... Station No. .............................

STOCK DISCREPANCY REPORT The following discrepancies are reported between the Supplier's Invoice and Stock Receipt Cost Sheet No. .................................... dated. ...................................... (a) Broken or damaged; (b) Short packed in case; (c) Short received ex vessel; (d) Short received ex railway; (e) Surplus to invoice. Date ............................................................... Officer Receiving Stores Unit Value K Folio No. Description Qty n K n Cleared by Actual Value

....................................................................

1. Considered cause of loss, damage or deficiency, and by whom ......................................................................................

.......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ..........................................................................................................................................


2. Outward condition of packages on discharge ................................................................................................................... 3. Nature of receipt given to transport company ................................................................................................................... 4. Date and reference of pro forma claim (copy attached) ................................................................................................... 5. Is replacement required or value refund ...........................................................................................................................

Note-For Crown Agents claims exceeding K50 a Lloyd's Survey Report is required.

........................................................................
Chief Stores Officer

ACCOUNT FORM 170


Stocked by Govt Printer MONTHLY FINANCIAL STATEMENT OF UNALLOCATED STORES Ministry/Department ................................................................................................ Month of ............................................... 19 ......... Dr. Stock on hand at beginning of month .. .. .. .. .. .. .. .. .. .. .. .. .. K n

Store .................................................................................

Stores issued during month to Works, Ser

Stores purchased and taken on charge during the month

Stores converted and taken on charge during the month during the month .. .. .. .. ..

Adjustments in respect of losses and depr

Stores transferred from other unallocated Stores and taken on charge during the month .. .. .. .. ..

Adjustments in respect of Credits received

Adjustments in respect of articles returned to Store e

Stores issued for conversion during the m Cash sales during the month . . .

Adjustments in respect of surplus stores taken on charge during the month .. .. .. .. ..

Stores issued for transfer to other Unalloc

Stock in hand at the end of the month

Date ............................................... 19 .........

.................................
The totals under each heading of this account will be supported by detailed schedules of the transactions for the month.

Head of Depart

Accounts Form 171 Stocked by Govt Printer ANNUAL TABULAR SUMMARY OF UNALLOCATED STORES ACCOUNT Ministry/Department Store ................................ Year ended ............................................................................................................. Stock on hand at beginning of year . . . . . . . . . . . . . .

19 ...... K n . . . . . . ........ ........ ........ ........ ........ ........ K n

ADD Purchases (less returns) and charges as debited to Expenditure3/4 Unallocated Stores . . . . . . . . DEDUCT Issues to votes and services as credited to Expenditure3/4 Unallocated Stores . . . . . . . . DEDUCT issue price of stores sold and credited to Expenditure3/4 Unallocated stores (i.e. sale proceeds after making adjustment for profit or loss as the case may be) . . . . . . Transfers between Stores (+ or -) . . . . . . . .

. . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . .

........ ........ ........ ........ ........ ........ ........ ........ ........

........ ........ ........ ........ ........ ........ ........ ........ ........

Adjustments for stores not paid for in year in which received (+ or -) Cost adjustments on revaluation of stock holdings (+ or -) . .

ADD surpluses taken on charge on completed Board of Survey authority or of a minor nature . . . . . . . . ADD surpluses taken on charge for which Board of Survey decision is awaited . . . . . . . . DEDUCT losses and deficiencies written-off on completed Board of Survey authority . . . . . . . . DEDUCT losses and deficiencies written-off on completed Survey decision is awaited . . . . . . . . Stock on hand at the end of the year . . Date .......................................... 19 ...... . . . . . .

Controlling Officer

Accounts Form 172 Stocked by Govt Printer ANNUAL STOCK VALUATION CERTIFICATE (UNALLOCATED STORES) I hereby certify that as at the close of busines on 19 ....... the value of unallocated stores held by me amounted to K .......................... as reflected in the Annual Tabular Summary and that this valuation has been arrived at on the basis of the stock sheets held in this depot. Station ........................................................................... Signature of Officer-in-Charge Date .............................................................................. Designation

CENTRAL REGISTER

MSD 37A.
GRZ No. Make and Type Chassis No. Engine No. Propulsion SRV No. Colour Tyres Net Weight Stocked by M.S.D Distance CC Date clocked in or Recei-ved kilometres HP

Ministry/ Departme

CENSUS REGISTER

DEPARTMENT ..................................................................................................

MSD/37B
GRZ No. Description of Vehicle/ Plant/Machine Engine No. Serial No. Date of Registration Ministry/Department Stocked by M.S.D SRV No. LPO No. K Cost Price n

I have perused the above details and agree that the vehicles/plant/machine referred to are actually held on my charge.

........................................................................ ........................................................................

Date ................................

Date ................................

VEHICLE CARD/LEDGER MSD. 10A


CHASSIS MAKE ....................................................................................... TYPE ........................................................................................ NUMBER ................................................................................. BODY TYPE ............................................................................ SPECIAL EQUIPMENT ........................................................... Stocked by M.S.D PURCHASE DATE ..................................................................................... COST. .................................................................................... SRV No. .................................................................................. DATE ISSUED ....................................................................... MINISTRY OR DEPT ............................................................. F107 No. ................................................................................

......................................................................... ......................................................................... ......................................................................... .........................................................................


ENGINE MAKE ....................................................................................... TYPE ........................................................................................ NUMBER ................................................................................. PETROL/DIESEL .....................................................................

.......................................................................

....................................................................... . .......................................................................
GRZ No.

DISPOSAL BOS No. .................................................................................. HELD AT ................................................................................. DATE ...................................................................................... RESULT .................................................................................. DATE SOLD ........................................................................... AMOUNT K .............................................................................

PRIVATE No. MOVEMENT RECORD

Date

Ministry or Department

Province

Place

PLANT CARD/LEDGER

MSD. 10B
Stocked by M.S.D PURCHASE DATE ...................................................................................... COST. ..................................................................................... SRV No.................................................................................... DATE ISSUED ........................................................................ MINISTRY OF DEPT .............................................................. F107 No. .................................................................................

MACHINE MAKE ........................................................................................... TYPE ............................................................................................ NUMBER ..................................................................................... SPECIAL EQUIPMENT ...............................................................

............................................................................ ............................................................................ ............................................................................ ............................................................................


ENGINE MAKE ........................................................................................... TYPE ............................................................................................ NUMBER ..................................................................................... PETROL/DIESELl ........................................................................

............................................................................ ............................................................................ ............................................................................ ............................................................................

DISPOSAL BOS No. .................................................................................. HELD AT ................................................................................. DATE ...................................................................................... RESULT .................................................................................. DATE SOLD ........................................................................... AMOUNT K .............................................................................

GRZ No.

DESCRIPTION MOVEMENT RECORD

Date

Ministry or Department

Province

Place

M.S.D. 9
Stocked by M.S.D LOG BOOK MAKE AND TYPE OF VEHICLE .............................................................. JOURNEYS NO. OF VEHICLE GRZ ........................................................................ READING OF SPEEDOMETER Name of Authorising Officer Start Finish Kilometres Run Fuel Rec'd (tank full)

Date

Purpose

From

To

Driver's Name

MSD. 40
Stocked by M.S.D MONTHLY PLANT/MOTOR VEHICLE RETURN Month ending ................................................................................................................. Year ............. ............................................................................................................................................................... Type of equipment ................................................................................................................................ ............................................................................................................................................................... Model and year of Manufacture ............................................................................................................ Engine type ....................................................................................................... Serial No. ................. Actual hours worked during month (clock) ............................................................................................ Hours not worked during month (clock) ................................................................................................ Reasons for not working .......................................................................................................................

*Ministry/Department or Province ..............

GRZ No. .....................................................

Name of *Operator/Driver ..........................

Date of last official inspection ....................

Total of hours serviced during month (clock

Total of hours under repairs during month (

Total engine hours shown on hour meter be

...................................................................................................................... ......................................................................................................................

.................................................. ..................................................

Total engine hours shown on hour meter en

Fuel in tank at beginning of month .................................................................................................litres Fuel in tank at end of month ..........................................................................................................litres Fuel used during month ........................................................................................................................ *Petrol/Power Paraffin/Diesel used during the month ...........................................................................

Engine oil used during month ....................

Engine oil changes during month ...............

Gear oil used during month ........................

Oil for hydraulic system used during month

................................................................................................................ litres
Fuel filter changes at ........................................................................................................ engine hours ............................................................................................................................................................... Details of repairs and cost thereof ........................................................................................................ Any other information.............................................................................................................................

Oil for air filters used during month ............

Oil filter changes at ....................................

Fuel consumption .....................................

Engine oil consumption ............................

......................................................................................................................
Remarks of Supervising Officer (any variations from standard rate of consumption should be explained here) Certified correct. Supervising Officer Date ....................................................................... *When hour meter is not fitted give dates. For use in Mechanical Workshops, Lusaka, only. Date

.............................................................

Signe

MSD. 49
Stocked by M.S.D REPUBLIC OF ZAMBIA VEHICLE HISTORY REGISTER

DEPARTMENT REGISTRATION No. DEPARTMENTAL No. NOT TO BE REMOVED FROM THE VEHICLE PARTICULARS OF VEHICLE

Registration No. Make and type Chassis No. .............................................................. Engine No. Load capacity .......................................................... Horse-power No. of cylinders ....................................................... Bore ............................. Stroke CARBURETTOR: Make .............................................. Type Size of jets-Main ............................................... Compensating Choke ............................................... FUEL INJECTOR: Make ..................................................... Type ATOMISERS: Make ........................................................... Type COIL: Make ....................................................................... Type Maker's No. .................................................................. Rotation TYRES: Size-Front ................................................................... Rear Pressures-Front ................................................................... Rear CAPACITY OF: Fuel tank ..................................................................... Reserve Engine crankcase for oil Gearbox for oil Rear axle for oil Cooling system for water Target Km/l
Signature of Officer certifying correctness of above entries

}
DRIVER'S RECORD Date commenced Date finished

DEPARTMENT

Name

NOMENCLATURE Accumulators (.......................... volt) Bracket, fire extinguisher .. .. ..

VEHICLE OUTFIT LIST TO BE CHECKED FORTNIGHTLY DATE CHECKED: .. .. .. .. .. .. .. .. . . . .

Brushes, engine cleaning

..

..

..

..

..

..

Bulbs, electric, spare

..

..

..

..

..

..

Cans, oil, lubricating, 0.5 litres . .

..

..

..

..

..

Cans, oil, 5 litres

..

..

..

..

..

..

..

Cans, petrol, 10 litres

..

..

..

..

..

..

Chains, overall or non skid

..

..

..

..

..

. .sets

Connection, pump tyre, mechanical

..

..

..

..

..

Covers, waterproof, with lashing

..

..

..

..

Cushions . .

..

..

..

..

..

..

..

Drawbar gear

..

..

..

..

..

..

..

Extinguishers, fire, filled (Tetrachlorid type)

..

..

..

..

Funnels, oval, oil, 15 cm, with coarse mesh gauze

..

..

..

Funnels, petrol, 15 cm, round lip, with gauze

..

..

..

..

Gauges, pressure, tyre

..

..

..

..

..

..

Handbook, Instructional

..

..

..

..

..

Holders, Instructional Handbook

..

..

..

..

Holders, licence

..

..

..

..

..

..

..

Holders, oil can

..

..

..

..

..

..

..

Holders, petrol can . .

..

..

..

..

..

..

Brace, wheel, or spanner, box, tubular with tommy bar

..

..

..

Files, second cut, half round

..

..

..

..

..

..

Handles, file, medium

..

..

..

..

..

Hammers, ball-pane, handled . .

..

..

..

..

..

Levers, tyre (set of .................. )

..

..

..

. .sets

Pliers, combination . .

..

..

..

..

..

..

Initials of Inspecting Officer

..

..

..

..

..

NOMENCLATURE Punches, round. . .. .. .. .. ..

VEHICLE OUTFIT LIST TO BE CHECKED FORTNIGHTLY DATE CHECKED: .. .. .. .. .. .. .. ..

Roll or bag, tool kit, empty

Screwdrivers, perfect, 10 cm . .

..

..

..

..

..

Spanners, box

..

..

..

..

..

..

sets . .

Spanners, box, SE for sparking plug

..

..

..

..

Spanners, combination Spanners, DE ..

.. ..

.. ..

.. ..

.. ..

.. ..

sets . . ..

Tommy bar for box spanners . .

..

..

..

..

..

Tape, insulating, adhesive Tools, removing tyre valves

.. ..

.. ..

.. ..

.. ..

.. ..

tins . . ..

Tools, tensioning for overall chains

..

..

..

..

..

Tools, wheel lifting . .

..

..

..

..

..

..

Wire, copper, soft, 1 mm

..

.. ..

.. ..

.. ..

.. ..

kg . . ..

Wrenches, adjustable, 20 cm . .

Wrenches, adjustable, 30 cm . .

..

..

..

..

..

Gauges, coil unit

..

..

..

..

..

..

Key, jet, carburettor . .

..

..

..

..

..

..

Lifters, valve

..

..

..

..

..

..

..

Spanner, hub cap

..

..

..

..

..

..

..

Spanner, tappet

..

..

..

..

..

..

..

Spanner, valve-cap . .

..

..

..

..

..

..

Initials of Inspecting Officer

..

..

..

..

..

..

DAILY TASK SYSTEM

Signature

of Certifying

Officer

Signature

of Certifying

Officer

RECORD OF REPAIRS CARRIED OUT AND OF LUBRICATION CHANGES Dates in and out of shops Material demand note Nos Inspection report Nos

In

Out

Nature of repairs effected

Job No.

Names o

TOOLS AND EQUIPMENT TOOLS Inspecting Officer

VEHICLE TRANSFERS Transferred to Location Date Kilometre

RECORD OF TYRES Speedo reading when removed

Make

Front Serial No.

Make

Rear Serial No.

Condition on removal

Date

BATTERY Details of servicing in workshops

Make and type

Serial No.

Date

NOTES AND COMMENTS 1. LubricationThe contract for the supply of lubricants has been placed with

and only the following oils may be used: Engine sump Gearbox Differential Chassis

2. The Daily Task System: ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ........................................................................................................................................................................................... ...........................................................................................................................................................................................

Revised MSD No. 95


GOVERNMENT OF THE REPUBLIC OF ZAMBIA Stocked by M.S.D MINISTRY OF SUPPLY AND WORKS MECHANICAL SERVICES DEPARTMENT TOOLS AND EQUIPMENT CONTROL LEDGER Item .............................................................
From whom received or to whom issued

Receipt No. or Issue Note No. Number Required

No. Written off or Transferred

Total on Charge

Returned from Field

Issued to Field

Balance on Issue

Balance in Store

Date

Diesel Lab

Electrical Shop

Engine Shop

Inspectorate

Machine Shop

MASTER COPY Misc. Form 59 A


(Old A ct. Form 157A) Stocked by Govt. Printer CONTROL No. ________________ INVENTORY OF PLANT TOOLS, EQUIPMENT ISSUED AND RECEIVED

Da

Folio No.

Item

Scale

Signature of Receiving Officer Posting Checked (Initials) Recorded in Ledger (Initials)

Issues in Black

Receipts in Red

Observations Handing and Taking Over Periodical Check Date Deficiency Surplus

Unserviceable

Signature Handing Over

Notes: (2) (3)

(1)

No Alterations will be made on this form

The Field Copy of this inventory will be maintained by the Field Officer Final Receipt will be given by means of a Clearance Certificate

Misc. Form 3
Stocked by Govt Printer This form to be made out in triplicate and to be signed by the Official 'Taking Over' and by the Official 'Handing Over'. One copy to be retained by the Official 'Handing Over' one to be filed in the Office of the Department/Station, one to be forwarded to the Provincial Permanent Secretary or Head of Department/Branch as the case may be. ___________________________ FORM OF CERTIFICATE OF HANDING AND TAKING OVER OF STATIONS OR DEPARTMENTS Regulation No. 168 (2) Station Name of _______________} Department Handing Date of _______________ Over } Taking

Station LIST OF MOVABLE ASSETS, CASH, STAMPS, etc., as shown on the _______________ books on date of handing over. Department CASH: Balance on hand as per Cash Book Notes .. .. Silver .. .. Cheques (giving list) Postal Orders .. Stamps . . .. .. .. .. .. ..

LICENCE, PERMIT, RECEIPT and all other books of counterfoils as per lists attached. MOVABLE ASSETS: All Stores including Livestock and Rations. Certificate attached. GOVERNMENT BUILDINGS: As per lists attached. BOOKS, etc., HANDED OVER Stores Ledgers, Registers Cash Books ; Inventories ; Plant Ledger Stamps Register ; Ration Book ; Other (Specify) Safes Register ; and any other books of account or record-as per lists attached

Register of ; Money Received Expenditure and Commitment Ledger; Imprests Register Advances Register;

SAFES (including Strong Boxes)

Keys of Safe Drawer Marks or Numbers on Key of Safe Door Maker's Name Maker's Number Number Marks

OFFICE MACHINERY

Type of Machine

Make

GRZ Number

Serial Number

SUNDRIES (including Circulars) We, ............................................................. ................................................... do hereby certify that we have this ............................................................ 19 ........ handed over

....................................... day of ................................. and Station

taken over the ..................... ___________ .....and that the Government Property, Cash and Stamps, Stores, etc., Department Station as shown on the _____________ books are as set forth herein and were handed over and taken over correctly by us. Department Signature and Description of Official handing over .......... ...............................................................................................

Signature and Description of Official taking over ................. ............................................................................................ Certificate of Official handing over I also certify that the books handed over as listed above, have been properly and correctly written up to date. ......................................................................

Misc. Form 59
Stocked by Govt Printer

REPUBLIC OF ZAMBIA
PLANT, TOOLS AND EQUIPMENT CONTROL LEDGER ITEM.............

From Whom Received or to Whom Issued Date

Receipt or Issue Note No.

No. Acquired

No. Written Off or Transf'd

Total on Charge

Control No.

Returned from Field

Issued to Field

Accounts Form 137


Stocked by Office Equipment Services REPUBLIC OF ZAMBIA APPLICATION FOR OFFICE MACHINE Full address of Branch or Office requiring machine Ministry

Department

NOTE: To be sumitted in duplicate (2)

1. (b) (c) (d)

(a)

Type of machine required ..............................................................................................................................................

Number of machines required ............................ (i) Manual (ii) Electric Number of similar machines already held (i) Manual (ii) Electric ................................................. Number of competent operators ............................................................................................................................................

2. Additional information relevant to a typewriter only: (a) (b) (i) Number of portable typewriters required ......................................................................................................................... (ii) Number of standard typewriters required .................................................................................................................................... Type style required i.e ............................................... (i) Elite (12 letters per inch) (6 letters per cm)

(ii) Pica (10 letters per inch) (5 letters per cm)

(c)

Length of carriage required (Length of rubber on platen)....... (i) 12 inches (30 cm) ............ (ii) 15 inches (38 cm).......... (iv) 24 inches (61 cm) ..............

(iii) 18 inches (46 cm) .........

(d)

Machine to be used by Typist/Stenographer/Personal Secretary (delete whichever is not applicable).

3. In case of a machine to be returned or replaced: (a) Details of machine to be returned (i) GRZ No.. ...................................................................................... (ii) Serial No. ......................................................................................

......................................................................
(b) Reason for return ...................................................................................................................................................................

(c) (d)

Reason for replacement ........................................................................................................................................................ If no machine returned, reason for increase in total number of machines on charge:............................................................

4. Has a request been made for provision to be included in the Estimates to cover the cost of the machine/machines applied for? If yes:

(i) (ii)

How much has been requested for? K .............................. Your correspondence reference number ............................

Date 19 ...................... Signature of Indenting Officer...... Date ......................................... ,19 ..........


Signature of Head of Department

Title ..............................................................

Completed forms should be forwarded to: THE SUPERVISOR, OFFICE EQUIPMENT SUPPLY AND MAINTENANCE SERVICES P.O. Box 50191, LUSAKA

FOR USE IN OFFICE EQUIPMENT SUPPLY AND MAINTENANCE SERVICES (a) (c) (e) (g) (h) (i) Application Number...... Model Number...... GRZ Number/Numbers...... (b) Make of machine/machines

(d) Serial Number/Numbers (f) Length of typewriter carriage

If replacement, Number of machine to be returned, GRZ No. Machine to be dispatched by Road/Rail/Air/Hand .......................................................................................... Office Machine Issue Voucher No. ............ Date .............. (j) Remarks

Date .................. ,19 .............. Supervisor/OES and MS

Form No. OE1 Stocked by Office Equipment Services OFFICE EQUIPMENT MAINTENANCE SERVICE
OFFICE MACHINE REPAIR ORDER/CONSIGNMENT/ RECEIPT NOTE (To be Completed in Triplicate) MINISTRY DEPARTMENT FULL ADDRESS STATION .............................................................................. GRZ NUMBER The above machine is *forwarded for repairs. Or has been *replaced and is returned to stock. Known faults *and defects or *GRZ Number of replaced machine:

Date forwarded by Hand/Rail/Road/Air. (If forwarded by Rail/Road/Air, a copy of the Transport Consignment Note must be forwarded by post to the Officer-in-Charge of the workshop concerned, together with the Duplicate of this Repair Order.) *On completing repairs the machine should be returned to the above address by Hand/Rail/Road/Air and any transport charges should be charged to: Vote ; or *Arrangements will be made to collect the machine from the workshop on or about (date) ......................................... Signed ....................................................... FOR USE BY OEMS Machine Received-Date ................................ Returned to Stock-Receipt No. Signature Repaired and Returned to above Address by Hand/Rail/Road/Air. Date ............................................ Signature NOTES MACHINES FORWARDED TO WORKSHOP BY HAND Title

Original and Duplicate: Forwarded with machine. Triplicate: Retained by Sender. MACHINES FORWARDED BY ROAD/RAIL/AIR Original: Forwarded to workshop by post with copy of Transport Consignment Note. Duplicate: Forwarded with machine. Triplicate: Retained by Sender. ADDRESS OF WORKSHOPS LUSAKA: P.O. Box 50191 Lusaka. Telephone No.: 251995. Telegraphic Address: 'MAINSERVIS'. NDOLA: P.O. Box 71529, Ndola. Telephone No.: 3420. Machines requiring repair should be sent to the nearest workshop, but where there is little or no difference in distance machines should preferably be forwarded to Lusaka. *Delete as appropriate.

Stocked by Government Printer (To be issued in original only)


BOARD OF SURVEY ON STORES

Misc. Form No. 37

To: ................................................................. ................................................................... You are hereby appointed Chairman of an *Animal/Special Board of Survey on the *Unallocated/Allocated stores in charge of ................... The other members of the Board, with whom you should communicate immediately, will be .......................................................... .......................................................... The Board will assemble on/between Complete this report and, after completion of Section B by the officer-in-charge of the stores, forward it to the Permanent Secretary to the Ministry concerned (or Provincial Permanent Secretary in the case of Boards appointed in Provinces).

{
Date ............................................................................ GENERAL DIRECTIONS FOR BOARD (a)

*Permanent Secretary Ministry of Finance or Permanent Secretary Province

The stores ledger(s) must be balanced before the Board begins its survey

(b) Particular attention should be paid to an accurate survey of foodstuffs where these are kept in bins or other receptacles, and Members of the Board should use their discretion as to the manner in which an accurate. estimate of the contents can best be made. (c) Any article found in store but not on charge must be shown in the excess column of Misc. Form 38. (d) There should be included a list of stock which in the Board's opinion is 'dead or domant' and recommendations should be made for dealing with such stock.

(e) The Board should arrange for all unserviceable stores to be removed to a separate place where they will be kept until directions are received as to their disposal. (f) Circulation of papers connected with the Board will be in the order shown on this form. *Delete whichever is inapplicable.

SECTION A FINDINGS OF THE BOARD We have inspected the stores referred to overleaf and have found the quantities to be in agreement with the records of the officer-in-charge (with the exceptions set out on Misc. Form 38 in triplicate). 2. Our recommendations regarding stores reported to us as being unserviceable are contained on Misc. Form 39 enclosed in triplicate. 3. Our opinion of the store accommodation and the arrangement and general condition of the stores is as follows: *Satisfactory/As reported on Misc. Form 40 enclosed in triplicate. ................................................ Chairman Date ....................................................... *Delete as necessary SECTION B Explanation by Officer i/c Stores of Surpluses/Deficiencies on Misc. Form 38 .................................... ....................................

Members

Date ............................................................... Officer i/c

CIRCULATION OF PAPERS ON COMPLETION OF BOARD (Sections C, D, E, F, G and H) SECTION C From Board to the Permanent Secretary to the Ministry of .................................................................... / Province Papers forwarded for your attention. Date ............................................................... Chairman SECTION D From the Permanent Secretary to the Ministry of ............................................ / Province to Officer* who appointed Board. (Head of Department should comment hereunder on the Board's findings and recommendations and any special features such as large numbers of deficiencies of any one item, etc. Comments on the Board's remarks on storage accommodation should not be made in this Section but on Misc. Form 40.) Date ...............................................................

Permanent Secretary to the Ministry ........................................................................ of *i.e. Provincial Permanent Secretary or the Permanent Secretary, Ministry of Finance, where stores are situated in Lusaka. SECTION E (See notes below) From the Permanent Secretary, Ministry of ./ Province to the Secretary to the Treasury of the Ministry of Finance. On being satisfied with the value of the Allocated Stores falling within the categories quoted on this page and on being satisfied that theft, fraud, negligence, etc., are not involved in the case of deficiencies reported on Misc. Form No. 38, I authorise the deficient and unserviceable stores listed on Misc Forms Nos 38 and 39 respectively to be written off and for the excess stores listed thereon to be taken on charge in accordance with the decision which I have recorded on the said forms. Date ............................................................... Permanent Secretary, Ministry/Province NOTES: (i) Section E to be used only when the total value of the deficient and unserviceable stores listed on Misc. Forms 38 and 39 does not in each category exceed K200 and the original value of any individual item thereof does not exceed K100. (ii) All unallocated stores and where theft fraud or negligence, etc., are involved, allocated stores which are subject to such theft, fraud or negligence may be authorised to be written off charge by the Permanent Secretary, Ministry of Finance only. (iii) This section must be completed by the Permanent Secretary or Controlling Officer personally. SECTION F From Provincial Permanent Secretary to the Secretary to the Treasury, Ministry of Finance The value of stores deficient and unserviceable exceeds the values quoted on page 3. I submit the following recommendations. Misc. Forms 38, 39 and 40 are enclosed in triplicate.

Permanent Secretary Date ............................................................... SECTION G From the Secretary to the Treasury, Ministry of Finance to the Permanent Secretary to the Ministry of (For action taken in accordance with the decisions recorded on Misc. Forms 38 and 39) Province

Date ............................................................... Secretary to the Treasury Ministry of Finance SECTION H From the Permanent Secretary to the Ministry of the Head of Department to

This cover with copies of Misc. Forms, 39 and 40, are forwarded for action to be taken in accordance with the decisions recorded thereon and for retention by the officer i/c store concerned.

Secretary to the Treasury* Date ............................................................... of

*Provincial Permanent Secretary in the case of stores in Provinces.

Misc. Form No. 38


(To be submitted in triplicate) Stocked by Govt Printer BOARD OF SURVEY ON ALLOCATED/UNALLOCATED STORES ON CHARGE To .................................................................................... At .............................................................................. ...... STATEMENT OF DISCREPANCIES Actual stock found ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... Excess (No. of items) ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... Total Deficiency (No. of items) ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... Total

Article ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... .......................

Ledger balance ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... ....................... .......................

Value K ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... n ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .........

Value* K ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... n ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .........

SIGNATURES OF MEMBERS OF THE BOARD: Chairman ..................................................................... Date .............................................................................. Members ................................................................... ......................................................................................

*Actual original cost if known, otherwise estimated original cost. **Delete whichever is inapplicable. Note: Columns must be totalled. Decision DECISION Date ................................................................................... ........................................................................................... Secretary to the Treasury, Ministry of Finance REPUBLIC OF ZAMBIA

Stocked by Govt Printer

BOARD OF SURVEY Misc. Form No. 39


SURPLUS/REDUNDANT/UNSERVICEAB LE STORES(To be submitted in triplicate) C O N D

I T I O N

O F

S T O R E S S .

S E R V I C E A B L E . U / S

U N S E R V I C E A B L

E . R

R E P A I R A B L E . D

D O U B T F U L , i . e . , w h e n

t h e

B o a r d

c a n n o t

i m m e d i a t e l y

d e t e r m i n e

t h e

c o n d i t i o n

o f

t h e

s t o r e s . LIST OF STORES IN CHARGE OF .........................................FOR INSPECTION BY BOARD OF SURVEY Officer-in-charge of Stores* reasons for submission for Boarding (6)

No. (1) 1 2 3 4 5

Description of Article (2)

Quantity (3)

Individual Cost* (4) K n

This Column must be totalled Total Cost* (5) K n

Condition of Stores

Finding an should be include the e.g., to be etc.

TOTAL . . K

*Original cost if known, otherwise estimated original cost. Columns (1) to (6) to be completed by the Officer i/c stores.

Date ............................... .... Signed ........................... ......................... Column (5) must be totalled.

GENERAL COMMENTS OF BOARD THIS SECTION MUST BE COMPLETED AND SIGNED BY ALL MEMBERS OF THE BOARD

Date ................................................................................. DECISION:

.................................................................... 19 .................

NOTE-Please ensure that this Certificate is completed so that it shows clearly what action has been taken (it will be insufficient to state "as above") and that it is signed by two officers who witness the disposal and/or destruction of the stores.

CERTIFICATE OF DISPOSAL We certify that disposals have been carried out in accordance with the decisions recorded above and that the destruction of those items which have been ordered to be disposed of by destruction has been carried out in the following manner:

.......................................... Signature Date ................................ .......................................... Signature

Misc Form No 40 Stocked by Govt Printer (To be submitted in triplicate) BOARD OF SURVEY ON STORES
Report on Storage Accommodation at SECTION A

Comments of the Board ................................................. Chairman ................................................ ................................................ } (Members) Date ................................................

SECTION B Comments of the Head of Department Date .......................................................... ................................................................... Head of Department

SECTION C Comments of the Provincial Permanent Secretary in the case of accommodation other than in Lusaka

Date ...........................................................

................................................................... Permanent Secretary ................................................... Province

SECTION D To the Permanent Secretary to the Ministry of .......................................................... Submitted for record and any necessary action. Date .......................................................... ................................................................... Secretary to the Treasury, Ministry of Finance

Stocked by Govt Printer


LIST OF EXPENDABLES TO BE WRITTEN OFF

MISC. FORM No. 41

LIST OF EXPENDABLE STORES IN CHARGE OF ................ Department, ................ at ..................................................................................... broken, damaged or become permanently unserviceable through fair wear and tear during the period from (1) ......... to (2) ....... (State the date as shown in (2) of the last Misc. Form No. 41 or the date of the last Board of Survey) (1) Description of article broken, damaged or unserviceable (2) (3) This column to be totalled Cost* K n (4) (5) Opinion of the Officer i/c: accidental, fair wear and tear Explanation

No.

Original cost, if known, otherwise estimated original cost TOTAL

CERTIFIED that I personally have inspected the above items and

NOTES-To be forwarded in triplicate to the Head of Department concerned who will record his decision on the reverse of this form, return it to the Officer i/c Stores, sending one copy to the Ministry of Finance, Stock Verification Section, Lusaka, and retaining the other copy for record. Provincial Permanent Secretary in the case of Provincial and District Government Stores. [P.T.O.]

To the Officer i/c Stores: I have noted the information recorded overleaf and, being satisfied with the information given, I hereby authorise you to write off the items listed (with the following exceptions):

Date ..........................................................

................................................................... Head of Department

To the Secretary to the Treasury, Ministry of Finance: Forwarded for your information and record.

Date ...........................................................

................................................................... Head of Department *

*Provincial Permanent Secretary in the case of Provincial and District Government Stores

CERTIFICATE OF DISPOSAL We certify that disposals have been carried out in accordance with the decisions recorded in Column 7 overleaf and that the destruction of those items which have been ordered to be disposed of by destruction has been carried out in the following manner: ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... .................................................. Signature Date .......................................................... .................................................. Signature

CLAIMS REGISTER

Accts Form 173


Stocked by Govt Printer Amount claimed (value) Including freight and Quantity other charges short or broken Vote Charged

Indent/ Order/ Requisition No. Date

Discrepancy Report No.

Consignment Note No.

Description of Articles

Specification of articles including Model or Part No.

Date and Re No. of claim

Misc. Form 58A


(Old Accts Form 157A)

Stocked by Govt Printer MASTER COPY RECORD OF FURNITURE, TOOLS, EQUIPMENT ISSUED AND RECEIVED CONTROL No. ................................ Date Folio No. Item Scale

Signature of Receiving Officer Posting Checked (Initials) Recorded in Ledger (Initials) Issues in Black Receipts in Red Observations Handing and Taking Over Periodical Check Date

{
Signature Handing Over

Deficiency

Surplus

Unserviceable

Notes: (1) No Alterations will be made on this form. (2) The Field Copy of this inventory will be maintained by the Field Officer. (3) Final Receipt will be given by means of a Clearance Certificate.

MASTER COPY Misc. Form 22


Stocked by Govt. Printer RECORD OF HOUSEHOLD FURNITURE, ISSUED AND RECEIVED

..................................................

Road.

House/Flat No. .........................................................

Type .....................

Plot No. ........................................................ ........ CONTROL No.............................. ......................... Date Folio No. Item Dining Tables .. .. Sideboards .. .. Chairs (Dining) .. .. Cupboards .. .. Settees (Dunlopillo) . . .. Settees (Morris). . . . .. Centre Tables .. .. Occasional Tables (Small). . . . Occasional Tables (Large) .. Writing Tables .. .. Armchairs (Morris) . . .. Armchairs (Dunlopillo) .. Bookcases .. .. Verandah Tables. . . . .. Chairs (Christop). . . . .. Beds (Wooden). . . . .. Mattresses (Spring) . . .. Beds (Iron) .. .. Mattresses (Coir). . . . .. Scale .. .. Keys ......... .. .. Keys ......... .. .. .. .. .. .. .. .. .. .. Keys ........ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

Dressing Tables Chest of Drawers . . Dressing Chests .. Mirrors . . .. Wardrobes .. Dressing Stools. . . . Bedside Cabinets . . Bathroom Stool. . . . Meatsafe . . .. Tables, Kitchen. . . . Chairs, Kitchen .. Dustbins . . .. Firegrates .. Fireside Chairs .. Stoves . . .. Chambers .. Plugs (Electric) .. Keys (Other than Furniture)

.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

Keys ......... Keys ......... Keys ......... .. .. Keys ......... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

Signature of Receiving Officer

Posting Checked (Initials) Recorded in Ledger (Initials) Issues in Black Receipts in Red

Signed copies of this Inventory will be retained by the occupant and the Quarters Officer. The Housing secretary must be informed by means of Form 21 three weeks before house is to be vacated and arrangements made with Quarters Officer for taking over the house. The keys MUST be deposited with the Quarters Officer when Quarters are vacated. Observations Handing and Taking Over Periodical Check Deficiency Surplus Unserviceable Signature Handing Over

Date

Notes

(1) No Alterations will be made on this form. (2) The Field Copy of this inventory will be maintained by the Field Officer. (3) Final Receipt will be given by means of a clearance Certificate.

REPUBLIC OF ZAMBIA

Form NPW33A
MASTER REGISTER OF IVORY AND RHINOCEROS HORN Stocked by Dept of

(In accordance with sections 104, 105, 106 and 107 of the National Parks and Widlife Act, Cap. 316 ) National Parks and Wildlife Marks Month ........................................... ........................................... Year ..................

No. .................. 1 2 3 4 5 6 7 8 9 10 Certificate of ownership

Date of Registration

Owner's name and address National (see note 1 Registration Card Registered below) or Passport number of tusk Number or horn

Ivory label number

Weight (Kg)

How obtained (See note 2 below)

Sig Place of issue Number Date

reg O

ORIGINAL AND DUPLICATE-to Director of National Parks and Wildlife Service, Private Bag 1, Chilanga. To be submitted monthly. TRIPLICATE-to remain in book (completed books to be returned to Director, National Parks and Wildlife Service, Private Bag 1, Chilanga. NOTE 1-In the case of Government trophies, record the owner simply and put a dash in Column 3. NOTE 2-How obtained. Fill in either: Elephant Licence or Special Licence or Import from (country) (Permit).................... or Government Trophy (Found....................) or Government Trophy (control). or Government Trophy (illegal). NOTE 3-The ivory or rhinoceros horn must be marked with metal dies with the appropriate marks set out in the following manner: District mark; year; consecutive number; weight. (e.g.: CHI/84/17/36)

Form NPW 33B


Stocked by Dept of National Parks and Wildlife NATIONAL PARKS AND WILDLIFE ACT REGISTER OF IVORY AND RHINOCEROS HORN No. ......................... (SUBSIDIARY REGISTER FOR GOVERNMENT IVORY AND RHINOCEROS HORN)

STATION ...................................... 1 2 Registration marks of tusk or horn 3

MONTH ...................................... 4 International registration marks of tusk or horn 5

YEAR ......................... 6 Full name and signature of receiving officer 8 9 Certificate of Ownership Place of Issue Number Date 7

Date of Registration

Grade

How obtained

Original: To Director of National Parks and Wildlife Service, Private Bag 1, Chilanga Duplicate: To Remain in Book

NATIONAL PARKS AND WILDLIFE ACT


REGISTER OF IVORY AND

Form NPW 33C


HORN

RHINOCEROS

Stocked by Dept of National Parks and wildlife (Subsidiary register for ivory and rhinoceros horn belonging to individual persons) Station .......................................Month .................................. Year .....................

No.

6 Certificate of Ownership

Date of registration

Registration marks of tusk or horn

International Registration marks of tusk or horn

How obtained

Number

Place of issue

Date

Number

Original: To Director of National Parks and Wildlife Service, Private Bag 1, Chilanga Duplicate: To remain in book

REPUBLIC OF ZAMBIA

REGISTER OF GOVERNMENT TROPHIES Form NPW 33D


(Other than Ivory and Rhinoceros Horn) Station ................................................ Month ............................................... Year ....................... 1 2 3 4 5 6 7 8 9

Certificate of O Full name Date received From whom received Description of trophy Quantity Weight (Kg) How obtained Signature of of receiving officer Receiving officer Numbe

Original-To Director, National Parks and Wildlife Service, Private Bag 1, Chilanga Duplicate-To remain in the book Col. 5-Will apply to hippo teeth, warthog and bushpig tusks Col. 6-Fill in either; Forfeited Control Found

P.H.81
No. REQUISITION/ISSUE VOUCHER FOR MEDICAL SUPPLIES TO: GENERAL MANAGER Medical Stores Ltd P.O. Box 30207 LUSAKA

Consign to Postal Address

Rail/Road Address (if any) Charge to: Department Date ............................................. Address ............................................................. Vote ............................................................
Section No. ... Sheet No. .. (Note-One section only on one sheet) Amended ITEM REQUIRED (Use catalogue sequence) Quantity in Catalogue Units Code No. 14--19 Code No. 14--19 Unit

MD I I

FOR MEDICAL ST Quantity Supplied 20--23

KK I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

DATE APPROVED (PMO or other authorised officer) Requisitionist Signature ...............................................................................

DATE RECEIVED AT MEDICAL STORES

As

Da

Ch Certified items received in good condition and those marked MA taken on Ledger Charge.

Da

Dis

Pa Received by ......................... Office .............................................................

Da

(STAMP)

(STAMP)

M.E. (b) Stocked by Govt. Printer REPUBLIC OF ZAMBIA


PRELIMINARY ACCIDENT REPORT (to be completed in duplicate) This form must be completed and forwarded to the Secretary, of the Standing Accidents Board, P.O. Box 50062, Lusaka if the accident took place in the Lusaka area or, the Secretary of a Provincial Standing Accidents Committee if the accident took place in one of the provinces, within forty-eight hours of an accident occuring. It must be followed up by the completed Traffic Accident Forms M.E. 1 (a) Parts I and II within seven days. Date of accident: exact place ................................. time of accident: ........................... day-time ......................................... night-time Province: ........................................................... District: Reg. No. full names of driver and his department*

Full names of the authorising officer Department: (Responsible for the vehicle at the time of the accident)* State whether specialist vehicle, on permanent hire or casual hire: Name of third party involved Registered number of other vehicle involved Other vehicle damaged? Third party injured? Damage to other property or animals? Signature: (Reporting Officer) (As amended by S.I. No. 69 of 1995)

MSB Form No. 65


Stocked by MSB Original: to be retained 1st Copy: Officer I/C Plant 2nd Copy: Master Shop 3rd Copy: Sub Shop 4th Copy: History File

REPUBLIC OF ZAMBIA MINISTRY OF WORKS AND SUPPLY INITIAL PLANT INSPECTION REPORT Department Type Station Workshop Job No. Misuse and Neglect Report No. Item 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Report of User Code GRZ Number Engine Number PLANT DETAILS Chassis Hours Worked Number Chassis Engine

Log Book Held Hours Worked (Chassis) at Last Service Defects

Completed

CODE W = Workshop Attention D = Operator's Attention O = Under Observation S = Serviceable O = Completed During inspection

REMARKS

Date of inspection

Inspector

Station

Signature .

(As amended by S.I. No. 69 of 1995)

MSB Form No. 64


Stocked by MWS Original: to be retained 1st Copy: Officer I/C Vehicle 2nd Copy: Master Shop 3rd Copy: Sub Shop 4th Copy: History File REPUBLIC OF ZAMBIA MINISTRY OF WORKS AND SUPPLY INITIAL VEHICLE INSPECTION REPORT Department .... .... Type Station ....................... Workshop Job No. .... Misuse and Neglect Report No. .... Fuel in Tank ............. Mileage Last Service ............................................................................... Log Book Held............................................................................................................................ Defects Complete GRZ Number Engine Number VEHICLE DETAILS Chassis Number Speedo Reading

Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Code

Tyres Tyre Pressure Percentage of Wear

LHF

RHF

LHR

RHR

Spare

LHR (Inner)

RHR (Inner)

Code: W = Workshop Attention D = Driver's Attention O=Under Observation S = Serviceable Remarks ................................................. ................................................................ Date of inspection Inspector. ......................................

C = Completed during Inspection ............................................................... Station .......................................

Signature.......................................................... (As amended by S.I. No. 69 of 1990)

REPUBLIC OF ZAMBIA

MINISTRY OF WORKS AND SUPPLY 28


REPAIR ASSESSMENT Date: ....................................... GRZ No. ......................................... Make ............................ Department Report No. ........................... Inspector .............................. Station K N K

ME

Form

ACCIDENT DAMAGE REPAIRS Labour ......................................................................... Engine (where applicable) .......................................... Tyres (where applicable) ............................................. Other material ............................................................. Overheads ................................................................... .......... ______________________________________ TOTAL ............................ ______________________________________ OTHER REPAIRS Labour ......................................................................... Engine (where applicable) .......................................... Other material (excluding tyres and tubes) ................. Overheads ................................................................... .......... ______________________________________ K

TOTAL (including accident damage) ......................... ______________________________________ Estimated value of vehicle before repair .................... ______________________________________ TOTAL ______________________________________ Estimated value of vehicle after repair ....................... .......... ______________________________________ Whether or not accident report submitted ................... Recommendation of Mechanical Engineer (W) ......... REMARKS:

REPUBLIC OF ZAMBIA Ministry of Finance Province P.O. BOX ....................................................... (STATION) TRAFFIC ACCIDENT DAMAGE GRZ FILE: ........................................................ TYPE OF VEHICLE ........................................................ DRIVER(S) DEPARTMENT DATE OF ACCIDENT ..................................................... DAMAGE As its .......................................................................................... meeting the Board/Committee discussed the above detailed case and it was

STANDING ACCIDE

Would you complete Accounts Form 92 (Loss Report Form) in terms of Financial Regulation No. 193.

for Secretary Standing Accidents Board/Committee cc The Permanent Secretary, Ministry of Finance-Losses Section *Delete as appropriate

Form ME1 (a) Part 1


(Revised) Stocked by Government Printer REPUBLIC OF ZAMBIA TRAFFIC ACCIDENT REPORT Number of copies required-8 This part is to be completed by the driver involved in the accident or, if he is incapacitated, by the person best able to do so. Province Department responsible for the vehicle (at the time of accident) ..................... ................................................................. .........................

Vehicle No. GRZ ......................................... Make and type .....

Condition of vehicle before accident. ................................................................. Kilometres Date of accident ..................... time .................... exact place ................ ...........

Details of other Driver and Vehicle

Details of injured persons (state whether injured person is Government Servant)

Name .............................................................. ................................ Address ................. .......................................................................... Vehicle No. ............... Make and Type ................... ........................ If GRZ, Department responsible for it (at time of accident) ............................................................................. ............................ Insurance Company .......................................... ............................ Name .......... .................................................................................... (1) .................................................................................................... (2) .................................................................................................... (3) .................................................................................................... Name (b) In other vehicle (1) ............. ...................................... (2) ........................... ........................ (3) ........................................... ........ Name (b) In Government vehicle (1) ............ ....................................... (2) ........................... ........................ Address

Address . Address

Witnesses (attach statement if possible)

Name (1) ................................. .................. (2) ........................................... ........ (3) ........................................... ........ (a) Other vehicle (note previous defects) (b) Property (c) Animals (a) Other Vehicle

Details of damage or injury caused to the other vehicle, to property or to animals (In the case of property or animals give name and address of owner) Speed at time of accident

Km/h (b) Government Vehicle ............ Km/h

Place 'X' in appropriate box where provided Road Surface and Alignment Tar Gravel Good Surface Bad Surface Straight Bend Bridge Junction Clear Misty Good Fair Dusty Bad (a) Other Vehicle: Lit Not Lit (b) Government Vehicle: Lit Not Lit Fair Surface Crossroad Raining Daylight

Weather Conditions Visibility Lighting

Dust

Dark

Warning Signals Reported to

Signature of Driver

(a) Other Driver: Given Not Given (b) Government Driver: Given Not Given (a) Police at .......... ....... Date............ Time .................................... (b) Boma at ................ . Date............ Time .................................... Date SKETCH OF ACCIDENT SCENE

State or show clearly the width of the road, i.e. the carriageway, the length of any skid marks, the position of vehicles involved in the accident and any road signs. Road signs should be described as, e.g. BEND, STEEP HILL, WARNING NOTICE

DISTRIBUTION-Send 7 copies to the Secretary, Standing Accidents Board, P.O. Box 50062, Ridgeway, Lusaka, if the accident took place within the Lusaka area or to the Secretary of the respective Provincial Standing Accidents Committee if the accident took place outside the Lusaka area. Send 1 copy to the Ministry of Works and Supply. THE FOLLOWING SECTIONS MUST BE COMPLETED BY THE REPORTING OFFICER (Place 'X' in appropriate box where provided) BEFORE FILING UP THIS FORM, PLEASE CONSULT MINISTRY OF WORKS AND HOUSING CIRCULAR NO.4 OF 1968 (MWH7/5/7) DATED 27TH NOVEMBER, 1968 Number of Copies Required-8 Details of Government Driver Name . Official Appointment and Department/Ministry ............................................................................................. Government Service: Years .............................................. . Months ....................... Rate of Pay ..................... .................. Driving Licence No. (State whether provisional or permanent and date of issue) ................................... .......... ......................................................................... .................... ......................................................................... .................... Certificate of Competency No. and date of issue . .............. ......................................................................................... .... Valid for categories (See Note overleaf) ........................ .... Total driving experience: Years.................. Months ........... .... Period for which he has been driving GRZ vehicles: Years ...................................... Months ................................ ..... Number of previous accidents admitted by driver: (a) total .............................. (b) to blame ......................... ... (a) (b) (c) (d) (e) (f) Journey from ................... to. ....... ........................................ Reason for journey ................................ ............................... ................................................................ ............................... Authorised by (give name and appointment of authorising officer) ................................................................... ............... Load details .......................................................................... No. of seats in cab or vehicle ............................................. .. No. of passengers in cab .................................................... . No. of hours driver employed: (i) on the journey ................................................................ (ii) total for day .................................................................. .

Qualifications and Experience

Journey and Load Details

Details of Government Vehicle and Damage (b)

(a) (c) (d)

On permanent hire Casual hire Special vehicle On duty Not on duty On authorised route Not on authorised route Details of damage (in brief) ...... ............................................

(e)

Vehicle sent for repair to ................. ..................................... on (date) ................................................. ..............................

DRIVER'S STATEMENT (Must be in typescript if possible) Statement made by ........................... ............................. this ........................... day of ....................................................

Recorded and signed in my presence Signature of person making statement on (date): ........................... ...................

. ......................................................................................... Reporting Officer (Please type or print name, rank and appointment) What disciplinary action (if any) has been taken against the driver? Date .............................................................. ....

Is driver still employed by Government? ............

..............................................................................................................

*Opinion of reporting officer as to responsibility, giving full reasons: Signature .................................................. Rank and appointment .............................. Date .......................................................... .................... .................... .....................

*The Reporting Officer is to be the local superior officer of the Department or Ministry responsible for the vehicle or, if not available, an appropriate officer of the Provincial and District Government. NOTE-Classes of driving licences and categories of certificates of competence. These are set out in detail in paragraphs 16, 17 and 19 of Circular No. 4 of 1968 and the correct class/category MUST be recorded, after inspection by the Reporting Officer. DISTRIBUTION-Send 7 copies to the Secretary, Standing Accidents Board, P.O. Box 50065, Lusaka, if the accident took place within the Lusaka area or Secretary of the respective Provincial Standing Accidents Committee if the accident took place outside the Lusaka area. Send 1 copy to the Ministry of Works and Supply.19

CHAPTER 348 THE TREASURY BILLS ACT


ARRANGEMENT OF SECTIONS

Section 1. 2. 3. 4. 5. 6. 7. Short title Power to borrow by the issue of Treasury Bills Principal of bills Proceeds of bills Amounts and period of currency of bills Repayment of bills Cancellation of repaid bills

CHAPTER 348

TREASURY BILLS

38 of 1929 Government An Act to enable money to be borrowed on Government of the Republic Notices of Zambia Treasury Bills; and to provide for matters incidental to or 315 of 1964 connected therewith. 497 of 1964 Statutory [14th November, 1929] Instrument 159 of 1965

1. This Act may be cited as the Treasury Bills Act. 2. The Minister, whenever authorised thereto by a resolution of the National Assembly, may request the Crown Agents for Oversea Governments and Administrations (in this Act referred to as "the Crown Agents") to borrow by the issue in London of Government of the Republic of Zambia Treasury Bills (in this Act referred to as "bills") or may borrow by the issue in the Republic of such bills, sums not exceeding the amount specified in such resolution; and the Minister, or the Crown Agents with the approval of the Minister, may also borrow from time to time in manner aforesaid such sums as may be required to

Short title Power to borrow by the issue of Treasury Bills

pay off at maturity bills already lawfully issued by them respectively and outstanding. (As amended by G.N. No. 315 of 1964 and S.I. No. 159 of 1965) 3. The principal moneys represented by the bills issued under the Principal of provisions of this Act are hereby charged upon and shall be payable out bills of the general revenues and assets of the Republic. (As amended by S.I. No. 159 of 1965) 4. The proceeds of the issue of the bills by the Crown Agents shall be Proceeds of bills paid into the general account of the Republic with the Crown Agents. (As amended by S.I. No. 159 of 1965) 5. Every bill issued under this Act shall be for the sum of K2,000 or a Amounts and multiple of K2,000 and shall be payable at par at such time or times as period of the *Minister, or the Crown Agents on his behalf, shall before the issue currency of bills of such bills fix and determine, but not later than one year from the date of issue. *Powers delegated to Governor of Bank of Zambia by Gazette Notice No. 1559 of 1965. (As amended by S.I. No. 159 of 1965) 6. The Minister shall appropriate out of the general revenues of the Repayment of Republic the necessary sum to pay the principal represented by the bills, bills and, where the issue has been in London, shall remit that sum to the Crown Agents in London at such time as will enable them to pay the principal at their office in London when the bills fall due. (As amended by S.I. No. 159 of 1965) 7. Where the issue has been in London, upon repayment of the Cancellation of principal moneys represented by the bills, the bills shall be delivered up repaid bills to the Crown Agents to be by them cancelled and forwarded to the Government. (As amended by S.I. No. 159 of 1965) CHAPTER 349 THE MINISTER OF FINANCE (INCORPORATION)

ACT
ARRANGEMENT OF SECTIONS

Section 1. 2. 3. 4. 5. 6. 7. Short title Interpretation Incorporation of Minister of Finance Authentication, etc. of seal and documents Certificate of Minister of Finance conclusive Transfer of property Trusts

CHAPTER 349

MINISTER OF FINANCE (INCORPORATION) An Act to create the Minister of Finance a corporation sole, and to provide for matters incidental thereto. [18th April, 1958]

4 of 1958 19 of 1959 Government Notice 497 of 1964 Statutory Instrument 159 of 1965 Short title

1. This Act may be cited as the Minister of Finance (Incorporation) Act. (As amended by No. 19 of 1959) 2. For the purposes of this Act, the expression "the Minister of Finance" shall mean the person for the time being lawfully discharging the functions of Minister responsible for finance. (As amended by No. 19 of 1959)

Interpretation

3. The Minister of Finance shall be a corporation sole by that name, Incorporation of with perpetual succession and an official seal, and with power to acquire Minister of and hold in that name lands, Government securities, shares in any Finance

company, securities for money, and real and personal property of every description, to sue and be sued, to execute deeds, to enter into agreements binding on himself and his successors in office, and to do all other acts necessary or expedient to be done in respect of the above matters or any of them. (As amended by No. 19 of 1959) 4. (1) The official seal of the Minister of Finance shall be officially and Authentication, etc., of seal and judicially noticed and shall be authenticated by the signature of the Minister of Finance or of any public officer authorised by the *Minister documents of Finance, by Gazette notice, in that behalf. * Permanent Secretary, Minister of Finance, authorised by Gazette Notice No. 1016 of 1965. (2) Every document purporting to be an instrument made or issued by the Minister of Finance and to be sealed with the seal of the Minister of Finance authenticated in manner provided by subsection (1), or to be signed by an officer authorised under subsection (1), shall be received in evidence and be deemed to be so made or issued without further proof, unless the contrary is shown. (As amended by No. 19 of 1959) 5. A certificate signed by the Minister of Finance that any instrument purporting to be made or issued by him was so made or issued shall be conclusive evidence of that fact. (As amended by No. 19 of 1959) * Permanent Secretary, Minister of Finance, authorised by Gazette Notice No. 1016 of 1965. 6. Upon and by virtue of the appointment of any person to be the Transfer of Minister of Finance, the benefit of all deeds, contracts, bonds, securities property or things in action vested in his predecessor at the time of his predecessor ceasing to hold office, shall be transferred to and vest in and enure for the benefit of the person so appointed in the same manner as if he had been contracted with instead of his predecessor, and as if his name had been inserted in all such deeds, contracts, bonds or securities instead of the name of his predecessor. (As amended by No. 19 of 1959) Certificate of Minister of Finance conclusive

7. All property vested in the Minister of Finance under or by virtue of Trusts the provisions of this Act shall, except where and to such extent as the property is held on other trusts, be held in trust for the President on behalf of the Government. (As amended by No. 19 of 1959 and S.I. No. 159 of 1965) CHAPTER 350 THE GENERAL LOAN AND STOCK ACT
ARRANGEMENT OF SECTIONS

Section 1. 2. 3. 4. 5. 6. Short title Interpretation Loans to be raised by debentures or stock Loans to be a charge upon general revenues Borrowing upon debentures Amount of each debenture

7. Debentures may be redeemed by annual drawings or by purchase in the market or on a date fixed 8. 9. 10. 11. 12. 13. 14. 15. Interest coupons Form of debentures and coupons Debentures and coupons transferable by delivery Registry of debentures Payment of interest Mode of providing for payment of interest on debentures Further sums to be remitted for the redemption of debentures Application of sinking fund

16. Creation of sinking fund for redemption of debentures payable on a fixed date 17. Disposal of sinking fund when debentures are redeemed by purchase or by annual drawings 18. 19. 20. Appointment of day for drawing of debentures Notice of time and place appointed for drawing Mode of drawing

21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.

Notice of debentures drawn for redemption Payment of drawn debentures Cesser of interest from day appointed for payment of principal Redeemed debentures to be cancelled Date of redemption of stock Mode of providing for payment of interest on stock Provision for payment of principal of stock Creation of sinking fund Cesser of sinking fund contributions Charge upon general revenues Expenses to be paid out of sinking fund Powers of Minister Exchange of securities for stock Converted securities to be cancelled

35. Trustees to apportion amount of sinking fund released by conversion 36. 37. Sinking funds released: how to be disposed of Creation, inscription, issue, conversion and transfer of stock

38. Making of regulations under section 16 of the Colonial Stock Act, 1877 39. Raising of loans in the Republic

CHAPTER 581

GENERAL LOAN AND STOCK

15 of 1931 18 of 1949 An Act to declare the terms and conditions applicable to loans 38 of 1950 authorised to be raised by the Government of the Republic of Zambia; to 19 of 1952 provide for the creation of stock; and to provide for matters incidental to 40 of 1952 or connected with the foregoing. 54 of 1955 Government [27th March, 1931] Notices 315 of 1964 497 of 1964 Statutory

Instrument 159 of 1965 Whereas it is expedient to define in one Act the terms and conditions Preamble applicable to loans hereafter authorised to be raised by the Parliament of Zambia; And whereas it is expedient to provide for the creation of stock, and to enable the Republic to take advantage of the provisions of a British Act entitled the Colonial Stock Act, 1877, and the subsequent Acts on the same subject: (As amended by No. 18 of 1949 and S.I. No. 159 of 1965) 1. This Act may be cited as the General Loan and Stock Act. Short title

(As amended by No. 18 of 1949) 2. In this Act, unless the context otherwise requires"Crown Agents" means the person or persons for the time being acting as the Crown Agents for Oversea Governments and Administrations, or any other person or persons appointed for the purposes of this Act by the Minister; "International Bank" means the International Bank for Reconstruction and Development. (World Bank) (As amended by No. 40 of 1952, No. 54 of 1955 and S.I. No. 159 of 1965) 3. Whenever by any Act authority shall have been given, or shall hereafter be given, to raise any sum of money for the purposes mentioned in such Act, the Minister, or the Crown Agents acting on his behalf, may from time to time, as he or they may deem expedient, raise such sum either by debentures or by Zambia stock, or partly by debentures and partly by stock, or by a loan raised in any other manner: Provided that in the case of any such loan the Minister, or the Crown Agents acting on his behalf, may issue any stock or bond which may be required by the International Bank in accordance with the terms of such loan, and such stock or bond shall, except where the terms of any Loans to be raised by debentures or stock Interpretation

agreement entered into between the Minister and the International Bank provide otherwise, be subject to the provisions of this Act. (As amended by No. 18 of 1949, No. 40 of 1952, No. 54 of 1955 and S.I. No. 159 of 1965) 4. The principal moneys and interest represented by debentures or stock issued under the provisions of this Act are hereby charged upon and shall be payable out of the general revenues and assets of the Republic. (As amended by No. 18 of 1949 and S.I. No. 159 of 1965) 5. When the Minister, or the Crown Agents acting on his behalf, shall Borrowing deem it expedient to raise money by debentures, such debentures shall upon debentures be issued in the United Kingdom on behalf of the Government by the Crown Agents, upon the best and most favourable terms that can be obtained, and shall be signed by any one of them on that behalf. (As amended by No. 19 of 1952 and S.I. No. 159 of 1965) 6. Every debenture issued under the provisions of this Act shall be for Amount of each the sum of not less than two hundred kwacha. debenture 7. The debentures shall be redeemable at par at the option of the Government by purchase in the market or by annual drawings, or on a date to be named in that behalf by the Minister, or by the Crown Agents acting on his behalf, as determined when issuing the debentures, such date not being later than sixty years from the date of issue, from and after which date all interest on the principal money represented thereby shall cease and determine whether payment of the principal shall have been demanded or not. (As amended by S.I. No. 159 of 1965) 8. There shall be attached to every debenture coupons for the payment Interest coupons of the interest to become due in each half-year upon the principal represented by the debenture. The coupons shall be sufficient in number to provide for the payment of the interest, either during the whole period for which the debenture has to run, or for such limited period as the Crown Agents, acting on behalf of the Government, may determine. (As amended by S.I. No. 159 of 1965) Debentures may be redeemed by annual drawings or by purchase in the market or on a date fixed Loans to be a charge upon general revenues

9. The debentures and the coupons thereto shall be in such form as the Form of Minister, or the Crown Agents acting on his behalf, may direct or debentures and approve. coupons (As amended by S.I. No. 159 of 1965) 10. Every debenture and coupon, and the right to receive the principal Debentures and and interest represented thereby, shall be transferable by delivery. coupons transferable by delivery 11. Every debenture shall, before being issued, be registered in a register book to be kept for that purpose at the office in London of the Crown Agents. Registry of debentures

12. The interest upon the principal represented by each debenture shall Payment of run from the day named in that behalf in the debenture, and shall be paid interest half-yearly on the days named in that behalf in the debenture, at the office in London of the Crown Agents. 13. So long as any of the debentures remain outstanding, the Minister shall, in each half-year ending with the day on which the interest on the debentures falls due, appropriate out of the general revenues and assets of the Republic a sum equal to one half-year's interest on the whole of the debentures issued, including any which may have been redeemed, but exclusive of any which may have been at any time exchanged for stock, and shall remit that sum to the Crown Agents at such time as will enable them to pay thereout the then current half-year's interest on the day on which it falls due. Debentures shall not be deemed to be outstanding for the purposes of this Act by reason only that one or more of the debentures have not been presented for payment on the day appointed for payment and have, in consequence, not been paid. (As amended by No. 18 of 1949 and S.I. No. 159 of 1965) 14. After the date specified in the Act authorising the loan as that on which the contributions to the sinking fund shall commence, the Minister shall, in each half-year ending as aforesaid, appropriate out of the said revenues and assets of the Republic for the formation of a sinking fund, an additional sum equal to one-half of the annual contribution specified in the prospectus or, in the case of a loan not issued publicly, in the terms of issue relating to the loan, and the said Further sums to be remitted for the redemption of debentures Mode of providing for payment of interest on debentures

contribution shall be in respect of the total nominal amount of all the debentures issued, including any which may have been redeemed, but exclusive of any which may have been at any time exchanged for stock, and shall remit that sum to the Crown Agents with the remittance hereinbefore mentioned. (As amended by No. 18 of 1949 and S.I. No. 159 of 1965) 15. The sinking fund shall be applied in the first place in payment of all Application of expenses of, or incidental to, the redemption of the debentures and the sinking fund cost and expenses of all notices required by this Act to be given, and in the next place, and subject to the aforesaid payments, in repayment of the principal moneys for the time being represented by the debentures. 16. In the case of debentures redeemable on a date to be named when issuing the debentures, the Crown Agents shall place at interest or invest so much of the money so remitted to them as aforesaid as shall not be required for the payment of interest for the current half-year in the purchase of such securities as may be approved by the Minister, as a sinking fund for the final extinction of the debt, and the Crown Agents shall also place at interest or invest the dividends, interest, or produce of such investments in the purchase of like securities and may, from time to time, with the approval of the Minister, change any such investments and shall hold such fund in trust for the repayment of the principal moneys for the time being represented by the debentures. (As amended by No. 19 of 1952 and S.I. No. 159 of 1965) 17. In the case of debentures redeemable by annual drawings, the Crown Agents shall place and keep the moneys so remitted to them, or so much thereof as may not be required for immediate payments, at interest, and shall hold all such moneys and the accumulations thereon in trust, to apply them in the first place to the purchase of the debentures when they can be obtained at a price not exceeding par and, secondly, to the redemption of the debentures by means of annual drawings. Disposal of sinking fund when debentures are redeemed by purchase or by annual drawings Creation of sinking fund for redemption of debentures payable on a fixed date

18. After the date specified in the Act authorising a loan as that on Appointment of which the contributions to the sinking fund shall commence in respect of day for drawing that loan, and so long thereafter as any of the debentures remain of debentures outstanding and unsatisfied, the Crown Agents shall in every year, unless the whole of the money applicable in that year to the redemption of debentures has been applied in the purchase thereof, appoint a day in

that year for the drawing by lot of the debentures to be redeemed. 19. If a day is appointed for drawing, the Crown Agents shall give, by advertisement in the London Times newspaper, not less than fifteen days' previous notice, specifying the day on which, and the hour and place at which, the drawing will take place. Notice of time and place appointed for drawing

Mode of 20. On the day and at the hour and place so specified, the Crown Agents shall hold a meeting, at which the holder of any debenture may, drawing if he think fit, be present, and shall then in the presence of such debenture holders, if any, as may attend, and of a notary public, draw by lot, out of the whole number of debentures for the time being outstanding, debentures of the specified nominal amount. 21. The Crown Agents shall thereupon declare the distinguishing numbers of the debentures drawn for redemption, and shall, as soon as may be, by advertisement in the London Times newspaper, specify those numbers and appoint a day, not being later as to each debenture than the day on which the then current half-year's interest thereon is payable, on which the principal moneys represented by the debentures so distinguished will be repaid. Notice of debentures drawn for redemption

22. On the day so appointed, the Crown Agents shall, at their office in Payment of London, on demand, pay to the holders of the debentures drawn for drawn repayment the principal moneys represented by those debentures, with debentures all interest payable thereon up to that day. 23. From and after the day appointed for the repayment of any debenture, all interest on the principal moneys represented thereby shall cease and determine, whether payment of the principal shall have been demanded or not. Cesser of interest from day appointed for payment of principal

24. Upon the repayment of the principal moneys represented by any Redeemed debenture, the debenture, with all the coupons thereunto belonging, debentures to be shall be delivered up to the Crown Agents, to be by them cancelled and cancelled forwarded to the Government. Any debenture redeemed by purchase shall likewise be so cancelled and forwarded. (As amended by S.I. No. 159 of 1965)

25. (1) All the stock which may be created under the provisions of this Date of Act shall be redeemable at par on a date to be named in that behalf by the redemption of Crown Agents when issuing the stock, such date not being later than stock sixty years from the date of issue: Provided that the Minister, or the Crown Agents acting on his behalf, may reserve the option to redeem the stock in whole or in part, by drawings or otherwise, at any time prior to such date on such conditions as may be declared at the time of issue. (2) From and after the date appointed for the redemption of the stock or any part of it, alll the interest on the principal moneys represented thereby shall cease and determine, whether payment of the principal shall have been demanded or not. (No. 38 of 1950 as amended by S.I. No. 159 of 1965) 26. So long as any of the stock shall remain unredeemed, the Minister shall, in each half-year ending with the day on which the interest on such stock falls due, appropriate out of the general revenues and assets of the Republic a sum equal to one half-year's interest on the whole of such stock, and shall remit that sum to the Crown Agents at such time as will enable them to pay thereout the then current half-year's interest on the day when it falls due. (As amended by No. 18 of 1949 and S.I. No. 159 of 1965) 27. The Minister shall, in the half-year ending on the date specified in the terms of issue of the loan as that on which the first contribution to the sinking fund shall be taken, and in each subsequent half-year, appropriate out of the said revenues and assets of the Republic, for the formation of a sinking fund, an additional sum equal to one-half of the annual contribution specified in the prospectus or, in the case of a loan not issued publicly, in the terms of issue relating to the loan, in respect of the total nominal amount of such stock, including any such stock which may at any time have been issued in exchange for debentures under the authority of this Act, and shall remit that sum to the Crown Agents with the remittance hereinbefore mentioned. (No. 38 of 1950 as amended by S.I. No. 159 of 1965) 28. The Crown Agents shall, for the purpose of forming such sinking Creation of Provision for payment of principal of stock Mode of providing for payment of interest on stock

fund, from time to time place at interest or invest so much of the money sinking fund so remitted to them as aforesaid as shall not be required for the payment of interest for the current half-year in the purchase of such securities as may from time to time be approved by the Minister, and shall also place at interest or invest the dividends, interest, or produce of such investments in the purchase of like securities, and may from time to time, with the approval of the Minister, change any such investments, and shall hold such fund in trust for repayment of the principal moneys for the time being represented by the stock. (As amended by No. 18 of 1949, No. 38 of 1950 and S.I. No. 159 of 1965) 29. Notwithstanding anything to the contrary contained in this Act, if at any time the trustees of the sinking fund of any loan issued or to be issued under the provisions of this Act (other than a debenture loan redeemable by annual drawings or by purchase in the market) are satisfied that the value of the fund will be sufficient with further accumulations of interest, but without further payments of contributions, to enable the loan to be redeemed out of the proceeds of the sinking fund when the same shall fall due to be redeemed, the Minister may suspend further payments of contributions to the said sinking fund: Provided always that contributions to the sinking fund shall be recommenced if the trustees shall at any time inform the Minster that it is necessary. (No. 18 of 1949 as amended by S.I. No. 159 of 1965) 30. In case the sinking funds provided for by this Act shall be Charge upon insufficient for the payment of all the principal moneys borrowed under general the authority of this Act at the time the same shall have become due, the revenues Minister shall make good the deficiency out of the general revenues and assets of the Republic. (As amended by S.I. No. 159 of 1965) 31. All expenses of or incidental to the management of the sinking Expenses to be fund, or to the payment of the principal moneys borrowed, shall be paid paid out of out of the sinking fund. sinking fund 32. The Minister shall also have, and may from time to time exercise, Powers of Cesser of sinking fund contributions

the following powers and authorities or any of them: (a) He may authorise the Crown Agents when issuing any loan in the form of debentures to declare that such debentures will be convertible into stock at such dates and on such terms and conditions as may be prescribed by the Crown Agents at the time of the issue of the debentures.

Minister Debentures convertible into stock on conditions prescribed by the Crown Agents at time of issue

(b) He may declare all or any of the Zambia loans, whether existing Conversion of in the form of stock or debentures, to be convertible into stock, to be loans generally issued under the provisions of this Act. (c) He may authorise the creation and issue of such an amount of stock in exchange for the securities held for such loans as may be necessary. Creation and issue of stock in exchange for other securities Creation and sale of stock or debentures to raise loans and for other purposes Arrangements for conversion

(d) He may authorise the creation and sale of any such stock or debentures for the purpose of raising money for redeeming any outstanding loans, whether issued before or after the commencement of this Act, for paying any expense in the creation of stock, and otherwise for carrying out the provisions of this Act.

(e) Any conversion so authorised may be effected either by an arrangement with the holders of existing securities or by purchase thereof out of moneys raised by the sale of stock, or partly in one way and partly in the other. (As amended by No. 18 of 1949, No. 38 of 1950 and S.I. No. 159 of 1965) 33. Nothing in this Act contained shall authorise an increase of the capital or of the annual charge on any loan, except(a) when securities exchanged for stock bear a rate of interest not less than the stock, an additional amount of stock may be created and issued to make up the difference in saleable value between the securities and the stock;

Exchange of securities for stock

(b) in the case of the conversion of securities into stock, the Crown Agents shall issue such an amount of stock as may be required to defray the stamp duties and all other expenses incidential to the conversion; (c) in accordance with such terms and conditions as may be prescribed under paragraph (a) of section thirty-two. (As amended by No. 18 of 1949) 34. The securities exchanged or otherwise converted into stock under the provisions of this Act shall be forthwith cancelled by the Crown Agents, and the debentures surrendered shall be cancelled and transmitted to the Minister. (As amended by No. 18 of 1949 and S.I. No. 159 of 1965) 35. The trustees of the sinking fund appointed under this Act, and acting under any Act authorising the issue of any securities which may be exchanged into stock or cancelled or purchased under the provisions of this Act, shall determine what amount of the sinking fund held by them and created for repayment of such securities shall be released, and, in the determination of such question, the trustees shall take into consideration the value of the whole investments held by them on account of such sinking funds, the amount of the debt remaining a charge on such sinking funds, and such matters as the trustees may think fit to take into account. (As amended by No. 18 of 1949) 36. So much of the sinking funds as may be released shall either be Sinking funds transferred unto the trustees of the stock sinking fund, or be disposed of released: how to in such a manner as the Minister, with the advise and consent of the be disposed of National Assembly, may direct. (As amended by No. 18 of 1949, G.N. No. 315 of 1964 and S.I. No. 159 of 1965) 37. The Crown Agents may, from time to time, at the request of the Minister, make arrangements for all or any of the following things: (a) for inscribing and registering stock in their books; (b) for managing the creation, inscription, registration and issue of stock, including the issue of certificates of title in respect of such stock; (c) for effecting the converstion of loans into stock; Creation inscription, issue, conversion and transfer of stock Trustees to apportion amount of sinking fund released by conversion Converted securities to be cancelled

(d)

for paying interest on stock and managing the transfers thereof;

(e) for issuing stock certificates to bearer, and, as often as occasion shall require, reinscribing or re-registering them; (f) for effecting the exchange or conversion of inscribed stock into registered stock. (No. 38 of 1950 as amended by S.I. No. 159 of 1965) 38. Authority is hereby given for the making of regulations under section 16 of the Colonial Stock Act, 1877, to provide that, in accordance with section 1 of the Colonial Stock Act, 1948, stock issued (whether before or after the passing of the last mentioned Act) under the provisions of this Act shall be transferable by instrument in writing inaccordance with the regulations and in no other manner. (No. 18 of 1949) 39. Nothing in this Act contained shall prevent the raising of loans in Raising of loans the Republic upon such terms and conditions as shall be specified in any in the Republic Act authorising the raising of such loans. (No. 54 of 1955 as amended by S.I. No. 159 of 1965) CHAPTER 351 THE LOAN ACT
ARRANGEMENT OF SECTIONS

Making of regulations under section 16 of the Colonial Stock Act, 1877

Section 1. 2. 3. 4. 5. Short title Authority to Minister to borrow by sale of debentures or stock Application of loan Commencement of contribution to sinking fund Power to issue treasury bills

SCHEDULE-Purposes specified for loan

CHAPTER 351

LOAN An Act to make provision for raising a loan of K4,500,000; and to provide for matters incidental to or connected therewith. [24th April, 1931] 1. This Act may be cited as the Loan Act.

21 of 1931 Statutory Instrument 159 of 1965

Short title Authority to Minister to borrow by sale of debentures or stock. Cap. 350

2. The Minister is hereby authorised to issue debentures or stock or both under the provisions of the General Loan and Stock Act, to an amount sufficient to produce as nearly as may be the sum of K4,500,000, and such further sum as may be necessary to defray the expenses of issue. (As amended by S.I. No. 159 of 1965) 3. The money to be borrowed under the authority of this Act shall be appropriated and applied to the purposes specified in the Schedule: Provided that it shall be lawful for the Minister to utilise any savings in respect of any item in the Schedule to cover any excess of expenditure in respect of any other item. (As amended by S.I. No. 159 of 1965) 4. Contributions to the sinking fund, as contemplated by the provisions of sections fourteen and twenty-seven of the General Loan and Stock Act, shall commence in respect of any debentures or stock issued under this Act not later than three years after the date from which the interest on such debentures or stock shall commence to run. (As amended by S.I. No. 159 of 1965)

Application of loan

Commence-ment of contribution to sinking fund. Cap. 350

5. Pending the issue of the whole or any portion of the loan hereby Power to issue authorised, the Minister may, if necessary, raise instalments of the treasury bills. money as required by the issue of treasury bills under the Treasury Bills Cap. 348 Act. (As amended by S.I. No. 159 of 1965) SCHEDULE

(Section 2) PURPOSES SPECIFIED FOR LOAN K .. 2,200,000 .. .. .. 146,000 .. 158,000 24,000 .. 12,000 K4,500,000 CHAPTER 352 THE SAVINGS CERTIFICATES ACT
ARRANGEMENT OF SECTIONS

Balance of Grant-in-Aid .. .. .. .. 226,000 Civil Buildings .. .. .. .. .. .. Municipal Requirements .. .. .. .. 250,000 Telegraphs, Telephones and Wireless .. .. 406,000 Road and Harbour Development .. .. .. 856,000 Air Surveys .. .. .. .. .. .. Agricultural Development and Land Settlement .. 134,000 Development in Reserves .. .. .. .. Miscellaneous .. .. .. .. .. .. Anglo-Belgian Boundary Commission .. .. Itawa Drainage .. .. .. .. .. ..

..

.. .. ..

.. .. ..

88,000

Section 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Short title Interpretation Authority to issue Certificates Purpose for which money may be used Certificates secured on revenues and assets of the Republic Management and control Where issued Repayment Annual accounts Certificates exempt from income tax and stamp duty Name of purchaser of Certificate not to be disclosed

12. 13. 14.

Non-liability of Government, Postmaster-General, etc. Suspension of issue of Certificates Regulations

CHAPTER 352

SAVINGS CERTIFICATES An Act to make provision for the issue of savings certificates; and to provide for matters incidental thereto. [1st August, 1952]

9 of 1952 Government Notices 315 of 1964 497 of 1964 Statutory Instrument 159 of 1965 Act No. 13 of 1994 Short title Interpretation

1.

This Act may be cited as the Savings Certificates Act.

2. In this Act, unless the context otherwise requires"Certificate" means a Savings Certificate issued under the provisions of this Act; "Multiple Certificate" means a Certificate representing more than one Single Certificate; "Permanent Secretary" means the Permanent Secretary, Ministry of Finance; "Single Certificate" means a Certificate entitling the holder to receive on the tenth anniversary of the date of purchase of such Certificate such sum as is prescribed at the date of purchase in regulations made under this Act. (As amended by G.N. No. 315 of 1964 and S.I. No. 159 of 1965)

3. (1) Subject to the provisions of this Act, the Minister may authorise Authority to

the Postmaster-General to issue Certificates to such total amount as may issue be approved from time to time by resolution of the National Assembly. Certificates (2) Certificates shall be issued only to such persons as may be prescribed by regulations made under the provisions of this Act. (As amended by G.N. No. 315 of 1964) 4. (1) From the total amount paid for the issue of Certificates under the Purpose for provisions of this Act, the Postmaster-General shall retain such portion which money thereof as will in his estimation be necessary as a working balance to may be used meet applications for repayment of Certificates, and shall thereafter remit the remainder of such amount to the Permanent Secretary who shall invest it and any interest earned thereon in such public stock, funds or debentures issued by the Government of Zambia or of any part of the Commonwealth as the Minister may from time to time authorise. (2) Any sum of money that may from time to time be required for the repayment of any Certificate may be raised by the sale of the whole or a part of the stock, funds or debentures purchased by the Permanent Secretary under the provisions of subsection (1): Provided that any sum of money which may be required for the purposes of such repayment may, with the approval of the Minister, be advanced to the Postmaster-General by the Permanent Secretary out of the general revenues of the Republic until it can be raised by the sale of such stock, funds or debentures. (As amended by G.N. No. 315 of 1964 and S.I. No. 159 of 1965) 5. The principal moneys represented by the Certificates and any Certificates interest thereon are hereby charged upon and shall be payable out of the secured on revenues and assets of the Republic. revenues and assets of the (As amended by S.I. No. 159 of 1965) Republic 6. The administration and control of the issue of Certificates shall, Management subject to the authority of the Minister, be vested in the and control Postmaster-General who shall, subject to the provisions of this Act and any regulations made thereunder, take such steps as may be desirable for the proper management of the issue of Certificates and otherwise for the promotion of the objects and purposes of this Act.

(As amended by G.N. No. 315 of 1964) 7. Certificates shall be issued at all post offices at which money order Where issued business is transacted and at such other places in Zambia as may be approved by the Postmaster-General. 8. (1) Upon application being made for the repayment of any Repayment Certificate, the Postmaster-General shall forthwith effect such repayment in accordance with the provisions of regulations made under this Act. (2) Upon repayment of the amount due in respect of any Certificate, such Certificate shall be delivered up to the Postmaster-General. 9. The annual accounts of Certificates issued and Certificates repaid shall, after being audited and certified by the Auditor-General, be published in the Gazette. 10. (1) The holder of any Certificate issued under the provisions of this Act shall be exempt from payment of income tax on the amount of interest accrued or received in respect of such Certificate and the Certificate shall be exempt from stamp duty. (2) All documents and correspondence relating to Certificates passing between the Postmaster-General and any other person shall be transmitted by post within Zambia free of postage. 11. Neither the Postmaster-General, nor any person appointed to assist him in carrying out the provisions of this Act, shall disclose the name of any purchaser of a Certificate except in due course of law or to any person or persons appointed as aforesaid to assist in carrying out the provisions of this Act. Any person contravening the provisions of this section shall be guilty of an offence and on conviction shall be liable to a fine not exceeding three thousand penalty units. (As amended by Act No. 13 of 1994) 12. When any payment is made or act done by the Postmaster-General, or any person acting under his authority in Name of purchaser of Certificate not to be disclosed Annual accounts

Certificates exempt from income tax and stamp duty

Non-liability of Government,

accordance with this Act and any regulations made thereunder, the Postmaster-General, Government, the Postmaster-General and such person shall not be etc. liable in respect of any claim on the part of any person in connection with such payment or act, but any person may nevertheless recover any sum lawfully due to him from the person to whom the Postmaster-General has paid the same: Provided that(i) nothing in this section contained shall be construed as exempting an officer from liability for damage or loss caused to any person by reason of fraud or negligence on the part of such officer in relation to his official duties; (ii) when any loss is caused to a holder of a Certificate without any fault or neglect on his part, the Minister may authorise the payment to such holder of a Certificate of the amount of such loss. (As amended by G.N. No. 315 of 1964) Suspension of 13. Subject to the provisions of subsection (1) of section three, the Minister may, from time to time as he thinks fit, suspend and resume the issue of issue of Certificates. Certificates (As amended by G.N. No. 315 of 1964) 14. The Minister may, by statutory instrument, make regulations, prescribing(a) (b) (c) (d) (e) the denominations of Certificates; the price of issue; the amount for which Certificates may be redeemed; the period of currency; the persons by whom Certificates may be purchased; Regulations

(f) the manner in which and the persons to whom applications for Certificates may be made; (g) the maximum number of Single Certificates (or the equivalent in Multiple Certificates) which may be held by any person; and (h) generally for the better carrying out of the provisions of this Act. (As amended by G.N. No. 315 of 1964)

CHAPTER 353 THE LOCAL LOANS (REGISTERED STOCK AND SECURITIES) ACT
ARRANGEMENT OF SECTIONS

PART I PRELIMINARY Section 1. 2. 3. Short title Interpretation Application

PART II POWER TO RAISE LOANS 4. Issue of registered stock and debentures for the purpose of raising authorised loans 5. 6. 7. Loans to be charged upon general revenues Minister to direct mode of raising loans and other particulars Secretary to make necessary arrangements

PART III REGISTERED STOCK 8. 9. 10. 11. 12. 13. 14. 15. 16. Register of stock Liability of Government in respect of issue of registered stock Stockholder Registration of first stockholders Stock certificate Transfer of registered stock Registration of transfers of stock Closing of register Register to be conclusive evidence of facts entered therein

PART IV SECURITIES ccSection 17. 18. 19. 20. Securities Interest coupons Registered securities Bearer securities

PART V PAYMENT OF SECURITIES 21. 22. 23. 24. INTEREST ON STOCK AND

Appropriation of general revenues for payment of interest Payment of interest Cessation of liability to pay interest Payments

PART VI SINKING FUNDS 25. 26. 27. 28. 29. Appropriation of general revenues for sinking fund Separate sinking fund for each loan Investment of sinking fund Cessation of contributions to sinking fund Expenses to be paid out of sinking fund

30. Deficiency in sinking fund to be a charge upon general revenues PART VII CONVERSION OF LOANS 31. 32. Power of Minister to authorise conversion of loan generally Arrangements for conversion

PART VIII SPECIAL PROVISIONS RELATING TO BONDS AND STOCK ISSUED IN SUBSTITUTION FOR THOSE OF THE FORMER FEDERAL GOVERNMENT 33. 34. 35. Interpretation of terms in Part VIII Application of Part VIII Provisions relating to the issue of substituted bonds and stock

PART IX ISSUE OF DUPLICATES AND RENEWALS OF STOCK CERTIFICATES AND SECURITIES AND EXCHANGE AND CONSOLIDATION Section 36. 37. 38. 39. 40. 41. 42. 43. Issue of duplicates and renewals Right of Secretary to compel renewal of securities Exchange of registered stock and securities Consolidation and subdivision of stock and securities Indemnity bonds Immediate discharge in certain cases Discharge in other cases Summary procedure in special cases

PART X MISCELLANEOUS 44. 45. 46. 47. 48. 49. Signature of Secretary may be printed on stock or securities Notice of trust not receivable save as provided Exemption from stamp duties Inspection of register and documents Regulations Saving

SCHEDULE-The scheduled territories

CHAPTER 353 LOCAL LOANS (REGISTERED STOCK AND SECURITIES) An Act to make provision for the creation and issue of registered stock and debentures for the purpose of raising loans in Zambia; and to provide for matters incidental thereto and connected therewith. [2nd April, 1953]

13 of 1953 52 of 1955 39 of 1961 57 of 1964 Government Notices 120 of 1964 315 of 1964 497 of 1964 Statutory Instruments 159 of 1965 161 of 1967

PART I PRELIMINARY 1. This Act may be cited as the Local Loans (Registered Stock and Securities) Act. 2. In this Act, unless the context otherwise requires"bond" means any bond issued under the provisions of this Act; "Crown Agents" means the person or persons acting for the time being as Crown Agents for Oversea Governments and Administrations in England; "debenture" means any debenture issued under the provisions of this Act; "register" means a register kept for any purpose of this Act; "registered stock" or "stock" means Zambia stock issued under the provisions of this Act; "the scheduled territories" means the territories specified in the Schedule, so, however, that the Minister may at any time by statutory order amend the Schedule, either by the addition or exclusion of territories or otherwise, and the said expression shall be construed Short title

Interpretation

accordingly; "Secretary" means the Permanent Secretary, Ministry of Finance; "security" means any bond or debenture issued under the provisions of this Act; "stockholder" means a person holding registered stock who is entered as the owner thereof in the register. (As amended by No. 39 of 1961, G.N. No. 315 of 1964 and S.I. No. 159 of 1965) 3. This Act shall be applicable only to loans raised in Zambia. (As amended by No. 52 of 1955 and S.I. No. 159 of 1965) Application

PART II POWER TO RAISE LOANS 4. (1) Whenever by any Act authority is given to the President or the Minister to raise any sum of money by way of loan for any purpose mentioned in that Act, or whenever it is necessary to raise any sum of money for the purpose of repaying any loan raised by the Government under this or any other Act, the Minister may, from time to time, raise such sum or any part thereof under the provisions of this Act in either of the following modes: (a) (b) by the creation and issue of registered stock; by the issue of securities in the form of bonds or debentures. Issue of registered stock and debentures for the purpose of raising authorised loans

(2) Each issue of registered stock or securities under this Act for the purpose of raising any specified sum of money shall be deemed to be stock or securities issued in respect of a separate loan, notwithstanding that the sum of money so raised is part only of a sum of money authorised by any other Act to be raised by way of a loan. (As amended by No. 39 of 1961 and G.N. No. 315 of 1964)

5. The principal moneys and interest represented or secured by any registered stock or securities issued under this Act are hereby charged upon and shall be payable out of the general revenues and assets of the Republic. (As amended by S.I. No. 159 of 1965)

Loans to be charged upon general revenues

6. (1) The Minister shall, in respect of each loan to be raised under this Minister to Act, specify by directions published in the Gazettedirect mode of raising loans and other particulars (a) (b) (c) the sum of money to be raised by that loan; the mode or modes of raising the loan; the rate of interest payable on the loan;

(d) the date or dates in each year on which the interest on the loan shall be payable; (e) the rate at which appropriations out of the general revenues and assets of the Republic shall be made as a contribution to the sinking fund established for the purpose of redeeming that loan and the date from which such contributions shall commence; (f) the date of redemption of the registered stock or securities to be issued for the purpose of raising that loan and, where applicable, the method of redemption of such stock or securities; (g) whether the interest payable on any registered stock or securities issued under the authority of this Act shall be exempt from all or any of the taxes and duties payable under any other written law in force in Zambia. (2) The date of redemption of any registered stock or securities shall not be later than sixty years from the date of issue of such stock or securities. (3) Where the Minister deems it expedient to reserve an option to

redeem any registered stock or securities at any date earlier than the date of redemption specified for such stock or securities by the directions under subsection (1), he shall by such directions further specify the terms and conditions on which such stock or securities may be redeemed at any earlier date. (As amended by No. 39 of 1961, G.N. No. 315 of 1964 and S.I. No. 159 of 1965) Secretary to 7. Upon the publication under section six of the directions of the Minister in respect of any loan to be raised under this Act, the Secretary make necessary may, subject to the provisions of such directions and to such further arrangements directions as the Minister may give in that behalf, make all such arrangements as may be necessary to raise that loan upon the most favourable terms that can be obtained. (As amended by No. 39 of 1961 and G.N. No. 315 of 1964)

PART III REGISTERED STOCK 8. The Secretary shall keep a register in respect of each issue of Register of registered stock under this Act, in which all such stock and all transfers stock of and all dealings in such stock shall be registered and in which shall be entered all matters and things which by this Act are required to be entered in the register. (As amended by No. 39 of 1961) 9. The Government shall be bound to pay to the person registered for the time being as the stockholder the principal sum represented by that stock and the interest due thereon, in accordance with the provisions of this Act, at the rate and on the dates directed by the Minister under section six or in pursuance of an option to redeem such stock reserved in such directions. (As amended by G.N. No. 315 of 1964) 10. For the purposes of this Act, no person shall be entitled to any registered stock unless he is registered as a stockholder in respect thereof. Stockholder Liability of Government in respect of issue of registered stock

11. No person shall be registered as a first stockholder of any registered stock except upon payment in full of the purchase price of that stock.

Registration of first stockholders

12. Every stockholder shall be entitled to obtain from the Secretary a Stock certificate stock certificate in a form to be prescribed and no stockholder, other than the first stockholder, of any stock shall be entitled to obtain a stock certificate save upon payment of the prescribed fee. (As amended by No. 39 of 1961) 13. (1) For the purposes of this Act, the title of any stockholder to any Transfer of registered stock registered stock shall not be deemed to be transferred to any other person save upon the execution of such instrument of transfer as may be prescribed and upon the registration of the transferee as the stockholder under section fourteen. (2) Interest which has fallen due in respect of any registered stock at the date of any transfer of such stock but which has not been paid to the stockholder for the time being, shall not be deemed to be payable to a transferee of that stock unless the instrument of transfer expressly provides for the payment of that interest to that transferee. Registration of 14. No person shall be registered as the transferee of any registered stock except upon surrender to the Secretary of the stock certificate and transfers of the instrument of transfer relating to that stock and upon payment of the stock prescribed fee. (As amended by No. 39 of 1961) 15. The register shall be closed for a period of twenty-one days Closing of immediately preceding each date upon which interest on that stock falls register due and no transfer of that stock shall be registered during that period. 16. The entries in a register kept under the provisions of this Act shall Register to be be conclusive evidence of the facts, matters, particulars and transactions conclusive to which those entries relate: evidence of facts entered therein

Provided that, notwithstanding the provisions of any other written law, a copy of any entry in a register certified under the hand of the Secretary to be a true copy of the original entry shall be receivable in evidence in any judicial proceeding unless a Judge shall otherwise direct. (As amended by No. 39 of 1961 and S.I. No. 159 of 1965)

PART IV SECURITIES 17. (1) Securities shall be issued either as(a) (b) (c) (d) registered debentures; or debentures payable to bearer; or registered bonds; or bonds payable to bearer. Securities

(2) Every security shall be signed by the Secretary for and on behalf of the Government and shall, when issued, bind the Government to pay the principal sum and the interest thereon, in accordance with the provisions of this Act, at the rate and on the dates specified in the directions by the Minister under section six or in pursuance of an option to redeem such security reserved in such directions. (3) Securities shall be issued in such form and in such denominations as the Minister may direct. (As amended by No. 39 of 1961 and G.N. No. 315 of 1964) 18. (1) There may be attached to any security coupons for the payment Interest of interest which falls due thereunder: coupons Provided that the number of coupons attached to a security on the date of its issue to any person may cover a period shorter than that of the

currency of the security if, in the opinion of the Secretary, it is inconvenient or inexpedient to attach to the security coupons sufficient in number to cover the entirety of the period of the currency of the security. (2) If the number of coupons attached to any security on the date of its issue to any person is insufficient to cover all payments of interest due on that security after that date, the holder of that security shall be entitled to a renewal thereof at such time and in such manner and circumstances as may be prescribed. (As amended by No. 39 of 1961) 19. (1) Every registered security shall, before being issued, be registered by the Secretary in a register to be kept for that purpose, and the name and address of the holder of each registered security and all transfers of registered securities shall be noted on that register. (2) Registered securities shall be transferable by instrument in writing in such form and subject to such conditions as may be prescribed. (As amended by No. 39 of 1961) 20. (1) Every security payable to bearer shall, before being issued, be registered by the Secretary in a register to be kept for that purpose. (2) Redemption moneys and interest moneys payable on any bearer security issued under the provisions of this Act shall be payable only to a person who at the time that such moneys are payable is, or at the time when he subscribed for or purchased such security was, ordinarily resident in the scheduled territories. (3) Every bearer security and coupon, and the right to receive the principal amount and interest represented thereby, shall be transferable by delivery. (As amended by No. 39 of 1961) Bearer securities Registered securities

PART V

PAYMENT OF SECURITIES

INTEREST

ON

STOCK

AND

21. So long as any interest is payable under this Act in respect of any stock or securities there shall, in each financial year in which the interest on such stock or securities falls due, be appropriated out of the general revenues and assets of the Republic a sum sufficient to meet all interest payable in that year, and the Secretary shall pay such interest out of the sum so appropriated on the date on which such interest is due. (No. 39 of 1961 as amended by G.N. No 315 of 1964 and S.I. No. 159 of 1965) 22. (1) The interest due on any registered stock or securities shall be payable on the date or dates specified by the directions of the Minister under section six. (2) Where any amount has become payable on any date as interest due on any registered stock or securities, no interest on that amount shall, after that date, be paid or payable by the Government to any person in any circumstances. (As amended by No. 39 of 1961 and G.N. No. 315 of 1964)

Appropriation of general revenues for payment of interest

Payment of interest

23. No person shall be entitled to claim interest on any registered stock Cessation of or securities in respect of any period which has elapsed after the earliest liability to pay date on which demand could lawfully have been made for the payment interest of the principal amount due on such stock or securities. 24. All payments of interest and all payments of the principal amount Payments due on any registered stock or securities shall be made by the Secretary in Lusaka: Provided that the Secretary or any person authorised by the Secretary in that behalf may pay any such interest or principal amount at any other place, whether within or without Zambia, in pursuance of any arrangement which the Secretary may make for that purpose. (As amended by No. 39 of 1961)

PART VI SINKING FUNDS 25. After the date specified in the directions of the Minister under section six as the date from which contributions to the sinking fund for any loan shall commence, there shall in each financial year be appropriated out of the general revenues and assets of the Republic a sum determined in accordance with the rate specified in those directions as the contribution to the sinking fund established for the purpose of redeeming that loan until the loan shall be fully redeemed. (As amended by No. 39 of 1961, G.N. No. 315 of 1964 and S.I. No. 159 of 1965) 26. A separate sinking fund shall be established for each loan raised under this Act. Separate sinking fund for each loan Appropriation of general revenues for sinking fund

Investment of 27. (1) All moneys appropriated under section twenty-five as contributions to the sinking fund established for any loan shall be placed sinking fund at the disposal of the Crown Agents or the Secretary, as the Minister may direct, and may then be placed at interest or invested in such stocks or securities, or in such other investments or class of investments, as may be approved by the Minister. (2) The Crown Agents or the Secretary, as the case may be, may, from time to time with the approval of the Minister, vary any investment made under subsection (1) or may realise, place at interest or reinvest any moneys invested under that subsection. (3) The dividends, interest, bonus and other profits of any investment of any part of any sinking fund shall be placed at interest or invested by the Crown Agents or by the Secretary, as the case may be, so as to form part of that sinking fund in like manner as moneys appropriated under section twenty-five as contributions to that sinking fund. (4) In addition, the Minister may, at any time or times, authorise the utilisation of the sinking fund or of the appropriation for the contribution

to the sinking fund prescribed under section twenty-five for the purchase of registered stock or securities issued under the provisions of this Act, or for the redemption of securities redeemable by annual drawings under any direction published under section six: Provided that in the utilisation of such appropriation for the purchase of registered stock or securities within Zambia, the contribution placed at the disposal of the Crown Agents or the Secretary shall be the balance, if any, of such appropriation not utilised for the purpose aforesaid. (No. 39 of 1961 as amended by G.N. No. 315 of 1964) 28. Notwithstanding anything to the contrary contained in this Act, if Cessation of contributions to at any time the Secretary is satisfied that the sinking fund of any loan sinking fund raised under the provisions of this Act will be sufficient with further accumulations of interest, but without further payments of contributions, to enable the loan to be redeemed at the time fixed for its redemption, he shall inform the Minister accordingly and the Minister is hereby authorised in such event to suspend further payments of contributions to that sinking fund: Provided, however, that the contributions to that sinking fund shall be recommenced if the Secretary at any time thereafter informs the Minister that he is no longer satisfied that the sinking fund with further accumulations of interest will be sufficient for the redemption of that loan. (As amended by No. 39 of 1961 and G.N. No. 315 of 1964) 29. There shall be paid out of the sinking fund all expenses specifically Expenses to be incurred in, or incidental to, the investment and management of that paid out of fund and the repayment of the loan for which that fund was established. sinking fund 30. In the event of the sinking fund established for any loan under this Act being found, at the time fixed for the repayment of that loan, to be insufficient for such redemption, the deficiency shall be made good out of the general revenues and assets of the Republic. (As amended by S.I. No. 159 of 1965) Deficiency in sinking fund to be a charge upon general revenues

PART VII

CONVERSION OF LOANS 31. The Minister shall have and may from time to time exercise the following powers and authorities or any of them: (a) he may declare any stock or securities issued in Zambia under the provisions of this or any other Act to be convertible into registered stock or other securities to be issued under the provisions of this Act; (b) he may authorise the creation and issue under this Act of such an amount of registered stock or securities as may be necessary for the conversion of the stock or securities in respect of which a declaration has been made under paragraph (a); Power of Minister to authorise conversion of loan generally

Creation and issue of stock or securities necessary for conversion Creation and issue of stock or securities to meet expenses of conversion New stock or securities may have all privileges of original stock or securities Arrangements for conversion

(c) he may authorise the creation and issue under this Act of such registered stock or securities as may be necessary for the purpose of paying any expenses incurred in the creation and issue of registered stock or securities under this section;

(d) he may declare that all privileges, exemptions and immunities attaching by virtue of any written law in force in Zambia to any stock or securities shall attach to any new registered stock or securities issued under this Act in conversion of such earlier stock or securities. (As amended by G.N. No. 315 of 1964)

32. Any conversion authorised under section thirty-one may be effected either by arrangement with the holders of existing stock or securities, or by purchase thereof out of moneys raised by the sale of stock or securities, or partly in one way and partly in the other.

PART VIII SPECIAL PROVISIONS RELATING TO BONDS AND STOCK ISSUED IN SUBSTITUTION FOR THOSE OF THE FORMER FEDERAL GOVERNMENT

(G.N. No. 120 of 1964) 33. For the purposes of this Part, unless the context otherwise requires- Interpretation of terms in Part VIII. App. 2 "the Order in Council" means the Federation of Rhodesia and Nyasaland (Dissolution) Order in Council, 1963; "original bonds or stock" means original bonds or stock referred to in subsection (3) of section 12 of the Order in Council; "substituted bonds or stock" means bonds or stock issued under this Act in substitution for original bonds or stock. 34. (1) This Part shall apply only to substituted bonds or stock. Application of Part VIII

(2) The provisions of this Part shall be in addition to and not in derogation of any provisions of any other Part except so far as those provisions are inconsistent with the provisions of this Part, and if any provision of any other Part is inconsistent with any provision of this Part, then the provisions of this Part shall prevail and the provisions of that other Part shall to the extent of the inconsistency be of no effect. 35. (1) Bonds or stock to be issued under section 12 of the Order in Provisions Council in substitution for original bonds or stock shall be issued under relating to the the provisions of this Act. issue of substituted bonds and stock (2) The Minister shall(a) cause to be kept a register for the registration of each issue of substituted bonds and stock; (b) appoint a registrar for each issue of substituted bonds or stock;

(c) for the investment and management of sinking funds established under the Order in Council, appoint trustees upon whom he may confer such powers and authorities and impose such duties as he may consider expedient; (d) make arrangements and regulations for-

(i) the registration, issue and transfer of substituted bonds and stock; (ii) the fees and charges which shall be payable for the performances of services for which provision is made in this section. (3) The Minister may at any time(a) (b) vary the powers, authorities and duties of a trustee; remove a trustee from office;

(c) in the event of the removal from office, death or retirement of a trustee, appoint a trustee in his place; (d) appoint additional trustees.

PART IX ISSUE OF DUPLICATES AND RENEWALS OF STOCK CERTIFICATES AND SECURITIES AND EXCHANGE AND CONSOLIDATION 36. (1) The Secretary may issue duplicate stock certificates and duplicate securities in such circumstances as may be prescribed. Issue of duplicates and renewals

(2) The Secretary may issue renewals of stock certificates and securities in such circumstances as may be prescribed. (As amended by No. 39 of 1961)

37.

Right of (a) issue a notice to the holder of any security directing him to apply Secretary to compel renewal for a renewal of that security; and of securities (b) withhold payment of the interest or principal amount due in respect of that security until the application for renewal has been made and determined. (As amended by No. 39 of 1961) 38. On application made by any person claiming to be the holder of Exchange of any registered stock or securities issued under this Act, the Secretary registered stock may, if he is satisfied that the applicant is the lawful holder of such stock and securities or securities, and on payment of the prescribed fee, exchange stock for securities or securities for stock or securities of one kind for securities of the other kind: Provided that(i) all stock and securities so given or taken in exchange shall have been issued in respect of the same loan; and (ii) the nominal value of the stock or securities given by the Secretary in exchange shall be the same as the nominal value of the stock or securities taken by him in exchange. (As amended by No. 39 of 1961) 39. Subject to such conditions as may be prescribed, the Secretary mayConsolidation and subdivision (a) on the application of a person claiming to be entitled to any stock of stock and securities or securities; and (b) and on being satisfied of the justice of the claim of such applicant;

The Secretary may, in such circumstances as may be prescribed-

(c) on surrender of the stock certificate relating to such stock or of such securities receipted in the prescribed manner; and (d) on payment of the prescribed fee; consolidate or subdivide such stock or securities and issue to the applicant one or more new stock certificates or securities as may be required.

(As amended by No. 39 of 1961) 40. Where application is made to the Secretary under this Act for the issue of a duplicate stock certificate or a duplicate security or for the exchange, renewal, consolidation or subdivision of any stock or securities, the Secretary may require the applicant, as a condition precedent to the grant of the application, to execute a bond, with or without sureties, undertaking to indemnify the Government against the claims of all persons claiming under the original stock certificate or security or under the stock or securities so exchanged, renewed, consolidated or subdivided, as the case may be. (As amended by No. 39 of 1961) 41. On payment by or on behalf of the Government to the holder of a Immediate discharge in security of the amount expressed therein on or after the date when it becomes due or on the renewal of a security under section thirty-six, or certain cases on the exchange of a security under section thirty-eight, or on the consolidation or subdivision of a security under section thirty-nine, the Government shall be discharged in the same way and to the same extent as if such security was a promissory note payable to bearer. (As amended by No. 39 of 1961) 42. Save as otherwise provided in this Act, the liability of the Government shall(a) in respect of any registered stock or security redeemed on or after the date on which payment of the principal amount becomes due, be discharged after the lapse of six years from that date; (b) in respect of any security in place of which a duplicate is issued under section thirty-six, be discharged after the lapse of six years from the date of the issue of such duplicate or from the date of the last payment of interest on such security, whichever date is the later; (c) in respect of a security for which a renewed security is issued under section thirty-six, or in respect of stock or securities in place of which new stock or securities are issued upon an exchange under section thirty-eight, or upon a consolidation or subdivision under section thirty-nine, be discharged after the lapse of six years from the date of the issue of the renewed security or of the new stock or securities, as the case may be. 43. (1) If, within six months of the death of a person who was entitled Summary Discharge in other cases Indemnity bonds

to registered stock or security the nominal or face value of which does procedure in not in the aggregate exceed five hundred kwacha, either probate of the special cases will or letters of administration of the estate of such person or copies of such probate or letters certified by a commissioner for oaths or notary public to be true copies are not produced to the Secretary, he may, after such inquiry as he may deem necessary, determine who is the person entitled to such stock or security or to administer the estate of the deceased and may(a) where any such stock or security relates to a loan due for repayment, authorise the registration of the name of such person in substitution for the name of the deceased in the register of stocks or register of securities, as the case may be, and the payment to such person of the amount due in respect of that stock or security; (b) where any such stock or security relates to a loan not due for repayment, authorise the registration of the name of such person in substitution for the name of the deceased. (2) Any creditor or claimant against the estate of the deceased may recover his debt or claim out of money paid to any person under subsection (1) and remaining in his hands unadministered in the same manner and to the same extent as if the said person had obtained letters of administration of the estate of the deceased, and nothing in this section shall affect any claim of an executor or administrator or other representative of the deceased against such person, other than a claim to recover amounts lawfully paid by him in due course of administration of the estate of the deceased. (3) The Secretary may, for the purposes of an inquiry under this section, Cap. 41 exercise all or any of the powers of a commissioner under the Inquiries Act, as if he were a commissioner appointed thereunder by a commission issued by the President. (As amended by No. 39 of 1961)

PART X MISCELLANEOUS 44. The signature of the Secretary may be printed, stamped, engraved Signature of

or impressed by any mechanical process on any stock certificate or security, and a signature so printed, stamped, engraved or impressed shall be as valid as if it had been inscribed in the proper handwriting of the Secretary. (As amended by No. 39 of 1961) 45. Save as otherwise provided in or under this Act, no notice of any trust in respect of any registered stock or securities shall be receivable by the Secretary or by the Government. (As amended by No. 39 of 1961)

Secretary may be printed on stock or securities

Notice of turst not receivable save as provided

46. All documents or instruments made or used under the provisions of Exemption this Act shall be in such form as may be prescribed and, notwithstanding from stamp the provisions of any other Act, shall be free from stamp duty. duties 47. (1) No person shall be entitled to inspect, or to receive information Inspection of register and derived from, any registered stock or security in the possession of the Government or any register, book or other document kept or maintained documents by or on behalf of the Government in relation to registered stock or securities, save on payment of such fee and save in such circumstances and on such terms and conditions as may be prescribed. (2) Nothing in this section shall apply to the Auditor-General or to the Commissioner of Taxes. (As amended by G.N. No. 315 of 1964) 48. (1) The Minister may, by statutory instrument, make regulations for Regulations the purpose of giving effect to the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters: (a) the manner in which payment of interest in respect of stock or securities is to be made and acknowledged; (b) the issue of duplicate stock certificates and duplicate securities;

(c)

the renewal of stock certificates and securities;

(d) the manner of payment of interest to joint holders of stock or securities; (e) the circumstances in which alterations may be made in a register;

(f) the payment of principal or interest and transfer of stock and securities in the case of persons under a legal disability; (g) the disposal of unclaimed interest;

(h) the conditions subject to which stock or securities may be exchanged, consolidated or subdivided; (i) to enable holders of registered stock to be described in the register of stock as trustees and either as trustees of any particular trust or as trustees without qualification and for the recognition of powers of attorney granted by holders of stock so described; (j) the fees to be paid in respect of anything to be issued or done under the provisions of this Act; (k) all matters required by this Act to be prescribed and all matters incidental to or connected with the matters hereinbefore enumerated. (3) Nothing in any regulation made hereunder shall, as between any trustees or as between any trustees and beneficiaries under a trust, be deemed to authorise the trustees to act otherwise than in accordance with the rules of law applying to the trust and the terms of the instrument constituting the trust; and neither the Government nor the Secretary nor any person holding or acquiring any interest in any registered stock shall, by reason only of any entry in the register of stock or of anything in any document or instrument relating to registered stock, be affected with notice of any trust or of the fiduciary character of any stockholder or of any fiduciary obligation attaching to the holding of any registered stock. (As amended by No. 39 of 1961 and G.N. No. 315 of 1964) 49. Nothing in this Act contained shall affect the provisions ofSaving

(a) (b)

the General Loan and Stock Act; the Treasury Bills Act.

Cap. 350 Cap. 348

SCHEDULE
(Section 2) THE SCHEDULED TERRITORIES 1. 2. The fully self-governing countries of the Commonwealth, except Canada. Any Colony under the dominion of Her Britannic Majesty, except Zimbabwe.

3. Any territory administered by the government of any part of Her Britannic Majesty's dominions under the trusteeship system of the United Nations. 4. 6. 7. 8. 9. 10. Any British protectorate or British protected state. The Irish Republic. Iraq. Iceland. Kingdom of the Jordan. Libya. 5. Namibia.

(As amended by S.I.No. 159 of 1965 and S.I. No. 161 of 1967)
SUBSIDIARY LEGISLATION

LOCAL LOANS (REGISTERED STOCK AND SECURITIES) THE LOCAL LOANS (SUBSTITUTED BONDS AND STOCK) REGULATIONS [ARRANGEMENT OF REGULATIONS]

CAP. 353

PART I PRELIMINARY

Regulation 1. 2. 3. Title Interpretation Application

PART II REGISTRATION OF SUBSTITUTED BONDS AND STOCK


4. 5. 6. Register of stock Issue of certificates Specifications of certificates

PART III TRANSFER OF SUBSTITUTED BONDS AND STOCK


7. 8. 9. 10. 11. 12. 13. Transfer by instrument in writing Execution of instrument of transfer Transfer to be entered in register Transferor deemed to remain holder Conditions of transfer Evidence may be required Period and notice of transfer

PART IV REPRESENTATIVE STOCKHOLDERS

14. 15.

Transfer by executors, etc. Trustees

16. Notice of trust not required to be entered in register or certificate

PART V PAYMENT OF INTEREST ON SUBSTITUTED BONDS AND STOCK


Regulation 17. 18. Payment of interest Closing of register

PART VI MISCELLANEOUS PROVISIONS


19. 20. 21. Authority for transfer and power of attorney Where Registrar may refuse to recognise instrument Execution of instruments by bodies corporate
Statutory Instrument 190 of 1965

SECTION 35-THE LOCAL LOANS (SUBSTITUTED BONDS AND STOCK) REGULATIONS Regulations by the Minister

PART I PRELIMINARY
1. These Regulations may be cited as the Local Loans (Substituted Bonds and Stock) Regulations. Title

2. In these Regulations, unless the context otherwise requires"certificate" means a certificate or a duplicate certificate issued in terms of regulation 5 representing an amount of substituted bonds or stock;

Interpretation

"the Order in Council" means the Federation of Rhodesia and Nyasaland App. 2 (Dissolution) Order in Council, 1963; "register" means a register kept in terms of regulation 4 in respect of an issue of substituted bonds or stock; "Registrar" means a registrar appointed under the provisions of subsection (2) of section thirty-five of the Act; "stockholder" means a person who is a holder for the time being of an amount of substituted bonds or stock. Application 3. These Regulations shall only apply to substituted bonds or stock issued under section 12 of the Order in Council and section thirty-five of the Act.

PART II REGISTRATION OF SUBSTITUTED BONDS AND STOCK


4. (1) The Registrar shall keep a register in respect of every issue of substituted bonds or stock, wherein shall be entered(a) the names and addresses of all stockholders; and Register of stock

(b) the amount of the substituted bonds or stock of that issue held by such stockholders.

(2) In the event of the redemption of any issue of substituted bonds or stock, the Registrar may close the register relating to such issue for transfers of amounts of substituted bonds or stock of that issue for a period of not more than thirty days immediately preceding the redemption date. 5. (1) Every personIssue of certificates

(a) whose name is entered in a register at the time of issue of any substituted bonds or stock as being the holder of an amount of such substituted bonds or stock; or (b) to whom an amount of any substituted bonds or stock is transferred; shall be entitled, without payment, to be issued by the Registrar with a certificate or certificates representing that amount of such substituted bonds or stock. (2) If a certificate is defaced, lost or destroyed, the Registrar may issue a duplicate certificate subject to(a) the payment to the Registrar of a charge equivalent to the actual costs thereby incurred by the Registrar; (b) where the duplicate certificate is issued in respect of a defaced certificate, the surrender to the Registrar of the defaced certificate; and (c) such other conditions as the Registrar may reasonably deem necessary. (3) If an amount of any substituted bonds or stock is transferred and the provisions of regulation 11 have been satisfied in respect of an amount of substituted bonds or stock exceeding the amount specified in the instrument of transfer, the person by whom the amount was transferred shall be entitled, without payment, to be issued by the Registrar with a certificate representing the amount of the excess. (4) Notwithstanding anything in this regulation contained, where the

names of two or more persons are entered in a register as being joint stockholders, it shall not be necessary for the Registrar to issue more than one certificate in respect of the amount of substituted bonds or stock in respect of which such persons are joint stockholders, and the delivery of a certificate representing that amount of substituted bonds or stock to one of the several joint stockholders shall be sufficient delivery to all of them. 6. (1) A certificate shall specify the amount and issue of the substituted Specifications bonds or stock of which the person specified therein is the holder, and of certificates shall be signed by the Registrar or a person authorised in that behalf by the Registrar and by such other person as the Registrar may direct. (2) A certificate shall be evidence of the title of the person specified therein to the amount of substituted bonds or stock of the issue specified therein.

PART III TRANSFER OF SUBSTITUTED BONDS AND STOCK


7. Subject to the provisions of these Regulations, substituted bonds or Transfer by stock shall be transferable by instrument in writing in any usual or instrument in common form executed by the transferor and delivered to and retained writing by the Registrar. 8. The Registrar may refuse to give effect to a transfer of an amount of Execution of instrument of substituted bonds or stock unlesstransfer (a) the execution of the instrument of transfer relating thereto by each party to the transfer is attested by at least one witness who is not a party to the transfer or the spouse of a party to the transfer; and (b) the witness specifies in such instrument his usual place of residence or place of business. 9. The Registrar shall give effect to a transfer of an amount of Transfer to be

substituted bonds or stock by entering in the register relating to substituted bonds or stock of that issue such particulars as are requisite to show the effect of the transfer.

entered in register

10. The transferor of an amount of any substituted bonds or stock shall Transferor be deemed to remain the holder thereof until the Registrar has given deemed to effect to the transfer. remain holder 11. (1) The Registrar may refuse to give effect to a transfer of an amount of substituted bonds or stock unless(a) the instrument of transfer relating thereto is accompanied by a certificate representing, or certificates representing in the aggregate, an amount of substituted bonds or stock of the issue specified in such instrument of transfer not falling short of the amount specified therein, being a certificate or certificates wherein the name of the transferor is stated; or (b) the instrument of transfer relating thereto is accompanied by a certificate representing, or certificates representing in the aggregate, an amount of substituted bonds or stock of the issue specified in such instrument of transfer equal to a part of the amount specified therein, being a certificate or certificates wherein the name of the transferor is stated and, as to the residue thereof, there is furnished to the Registrar such evidence as he may reasonably require that a certificate representing, or certificates representing in the aggregate, an amount of substituted bonds or stock of that issue not falling short of the residue, and being a certificate or certificates wherein the name of the transferor is stated, has or have been lost or destroyed; or (c) there is furnished to the Registrar such evidence as he may reasonably require that a certificate representing, or certificates representing in the aggregate, an amount of substituted bonds or stock of the issue specified in the instrument of transfer not falling short of the amount specified therein, and being a certificate or certificates wherein the name of the transferor is stated, has or have been lost or destroyed. (2) Where the provisions of paragraph (b) or (c) of sub-regulation (1) have effect in respect of an amount of substituted bonds or stock, the Registrar may refuse to give effect to a transfer of any such amount unless there is furnished to him such indemnity against claims in respect of lost or destroyed certificates as he may reasonably require. Conditions of transfer

12. The Registrar may refuse to give effect to a transfer of an amount Evidence may of substituted bonds or stock unless there is furnished to him, in addition be required to the certificate or other evidence furnished in terms of regulation 11 such evidence as he may reasonably require of the right of the transferor to make the transfer. 13. The Registrar shall not be required to give effect to a transfer of an Period and notice of amount of substituted bonds or stock until(a) the expiration of a period of ten days beginning with the day next transfer following that on which the instrument of transfer relating thereto is delivered to the Registrar; or (b) if before the expiration of the said period, the Registrar sends to the person specified in the instrument of transfer as the transferor or, if two or more persons are specified in such instrument as the transferors, to one of those persons, a written notice informing him of the proposed transfer, the expiration of the period of ten days beginning with the day next following that on which such written notice was posted.

PART IV REPRESENTATIVE STOCKHOLDERS


14. (1) An amount of substituted bonds or stock entered in the register Transfer by relating to substituted bonds or stock of that issue in the name of a executors, etc. deceased person shall be transferable by the executor in the estate of such person or, if there are two or more executors, by all the executors in such estate jointly. (2) The Registrar shall call for such evidence of the appointment of an executor or executors and his or their power to transfer substituted bonds or stock as he may consider necessary. (3) Any person in whom an amount of substituted bonds or stock vests in consequence of-

(a) (b) law;

the mental disorder of a stockholder; the insolvency or bankruptcy of a stockholder under any written

(c) the making by a stockholder of an assignment to or composition with his creditors; or (d) the operation of law otherwise than by transfer in accordance with these Regulations; shall, on producing such evidence of the capacity in respect of which he proposes to act or of his title as is by law sufficient, have the right to be registered as the holder of that amount of substituted bonds or stock and, additionally or alternatively, to make, subject to the provisions of these Regulations, such transfer of that amount of substituted bonds or stock as such stockholder could have made. 15. (1) A stockholder may be described in the register relating to the issue of substituted bonds or stock he holds as a trustee of a specified trust or as a trustee without specifying a trust. (2) If a stockholder is the holder of an office, his official designation may be entered in the register relating to the issue of substituted bonds or stock he holds instead of his name; and where, in relation to an amount of substituted bonds or stock, any such official designation is so entered(a) an instrument of transfer; and Trustees

(b) an instrument containing directions with respect to the payment of interest on that amount; shall, if executed by the holder for the time being of that office or by the person lawfully acting in the capacity of such holder, be as effectual as if his name were entered as the holder of that amount. 16. Save as expressly provided by these Regulations, no notice of any trust, whether express, implied or constructive, shall be entered in any register or in a certificate, and notwithstanding that, in relation to an amount of any substituted bonds or stock entered in the register relating Notice of trust not required to be entered in register or

to that issue of substituted bonds or stock in a particular name or names, certificate the holder thereof is described as mentioned in sub-regulation (1) of regulation 15, it shall not be necessary for the Registrar to inquire concerning the propriety of anything done in relation to that amount or any part thereof.

PART V PAYMENT OF INTEREST ON SUBSTITUTED BONDS AND STOCK


17. (1) The payment of interest on any holding of substituted bonds or Payment of stock shall be calculated in accordance with the conditions of the loan to interest which the issue of substituted bonds or stock relates. (2) Where two or more persons are registered as joint stockholders, any one of them may give effectual receipts for any interest payable on the amount of substituted bonds or stock in respect of which they are so registered. (3) Interest shall be payable by means of warrants or cheques sent through the post, and unless otherwise directed in writing by the stockholder, or in the case of joint stockholders by all the stockholders, shall be sent to the stockholder, or in the case of joint stockholders to that stockholder whose name is entered first on the register in respect of the joint holding, at his registered address: Provided that the Registrar may, in any case in which he sees fit, defer payment of any interest until he has received authority with respect thereto from the stockholder or stockholder. (4) Every such warrant or cheque shall be made payable to the order of the person to whom it is sent, and payment of the warrant or cheque, if purporting to be duly receipted by or on behalf of the payee, shall be a satisfaction of the amount in respect of the interest.

18. A register shall be closed as regards transfers for a period of fifteen Closing of days immediately preceding any day on which, in terms of the register conditions of the loan to which the issue of substituted bonds or stock relates, any payments of interest become due, and shall remain closed until the day on which such payments are effected.

PART VI MISCELLANEOUS PROVISIONS


19. (1) An authority to execute an instrument of transfer relating to an amount of any substituted bonds or stock shall be in writing, and the execution of the instrument containing any such authority shall be attested by at least one witness. (2) Every power of attorney given by a stockholder authorising the transfer of an amount of substituted bonds or stock shall, when lodged, produced or exhibited to the Registrar, be deemed, as between the Registrar and the donor of the power, to continue and remain in full force and effect until such time as express notice in writing of its revocation has been lodged with the Registrar. 20. If a party to an instrument of transfer relating to an amount of substituted bonds or stock executes such instrument otherwise than by signature, the Registrar may refuse to recognise the instrument unless there is furnished to him such evidence as he may reasonably require (whether by way of a statement written on the instrument and purporting to be signed by the person witnessing the execution of the instrument by that party, or otherwise) that the effect of the instrument was understood by that party. 21. Nothing in these Regulations contained shall be construed as authorising a body corporate to execute an instrument otherwise than in accordance with the rules of law and with the provisions of any instrument (including a statute or instrument made thereunder) regulating the constitution of that body with respect to the execution of instruments by that body. Where Registrar may refuse to recognise instrument Authority for transfer and power of attorney

Execution of instruments by bodies corporate

THE LOCAL LOANS (REGISTERED STOCK) REGULATIONS [ARRANGEMENT OF REGULATIONS]

Regulation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Title Interpretation Applications for allotment Letters of allotment Stock certificates Payment of interest and acknowledgement Transfers Applications for consolidation or subdivision Transfer, consolidation and subdivision Issue of duplicates and renewals Provisions relating to joint stockholders Alterations in the register Persons under legal disability Trustees Appointment of agents Death of stockholder Information as to stock accounts Indemnity of Government and officers Saving of rights of third parties Prescribed fees

SCHEDULE-Prescribed forms SECTION 48-THE LOCAL LOANS (REGISTERED STOCK) REGULATIONS Regulations by the Minister Government Notices 122 of 1958 309 of 1963 315 of 1964 497 of 1964 Statutory

Instrument 48 of 1965 13 of 1994 1. These Regulations may be cited as the Local Loans (Registered Stock) Regulations. 2. In these Regulations, unless the context otherwise requires"unit of stock" means stock of the denomination of two kwacha. 3. Applications for allotment of stock shall be made in the form set out Applications for in Form 1 of the Schedule. allotment 4. Letters of allotment of stock shall be made in the form set out in Form 2 of the Schedule. Letters of allotment Title

Interpretation

5. Stock certificates shall be issued in the form set out in Form 3 of the Stock Schedule. certificates 6. (1) The interest due on any registered stock shall be paid by warrant Payment of to the registered stockholder or to any branch of any bank within interest and Zambia or person or body of persons to whom the stockholder has by a acknowledgment request duly made to the Minister authorised the Minister to issue such warrant. (2) No warrant shall be paid until the receipt thereon for the amount thereby payable has been duly signed, and such receipt shall be a full discharge to the Government and to the Minister for the payment of the sum named in the warrant. (3) The posting of a letter containing a warrant sent by the Minister in pursuance of these Regulations addressed to any person at the last address furnished by that person to the Minister shall, as regards the liability of the Government and of the Minister, be equivalent to the delivery of the warrant to the person to whom the letter was addressed.

(4) Where, in pursuance of these Regulations or in accordance with any authority given thereunder, any payment is to be made by the Minister to a firm or a body of persons, whether corporate or unincorporate, a receipt for the payment given by any person purporting to be an agent or officer of that firm or body and to be authorised to receive the payment shall be a full discharge to the Government and the Minister for the amount paid. (5) Where stock is registered in the names of two or more persons as joint stockholders, the Minister may, unless other arrangements with respect to the payment of interest have been made in accordance with these Regulations, pay any interest thereon to the stockholder whose name appears first in the register. (6) A receipt for the payment of interest on any stock which is given by any one of two or more joint stockholders of such stock shall, unless notice in writing to the contrary has been received by the Minister from any other joint stockholder of such stock, be a full discharge to the Minister and the Government for the payment of that interest. 7. Transfers of stock shall be executed by an instrument in the form set Transfers out in Form 4 of the Schedule. 8. Applications for consolidation or subdivision of stock shall be made Applications for in the form set out in Form 5 of the Schedule. consolidation or subdivision 9. No transfer, consolidation or subdivision of stock shall be made except in respect of units of stock. Transfer, consolidation and subdivision

10. (1) The loss or destruction of any stock certificate issued by the Issue of Minister shall be notified in writing to him as soon as practicable by the duplicates and person entitled to the possession thereof. renewals (2) Upon receipt of such notification, the Minister shall cause to be published in the Gazette a notice stating that the certificate has been lost or destroyed, as the case may be, and that he proposes, after the expiration of two calendar months from the date of such notice, to issue

a duplicate of such certificate. (3) The person giving such notification shall also be required to issue a notice in a local newspaper, circulating in the district of his residence, stating that the certificate has been lost or destroyed, as the case may be, and that he proposes to apply to the Minister for the issue of a duplicate. (4) If the Minister is satisfied that any stock certificate has been lost or destroyed, or is of opinion that any stock certificate has been issued in error or has been tampered with, or is in such a condition as to render its renewal desirable, he may(a) in the case of loss or destruction, issue, subject to the provisions of sub-regulation (2), a duplicate certificate; and (b) in any other case, issue a renewal of the stock certificate, to any person who satisfies him that he is entitled to the possession thereof. (5) Where any fee is authorised on the issue of a duplicate or on the renewal of a stock certificate, no such fee shall be payable in relation to a duplicate or renewal of a stock certificate occasioned solely by an error attributable to the person issuing the original stock certificate. 11. (1) Subject to the provisions of these Regulations, any application with respect to stock in the names of two or more persons as joint stockholders shall be made by all such persons. (2) The joint stockholders of any stock may authorise any person, including one of themselves, to act as their agent in respect of such stock and the provisions of these Regulations relating to the authorisation of agents shall apply accordingly. (3) Where stock is registered in the names of three or more stockholders Powers of stockholders to and an application in that behalf is made in respect of such stock in accordance with the provisions of this regulation, all things required to act by majority be done for the purpose of dealing with such stock may, subject to the provisions of these Regulations, be done and given by a majority of the persons who are the stockholders at the date when the application is made, or, in the case of the death of any such persons, by a majority of the survivors of them. Provisions relating to joint stockholders

(4) An application for the purpose of this regulation shall be made in writing to the Minister. (5) A person who is registered as one of the stockholders of any stock with respect to which an application has been made under this regulation may give notice in writing to the Minister that the application is revoked, and, on notice being so given, the provisions of this regulation shall, as from the receipt of the notice by the Minister, cease to apply to such stock. 12. (1) In the event of stock being registered incorrectly owing to any Alterations in the register mistake in the request for registration or transfer, the account shall be amended upon the receipt of a letter or declaration, as the case may require, stating how the error arose. In the event of alteration to any name or names in the account which has been necessitated by reason of a transfer, a re-execution of the transfer shall be made by the transferor or by his solicitor. (2) On the marriage of a female stockholder, her name and description shall be altered in the register with respect to stock standing either in her name solely or jointly with any other persons, on such stockholder producing to the Minister her marriage certificate, and notifying her change of address, if any, and giving full particulars of the accounts in which it is desired to have the alterations made. Specimens of her present and former signatures shall be furnished, and the husband shall not be required to join in the notification. 13. If the stockholder of any stock becomes of unsound mind or otherwise subject to legal disability, anything which under these Regulations may be done by or in relation to such stockholder may be done by or in relation to the person, if any, having power in law to administer the property of such stockholder, subject to the prior production to the Minister of documentary proof of such power to the satisfaction of the Minister. Persons under legal disability

14. Where any stock is purchased by any person as trustee for another Trustees person, the Minister, at the request of the trustee, shall cause him to be so described in the register.

15. (1) Subject to the provisions of these Regulations, any stockholder Appointment of may give an authority in writing authorising any person to act as his agents agent with respect to stock held by him or with respect to any interest arising therefrom and such authority may(a) relate to the whole stock or to any unit of stock which may at any time be held by the persons giving the authority or to the whole stock or to any unit of stock which is held by him at the time when the authority is given; and (b) authorise the person to whom the authority is given to deal with the stock or interest to which it relates either generally at his discretion or subject to any directions contained in the authority. (2) An authority under this regulation shall be of no effect unless and until it is delivered to the Minister. (3) An authority given under this regulation may be revoked at any time by the person by whom it was given and shall be determined by the death, bankruptcy or legal disability of that person: Provided that any payment duly made by the Minister under these Regulations in compliance with an authority given under this regulation shall, notwithstanding the revocation or determination of such authority, be deemed for all purposes to be a valid payment unless notice in writing of the revocation had been received by, or the death, bankruptcy or disability had come to the knowledge of the Minister at the time when the payment was made. (4) An authority given under this regulation shall, subject to the terms thereof, until revoked or determined(a) remain in force notwithstanding any increase or decrease in the nominal value of the stock to which it relates; (b) entitle the person to whom it is given to make any application and sign any document mentioned in these Regulations and to receive any payment in pursuance thereof.

16. (1) Subject to the provisions of sub-regulation (4), the death of a Death of stockholder shall be proved by production of either probate of the will or stockholder letters of administration, or copies of such probate or letters certified by a notary public to be true copies, and, where necessary, a declaration as to the identity of the deceased shall be made by some disinterested person. (2) On completion of the proof of death of a stockholder in a joint account, the stock shall be held at the disposal of the survivor or survivors, but the name of the deceased stockholder shall not be removed from the account. (3) On the death of the last survivor in a joint account, the stock and interest thereon shall be held at the disposal of the executors or administrators of such last survivor. (4) Where the amount of stock registered in the name of a deceased does not exceed the sum of one hundred kwacha, the Minister, on being notified of the death of such person, shall communicate with the District Secretary of the District in which the deceased person was living at the date of his death. If the District Secretary is satisfied, after the expiration of such period of time as he thinks reasonable, that the deceased person has left no will, and that letters of administration in respect of his estate have not been granted, he shall notify the Minister of the name of the person or persons who appear to him entitled by African customary law to administer the estate of the deceased, and the Minister shall thereupon cause the stock to be transferred, without charge, into the name of such person or persons. 17. Information with regard to a stock account shall only be furnished Information as at the request of a stockholder to whom such account relates or his duly to stock appointed representative. accounts Indemnity of 18. The Government, the Minister, and any person acting under his Government authority, shall not be liable, without proof of negligence or fraud, in respect of any payment duly made or act duly done in accordance with and officers these Regulations, and any such payment shall, subject to the provisions of regulation 19, be deemed to have been a valid payment and a receipt issued by the person to whom the money was paid shall be a full discharge to the Government and to the Minister for the amount of such

payment. 19. No provision of these Regulations for the protection of the Saving of rights Government and of the Minister in respect of any act done or any money of third parties paid shall operate to prevent the recovery by any person or his representative of any stock or money lawfully due to him from the person to whom such stock was transferred or such money was paid by or under the direction of the Minister, or from the representative of that person. 20. The Minister may authorise, either generally or in the case of any particular issue of stock, the payment of the following fees: On the issue of a stock certificate under section twelve of the Act other than to the first stockholder Prescribed fees

3 fee units

On the issue of a duplicate, or renewal of a stock certificate under regulation 8 fee units On the registration of the transfer of stock under section fourteen of the Act 3 fee units On the consolidation or subdivision of stock under section thirty-nine of the Act3 fee units For information furnished under regulation Provided that, in the case of an account registered in the name of a trustee in accordance with the provisions of regulation 14, no fee shall be charged on the issue of a stock certificate or on the registration of a transfer occasioned solely by a change of trustee.
(As amended by No. 315 of 1964 and Act 13 of 1994)

5 fee units

SCHEDULE
PRESCRIBED FORMS

THE LOCAL LOANS (REGISTERED STOCK) REGULATIONS FORM 1 (Regulation 3) The List of Applications will be opened at...................(time and date)...................and will be closed when the loan has been fully subscribed or at the latest at ........................................................................
For offical Use

APPLICATION FORM

Application No ............

Allotment No ...............

GOVERNMENT OF ZAMBIA ......... per cent LOCAL REGISTERED STOCK 19........ (No.............) ISSUE OF K............. AT K............. per cent The Permanent Secretary, Ministry of Finance, P.O. Box RW62, Lusaka, Zambia (Agent)(Agent) I/We hereby apply for K.......................................(say.....................................kwacha) of GOVERNMENT OF ZAMBIA ....................................................................................... PER CENT. LOCAL REGISTERED STOCK ...........................................................................according to the conditions contained in the Prospectus dated...................................................................and undertake to pay............................................................................ for every K200 of Stock, and to accept the same, or any lesser amount that may be allotted to me/us, and to pay for the same in conformity with the terms of the said Prospectus. I/We (details of method of payment). Stock is to be registered in the name(s) of: Full name(s)

(BLOCK CAPITALS) Permanent Address

........................................................................ (Signature of Applicant(s)) Date...................................................... Application must be made for K................................................................... of Stock or multiples thereof. Cheques should be made payable to the........................................................ ..................... .................................................................... Interest will be paid by Warrant direct to the Stockholder's permanent address unless otherwise instructed below. INTEREST TO BE PAID TO: *(a) My/Our Account at the ................................................................. branch of the .................................................. Bank, ....................................................... *(b) My/Our Post Office Savings Bank Account No.................................................. at the........................................................................................Post Office. *(c)

........................................................................ (Signature of Applicant(s)) Date...................................................... *1. Delete whichever is not applicable. 2. State whether Mr., Mrs. or Miss and titles, if any. 3. Where the address given is c/o another bank or firm, the place of residence or business of the applicant should also be given. 4. Applications by Corporate Bodies should be supported by documentary evidence of the power to acquire Government Stock and documentary evidence of the manner in which contracts of this nature are to be completed on behalf of the applicants. Corporate Bodies who have already registered the aforementioned documents with the Permanent Secretary, Ministry of Finance, need take no further action in this connection. (No. 309 of 1963)

THE LOCAL LOANS (REGISTERED STOCK) REGULATIONS FORM 2 (Regulation 4)


GOVERNMENT OF ZAMBIA LOCAL REGISTERED STOCK LETTER OF ALLOTMENT No.......................................(Address)........................................................ (Address)........................................................ ..........................................., 19....... To: .................................................................. To: .................................................................. To: .................................................................. SIR/GENTLEMEN, I thank you for your remittance of K............................................................ and your application for Stock in the ................................................................. Loan, and have the pleasure to inform you that you have been allotted Stock to the nominal value of K.................................... An official receipt for your deposit is attached. (a) *The sum of K.......................................................... as calculated below is payable by you on or before the .........................................., 19......... K Gross value of allotment at...............................per...............................Stock Less amount paid on application .. .. .. .. .. . .____________ Net amount payable by you .. .. .. .. . . . .____________

(b) *The sum of K......................................... as calculated below is payable to you and cheque No............................................... for that amount is enclosed. K Amount paid on application .. .. .. .. .. .. Less gross value of the allotment at.......................................................for .....................................................Stock . . .. .. .. . ._____________ Net amount payable to you .. .. .. .. . . . ._____________

If special arrangements for the payment of interest are desired, the form overleaf should be completed. Intd................................................ ......................................................................

Exd..................................................

Permanent Secretary, Ministry of Finance.

To: THE PERMANENT SECRETARY,.............................................., 19......... To: To: SIR, LOCAL REGISTERED STOCK A *remittance/cheque for K is enclosed. Please forward receipt and stock certificate to *me/us/to the person named below: Name .................................................. Signature(s) .................................................... Address .............................................. Signature(s)z .................................................. ........................................................ Signature(s) .................................................... *Strike out whichever is inapplicable MINISTRY OF FINANCE, (Address)

FORM 2 (REVERSE) GOVERNMENT OF ZAMBIA


LOCAL REGISTERED STOCK INTEREST REQUEST
(Address) Until further notice, please pay interest falling due half-yearly/yearly on the under-stated stockholding(s) by warrant to*Name ........................................................................................................................

Address ...................................................................................................................... ......................................................................................................

Details of the stockholding(s) are as follows: Names of Holders

...........................................................................................................................................................................................................................................

(As amended by No. 309 of 1963)

THE LOCAL LOANS (REGISTERED STOCK) REGULATIONS FORM 3 (Regulation 5)

GOVERNMENT OF CREST ........................................LOCAL REGISTERED STOCK....................................... Stock Certificate No..............................

ZAMBIA

THE LOCAL LOANS (REGISTERED STOCK) REGULATIONS


K..................................................... Stock This is to certify

that .......................................................................................................................................................... ................................ ........................................................................................................................................................... has/have been recorded in the Register of Stockholders as the proprietor(s) of Government of Zambia ..................... Local Registered Stock....................................to the value

of ......................................................................................... .................................................................................................... ....................................................................................... Lusaka.................................................................. 19........ Exd .................................................................................... Transfer No ....................................................................... Registered Folio No .......................................................... (Reverse) Interest is payable...........................................................................................................

Perm

Mini

This Certificate is not negotiable by endorsement, and a sale or transfer of the Stock, in whole or in part, must be effected by an instrument of tra at the office of the Permanent Secretary, Ministry of Finance, Lusaka. Please complete and forward to the Permanent Secretary, Ministry of Finance (address). Received Stock Certificate No........................................ Signature.................................................. Date............................................., 19........

The Local Loans (Registered Stock) Regulations


Form 4 (Regulation 7) stock transfer form Consideration Money K........................... Government of Zambia Local Registered Stock (Above this line for Registrars only) Certificate lodged with the Registrar (Note: The Stock Certificate must accompany this form) (For completion by the Registrar/ Stock Exchange)

Full name of Undertaking Full description of Security

Number or amount of Shares, Stock or other security and, in figures column only, number and denomination of units, if any.

Words

Figures

( units of ) Name(s) of registered holder(s) should be given in full; the address should be given where there is only one holder. If the transfer is not made by the registered holder(s) insert also the name(s) and capacity (e.g., Executor(s)) of the person(s) making the transfer. I/We hereby transfer the above security out of the name(s) aforesaid to the person(s) named below or to the several persons named in Parts 2 of Brokers Transfer Forms relating to the above security: Delete words in italics except for Stock Exchange transactions. Signature(s) of Transferor(s) 1. ......................................................................... 2. ......................................................................... 3. ......................................................................... 4. ......................................................................... Bodies corporate should execute under their common seal. In the name(s) of

Stamp of Selling Broker(s) or, for transactions which are not Stock Exchange transactions, of Agent(s), if any acting for the Transferor(s)

Date....................................

Full name(s) and full postal address(es) of the person(s) to whom the security is transferred. Please state title, if any, or whether Mr., Mrs., or Miss. Please complete in typewriting or in block capitals. I/We request that such entries be made in the register as are necessary to give effect to this transfer. Stamp of Buying Broker(s) Stamp or name and address of person (if any) lodging this form (if other than the Buying Broker(s))

(No. of 48 of 1965)

The Local Loans (Registered Stock) Regulations


Form 5 (Regulation 8) Government of Zambia ................Local Registered Stock APPLICATION FOR CONSOLIDATION/SUBDIVISION OF STOCK ..........................., 19...... The Permanent Secretary, Ministry of Finance, (Address) The undersigned herewith tender the undernoted Stock Certificate(s) and request that (a) new Stock Certificate(s) may be issued to the values indicated below. Particulars of Stock Certificates Tendered for Consolidation/Subdivision Stock Certificate Number Amount

Total . . K

Particulars of Stock Certificates Required on Consolidation/Subdivision Stock Certificate Amount

Total . . K Signature(s) and address(es) of holder(s)

(As amended by No. 309 of 1963)

CHAPTER 354 SECURITIES ACT


ARRANGEMENT OF SECTIONS

PART I PRELIMINARY Section 1. 2. Short title Interpretation

PART II SECURITIES AND EXCHANGE COMMISSION 3. 4. 5. 6. The Commission Functions of the Commission Delegation of functions Rules relating to exchanges

PART III SECURITIES EXCHANGES 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Unlawful securities market Application for securities exchange licence Lusaka Stock Exchange Power of Commission to give directions to securities exchange Appeal against direction of Commission Power of Minister to close securities exchange Management of securities exchange Rules of securities exchange Securities exchange to assist Commission Amendment to rules of securities Use of certain titles

PART IV LICENSING OF DEALERS, INVESTMENT ADVISERS AND REPRESENTATIVES Section 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. Dealers to be licensed Investment advisers to be licensed Representatives to be licensed Applications for licences Refusal of licence or renewal Terms and conditions of licences Revocation or suspension of licences Rights of applicant Appeals Register of licences Records to be kept by licensees Information to be supplied by licensees Fraudulent applications Deposits by dealers and investment advisers

PART V REGISTRATION OF SECURITIES 32. 33. Securities to be registered Prospectus

34. Dealers not to deal in securities market not operated by securities exchange 35. 36. 37. 38. Trading of listed securities Trading of unlisted securities Registered securities to be traded through licensed dealers Continuing obligations in relation to registered securities

PART VI

CONDUCT OF SECURITIES BUSINESS Section 39. 40. 41. 42. 43. 44. 45. 46. 47. Takeovers and substantial acquisitions Code of conduct in relation to conduct of securities business Contract notes Terms of settlement of bargains in securities, etc. Short selling Safeguarding of investors' property Accounts to be kept by licensees Financial resources rules Investment advisory contracts

PART VII IMPROPER TRADING PRACTICES 48. 49. 50. False trading and manipulation of the market Use of deceptive statements, etc. as inducements Fraudulent transactions

51. False or misleading statements in connection with sale of securities 52. 53. 54. Insider dealing Powers of inspection Damages for loss sustained through contravention of this Part

PART VIII POWERS OF INTERVENTION 55. 56. 57. 58. 59. 60. Scope of powers under this Part Restriction of business Restriction on dealing with assets Maintenance of assets Rescission or variation of prohibition of requirement Notices

61. 62. 63.

Winding-up orders Receiving orders Orders of the Court

PART IX COMPENSATION FUND Section 64. 65. 66. 67. 68. 69. 70. 71. Compensation fund Compensation Fund Committee Constitution of fund Purpose of fund Disbursements from the fund Management of the fund Liability of fund to be limited Recovery of disbursements from defaulters

PART X COLLECTIVE INVESTMENT SCHEMES 72. 73. 74. Definitions Authorisation and regulation of schemes Restriction on promotions

PART XI MISCELLANEOUS 75. 76. 77. 78. 79. 80. Immunity of Commission, etc. Obstruction Offences by bodies corporate Rules Guidance notes, etc. Repeal of Act No. 43, 1990 and savings

FIRST SCHEDULE-The Securities Commission

SECOND SCHEDULE-Requirements to be met by applicants for securities exchange licence

CHAPTER 354

SECURITIES ACT An Act to provide for the regulation of the securities industry; to establish the Securities and Exchange Commission and to define its objects and functions; and to provide for matters connected with or incidental to the foregoing. [8th August, 1993 PART I PRELIMINARY 1. This Act may be cited as the Securities Act.*

38 of 1993 13 of 1994 Statutory Instrument 172 of 1993

Short title

*Date of commencement 17th December, 1993. 2. (1) In this Act, unless the context otherwise requires"Commission" means the Securities and Exchange Commission established by this Act; "company" means a company registered or incorporated under the Companies Act; "Court" means the High Court of Zambia; "dealing", in relation to securities, means acquiring, disposing of, subscribing for or underwriting securities or making or offering to make with any person, or inducing or attempting to induce a person to enter into or offer to enter into, an agreement relating to the acquisition or disposal of, subscription for or underwriting of securities; "dealer" means a person who carries on the business of dealing in securities, whether as principal or agent; "dealer's licence" means a licence under Part IV authorising a company to carry on a business as a dealer;
Interpretation Cap. 388 Cap. 387 Cap. 392

"exchange rules", in relation to a securities exchange, means any rules made by the exchange that are binding on its members or any of them; "investment adviser" means a person who carries on a business of providing advice to persons with respect to investments, but does not include(a) a bank as defined in any written law governing the registration or licensing of banks and financial institutions (Banking and Financial Services Act); (b) an insurance company registered under the Insurance Act; (c) an advocate or accountant in practice whose advice with respect to investments is incidental to the practice of his profession; (d) a licensed dealer or a licensed dealer's representative whose advice with respect to investments is incidental to his business or employment in dealing in securities; or (e) the proprietor or publisher of a newspaper, news magazine or business or financial publication of general and regular paid circulation distributed only to subscribers thereto or to purchasers thereof, in relation to any advice with respect to investments given therein, where(i) he receives no commission or other consideration for giving or publishing the advice; and (ii) the giving or publication of that advice is incidental to the conduct of his business as a newspaper proprietor or publisher; "investment adviser's licence" means a licence under Part IV authorising the licensee to carry on a business as an investment adviser; "issuer" means every person who issues or proposes to issue any security; "licence" means a licence in force under this Act, and "licensed" shall be construed accordingly; "listed security" means a security which has been admitted to listing by a securities exchange for the purposes of dealing in that security on the exchange; "representative" means a person who is employed by or acts for a dealer or an investment adviser and who performs for that dealer or investment adviser, any of the functions of a dealer or investment adviser, as the case may be, other than the work ordinarily performed by accountants, clerks or cashiers, whether his remuneration is by way of salary, wages, commission or otherwise, and includes any director or officer of a company who performs any such functions for the company; "representative"s licence" means a licence under Part IV authorising the

licensee to be employed as or act as the representative of a licensed dealer or licensed investment adviser; "registered securities" means securities registered under Part V; "securities" means(a) shares, debentures, stocks or bonds issued or proposed to be issued by a government; (b) shares, debentures, stocks, bonds or notes issued or proposed to be issued by a body corporate; (c) any right or option in respect of any such shares, debentures, stocks, bonds or notes; or (d) any instruments commonly known as securities or which are prescribed by rules made by the Commission to be securities for the purposes of this Act; "securities exchange" means an exchange established and operated by a company licensed to do so under this Act; "securities market" means a market or other place at which, or a facility by means of which(a) offers to sell, purchase or exchange securities are regularly made or accepted; (b) offers or invitations are regularly made, being offers or invitations that are intended, or may reasonably be expected, to result, whether directly, or indirectly, in the making or acceptance of offers to sell, purchase or exchange securities; or information is regularly provided concerning the prices at which, or the consideration for which, particular persons or particular classes of persons propose, or may reasonably be expected, to sell, purchase or exchange securities; "share" means a share in the capital of a company, and includes the stock or any part of the stock of a company; "underwriter" means either the purchaser of newly issued securities for the purpose of public resale on behalf of the issuer or the guarantor to an issuer that the unsold residue of the issuer's public issue or sale will be taken up.

PART II
SECURITIES AND EXCHANGE COMMISSION

3. (1) There is hereby established a body to be known as the Securities The Commission and Exchange Commission, which shall be a body corporate with a common seal, capable of suing and being sued and subject to the provisions of this Act, capable of performing all such acts as a body corporate may by law do or perform. (2) The provisions of the First Schedule shall apply as to the constitution of the Commission and otherwise in relation thereto. 4. The Commission shall have the following functions: (a) to take all available steps to ensure that this Act and any rules made under this Act are complied with; (b) to supervise and monitor the activities of any securities exchange and the settlement of transactions in securities; (c) to license and monitor the activities of securities exchanges, dealers, investment advisers and their respective representatives and of persons who, within the meaning of rules made under this Act, are non-bank custodians or service registrars; (d) to approve the constitutions, charters, articles, by-laws, rules and regulations governing and pertaining to any securities exchange; (e) to make, issue, monitor and enforce rules for the conduct of participants in the securities industry and for the supervision and investigation of that conduct, including rules relating to licensing and for the revocation and suspension of licences; (f) to promote and encourage high standards of investor protection and integrity among members of any securities exchange; (g) to support the operation of a free, orderly, fair, secure and properly informed securities market; (h) to regulate the manner and scope of securities on any securities exchange, the exchange rules, listing requirements, margin requirements, capital adequacy requirements, disclosure and periodic reporting requirements, trade settlement and clearing requirements; (i) to take all reasonable steps to safeguard the interest of persons who invest in securities and to suppress illegal, dishonourable and improper practices in relation to dealings in securities, whether on the securities exchange or otherwise; (j) to take all reasonable steps to promote and maintain the integrity of persons licensed under Part IV and encourage the promulgation by such persons of balanced and informed advice to their clients and to the
Functions of the Commission

public generally; (k) to consider and suggest proposals for the reform of the law relating to the securities industry; (l) to encourage the development of securities markets in Zambia and the increased use of such markets by investors in Zambia and elsewhere; (m) to promote and develop self-regulation by securities exchange; (n) to co-operate, by the sharing of information and otherwise, with other supervisory bodies in Zambia and elsewhere; (o) to exercise and perform such other powers, authorities, duties and functions as may be conferred or imposed upon it by or under this or any other Act. 5. The Commission may delegate to its officers and employees such of Delegation of functions its powers and functions as the Commission considers necessary or expedient to delegate. 6. The Commission may by statutory instrument make rules in respect Rules relating to exchanges of the following: (a) the conditions subject to which, and the circumstances in which, any securities exchange may suspend dealings in securities; (b) the qualifications for membership of securities exchanges and the maximum number of persons that may be admitted to membership of any securities exchange; (c) the type of business that may be carried on, and services that may be provided by or at securities exchanges; (d) prescribing the requirements to be met before securities may be listed on securities exchanges; (e) prescribing the procedure for dealing with applications for the listing of securities at securities exchanges; (f) providing for the cancellation or suspension of the listing of any specified securities at any securities exchange if the Commission's requirements for listing, or the requirements of any undertaking given to the Commission in connection with a listing agreement, are not complied with; (g) providing for the cancellation or suspension of the listing of any specified securities at any securities exchange if the Commission considers that such action is necessary to maintain an orderly market.

PART III SECURITIES EXCHANGES 7. (1) A person shall not establish or assist in establishing or maintaining, or hold himself out as providing or maintaining, a securities market that is not the securities market of a securities exchange established by a company licensed under this Act to do so. (2) A person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding fifty thousand penalty units or to imprisonment for a term not exceeding three years or to both. (As amended by Act No. 13 of 1994) 8. (1) A company may apply in the prescribed form and manner to the Application for Commission for a licence to establish and operate a securities exchange. securities exchange
licence Unlawful securities market

(2) Any such application shall be accompanied by the prescribed fee. (3) Upon receipt of an application by a company under this section, the Commission may grant a licence to that company if the Commission is satisfied that(a) the establishment of the securities exchange is necessary in the public interest having regard to the nature of the securities industry; and (b) the applicant satisfies the requirements of the Second Schedule.

Lusaka Stock 9. (1) With effect from the date of commencement of this Act, the Exchange Lusaka Stock Exchange (hereinafter referred to as "the Exchange") shall, subject to subsection (3) be deemed to be licensed under this Part.

(2) The Exchange shall, not later than six months after the commencement of this Act or within such longer period as the Commission may allow-

(a) take such steps as are necessary to ensure that it satisfies the requirements of the Second Schedule; and (b) notify the Commission in writing of the steps so taken.

(3) If the Exchange fails to take action in accordance with subsection (2) within the time limited by or under that subsection, the Exchange shall be deemed to have ceased to be licensed under this Part upon the expiration of that period. 10. (1) Where the Commission is satisfied that it is in the interest of the investing public to give a direction under this section, or that it is appropriate to give such a direction for the protection of investors or for the proper regulation of a securities exchange, the Commission may give a direction to a securities exchange(a) with respect to trading on or through the facilities of the exchange generally or with respect to trading of a particular security listed on that exchange; (b) with respect to the manner in which the exchange carries on any aspect of its business, including the manner of reporting off-market purchases; or (c) with respect to any other matters that the Commission con-siders necessary for the effective administration of this Act. (2) A securities exchange which neglects or fails to comply with a direction given to it under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding fifty thousand penalty units or to imprisonment for a term not exceeding five years or to both. (As amended by Act No. 13 of 1994)
Appeal against 11. (1) A securities exchange that is dissatisfied by a direction of the Commission under section ten may, within thirty days after the direction direction of Commission is given appeal to the Minister. Power of Commission to give directions to securities exchange

(2) The Minister may confirm, quash or vary the direction of the

Commission. (3) The Minister's decision on the appeal shall be final and binding except as to any matter of law, and in cases in which the appeal is allowed, it shall be the duty of the Commission to give effect to the Minister's decision. (3) The Commission's direction is not stayed by the lodgement of an appeal, pending the decision of the Minister. 12. (1) On the grounds described in subsection (2), the Minister, after Power of Minister consultation with the Commission, may direct that a securities exchange to close securities exchange shall be closed for the transaction of dealings in securities for such period as may be specified in the direction. (2) A direction under this section may only be given if the Minister is satisfied that the orderly transaction of business on the securities exchange is being or is likely to be prevented(a) because of a natural disaster that has occurred in Zambia; or

(b) because of an economic or financial crisis, whether in Zambia or elsewhere, or other like circumstance; or (c) because the exchange has ceased to meet the conditions set forth in the Second Schedule to this Act. (3) A dealer who deals in securities at or through a securities exchange while a direction is in force under this section with respect to the exchange shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one hundred thousand penalty units. (4) The Commission may take such steps as it considers necessary to ensure compliance with a direction under this section and, without limiting the generality of the foregoing, may cause the premises of the exchange affected by the direction to be locked and secured. (As amended by Act No. 13 of 1994)

13. (1) The affairs of a securities exchange shall be managed by a board Management of whose members shall comprise those elected or appointed in accordance securities exchange with its articles of association. (2) Subject to the provisions of this Act, the board shall have power in all things to administer the affairs of the exchange. 14. Subject to the approval of the Commission, a securities exchange Rules of securities may make such rules as it considers necessary or disirable for the proper exchange and efficient regulation, operation, management and control of the exchange and the securities market operated by the exchange.
Securities 15. A securities exchange shall provide such assistance to the exchange to assist Commission as the Commission may reasonably require for the Commission performance of its functions and duties, including the furnishing of such returns and information relating to its business or in respect of dealings in securities or any other specified information as the Commission may require for the proper administration of this Act.

16. (1) A securities exchange that wishes to make any amendment (whether by way of rescission, alteration or addition) to its rules shall submit a draft of the proposed amendment to the Commission for approval. (2) The Commission may, within twenty-eight days after receipt of a draft in accordance with subsection (1), by notice to the exchange concerned disallow the amendment, whereupon the amendment, if made, ceases to have force or effect. (3) If no such notice is given within twenty-eight days after the proposed amendment was submitted to the Commission, the proposed amendment shall be deemed to have been approved.

Amendments to rules of securities exchange

17. (1) A person other than a licensed securities exchange who takes or Use of certain titles uses, or has attached to or exhibited at any place(a) the title "securities exchange" or "stock exchange"; or

(b) any title which so closely resembles either of those titles as to be likely to deceive, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding one year or to both. (As amended by Act No. 13 of 1994)

PART IV LICENSING OF DEALERS, INVESTMENT ADVISERS AND REPRESENTATIVES 18. An individual, or any company which is not the holder of a dealer's Dealers to be licensed licence, that(a) (b) carries on a business as a dealer; or holds himself or itself out as carrying on a business as a dealer,

shall be guilty of an offence and shall be liable on conviction to a fine not exceeding sixty thousand penalty units or, in the case of an individual, to imprisonment for a term not exceeding three years or to both. (As amended by Act No. 13 of 1994) 19. A person who is not the holder of an investment adviser's licence and who(a) carries on a business as an investment adviser, or (b) holds himself out as carrying on a business as an investment adviser, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding sixty thousand penalty units or to imprisonment for a term not exceeding three years or to both. (As amended by Act No. 13 of 1994) 20. (1) A person who is not the holder of a representative's licence and Representatives to be licensed who is employed as or acts as a representative shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding one year or to both.
Investment advisers to be licensed

(2) Without limiting the generality of section twenty-three, a representative's licence may be conditioned on the licensee's being employed or acting only as the representative of a dealer or only as the representative of an investment adviser. (As amended by Act No. 13 of 1994) 21. (1) Application for a licence under this Part or for the renewal of any such licence shall be made to the Commission in the prescribed form and manner and shall be accompanied by the prescribed fee. (2) In the case of an application for renewal, the application shall be made not later than one month before the expiry of the licence. (3) The Commission may require an applicant for a licence or renewal to provide it with such further information as the Commission thinks necessary. 22. (1) The Commission shall not grant a dealer's licence to an individual. (2) The Commission may refuse to grant or renew an investment adviser's licence under this Part to an individual on the grounds that(a) the applicant has not provided the Commission with such information relating to him or any person employed by or associated with him, or to any circumstances likely to affect his method of conducting business, as may be prescribed by or under this Act; (b) the applicant has become incapable mentally or physically of performing the activities to which the licence relates; (c) the applicant is an undischarged bankrupt;
Refusal of licence or renewal Applications for licences

(d) it appears to the Commission that, because the applicant, or any person employed by or associated with the applicant for the purposes of the activities to which the licence relates, has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of an offence against this Act or the rules made under

this Act relating to persons licensed under this Part, the applicant is not a fit and proper person to be licensed as an investment adviser; or (e) the Commission has reason to believe that the applicant is not of good repute or character; (f) the Commission has reason to believe that the applicant will not perform the duties of the holder of the licence efficiently, honestly and fairly; (g) the applicant is unable to meet such minimum financial, solvency and liquidity requirements or other criteria as may be prescribed by the rules made under this Act; or (h) the applicant is under twenty-one years of age.

(3) The Commission may refuse to grant or renew a dealer's licence or investment adviser's licence under this Part to a company on the ground that(a) the applicant has not provided the Commission with such information relating to it or any person employed by or associated with it, or to any circumstance likely to affect its method of conducting business, as may be prescribed by or under this Act; (b) any director of the applicant has become incapable mentally or physically of performing his duties in connection with the activities to which the applicant's licence relates; (c) any director of the applicant is an undischarged bankrupt;

(d) it appears to the Commission that, because the applicant, or any director, controller or secretary of the applicant or any officer concerned in the management of the applicant's business or any employee of the applicant has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of an offence against this Act or the rules made under this Act relating to persons licensed under this Part, the applicant is not a fit and proper person to be licensed under this Part; (e) it appears to the Commission that, by reason of any other

circumstances which either are likely to lead to improper conduct of business by or reflect discredit on the method of conducting business of the applicant, the applicant is not a fit and proper person to be licensed under this Part; (f) the Commission has reason to believe that the applicant will not perform the duties of the holder of the licence efficiently, honestly and fairly; or (g) the applicant is unable to meet such minimum financial, solvency and liquidity requirements or other criteria as may be prescribed by the rules made under this Act. (4) The Commission shall not grant a representative's licence to a company. (5) The Commission shall grant or renew a representative's licence to an individual if after consideration of the application it does not have any reason to believe that the applicant will not perform the duties of the holder of the licence efficiently, honestly and fairly, but otherwise shall refuse the application. 23. (1) Unless sooner revoked, suspended or surrendered, a licence under this Part remains in force for the period specified in the licence.
Terms and conditions of licences

(2) A licence under this Part is subject to the terms and conditions attached to it. (3) The licence may be granted or renewed subject to such conditions as the Commission thinks fit to specify in the licence at the time of grant or renewal, and the Commission may at any time, by notice served on the licensee, vary the conditions for the time being attached to it or impose further conditions. 24. (1) Where any person licensed under this Part(a) being an individual, dies; or
Revocation or suspension of licences

(b)

being or company, is dissolved,

the licence of that person is deemed to be revoked. (2) The Commission may revoke the licence of an individual licensed under this Part, or, if it thinks it appropriate to do so, suspend the licence of such an individual for such time, or until the happening of such event, as it may determine, if the individual(a) becomes mentally or physically incapable of performing the activities to which the licence relates; (b) becomes bankrupt, or compounds with his creditors or makes an assignment of his estate for their benefit; (c) is convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty; (d) is convicted of an offence against this Act or the rules made under this Act; (e) is or has been guilty of any misconduct in relation to the conduct of the business, or the pursuit of the occupation, with reference to which he is licensed or, by reason of any other circumstances, is no longer a fit and proper person to hold a licence under this Part; (f) is unable to meet such minimum financial, solvency and liquidity requirements or other criteria as may be prescribed by the rules made under this Act; (g) ceases to carry on business in Zambia; or

(h) is the holder of a representative's licence and the licence of the dealer or investment adviser whom he represented is revoked or suspended. (3) The Commission may revoke the licence of a company licensed under this Part or, if it thinks it appropriate to do so, suspend the licence of such a company for such time, or until the happening of such event, as it may determine, if-

(a)

the company goes into liquidation or is ordered to be wound up;

(b) a receiver or manager of the property of the company is appointed; (c) the company has ceased to carry on business;

(d) a levy of execution in respect of the company has not been satisfied; (e) the company has entered into a compromise or scheme of arrangement with its creditors; (f) any director of the company is convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty; (g) the company or any director of the company is or has been guilty of any misconduct in relation to the conduct of the business, or the pursuit of the occupation, with reference to which the company is licensed; or (h) the Commission has reason to believe that the company, or any of its directors or employees, has not performed his duties efficiently, honestly and fairly; (i) the licence of any director, secretary or other person concerned in the management of the comapny who is required to be licensed has been revoked or suspended; or (j) the company is unable to meet such minimum financial, solvency and liquidity requirements or other criteria as may be prescribed by the rules made under this Act. (4) The Commission may revoke a licence at the request of its holder. (5) A person whose licence is revoked or suspended under this Part shall be taken, for the purpose of this Act, not to be licensed. (6) The suspension or revocation of a licence under this Part does not

operate so as to(a) avoid or affect any agreement transaction or arrangement relating to a dealing in securities entered into by the person whose licence has been suspended or revoked, whether the agreement, transaction, or arrangement was entered into before or after the suspension or revocation of the licence; or (b) affect any right, obligation, or liability arising under any such agreement, transaction, or arrangement. (7) A person whose licence is revoked under this Part may not apply to be licensed under this Part in any capacity until the expiration of at least twelve months from the revocation. (8) In this section, "misconduct" means(a) any contravention of or failure to comply with the requirements of any rules or regulations made under this Act with respect to licensed persons; (b) any failure to observe the terms and conditions of a licence; or

(c) any act or omission relating to the business or occupation of a licensed person which is or is likely to be prejudicial to the interests of members of the investing public. 25. (1) Where the Commission refuses an application for a licence or the renewal of a licence under this Part, it shall notify the applicant in writing of that fact and shall include in the notice a statement of the reasons for the refusal. (2) The Commission shall not(a) refuse to grant or renew a licence under this Part;
Rights of applicant

(b) attach conditions to, or vary the conditions attached to, such a licence; or

(c)

revoke or suspend such a licence;

unless it notifies the applicant or licensee of its intention to do so and affords him an opportunity to show cause in writing why it should not do so. 26. (1) Any person aggrieved by a decision of the Commission(a) to refuse to grant or renew a licence under this Part;
Appeals

(b) to attach conditions to, or vary the conditions attached to, such a licence; or (c) to cancel or suspend such a licence,

may, within thirty days after the date of that decision, appeal to the Court. (2) The decision of the Commission is not stayed by the lodgment of an appeal. 27. (1) The Commission shall cause to be kept, in such form as it thinks Register of licences fit, a Register of persons holding licences under this Part. (2) for each dealer's licence or investment adviser's licence, the Register shall record(a) the name of the licensee;

(b) in the case of a dealer's licence, or in the case of an investment adviser's licence granted to a company, the name of each director, and of the secretary, of the company and the names and respective shareholdings of each shareholder; (c) (d) (i) on; the date on which the licence was granted; in relation to each business to which the licence relatesthe address of the principal place at which the business is carried

(ii) the addresses of the other places, if any, at which the business is carried on; and (iii) if the business is carried on under a name or style other than the name of the licensee, that name or style; (e) (f) Act. particulars of any suspension or cancellation of the licence; and such other matters as may be prescribed by rules made under this

(3) For each representative's licence, the Register shall record(a) the name of the person licensed and the date of issue of the licence; (b) the name and address of the business of the dealer or investment adviser in relation to whom the representative is licensed; (c) (d) Act. particulars of any suspension or cancellation of licence; and such other matters as may be prescribed by rules made under this

(4) Where a person no longer holds a particular licence, the Commission shall make an appropriate entry in the Register. (5) Any person may, upon payment of the prescribed fee, inspect and make copies of, or take extracts from, the Register. 28. (1) A person who is licensed under this Part shall maintain a record Records to be kept by licensees in the prescribed form of the securities in which he has an interest. (2) Particulars required by the form prescribed under subsection (1) shall be entered in the record within seven days of the acquisition of the interest. (3) Where there is a change in the interests or interests in securities of a person licensed under this Part, he shall enter in the record, within seven

days after the date of the change, full particulars of the change, including the date of the change and the circumstances by reason of which that change has occurred; and for the purpose of this subsection, where a person acquires or disposes of securities, there shall be deemed to be a change in the interest or interests of that person in the securities concerned. (4) A person who fails to keep a record as required by this section shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding twelve months or to both. (As amended by Act No. 13 of 1994) 29. (1) Every applicant for a licence under this Part shall, together with Information to be supplied by his application, give notice to the Commission in the prescribed form licensees containing such particulars as are prescribed, including the place at which he will keep the required record of his interest in securities. (2) A person who ceases to carry on the business authorised by a licence under this part shall, within fourteen days of his so ceasing, give notice of the fact to the Commission. (3) Every person licensed under this Part shall forthwith notify the Commission in writing of any change which, while his licence is in force, may occur(a) in the address in Zambia at which he carries on the business to which the licence relates; or (b) in any information supplied in or in connection with his application for his licence or any renewal thereof, being information prescribed by the rules made under this Act. (4) If at any time while a company is licensed under this Part, any person becomes or ceases to be a director of the company, the company shall within seven days after the event notify the commission in writing of the name and address of that person. (5) Every person licensed under this Part shall forthwith notify the

Commission of any misconduct in his organisation that has resulted in legal or disciplinary proceedings. (6) The rules made under this Act may require a person licensed under this Part to furnish the Commission with additional information by way of periodic report or otherwise. (7) A person who neglects of fails to give any notice or supply any information as required by this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two thousand penalty units. (As amended by Act No. 13 of 1994)
Fraudulent 30. Any person who for the purpose of obtaining a licence or the renewal of a licence under this Part, whether for himself or for any other applications person, makes any representation, whether in writing, orally, or otherwise, which he knows to be false or misleading as to a material particular shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding sixty thousand penalty units or to imprisonment for a term not exceeding three years or to both.

(As amended by Act No. 13 of 1994) 31. (1) All licensed dealers and investment advisers shall deposit with the Commission such amount as may be required by rules made under this Act. (2) A licensed dealer or investment adviser that neglects or fails to comply with the requirements of this section, or is in arrears as regards such compliance, is liable to pay interest on the amount of the default at such rate as rules under this Act may prescribe. (3) Any deposit or interest payable under this section is a debt due to the Commission and may be recovered at the suit of the Commission in any court of competent jurisdiction.
Deposits by dealers and investment advisers

PART V REGISTRATION OF SECURITIES

Securities to be 32. (1) If a registration statement in the prescribed form relating to a registered security, signed by the issuer of the security or its representative and accompanied by the prescribed fee, has been filed with and approved by the Commission, the Commission may register the security.

(2) If: (a) any security of a public company is publicly traded, or directly or indirectly promoted or advertised or offered for sale to the public; and (b) the security has not been registered under this section, and is not guaranteed by the Government or exempted, by rules made under this Act, from the requirements of this section, the issuer of the security shall be guilty of an offence and shall be liable on conviction to a penalty not exceeding two hundred thousand penalty units. (3) For the purposes of this section, securities of a public company shall be treated as being publicly traded if(a) the company had more than fifty shareholders; or

(b) the Commission, by notice in writing to the issuer, has declared that, after ninety days, those securities would be treated as being publicly traded, and ninety days has elapsed since that notice was given. (As amended by Act No. 13 of 1994) 33. A prospectus prepared for the purposes of any public offer to be made in relation to any securities that are registerable under section thirty-two(a) shall contain or be accompanied by all such information as investors and their professional advisers would reasonably require, and reasonably expect to find there, for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the issuer of the securities and the rights attaching to the securities; and (b) shall contain or be accompanied by such other information and particulars, and shall comply with such other requirements, as may be
Prospectus

prescribed by rules made by the Commission. 34. A dealer that transacts a dealing in securities at or through a securities market which it knows or could reasonably be expected to know is not a market operated by a securities exchange shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one hundred thousand penalty units. (As amended by Act No. 13 of 1994)
Trading of listed 35. A person who deals in any listed, registered securities otherwise than through a securities exchange shall be guilty of an offence and shall securities be liable on conviction to a fine not exceeding one hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. Dealers not to deal in securities market not operated by securities exchange

(As amended by Act No. 13 of 1994) 36. (1) Any person who deals in any unlisted, registered securities otherwise than through a securities exchange and who does not forthwith report that dealing to the prescribed securities exchange shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (2) The Commission may, by notice to every licensed dealer, declare that any security specified in the notice, being a security which, in the opinion of the Commission, is being actively traded shall be dealt with as if it were a listed security, and section thirty-five shall apply accordingly. (As amended by Act No. 13 of 1994) 37. (1) Any person who deals in any registered securities otherwise than through a licensed dealer shall be guilty of an offence and shall be liable on conviction to fine not exceeding one hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (2) This section does not apply to any dealings of a kind or description prescribed by rules made under this Act. (As amended by Act No. 13 of 1994)
Registered securities to be traded through licensed dealers Registered securities to be traded through licensed dealers

38. (1) Once registered securities are issued, the issuer must inform and keep the public informed of all matters which affect the value of the securities immediately upon their becoming known to the directors of the issuer, by placing an advertisement in a newspaper of general circulation and by reports to the Commission and to any securities exchange on which they are listed. (2) Rules made under this Act may prescribe further obligation to be met by the issuers of registered securities. (3) An issuer of securities that neglects or fails to comply with this section or the rules made for the purposes of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units. (As amended by Act No. 13 of 1994)

Continuing obligations in relation to registered securities

PART VI CONDUCT OF SECURITIES BUSINESS 39. (1) A person shall not make or pursue an offer in respect of a takeover or substantial acquisition of the securities of any company except in accordance with the conditions prescribed by the rules made under this Act. (2) For the purposes of this section, "substantial acquisition" means acquisition of at least twenty per cent of the issued securities of the company concerned. 40. (1) The Commission may by statutory instrument make rules prescribing a code of conduct for the securities business.
Code of conduct with respect to conduct of securities business Takeovers and substantial acquisitions

(2) Where any contract for the sale of securities is entered into in contravention of the code of conduct, the contravention is actionable at the suit of any person who suffers loss as a result of the contravention.

41. (1) Every dealer shall in respect of every contract for the purchase, Contract notes sale or exchange of securities entered into by him (whether as principal or agent), not later than the end of the next trading day after the contract was entered into, make out a contract note which complies with subsection (2) and(a) where the contract was entered into by the dealer as agent, deliver the contract note to the person on whose behalf it entered into the contract; or (b) where the contract was entered into by the dealer as principal, retain the contract note for itself. (2) The contract note shall include(a) the name or style under which the dealer carries on business as a dealer and the address of the principal place at which it so carries on business; (b) where the dealer is acting as principal, a statement that it is so acting; (c) the name of the person (if any) to whom the dealer is required to give the contract note; (d) the date of the contract, and the date on which the contract note is made out; (e) the quantity and description of the securities the subject of the contract; (f) except in the case of an exchange, the price per unit of the securities; (g) the amount of consideration payable under the contract or, in the case of an exchange, sufficient particulars of the securities exchanged to identify them; (h) the rate or amount of commission (if any) payable in respect of the contract;

(i) the amount of stamp duty (if any), payable in connection with the contract and, where applicable, in respect of the transfer; (j) the date of settlement;

(k) such other information as may be prescribed by the rules made under this Act to ensure that there shall be a complete audit trail for the execution of customer instructions and settlement of market transactions. (3) Any dealer who completes a contract for the purchase, sale or exchange of securities without having complied with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand penalty units. (4) Any disclaimer or exclusionary clause in contract notes shall be void and of no effect. (As amended by Act No. 13 of 1994) 42. The Commission may by statutory instrument make rules for the regulation of the terms upon which bargains in securities are settled and may thereby prohibit or restrict forward transactions or option contracts.
Terms of settlement of bargains in securities, etc.

Short selling 43. (1) A person who sells securities which he does not hold at or through a securities exchange shall be guilty of an offence unless, at the time he sells them-

(a)

he has or, where he is selling as agent, his principal has; or

(b) he reasonably and honestly believes that he has or, where he is selling as agent, that his principal has. a presently exercisable and unconditional right to vest the securities in the purchaser of them, and has on deposit in the manner prescribed one hundred per cent collateral against the short sale, marked to market at the close of every trading day until the transaction is complete. (2) A person who is guilty of an offence under this section shall be

liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (3) For the purposes of this section, "marked to market" means revalued, for the purposes of the seller's obligation, at the current market. (As amended by Act No. 13 of 1994) 44. (1) The Commission may by statutory instrument make rules for or Safeguarding of with repeat to the segregation of client moneys or other property and for investors' property the safe custody thereof. (2) The Commission may by statutory instrument make rules requiring the licensing of depositories and persons providing securities registration services or custodian services which are not banks or financial institutions regulated by any written law governing the registration of banks and financial institutions. 45. (1) The holder of a dealer's licence or investment adviser's licence Accounts to be shall keep or cause to be kept such accounting and other records as will kept by licensees sufficiently explain the transactions and financial position of all business relating to the licence and enable true and fair profit and loss accounts and balance sheets to be prepared from time to time and shall cause those records to be kept in such prescribed manner and form as to enable them to be conveniently and properly audited. (2) Without limiting the generality of subsection (1), each such licensed person shall maintain such books and records, and file such reports, in the prescribed manner and form. (3) A person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units. (As amended by Act No. 13 of 1994)
Financial resources 46. The Commission may, with the approval of the Minister, make rules requiring licensed dealers and licensed investment advisers to have rules and maintain, in respect of the business in relation to which they are

licensed, such financial resources as are required by the rules made under this Act. (2) Rules made under this section may(a) impose requirements which are absolute or which are to vary from time to time by reference to factors which are either specified in, or are to be determined in accordance with, the rules; (b) impose requirements which take account of any business carried on by the person concerned in conjunction with, or in addition to, the business in relation to which he is licensed; and (c) make provision as to the assets, liabilities and other matters to be taken into account in determining a person's financial resources for the purposes of the rules and the extent to which, and the manner in which, they are to be taken into account for that purpose.
Investment 47. (1) An investment adviser shall not enter into an investment advisory contract with any person in Zambia (in this section referred to advisory contracts as his client), or extend or renew any such contract, or in any way perform any such investment advisory contract entered into, extended or renewed after the commencement of this Act, if the contract-

(a) provides for remuneration to be paid by the client to the investment adviser on the basis of a share of capital gains of the funds or any part of the funds of the client; (b) does not include a provision to the effect that an assignment of the contract by the investment adviser shall be made only with the consent of the client; or (c) does not include a provision to the effect that the investment adviser(i) if he practices in partnership with one or more other investment advisers, will notify the client of any change in the partnership; or (ii) if a company, will notify the client of any change in the directors of the company, within a reasonable time after the change. (2) Subsection (1) (a) does not-

(a) prohibit an investment advisory contract which provides for remuneration based on the total value of a fund averaged over a definite period or on definite dates, or taken on a definite date; or (b) apply to an investment advisory contract with respect to participation in a collective investment scheme, as defined in Part X, authorised by the Commission under the Part that provides for remuneration based on the asset value of the scheme or company under management averaged over a specified period and increasing and decreasing proportionately in accordance with the performance of the scheme or company over a specified period in relation to either(i) the investment record of an appropriate index of securities; or (ii) such other measure of investment performance as the Commission may approve in connection with its authorisation of the collective investment scheme concerned or on the application of either party to a contract or intended contract. (3) For the purposes of this section, "investment advisory contract" means a contract or agreement whereby a person agrees to act as investment adviser or to manage any investment or trading account of a client. (4) Any investment adviser who knowingly enters into any contract in contravention of any of the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units. (5) Any contract entered into in contravention of any of the provisions of this section shall, notwithstanding any provision of the contract, be voidable at the option of the client. (As amended by Act No. 13 of 1994)

PART VII IMPROPER TRADING PRACTICES 48. (1) A person shall not create or cause to be created, or do anything False trading and manipulation of the with the intention of creatingmarket

(a) a false or misleading appearance of the volume of trading in any securities on any securities exchange; or (b) a false or misleading appearance of the market for, or the price of, any such securities. (2) A person shall not, by means of the purchase or sale of any securities that does not involve a change in the beneficial ownership of those securities, or by any fictitious transaction or device, maintain, inflate, depress or cause fluctuations in the market price of any securities. (3) A purchase or sale of securities does not, for the purposes of subsection (2), involve a change in the beneficial ownership if a person who had an interest in the securities before the purchase or sale, or a person associated with him in relation to those securities, holds an interest in the securities after the purchase or sale. (4) A person who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (As amended by Act No. 13 of 1994) 49. A person who induces or attempts to induce another person to deal Use of deceptive statements, etc. as in securitiesinducements

(a) by making or publishing any statement, promise or forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; or (c) by recklessly or dishonestly making or publishing any statement, promise or forecast that is false or misleading, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (As amended by Act No. 13 of 1994) 50. A person who, directly or indirectly, in connection with any transaction with any other person involving the purchase, sale or exchange or securitiesFraudulent transactions

(a) employs any device, scheme or artifice to defraud that other person; or (b) engages in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, of that other person, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (As amended by Act No. 13 of 1994) 51. A person who, directly or indirectly, for the purpose of inducing the sale or purchase of the securities of any company, makes with respect to those securities, or with respect to the operations or the past or future performance of the company(a) any statement which is, at the time and in light of the circumstances in which it is made, false or misleading with respect to any material fact and which he knows or has reasonable grounds to believe to be false or misleading; or (b) any statement which is, by reason of the omission of a material fact, rendered false or misleading and which he knows or has reasonable grounds to believe is rendered false or misleading by reason of omission of that fact, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. As amended by Act No. 13 of 1994 52. (1) A person to whom this section applies who deals, or counsels or Insider dealing procures another person to deal, in securities of a company concerning which he has any knowledge that(a) is not publicly available; and
False or misleading statement in connection with sale of securities

(b) would, if it were publicly available, materially affect the price of the securities, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both.

(2) This section applies to(a) any director, officer or employee of the company concerned;

(b) any person associated in a professional capacity with that company; and (c) any person who obtains such information from any of the persons mentioned in paragraph (a) or (b). (3) No dealing shall be void or voidable by reason only that it was entered into in contravention of this section. (As amended by Act No. 13 of 1994)
Powers of 53. (1) The Commission may from time to time inspect under conditions of secrecy the bank accounts, documents and transactions of inspection a person licensed under this Part.

(2) The Commission may appoint any person (in this section referred to as the "inspector") to exercise the powers of the Commission under this section. (3) For the purposes of an inspection under this section, a person licensed under this Part shall afford the inspector access to, and shall produce, his books, accounts and documents and shall give such information and afford the use of such facilities as may be required for the inspection. (4) The inspector shall at all times have the power to make copies of or take extracts from, and take possession of, the books, accounts and other documents of the licensed person. (5) A person licensed under this Part who fails, without reasonable excuse, to produce any book, account or document to the inspector, or to furnish any information or afford the use of any facilities as required under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one hundred thousand penalty units or to imprisonment for a term not exceeding three years or to both.

(As amended by Act No. 13 of 1994) 54. (1) A person who is convicted of an offence under this Part shall, in addition to any criminal liability for the offence, be liable, at the suit of any person who has sustained pecuniary loss as a result of having purchased or sold securities at a price affected by the act or transaction which comprises or is the subject of the offence, to an action for damages in respect of the loss concerned. (2) Nothing in this section limits or diminishes any civil liability which any person may incur under any other law.
Damages for loss sustained through contravention of this Part

PART VIII POWERS OF INTERVENTION 55. (1) The powers conferred on the Commission by this Part may only Scope of powers be exercised in relation to any person licensed under Part IV if it appears under this Part to the Commission that(a) the person is not a fit and proper person to be the holder of his licence; (b) the person has contravened or failed to comply with any provision of or requirement under this Act or the rules made under this Act or, in purported compliance with any such provision or requirement, has furnished the Commission with information that is false, inaccurate or misleading; or (c) the exercise of the power is otherwise necessary for the protection of investors, and the provisions of this Part shall accordingly be construed subject to this section. (2) For the purposes of this section, the Commission may take into account any matters that could be taken into account in deciding whether to suspend or revoke a licence.

(3) The powers conferred on the Commission by this Part may be exercised in relation to a person whose licence has been suspended or revoked (whether or not the suspension or revocation is the subject of appeal) as if a reference in this Part to a licensed person included a reference to any such person. 56. (1) The Commission may by notice in writing prohibit a person licensed under Part IV from doing any one or more of the following: (a) entering into transactions of a class or description specified in the notice or entering into them otherwise than in circumstances so specified or to an extent so specified; (b) soliciting business from persons of a class or description so specified or from persons other than persons of such a class or description; or (c) carrying on business in a specified manner or otherwise than in a specified manner. (2) A prohibition under this section may relate to transactions entered into in connection with or for the purposes of the business in respect of which the person is licensed or to other business which is carried on in connection with or for the purposes of any such business. 57. The Commission may, as regards any assets whether in Zambia or Restriction on dealing with assets elsewhere and whether they are the assets of a person licensed under Part IV or not, by notice in writing(a) prohibit a person so licensed from disposing of such assets or prohibit him from dealing with them in a manner specified in the notice; or (b) require a person so licensed to deal with such assets in, and only in, a manner specified in the notice. 58. (1) The Commission may by notice in writing require a person licensed under Part IV to maintain in Zambia assets of such value as appears to the Commission to be desirable with a view to ensuring that the licensed person will be able to meet his liabilities in respect of the business to which his licence relates.
Maintenance of assets Restriction of business

(2) The Commission may direct that, for the purposes of any requirement under this section, assets of any specified class or description shall or shall not be taken into account. 59. The Commission may, either of its own motion or on the application of a licensed person on whom a prohibition or requirement has been imposed under this Part, rescind or vary the prohibition or requirement if it appears to the Commission that it is no longer necessary for the prohibition or requirement to take effect or continue in force or, as the case may be, that it should take effect or continue in force in a different form.
Rescission or variation of prohibition or requirement

Notices 60. (1) The power to impose, rescind or vary a prohibition or requirement under this Part shall be exercisable by written notice served by the Commission on the licensed person concerned, and any such notice shall take effect on such date as is specified in it.

(2) If the Commission refuses to rescind or vary a prohibition or requirement on the application of the licensed person to whom it applies, it shall serve notice on that person to that effect. (3) A notice imposing a prohibition or requirement, or varying a prohibition or requirement otherwise than on the application of the licensed person to whom it applies, and any notice under subsection (2), shall state the reasons for which the prohibition or requirement has been imposed or varied or, as the case may require, why the application for variation or rescission was refused. (4) The Commission may give public notice of any prohibition or requirement imposed by it under this Part and of any rescission or variation thereof, and any such notice may, if the Commission considers necessary, include a statement of the reasons for the prohibition, requirement, variation or rescission. 61. If, in the case of a company licensed under Part IV, it appears to the Winding up orders Cap. 388 Commission that it is desirable for the protection of investors that the company should be wound up under the Companies Act, the Commission may present a petition for it to be wound up under that Act

on the ground that it is just and equitable that it should be wound up. 62. If it appears to the Commission that it is desirable for the protection Receiving orders Cap. 82 of investors to do so, the Commission may present a petition for a receiving order in accordance with the Bankruptcy Act against a person licensed under Part IV if the person has committed an act of bankruptcy within the meaning of that Act, and that Act shall, with any necessary modifications, apply in relation to any such petition as it applies in relation to a petition presented by a creditor. 63. (1) Where, on the application of the Commission, it appears to the Orders of the Court Court that a person has contravened this Act or any conditions of his licence, or is about to do an act with respect to dealing in securities that, if done, would be such a contravention, the Court may, without prejudice to any order it would be entitled to make otherwise than pursuant to this section, make one or more of the following orders: (a) an order restraining a person from acquiring, disposing of, or otherwise dealing with any securities specified in the order; (b) in relation to a licensed dealer, an order appointing a person to administer the property of the dealer; (c) an order declaring a contract relating to securities to be void or voidable; (d) for the purpose of securing compliance with any other order under this section, an order directing a person to do or refrain from doing a specified act; or (e) any ancillary order which it considers necessary in consequence of the making of any other order under this section. (2) The Court shall, before making an order under this section, satisfy itself, so far as it reasonably can, that the order would not unfairly operate to the detriment of any person. (3) The Court may, before making an order under subsection (1), direct that notice of the application be given to such persons as it thinks fit or direct that notice of the application be published in such manner as it

thinks fit, or both. (4) The Court may reverse, vary, or discharge an order made by it under this section or suspend the operation of such an order.

PART IX COMPENSATION FUND 64. The Minister shall establish and maintain a compensation fund for Compensation fund the purposes of this Part. 65. (1) There shall be a committee, to be known as the Compensation Compensation Fund Committee Fund Committee, which shall be responsible for the administration of the compensation fund and for the settlement of claims against the fund. (2) The Committee shall consist of: (a) (b) (c) a person nominated by the Bankers' Association; a person nominated by the Lusaka Stock Exchange; a person nominated by the Law Association of Zambia;

(d) a person nominated by the Zambia Chamber of Commerce and Industry; and (e) a member of the Commission.

(3) The members of the Committee shall elect one of their number to be the Chairman of the Committee. (4) The Committee may, subject to this Act, regulate its own procedure. 66. The compensation fund shall consist ofConstitution of fund

(a) all moneys paid to or deposited into it by any licensed dealer or licensed investment adviser in accordance with section thirty-one; (b) all moneys recovered by or on behalf of the Commission by the exercise of any right of action conferred by this Act; and (c) all other moneys accruing to the fund.

Purpose of fund 67. The compensation fund shall be held and applied on such terms and conditions as the Minister may be regulation determine, for the purpose of compensating persons who suffer pecuniary loss occasioned by any default of a licensed dealer or licensed investment adviser, or any employee of such a dealer or adviser, in the course of or in connection with any dealing in securities, being a loss in relation to any money, securities or other property which, in the course of or in connection with the business of any such licensee, was entrusted to or received by the licensee or any such employee for and on the person's behalf.

Disbursements 68. Subject to this Part, there shall be paid out of the compensation fund as and when required and in such order as the Compensation Fund from the fund Committee considers proper-

(a) the amount of all claims, including costs, allowed by the Compensation Fund Committee; (b) all legal and other expenses incurred in investigating or defending claims made under this Act or incurred in relation to the fund or in the exercise by the Committee of the rights, powers and authorities vested in it by this Act in relation to the fund; (c) all premiums payable in respect of contracts of insurance or indemnity entered into by the Committee; (d) the expenses incurred or involved in the administration of the fund; and (e) all other moneys lawfully payable out of the fund in accordance with the provisions of this Act. 69. The Minister may make regulations prescribing all such matters and things as are necessary or expedient to be prescribed for or with respect to the administration, management and application of any compensation fund established under this Part.
Management of fund

70. Payment from the compensation fund shall be limited, in respect of Liability of fund to be limited each licensee in default, to such amount as the Minister may be

regulation provide. 71. Any disbursement from the compensation fund that is accountable Recovery of disbursements to the default of any licensed person is a debt due to the fund and is from defaulters recoverable at the suit of the Commission in any court of competent jurisdiction.

PART X COLLECTIVE INVESTMENT SCHEMES 72. In this Part"collective investment scheme" means any arrangements with respect to money or other property of any description, under which(a) provision is made for persons taking part in the arrangements to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income; (b) property the subject of the arrangements(i) is owned or held in trust by; or (ii) is managed by or on behalf of, a body corporate (in this Part referred to as the "operator" of the scheme); and (c) the interests of persons participating in the arrangements is represented by shares or other securities of the body corporate or, in the case of a unit trust, by units; (d) funds invested in accordance with the arrangements purporting to be invested with the aim of spreading investment risk. "investment company" means a company that is the owner of property
Definitions

the subject of a collective investment scheme; "open - ended investment company" means an investment company whose collective investment scheme makes provision for(a) redemption or repurchase, by (or out of funds provided by) the company, of shares, securities or units representing the interests of participants in the scheme; or (b) the sale of such shares, securities or units by the participants on a securities exchange at a price related to the value of the property the subject of the scheme; "unit trust" means a collective investment scheme in which: (a) property the subject of which the scheme is held on trust for the participants of the scheme by a person other than the operator of the scheme; and (b) the interests of participants in the scheme is represented by what are commonly known as units in the trust or by a mode of representation, by whatever name described, that the Commission considers equivalent. 73. (1) The Commission may authorise collective investment schemes Authorisation and regulation of for the purposes of this Part.
schemes

(2) Any such authorisation may be granted subject to such terms and conditions as the Commission considers to be necessary or desirable for the protection of investors. (3) The Commission may by statutory instrument make rules for or with respect to(a) the criteria for and conditions of any authorisation for the purposes of this Part; (b) the establishing and operation of a collective investment scheme;

(c) the promotion, marketing and distribution of shares, securities or units representing the interest of participants in a collective investment scheme; (d) the administration of collective investment schemes;

(e) the provision by any body corporate or individual of trustee, custodial and operator services, or any other services, for or in connection with collective investment schemes; (f) any fee, remuneration or reward payable or obtainable for any services referred to in paragraph (e). (4) Without limiting the generality of subsection (3), rules made for the purpose of that subsection with respect to any aspect of or matter concerning a collective investment scheme may be made to differ according to whether the scheme is operated by a unit trust or by an open-ended investment company or another kind of investment company. (5) A person who enters into or offers to enter into any agreement for or with a view to acquiring, disposing of or subscribing for any shares, units or other securities representing an interest in a collective investment scheme that is not authorised under this Part shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (As amended by Act No. 13 of 1994) 74. A person whoRestriction on promotions

(a) issues or causes to be issued any advertisement or invitation inviting persons to become or offer to become participants in a collective investment scheme that is not authorised under this Part, or containing information calculated to lead directly or indirectly to persons' becoming or offering to become participants in such a scheme; or (b) advises or procures any person to become or offer to become a participant in such a scheme; shall be guilty of an offence and shall be liable on conviction to a fine

not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding five years or to both. (As amended by Act No. 13 of 1994) PART XI MISCELLANEOUS
Immunity of 75. No person shall be liable to any action in damages for anything done or omitted in the exercise or performance of any power or function Commission, etc. conferred or imposed on him by or under this Act unless the act or omission is shown to have been in bad faith.

76. A person who obstructs the Commission or any public officer or Obstruction any person in the exercise or performance of any power, authority, duty, or function under this Act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for one year or to both. (As amended by Act No. 13 of 1994) 77. If a body corporate is convicted of an offence against this Act or the rules or regulations made under this Act, every person: (a) who is a director of the corporation; or (b) who is concerned in the management of the corporation, shall be deemed to have committed the same offence if the person knowingly authorised or permitted the act or omission constituting the offence. 78. (1) The Commission may by statutory instrument make rules for or Rules with respect to any matter that by this Act is required or permitted to be prescribed, or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act, other than a matter required or permitted to be prescribed by the Minister. (2) Without limiting the generality of subsection (1), such rules may be made for or with respect to(a) the conduct of business by licensed dealers, licensed investment advisers and their licensed representatives; (b) matters incidental to the licensing of any persons under this Act;
Offences by bodies corporate

(c) the class of persons in relation to whom, and the manner and circumstances in which, licensed dealers and their licensed representatives may deal in securities; (d) the types of security in which licensed dealers and their licensed representatives may deal; (e) the class of persons in relation to whom, and the manner and circumstances in which, licensed investment advisers and their licensed representatives may carry on business as investment advisers or as investment representatives, as the case may be; (f) the amount of deposit required to be made for the purposes of section thirty-one and the application of deposits under that section; (g) the exhibition, by persons licensed under Part IV, of their licenses at their places of business; (h) the correction of any errors in any register or record kept under this Act; (i) particulars to be recorded for the purposes of this Act in relation to accounts of licensed persons; (j) the lodgment by licensed persons of annual financial statements;

(k) the lodgment of auditors' reports and the information to be contained in them; (l) the remuneration of an inspector appointed, and the costs of any inspection or audit carried out, for the purposes of this Act; (m) the forms to be used for the purposes of this Act, and the manner in which applications are to be made for licences; (n) fees and charges to be levied and paid in respect of any matter or thing required or permitted to be done for the purposes of this Act, including annual or other periodic licence fees; (o) regulating or prohibiting the advertising of securities otherwise

than by way of prospectus; (p) maintenance of the confidentiality of clients of persons licensed under Part IV; (q) information and the matters to be displayed on business stationery of licensed persons; (r) regulating or prohibiting transactions with related persons (as defined in the rules); (s) the extension of margin facilities to clients of persons licensed under Part IV; (t) insurance by persons licensed under Part IV against negligence or default; (u) the issue of duplicate licences in case of loss or destruction;

(v) the maintenance, by officers and employees of the Commission or any other prescribed persons, of confidentiality of information obtained by them or to which they have access in connection with the performance of their duties; (w) the exemption, on such terms and conditions as may be prescribed, of any bank, financial institution or person from any specified provision of this Act or any rule made under this Act, and the revocation of any such exemption or the modification of any such terms or conditions; and (x) any saving or transitional provision the Commission considers necessary or convenient to be made in consequence of the enactment of this Act and the repeal by this Act of the Stock Exchange Act, 1990. (3) The rules may be made so as(a) to make prescription vary depending on different factors or circumstances; or (b) to be of general or specifically limited application; or

(c) to permit any matter to be from time to time determined by any person or body specified in the rules. 79. The Commission may issue such guidance notes, bulletins or other Guidance notes, etc. regulatory statements as the Commission may consider necessary or desirable for the administration of this Act. 80. (1) The Stock Exchange Act, 1990 is hereby repealed.
Repeal of Act No. 43, 1990 and savings

(2) Notwithstanding the repeal of the Stock Exchange Act, 1990(a) any applications pending before the Zambia Stock Exchange Council under any provision of that Act shall be deemed to have been made to the Commission under the corresponding provision of this Act; (b) the holder of a licence under section eighteen of that Act, whether a company or an individual, shall be deemed, until expiry of that licence, to be the holder of a dealer's licence under this Act, but subject to any rights or benefits accruing, or any liabilities suffered, under that Act, and without right of renewal otherwise than subject to and in accordance with this Act; (c) the Board of Appeal constituted under section twenty-one of that Act, or any court exercising jurisdiction conferred by that Act, may continue to exercise its functions in relation to any matter pending or part-heard before it, and its decision shall be given effect to and shall be binding on the parties to any appeal or other proceedings, as if that Act were still in force; (d) any investigation or proceeding commenced by the Council and not concluded at the commencement of this Act may be continued by the Commission; and (e) any rules or regulations made or directions given under that Act shall, unless contrary to this Act, continue in force until revoked, as if made or given under this Act. (3) On and from the commencement of this Act, there shall be

transferred to, and shall vest in or subsist against the Commission by virtue of this Act and without further assurance all property, rights, liabilities and obligations that, immediately before the commencement of this Act, were the property, rights, liabilities and obligations of the Zambia Stock Exchange Council. (4) Except as provided by this Act, every deed, bond or agreement (other than an agreement for personal services) to which the Zambia Stock Exchange Council was a party immediately before the commencement of this Act, whether in writing or not, and whether or not of such a nature that rights, liabilities and obligations thereunder could be assigned, shall, unless the subject - matter or terms make it impossible that it should have effect as modified in the manner provided by this subsection, have effect as from the date of the assignment thereof, as if(a) the Commission had been a party thereto;

(b) for any reference to the Council there were substituted, as respects anything falling to be done on or after the commencement of this Act, a reference to the Commission; and (c) for any reference to any other officer of the Council not being a party thereto and beneficially interested therein there were substituted, as respects anything falling to be done on or after the commencement of this Act, a reference to such officer as the Commission shall designate. (5) Subject to subsection (4), documents other than those referred to in that subsection and which refer specifically or generally to the Council shall be construed in accordance with that subsection as far as applicable. FIRST SCHEDULE (Section 3) THE SECURITIES AND EXCHANGE COMMISSION 1. (1) The Commission shall consist of seven members, being nominees from each of Members of the following organisations: the Commission (a) the Bank of Zambia;

(b) the Law Association of Zambia; (c) the Zambia Institute of Chartered Accountants; (d) the Zambia Council of Commerce and Industry; (e) the Non-Governmental Organisation Coordinating Committee; (f) the Lusaka Stock Exchange; and (g) the Ministry of Legal Affairs. (2) The members of the Commission shall be nominated by their respective organisations and shall be appointed by the Minister. (3) Two of the members shall, in and by the terms of their respective appointments, be appointed as the Chairman and Vice-Chairman of the Commission. (4) Pending the appointment by the Minister of the members of the Commission, each of the persons who, immediately before the commencement of this Schedule, held office as Chairman or as a member of the Zambia Stock Exchange Council under the Stock Exchange Act, 1990, shall be deemed to be the Chairman or a member, respectively, of the Commission for a period of ninety days after that commencement or until a replacement is sooner appointed. (5) A person shall not be appointed under subclause (2), or hold office under subclause (4), as a member of the Commission if he(a) is an undischarged bankrupt; (b) has been convicted of an offence under this Act; (c) has been convicted of an offence involving fraud or dishonesty; or (d) has been convicted of an offence against any other written law and sentenced to a term of imprisonment of not less than six months without the option of a fine. 2. (1) A member of the Commission shall, subject to the provisions of this Schedule, hold office for a term of not more than three years. Term of office (2) A member of the Commission shall be eligible for reappointment upon the expiry of and vacancy his term of office. (3) Upon the expiration of the term for which a member is appointed he shall continue to hold office until his successor has been appointed, but in no case shall any such extension of the term exceed three months. (4) The office of a member shall be vacated(a) upon his death; (b) if he is adjudged bankrupt; (c) if he is absent from three consecutive meetings of the Commission without the prior approval of the Commission; (d) upon the expiry of one month's notice of his intention to resign his office given by

him in writing to the Minister; (e) upon the expiry of one month's notice of his removal given to him in writing by the Minister; (f) if he becomes mentally or physically incapable of performing his duties as a member; (g) if he is convicted of an offence under this Act; or (h) if he is convicted of an offence under any other written law and sentenced therefor to imprisonment for a term of six months or more without the option of a fine. (5) The Commission may act notwithstanding any vacancy of office among its members. Secretary 3. (1) There shall be a Secretary to the Commission who shall be appointed by the Commission. (2) The Secretary shall be the chief executive of the Commission and it shall be his duty to assist the Commission in all respects and in such manner as the Commission may from time to time require in the discharge of its functions under this Act. (3) Subject to subclause (4), the Secretary shall perform such of the functions of the Commission as are for the time being delegated to him by the Commission. (4) The Secretary shall not exercise any function generally delegated to him by the Commission under subclause (3) without the express specific approval of the Commission in relation to(a) any matter in respect of which the Commission may not exercise its powers under this Act without the prior consent or approval of the Minister; (b) the sale, disposal or writing off of any property or assets of the Commission the value of which exceeds one million kwacha; or (c) any general variation of the salaries, wages or allowances of persons employed by the Commission. (5) The Secretary shall furnish the Minister, through the Commission, with all such information relating to the activities and undertakings of the Commission as the Minister may at any time require. 4. (1) Subject to the other provisions of this Act, the Commission may regulate its Business of procedure. the (2) The Commission shall meet as often as necessary or expedient for the Commission discharge of its business and such meetings shall be held at such places, times and days as the Commission may determine. (3) The Chairman may at any time call a meeting of the Commission and shall call a special meeting to be held within seven days of receipt of a written request for that purpose addressed to him by at least one-third of the members of the Commission.

(4) There shall preside at any meeting of the Commission(a) the Chairman; (b) in the absence of the Chairman, the Vice-Chairman; or (c) in the absence of both the Chairman and Vice-Chairman, such member as the members present may elect for the purpose of the meeting. (5) The decision of the Commission shall be by a majority of votes and in addition to an original vote, the Chairman or other person presiding at the meeting shall have a casting vote in any case in which the voting is equal. (6) Four members of the Commission shall form a quorum. (7) Minutes of each meeting of the Commission shall be kept and shall be confirmed as soon as practicable thereafter at a subsequent meeting. Business of the Commission 5. (1) The Commission may for the purpose of performing its functions under this Committees Act establish committees and delegate to any such committee such of its functions as it considers necessary. (2) The Commission may appoint as members of a Committee established under subsection (1) persons who are or are not members of the Commission and such persons shall hold office for such period as the Commission may determine. (3) Subject to any specific or general direction of the Commission, any committee established under subsection (1) may regulate its own procedure. (4) Each committee shall keep minutes of its meetings and shall keep the Commission informed of its activities and shall conduct its proceedings in such manner as the Commission may direct. (5) Meetings of a committee shall be held at such times and places as the committee may determine or as the Commission shall direct. 6. A member of the Commission or any committee thereof shall be paid such travelling and subsistence allowances, if any, as the Minister may, in his case, fix. Allowances

7. If any person is present at a meeting of the Commission or any committee of the Disclosure Commission at which any matter is the subject of consideration and in which of interest matter that person is directly or indirectly interested, he shall as soon as is practicable after the commencement of the meeting, disclose the interest and shall not, unless the Commission or the committee otherwise directs, take part in any consideration or discussion of, or vote on, any question touching that matter. 8. (1) The Commission may appoint and employ, on such terms and conditions as it thinks fit, such professional, technical and other officers, and such other staff, as Staff of the Commission

may be necessary for the exercise and discharge of its powers and functions. (2) The Commission may make arrangements for or with respect to the provision and maintenance of schemes (whether contributory or not) for the payment to its employees and their dependants of such retirement benefits, gratuities or other allowances as it may determine. Commission's (a) such sums as may be payable to the Commission from time to time from moneys funds appropriated by Parliament for the purpose; 9. The Commission shall be funded by(b) such sums as may be payable to the Commission under this Act or any other written law; (c) such sums as may be levied by the Commission in terms of licence fees, transaction commissions and any other levies imposed; and (d) such sums of money or such other assets as may accrue to or vest in the Commission from time to time, whether in the course of the exercise of its functions or otherwise. 10. The financial year of the Commission shall be the period of twelve months ending Financial on 31st March in each year. year Accounts 11. (1) The Commission shall cause proper accounts to be kept of its assets and and audit liabilities and of its income and expenditure for each financial year. (2) The accounts of the Commission for each financial year shall be audited by one or more persons who publicly carry on the profession of accountants in Zambia, and who shall be appointed auditors to the Commission by the Commission with the approval of the Minister. 12. The Commission shall, not later than six months after the end of each financial year Annual of the Commission, submit to the Minister a report of its activities, together with a report copy of its audited accounts for that financial year, and the Minister shall, not later than fourteen days after the first sitting of the National Assembly next after the receipt of such report, lay it before the National Assembly. SECOND SCHEDULE (Section 8) REQUIREMENTS TO BE MET BY APPLICANTS FOR SECURITIES EXCHANGE LICENCE

For the purposes of section eight, the requirements are as follows: A. The applicant must have financial resources sufficient for the proper performance of its functions. B. At least five of the applicant's members shall be persons engaged in carrying on the business of dealing in securities independently of and in competition with each other. C. The rules and practices proposed to be followed by the applicant must be such as will ensure that business conducted by means of its facilities will be conducted in an orderly manner and so as to afford proper protection to investors. In particular, the rules of the proposed exchange shall make such provisions as the Commission considers satisfactory with regard to(a) efficient, honest, fair, competitive and informed trading in securities; (b) the qualifications for membership of the proposed exchange; (c) the exclusion from its membership of persons who are not of good character and business integrity, and the suspension or disciplining of members for conduct inconsistent with just and equitable principles in the transaction of business or for contravention or failure to comply with the rules of the proposed exchange or the provisions of this Act; (d) the conditions governing dealings in securities by members of the proposed exchange, and the class or classes of securities that may be dealt in by members; (e) the carrying on of the business of the securities exchange with due regard to the interests of the public; and (f) preventing a member of the proposed exchange from resigning where the proposed exchange intends to investigate any matter affecting that member or any of the member's representatives for the purpose of deciding whether to expel or to take other disciplinary action against that member. D. The applicant has made such provision as the Commission considers satisfactory for(a) the clearing and settlement of dealings in securities ties to ensure the performance of transactions effected on the proposed exchange, and for the recording of such transactions; (b) the effective monitoring and enforcement of compliance with its rules and the provisions of this Act and the rules made under this Act; and (c) investigating complaints in respect of business transacted by any of its members. E. The applicant must be able and willing to promote and maintain high standards of integrity and fair dealing by its members.
SUBSIDIARY LEGISLATION

THE SECURITIES (CONDUCT OF BUSINESS) RULES [ARRANGEMENT OF RULES]

PART I PRELIMINARY
Rule 1. 2. 3. Title Interpretation Application

PART II STATEMENTS OF PRINCIPLE


4. Principles of best practice

PART III CONDUCT OF BUSINESS


5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Independence Material interest Inducements Issue of advertisements Identification of issuer Fair and clear communications Customers' understanding of risk Information about the licensee Information about collective investment schemes Representatives of licensee Where customer agreement required

16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Customer agreements Customers' rights Suitability Charges Confirmation and periodic information Customer order priority Timely execution Best execution Timely allocation Fair allocation Front running Churning Insider dealing Safeguarding of customer investments Complaints Compliance Supervision Customer confidentiality Cessation of business Suspension or revocation of licence. Statutory Instrument 168 of 1993

SECTION 48-SECURITIES (CONDUCT OF BUSINESS) RULES

PART I PRELIMINARY
1. These Rules may be cited as the Securities (Conduct of Business) Rules. 2. In these Rules, unless the context otherwise requiresTitle

Interpretation

"advertisement" includes every form of advertising, whether in a publication, brochure or handout, or by the display of notices or by means of circulars or other documents, or by an exhibition of pictures or photographic or cinematographic films or videos, or by way of sound broadcasting or television or by the distribution of recordings or in any other manner; "customer" means a person for whom a licensee acts as an agent and to whom the licensee owes a duty of care, and includes a potential customer; "licensee" means a person licensed under Part IV of the Act; "own account transaction" means a transaction effected or arranged by the licensee in the course of carrying on his securities business and which was done on his own account; "regulatory system" means the arrangements for regulating a licensee under the Act and subsidiary legislation made thereunder or directions given by the Commission. 3. (1) These Rules, which include the statements of principle in Part II, Application apply in relation to all licensees in respect of their securities business. (2) These Rules are of general application to all securities business provided that, where a rule applies only in particular circumstances, that rule will apply to a licensee only if those circumstances are relevant to the course of the securities business undertaken by that licensee.

PART II STATEMENTS OF PRINCIPLE


4. In his conduct of securities business, a licensee shall at all times act Principles of according to the principles of best practice and, in particular, shallbest practice (a) observe high standard of integrity and fair dealing;

(b) (c)

act with due skill, care and diligence; observe high standards of market conduct;

(d) seek from customers information about their circumstances and investment objectives which might reasonably be expected to be relevant in enabling him to fulfil a licensee's responsibilities to his customer; (e) take reasonable steps to give every customer he advises, in a comprehensible and timely way, any information needed to enable the customer to make a balanced and informed investment decision; (f) avoid any conflict of interest with his customers and, where such a conflict unavoidably arises, to ensure fair treatment to his customer by complete disclosure or by declining to act; furthermore he should never unfairly place his interests above those of his customers; (g) protect properly, by way of segregation and identification, those customer assets for which a licensee is properly responsible; (h) maintain adequate financial resources to meet his securities business commitments and withstand the risk to which his business is subject; (i) (j) organise and control his internal affairs in a responsible manner; keep proper records;

(k) have adequate arrangements to ensure that all staff employed are suitable, adequately trained and properly supervised, together with well-defined compliance procedures; and (l) deal with the Commission in an open and co-operative manner and keep the Commission informed of anything concerning the licensee that might reasonably be expected to be disclosed to it.

PART III CONDUCT OF BUSINESS


5. (a) Where a licensee is advising or acting for a customerhe shall not claim he is independent or impartial if he is not; and Independence

(b) he shall ensure that any claim he makes as to his independence or impartiality adequately includes any limitation that there may be on either.

6. Where a licensee has a material interest in a transaction to be entered Material into with or for a customer, or a relationship which gives rise to a Interest conflict of interest in relation to such a transaction, the licensee shall not knowingly either advise, or deal in the exercise of discretion, in relation to that transaction unless he has(a) fairly disclosed that material interest or relationship, as the case may be, to the customer; or (b) taken reasonable steps to ensure that neither the material interest nor relationship adversely affects the interests of the customer. 7. A licensee must take reasonable steps to ensure that neither he nor Inducements any of his employees or agents either offers or gives, or solicits or accepts, any inducement that is likely to conflict with any duties owed to customers. 8. Where a licensee issues an advertisement concerning his securities business, he shall take all reasonable steps to ensure that(a) the contents and presentation of the advertisement are demonstrably fair and not misleading; (b) the advertisement discloses fairly the risks concerned. Identification of issuer Issue of advertisements

9. Where a licensee issues an advertisement concerning securities business, he shall ensure that the advertisement identifies him as the advertiser.

10. (1) A licensee may make a communication with another person Fair and clear which is designed to promote the provision of securities services only if communications he can show that he believes on reasonable grounds that the communication is fair, comprehensive and not misleading. (2) A licensee shall take reasonable steps to ensure that any agreement, written communication, notification or information that he gives or sends to customers to whom he provides securities services is presented fairly and clearly. 11. A licensee shall notCustomer's understanding

(a) recommend a transaction to a customer, or effect a discretionary of risk transaction with or for him, unless he has taken all reasonable steps to enable the customer to understand the risks involved; (b) mislead a customer as to any advantages or disadvantages of a contemplated transaction; or (c) promise a return unless such return is contractually guaranteed.

12. A licensee shall take reasonable steps to ensure that a customer to Information whom he provides securities services is given adequate information about the about his identity and business address and the identity and status within licensee the licensee's firm of employees and other relevant representatives with whom the customer has contact. 13. Before or when making a personal recommendation to a customer Information about collective to invest in a collective investment scheme, a licensee shall give him(a) information about the scheme which is adequate to enable him to investment schemes make an informed investment decision; (b) appropriate written particulars.

14. (1) A licensee shall satisfy himself on reasonable grounds and on a Representatives continuing basis that any representative he appoints is fit and proper to of licensee act for him in that capacity. (2) The licensee shall also satisfy himself on reasonable grounds and on a continuing basis that he has adequate resources to monitor and enforce compliance by his representatives with high standards of business conduct. 15. (1) A licensee shall not provide to a customer any securities services relating toWhere written customer agreement required

(a) (b)

the discretionary management of a portfolio; or any other type of business that is prescribed by the Commission,

except under a written agreement signed by the customer and returned to licensee.

(2) The Commission and a licensed securities exchange may from time to time prescribe special procedures relating to the operation of discretionary accounts and every licensee must follow such special procedures or shall secure that such special procedures are followed. 16. (1) Where a licensee provides securities services to a customer on Customer written contractual terms (whether pursuant to rule 15 or otherwise), the agreements agreement shall set out in adequate detail the basis on which those services are provided. (2) The High Court may, if it considers it just and equitable to do so, by order set aside or vary an agreement entered into in contravention of this rule, but no such order affects any dealing or transaction entered into or carried out by the licensee on behalf of the customer. 17. (1) licensee shall not, in any written communication or agreement, Customers' seek to exclude or restrictrights (a) any duty or liability to a customer which he has under the Act or any subsidiary legislation made thereunder; (b) any other duty to act with skill, care and diligence that is owed to a customer in connection with the provision to him of securities services; (c) any liability owed to a customer for failure to exercise the degree of skill, care and diligence that may reasonably be expected of him in the provision of securities services. (2) A purported exclusion or restriction prohibited by this rule shall be void and of no effect. 18. A licensee shall take all reasonable steps to ensure that he does not Suitability give securities advice to, nor effect a discretionary transaction with or for, a customer unless that advice or transaction is suitable for him having regard to the facts disclosed by that customer and other relevant facts about the customer of which the licensee is or ought reasonably to be aware.

19. (1) A licensee's charges shall not be unfair in their incidence or unreasonable in their amount having regard to all relevant circumstances. (2) Before a licensee provides securities services to a customer it shall disclose to him the basis or amount of the licensee's charges for the provisions of those services and the nature of and amount of any other remuneration receivable by him and attributable to them.

Charges

20. (1) Where a licensee effects a sale or purchase of securities with or Confirmation and periodic for a customer, he shall ensure that the customer is sent with due information dispatch a contract note containing the essential details of the transaction in accordance with section forty-one of the Act. (2) Where a licensee acts as an investment manager for a customer, he shall ensure that the customer is sent at suitable intervals a report stating the value of the portfolio or account at the beginning and end of the period, its composition at the end and, in the case of a discretionary portfolio or account, changes in its composition between those dates. 21. A licensee shall deal with customer and own account orders fairly Customer order and in due turn. priority 22. When a licensee has agreed or decided in his discretion to effect or Timely arrange a customer order, he shall effect or arrange the execution of the execution order as soon as is reasonably practicable in the circumstances. 23. Where a licensee deals with or for a customer he shall take all reasonable steps to find and deal on the terms which are the best available to the customer. 24. A licensee shall ensure that a transaction he executes is promptly allocated. 25. Where a licensee has aggregated an order for a customer transaction with an order for an own account transaction, or with an order for another customer transaction, then in the subsequent Best execution

Timely allocation Fair allocation

allocation(a) he shall not give unfair preference to himself or to any of those for whom he dealt; and (b) if all orders cannot be satisfied, he shall give priority to satisfying orders for customer transactions. 26. Where a licensee intends to publish to customers a price-sensitive Front running recommendation or research or analysis, he shall not knowingly effect an own account transaction in the investment concerned or in any related investment until the customers for whom the publication was principally intended have had, or are likely to have had, a reasonable opportunity to react to it. 27. A licensee shall notChurning

(a) deal or arrange a deal in the exercise or discretion for any customer; or (b) advise a customer to deal, if the dealing could in the circumstances reasonably be regarded as too frequent or too large. 28. A licensee shall not knowingly profit or seek to profit, either for his Insider dealing own account, the account of a customer or any third party, from inside information in the hands of any of his officers, employees or agents, or assist anyone with such information to make a profit for himself. 29. A licensee who has custody of a customer's securities in connection Safeguarding of with or with a view to securities business shallcustomer investment (a) keep safe, or arrange for the safekeeping of, any documents of title, or documents evidencing title, relating to them; and (b) ensure that any securities that he buys or holds for a customer are properly registered in his name or, with the consent of the customer, in the name of an appropriate nominee. 30. A licensee shall have internal procedures to ensure the proper handling of complaints from customers and to ensure that any appropriate remedial action on those complaints is promptly taken. Complaints

31. (1) A licensee shall take reasonable steps, including the establishment and maintenance of procedures, to ensure that(a) his officers, employees and other representatives are aware of their obligations under the Act and any subsidiary legislation made thereunder, and that they act in conformity with them; and (b) sufficient information is recorded and retained about his securities business and compliance with the regulatory system. (2) Records required to be maintained by the regulatory system shall be kept available, for a period of not less than six years, by the licensee for inspection by any person duly authorised by the Commission. 32. A licensee shall establish and maintain procedures(a) for the supervision of each of his officers, employees and other representatives; and (b) for ensuring that each such person does not give advice or provide services of such a nature as is beyond his competence to give or to provide.

Compliance

Supervision

33. (1) Subject to subrule (2), all information in the possession of a Customer licensee relating to a customer shall be kept confidential by the licensee. confidentiality (2) A licensee may disclose information relating to a customer when properly required to do so by the Commission, a clearing house or the market supervision department of a licensed securities exchange of which he is a member, or if he is ordered to do so by a court of competent jurisdiction or other due process of law. 34. Where a licensee decides to withdraw from securities business he shall(a) forthwith notify the Commission and each of his customers of such decision; and (b) ensure to the satisfaction of the Commission that any such business which is outstanding is properly completed or transferred to another licensee. Cessation of business

35. A licensee who contravenes any of the provisions of these Rules Suspension or shall be guilty of an offence and his licence shall be liable to suspension revocation of or revocation under section twenty-four of the Act. licence SECTION 78-THE SECURITIES (TRANSITIONAL) RULES. Statutory Instrument 169 of 1993 Title Interpretation

1. These Rules may be cited as the Securities (Transitional) Rules. 2. In these Rules, unless the context otherwise requires, "collective investment scheme" has the same meaning as in section seventy-two of the Act.

3. (1) Where a person would, but for these Rules, be liable to a penalty Transitional for not being licensed under Part IV of the Act, subject to subrule (4) provisions that person shall not be so liable(a) until the expiration of a period of seven days after the commencement of the Act; or (b) where, before the expiration of that period, that person applies to be licensed, until: (i) (ii) the licence is granted; or the application for a licence is withdrawn or refused.

(2) Where a person would, but for these Rules, be liable to a penalty because publicly traded securities are not registered under Part V of the Act, subject to subrule (4) that person shall not be so liable(a) until the expiration of a period of two months after the commencement of the Act; or (b) where, before the expiration of that period, that person applies for the registration of the publicly traded securities, until: (i) (ii) such securities are registered; or the application for registration is withdrawn or refused.

(3) In respect of a collective investment scheme which was in existence and had been publicly marketed before the enactment of the Act, where a person would, but for these Rules, be liable to a penalty because such scheme is not authorised under Part X of the Act, subject to subrule (4) that person shall not be so liable(a) until the expiration of a period of seven days after the commencement of the Act; or (b) where, before the expiration of that period, that person applies for the authorisation of the collective investment scheme, until: (i) (ii) the collective investment scheme is authorised; or the application for authorisation is withdrawn or refused.

(4) Except for the periods of grace allowed by subrules (1), (2) and (3), all of the other provisions of the Act shall apply in all cases and in all respects. (5) A person who, before the expiration of the period specified in subrule (1), applies for a licence under Part IV of the Act shall be treated for all purposes as if he is a licensee pending the determination of his application. THE SECURITIES (LICENSING, FEES AND LEVIES) RULES [ARRANGEMENT OF RULES] ARRANGEMENT OF RULES

PART I PRELIMINARY
Rule 1. 2. Title Interpretation

PART II

LICENCES
3. 4. 5. 6. 7. 8. 9. 10. Applications Directions in forms Manner of application for licence Alteration of facts disclosed in applications General conditions Replacement of licence Display of licence Change of principal

PART III FEES AND LEVIES


11. 12. 13. Fees Waiver, etc. by Commission Compensation fund levy

FIRST SCHEDULE-List of Forms SECOND SCHEDULE-Forms THIRD SCHEDULE SECTION 78-SECURITIES (LICENSING, FEES AND LEVIES) RULE Rules by the Securities and Exchange Commission Statutory Instrument 165 of 1993 153 of 1995

PART I PRELIMINARY
1. These Rules may be cited as the Securities (Licensing, Fees and Title

Levies) Rules. 2. In these Rules, unless the context otherwise requiresInterpretation

"financial year" means the period from 1st April to 31st March; "licence" means a licence under Part IV of the Act and "licensee" shall be construed accordingly.

PART II LICENCES
3. Applications for the purposes described in the second column of the Applications First Schedule shall be in the form specified in the third column, such forms being set out in the Second Schedule. 4. A form prescribed by these Rules shall be completed in accordance Directions in with any directions specified in the form. forms 5. (1) An application for a licence or renewal of a licence in the form prescribed together with any relevant annexures shall be enclosed in a sealed envelope and lodged with the Commission. (2) Each application for a licence, or for the renewal thereof, shall be accompanied by a detailed statement of the applicant's assets and liabilities signed by the applicant, or, in the case of an applicant which is a company(a) copies certified by a director of the company to be true copies of the last balance sheet and of the last profit and loss account (if any), incorporating the results of the last financial year, and which have respectively been audited by the company's auditors (including every document required by law to be annexed or attached thereof); and (b) a copy of the report of the auditors thereon (certified as aforesaid). (3) An application by a company to be licensed as a securities exchange Manner of application for licence

shall be made in the prescribed form and shall be accompanied by a copy of its rules and its Memorandum and Articles of Association certified to be true copies by the person signing the application, and shall be lodged with the Commission. (4) The Commission may refuse to accept any application made under these Rules if it is not accompanied by the licence fee prescribed. 6. An application for a licence under Part IV of the Act shall forthwith Alteration of facts disclosed give written notice to the Commission ofin applications (a) any proposed alteration to; or (b) the occurrence of any event which he knows affects or may affect in a material respect; information supplied by him to the Commission in relation to his application, being a proposal or event made or occurring while the application is pending a decision by the Commission. 7. It shall be a condition of every licence that(a) the licence shall be personal to the applicant and shall not be transferable; (b) the holder of the licence shall forthwith give written notice to the Commission of(i) any proposed alteration to, or General conditions

(ii) the occurrence of any event which he knows affects or may affect in any material respect, any matter in respect of which he was required to supply information to the Commission in the course of his application for that licence; (c) the consent of the Commission shall be obtained prior to-

(i) the implementation of any alteration of the kind referred to in subrule (b) (i); or (ii) the taking of action resulting from any event of the kind referred to in subrule (b) (ii); and (d) a licence shall not carry on, nor hold himself out as carrying on, any securities business other than that permitted by his licence and from

any premises specified in his licence. 8. Where the Commmission is satisfied that a licence has been inadvertently lost, destroyed or defaced, the Commission shall replace the licence on payment by the licensee of the prescribed fee. 9. (1) Every holder of a licence granted under Part IV of the Act shall display his licence at all premises in which he transacts with the public the securities business authorised by the licence. (2) The requirement in sub-rule (1) shall not be satisfied unless the licence is displayed in such a manner as to be readily visible to the public. 10. A dealer's representative or an investment representative shall not Change of change his principal in relation to which his licence was issued unless he principal has lodged a notice in Form 12 with the Commission. Replacement of licence

Display of licence

PART III FEES AND LEVIES


11. The fees prescribed in the Third Schedule shall be payable to the Commission, with respect to(a) (b) the grant and renewal of licences; the registration of securities under Part V of the Act; and Fees

(c) the authorisation of collective investment schemes under Part X of the Act. 12. (1) Where the Commission considers it appropriate in the exceptional circumstances of a particular case, the Commission may in its discretion waive payment of all or part of the fee which would otherwise be payable under these Rules. (2) Where it appears to the Commission that, owing to the exceptional circumstances of a particular case, the retention by the Commission of a Waiver, etc. by Commission

fee which has been paid would be inequitable, the Commission may in its discretion refund all or part of the fee. 13. (1) The amount to be deposited under subsection (1) of section thirty-one of the Act shall be(a) five per cent of the net capital employed in the licensee's business; or (b) one million kwacha, Compensation fund levy

whichever is less. (2) Such amount shall be payable(a) within seven days, or such further time as the Commission may in a particular case allow, after grant of the licence; and (b) at such times thereafter as the Commission, having regard to the purposes and requirements of Part IX of the Act, shall direct. (As amended by S.I. No. 153 of 1995)

FIRST SCHEDULE
(Rule 3) LIST OF FORMS First Column Provisions of Act or Rules Second Column Description of Form Third Column Number of Form in Second Schedule 1 2 3 4

section 8 (1) section 21 (1) section 21 (1) section 21 (1)

Application by company to be licensed as a securities exchange Application by a company for dealer's licence Application by an individual for investment adviser's licence Application by a company for investment adviser's licence

section 21 (1)

Application for renewal of dealer's licence or investment adviser's licence Application for representative's licence Application for renewal of representative's licence Record of securities Notice of place at which record is to be kept Notice of change of place of business and change of place at which record is kept Notification of cessation of business Notice of change of representative's principal and notice of change of place at which record is kept

section 21 (1) section 21 (1) section 28 (1) section 29 (1) section 29 (3)

6 7 8 9 10

section 29 (2) Rule 11

11 12

SECOND SCHEDULE
FORMS (Section 8 and Rule 3)

Form 1 THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION BY COMPANY TO BE LICENSED AS A SECURITIES EXCHANGE Application is hereby made to be licensed as a securities exchange under the Act and the following statements are made in respect thereof: Note: This application must be accompanied by(a) the last audited balance sheet and profit and loss account certified as required by rule 6 of the Securities (Licensing and Fees) Rules, 1993; (b) (c) (d) a certified true copy of the rules of the proposed securities exchange; a certified true copy of the applicant's certificate of incorporation; and a certified true copy of the applicant's memorandum and articles of association.

Name of company: Date of incorporation: Registered office: Proposed name of securities exchange: Hours of business: Number of members: Number of members who will carry on business of dealing in securities independently of and in competition with each other: Dated this..............................................................day of.......................................................19.......... Signature........................................................ Name.............................................................. Chairman of the Securities Exchange

Form 2 (Section 21 (1)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION BY COMPANY FOR DEALER'S LICENCE Application is hereby made for a dealer's licence under the Act and the following statements are made in respect thereof: Notes: (1) If space is insufficient to provide details, please attach annexure(s). Any such annexure should be identified as such and signed by the signatory to this application. (2) This application must be accompanied by the last audited balance-sheet and profit and loss account certified as required by rule six of the Securities (Licensing and Fees) Rules, 1993.

PART 1 INFORMATION ON THE APPLICANT 1. (a) Name of applicant: (b) Registered office: (c) Place of incorporation: (d) Full address and telephone number of the principal place at which the business of the applicant is to be carried on: (e) The authorised and paid-up capital of the applicant, including the types of shares issued: (f) The details of shareholders of the applicant's, including the name, address, amount of shares being held and date of acquisition: (g) Address of place at which applicant's record under section twenty-eight of the Act will be kept: (h) Set out as an annexure hereto details of each director and secretary showing full name, residential address, date of birth, office held and date of appointment: 2. State the nature of the principal business of the applicant: 3. (a) State in detail the activity and the manner in which the applicant proposes to conduct the business for which the applicant requires a dealer's licence:

(b) The type of clients with whom the applicant proposes to do business: (c) Describe in detail the organisation structure and internal control procedures which the applicant has adopted or proposes to adopt for its proposed business. 4. Set out name and address of each person who, directly or indirectly, exercises or has power to exercise a controlling influence over the management and policies of the applicant other than those shown as directors: 5. Is any director or secretary of the applicant a director or secretary of any other corporation? Using an annexure, answer "Yes" or "No" for each person; if "Yes", give details of: (a) (b) (c) names of corporations; places of incorporation; and dates of appointment.

(For questions 6 to 8, answer "Yes" or "No" in space provided. If "Yes", attach annexures giving all relevant particulars.) 6. Has the applicant or any director or secretary of the applicant within the past 10 yearsAnswer (a) been licensed or registered in any place under any law which requires licensing or registration in relation to dealing in securities? .............................. (b) been licensed, registered or otherwise authorised by law to carry on .......... any trade, business or profession in any place? .............................. (c) been refused the right or restricted in its or his right to carry on any ........... trade, business or profession for which a specific licence, registration or other authority is required by law in any place? .............................. 7. Has any director or secretary of the applicant within the past 10 yearsAnswer (a) been a member or partner in a member firm of any securities exchange? ....

(b) been suspended from membership of any securities exchange or other-....... wise disciplined by a securities exchange? .............................. (c) (d) application? been refused membership of any securities exchange? .............................. been known by any name other than the name or names shown in this .......

(e) been convicted of any offence other than a traffic offence in Zambia ......... or elsewhere or are there any proceedings now pending which may lead to such a conviction? .............................. (f) had judgement including findings in relation to fraud, misrepresenta- ......... tion or dishonesty been given against him in any civil proceedings, in Zambia or elsewhere? (If "Yes", using an annexure, give full details, including whether judgement is unsatisfied.) ..............................

(g) been declared bankrupt or compounded with or made an arrangement ....... for the benefit of his creditors, in Zambia or elsewhere? .............................. (h) been engaged in the management of any corporation other than those ........ referred to in answer to question 5? .............................. (i) been refused a fidelity or surety bond in Zambia or elsewhere? ...................

(j) been disqualified as a director, or been director of a company that ............. has gone into receivership or liquidation, in Zambia or elsewhere? .............................. 8. Has any director or management staff of the applicant had any experience ................. in performing the functions in relation to the proposed activity of the applicant ................. referred to in question 3? .............................. 9. In relation to each director and secretary of the applicant, set out below details of the officer's employment and business activities, during the previous 10 years: Name and address of employer (if self-employed, so state) Description of duties of relation to the employment or activity Period of employment or activity (give exact dates)

Name of director or secretary

Nature of business

10. Set out any additional information (including any formal qualifications or training of the directors or secretary of the applicant and the name of the institution that conducted the course) considered relevant to this application. 11. Set out below details of two persons with whom each director and the secretary of the applicant has had regular contact over the past 5 years and of whom the Commission may enquire regarding the character and reputation of the respective director or secretary. Occupation of character referee Name of director or secretary in respect of whom enquiries may be made

Name of Address of character referee character referees

PART 2 MISCELLANEOUS 1. We are aware of the provisions of section thirty of the Act relating to fraudulent applications. 2. We declare that all information given in this application and in the attached annexures (if any) are true and correct. Dated this.........................................................day

of..........................................................19............ *Signature ............................................ .............................................................. (Name of Director) Signature............................................ ........................................................... (Name of Director/Secretary)**

*This application is to be signed by two directors, or a director and the secretary of the applicant. **Delete whichever is inapplicable.

Form 3 (Section 21 (1)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION BY AN INDIVIDUAL FOR INVESTMENT ADVISER'S LICENCE Application is hereby made for an investment adviser's licence under the Act and the following statements are made in respect thereof: Note: (1) If space is insufficient to provide details, please attach annexure(s). Any such annexure should be identified as such and signed by the signatory to this application. (2) This application shall be accompanied by a detailed statement of the applicant's assets and liabilities and shall be signed by the applicant. 1. (a) Personal particulars of the applicant. Name of applicant:

(b) Full address and telephone number of the principal place at which the business of the applicant is/is to be carried on: (c) (d) National Registration Card ID number: Residential address:

(e) Address of place at which applicant's record under section twenty-eight of the Act will be kept: 2. (a) Indicate area of proposed business for which the applicant requires an Investment Adviser's licence: advising others concerning securities. issues or promulgates analyses or reports concerning securities. pursuant to a contract or arrangement with a customer, undertakes on behalf of the customer (whether on a discretionary authority granted by the customer or otherwise) the management of a portfolio of securities for the purpose of investment. (b) For each indicated area of proposed business, state in detail the manner in which the business will be conducted and the experience of the applicant and his management staff in that business. (c) Describe in detail the organisation structure and internal control procedures which the applicant has adopted or proposes to adopt in the conduct of his business. 3. The type of customers with whom the applicant proposes to do business. 4. Is the business of investment adviser the principal business carried on by the applicant? (Answer "Yes" or "No", give details of the applicant' principal business.)

5. Does the applicant have an interest in one or more shares in any company the shares of which are quoted on a securities exchange, the aggregate of the nominal amount of which constitutes not less than 5% of the aggregate of the nominal amount of all the issued shares of the corporation? (Answer "Yes" or "No". If "Yes", give full details of such interest including names of companies and percentage of interest.) 6. Is the applicant a director of any corporation in Zambia or elsewhere? (Answer "Yes" or "No".) If "Yes", using an annexure, give details of(a) (b) (c) names of the corporations; places of incorporation; and the relevant interests.

(Answer questions "Yes" or "No" in space provided. If "Yes", attach annexures giving all relevant particulars.) 7. Has the applicant within the past 10 yearsAnswer (a) been licensed or registered in any place under any law which requires ................ licensing or registration in relation to dealing in securities or acting as investment adviser? .............................. (b) been licensed, registered or otherwise authorised by law to carry on ................... any trade, business or profession in any place? .............................. (c) has been refused the right or restricted in his right to carry on any ....................... business or profession for which a specific licence, registration or other ............................. authority is required by law in any place? .............................. (d) has been a member or partner in a member firm or a securities exchange? ...........

(e) been suspended from membership of any securities exchange or ......................... otherwise disciplined by a securities exchange? .............................. (f) been refused membership of any securities exchange? .............................. (g) carried on business under any name other than the name or names ...................... shown in this application? .............................. (h) been convicted of any offence other than a traffic offence in Zambia .................. or elsewhere or are there any proceedings now pending which may lead to such a conviction? (If "Yes" attach annexure giving full details of the conviction(s) or proceeding(s).) .............................. (i) had judgement including findings in relation to fraud, misrepresen- ..................... tation or dishonesty been given against him in any civil proceedings, in Zambia or elsewhere? (If "Yes" attach annexure giving full details, including whether judgment is unsatisfied.) .............................. (j) been censured or disciplined by any professional body, society or ....................... association of which he was or is a member? (If "Yes", attach

annexure giving full details, including name of the professional body, society or association.) .............................. (k) been declared bankrupt or compounded with or made an assignment .................. for the benefit of his creditors in Zambia or elsewhere? .............................. (l) been engaged in the management of any corporations other than those ................ referred to in answer to question 10? .............................. (m) been refused a fidelity or surety bond in Zambia or elsewhere? ............................

(n) been disqualified as a director, or been a director of a company that .................... has gone into receivership or liquidation, in Zambia or elsewhere? .............................. 8. Set out below details of the applicant's employment and business activities during the previous 10 years. Name and address of employer (if self-employed, so state) Description of duties in relation to the employment or activity Period of employment or activity (give exact dates)

Nature of business

9. Set out below details of two persons (who shall not be related to the applicant, and neither of whom shall have any interest in the success or otherwise of this application) with whom the applicant has had regular contact over the past 5 years and of whom the Commission may enquire regarding the applicant's character and reputation. Name Address Occupation

10. Set out any additional information (including any formal qualifications or training and the name of the institution that conducted the course) considered relevant to this application. 11. I am aware of the provisions of section thirty of the Act relating to fraudulent applications. 12. I declare that all information given in this application and in the attached annexures (if any) are true and correct. Dated this........................................day of........................................19.......... Signature............................................................

Form 4 (Section 21 (1)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION BY A COMPANY FOR INVESTMENT ADVISER'S LICENCE Application is hereby made for an Investment Adviser's licence under the Act and the following statements are made in respect thereof: Notes: (1) If space is insufficient to provide details, where necessary, please attach annexure(s). Any such annexure should be identified as such and signed by the signatory to this application. (2) This application shall be accompanied by the last audited balance-sheet and profit and loss account certified as required by rule six of the Securities (Licensing and Fees) Rules, 1993. PART 1 INFORMATION ON THE APPLICANT 1. (a) Name of applicant: (b) Registered office: (c) Place of incorporation: (d) Full address and telephone number of the principal place at which the business of the applicant is or is to be carried on: (e) The authorised and paid-up capital of the applicant, including the types of shares issued or to be issued: (f) The details of shareholders of the applicant, including the name, address, amount of shares being held and date of acquisition: (g) Address of place at which applicant's record under section twenty-eight of the Act will be kept: (h) Set out as an annexure hereto details of each director and secretary showing full name, residential address, date of birth, office held and date of appointment: 2. State the nature of the principal business of the applicant. 3. (a) Indicate areas of proposed business for which the applicant requires an Investment Adviser's licence:

advisers others concerning securities. issues or promulgates analyses or reports concerning securities. pursuant to a contract or arrangement with a customer, undertakes on behalf of the customer (whether on a discretionary authority granted by the customer or otherwise) the management on behalf of customers of a portfolio of securities for the purpose of investment. (b) For each indicated area of proposed business, state in detail the manner in which business will be conducted and the experience of the applicant and its management staff in that business. (c) The type of customers with whom the applicant proposes to do business. (d) Describe in detail the organisation structure and internal control procedures which the applicant has adopted or proposes to adopt in the conduct of its business. 4. Set out name and address of each person who directly or indirectly exercises or has power to exercise a controlling influence over the management and policies of the applicant other than those shown as directors. 5. Is any director or secretary of the applicant a director of any other corporation? Using an annexure, answer "Yes" or "No" for each person; if "Yes", give details of: (a) (b) (c) names of corporation; places of incorporation; and dates of appointment.

(For questions 6 and 7 answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) 6. Has the applicant or any director or secretary of the applicant within the past 10 yearsAnswer (a) been licensed or registered in any place under any law which requires licensing or registration in relation to dealing in securities or acting as an investment adviser?.............. (b) been licensed, registered or otherwise authorised by law to carry on any trade, business or profession in any place? .............................. (c) been refused the right or restricted in its or his right to carry on any trade, business or profession for which a specific licence, registration or other authority is required by law in any place? 7. Has any director or secretary of the applicant within the past 10 yearsAnswer (a) been a member or partner in a member firm of any securities exchange? .............

(b) been suspended from membership of any securities exchange or other-................ wise disciplined by a securities exchange? ..............................

(c)

been refused membership of any securities exchange?

..............................

(d) been known by any name other than the name or names shown in this ................ application? .............................. (e) been convicted of any offence other than a traffic offence in Zambia .................. or elsewhere or are there any proceedings now pending which may lead to such a conviction? .............................. (f) had judgement including findings in relation to fraud, misrepresen- ..................... tation or dishonesty been given against him in any civil proceedings, in Zambia or elsewhere? (If "Yes", using an annexure, give full details, including whether judgement is unsatisfied.) .............................. (g) been declared bankrupt or compounded with or made an assignment .................. for the benefit of his creditors, in Zambia or elsewhere? .............................. (h) been engaged in the management of any corporation other than those ................. referred to in answer to question 5? .............................. (i) been refused a fidelity or surety bond in Zambia or elsewhere? ............................

(j) been disqualified as a director, or been a director of a company that .................... has gone into receivership or liquidation, in Zambia or elsewhere? .............................. 8. In relation to each director and secretary of the applicant, set out below details of the officer's employment and business activities, during the previous 10 years: Name and Period of address of Description of employment Name of employer (if duties in relation or activity director or self-employed, Nature of to the employ(give exact secretary so state) business ment or activity dates)

9. Set out any additional information (including any formal qualifications or training of the directors or secretary of the applicant ad the name of the institution that conducted the relevant course) considered relevant to this application. 10. Set out below details of two persons (who shall not be related to of whom shall have any interest in the success or otherwise of this application) with whom each director and the secretary of the applicant has had regular contact over the past 5 years and of whom the Commission may enquire regarding the character and reputation of the respective director or secretary. Occupation of character referee Name of director or secretary in respect of whom enquiries may be made

Name of Address of character referee character referees

PART 2 MISCELLANEOUS 1. We are aware of the provisions of section thirty of the Act relating to fraudulent applications. 2. We declare that all information given in this application and in the attached annexures (if any) are true and correct. Dated this.........................................................day of..........................................................19............ *Signature ............................................ .............................................................. (Name of Director) Signature............................................ ........................................................... (Name of Director/Secretary)**

*This application is to be signed by two directors or a director and the secretary of the applicant. **Delete whichever is inapplicable.

Form 5 (Section 21 (1)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION FOR RENEWAL OF DEALER'S LICENCE OR INVESTMENT ADVISER'S LICENCE Application is hereby made for the renewal of: A Dealer's/An Investment Adviser's* licence and the following statements are made in respect of the applicant: 1. (a) Applicant's name: (b) Expiry date of licence: (c) Licence No.: 2. Where the applicant is a company to complete the following: (Answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) (a) Since the last applicationAnswer (i) Has there been a change in the shareholders of the applicant? ................ (ii) Has there been a change in the applicant's directors, secretary, senior management personnel or external auditor? .............................. (iii) Has the applicant been convicted of any offence other than a traffic offence in Zambia or elsewhere or are there any proceedings now pending which may lead to such a conviction? ........... (iv) Have any of the applicant's directors been a director of any company other than those referred to in the last application? ................ (v) Has the applicant taken any disciplinary action against any of its representatives? .............................. (vi) Has the applicant received any complaint? .............................. (vii) Has the applicant undertaken to conduct any material new business activity, and if so, state the nature of the activity? ................... (b) Please furnish details of any other event which has occured which is likely to have a significant effect on the applicant's business during the currency of the licence, if granted (including any legal claim against the applicant).

3. Where the applicant is an individual please complete the following: (Answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) Since the last application has the applicantAnswer (a) been suspended from membership of any securities exchange or other-................ wise disciplined by a securities exchange? .............................. (b) been convicted of any offence other than a traffic offence in Zambia or .............. elsewhere or are there any proceedings now pending which may lead to such a conviction? .............................. (c) had judgement including findings in relation to fraud, misrepresen- ..................... tation or dishonesty been given against him in any civil proceedings, in Zambia elsewhere? (If "Yes", using an annexure, give full details, including whether judgement is unsatisfied.) .............................. (d) been declared bankrupt or compounded with or made an assignment .................. for the benefit of his creditors, in Zambia or elsewhere? .............................. (e) been engaged in the management of any company other than those ..................... referred to in the last application? .............................. (f) been refused a fidelity or surety bond in Zambia or elsewhere? ............................

(g) undertaken to conduct any material new business activity, and, if so, .................. state the nature of the activity? .............................. (h) been disciplined by any professional body or other membership body? ................

4. I am/We are* aware of the provisions of section thirty of the Act relating to fraudulent applications. 5. I/We* declare that all information given in this application and in the attached annexure (if any) are true and correct. Dated this........................................................day of.........................................................19.............. **Signature...................................................................... .................................................................................................... (Name of Applicant/Director/Secretary*) *Delete whichever is inapplicable. **Where the applicant is a body corporate, this application is to be signed by a director or secretary of the applicant.

Form 6 (Section 21 (1)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION FOR REPRESENTATIVE'S LICENCE Application is hereby made for: A dealer's representative's/an investment representative's* licence and the following statements are made in respect of the application. 1. (a) Applicant's name (b) Residential address (c) Date of birth (d) No. of years applicant has resided in Zambia Other names Tel: No. Place of birth Nationality

(e) Occupation for which representative's licence is sought (f) Full name of principal (g) The full address at which the business of the principal is to be carried on No. (h) Nature of business of the principal (i) Address of place at which Record under section twenty-eight of the Act will be kept (j) Present remuneration arrangement with principal: salary, commission or both *Delete whichever is inapplicable. (k) Directorship in companies in Zambia or elsewhere (l) National Registration Card ID number 2. (Answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) Has the applicant within the past 10 yearsAnswer (a) been licensed or registered in any place under any law which requires ................ licensing or registration to deal or trade in securities or act as investment adviser? .............................. (b) been licensed, registered, or otherwise authorised by law to carry on .................. any trade, business or profession in any place? .............................. (c) been refused the right or restricted in his right to carry on any trade, ................... business or profession for which a specific licence, registration or other authority is required by law in any place? .............................. Tel:

(d)

been a shareholder in a member firm of any securities exchange?.........................

(e) been suspended from membership of any securities exchange or other-................ wise disciplined by a securities exchange? .............................. (f) been refused membership of any securities exchange? .............................. (g) carried on business under any name other than the name or names ...................... shown in this application in paragraph 1 (a)? .............................. (h) been convicted of any offence, other than a traffic offence, in Zambia ................ or elsewhere or are there any proceedings now pending which may lead to such a conviction? .............................. (i) had judgement including findings in relation to fraud, misrepresen- ..................... tation, or dishonesty been given against him in any civil proceedings, in Zambia or elsewhere? (If "Yes" attach annexure giving full details, including whether judgement is unsatisfied.) .............................. (j) been refused a fidelity or surety bond, in Zambia or elsewhere? ...........................

(k) been declared a bankrupt or compounded with or made an assignment ................ for the benefit of his creditors in Zambia or elsewhere? .............................. (l) been disqualified as a director of a company, or been a director of a .................... company that has gone into receivership or liquidation, in Zambia or elsewhere? .............................. 3. Has the applicant had any experience in performing the functions of a dealer's representative or an investment representative? (Answer "Yes" or "No") If "Yes" attach annexures giving all relevant particulars. 4. Set out below details of the applicant's employment and business activities during the previous 10 years: Name and Period of address of Description of employment employer (if duties in relation or activity self-employed, Natue of to the employ(give exact so state) business ment or activity dates) 5. Set out below details of two persons (who shall not be related to the applicant, and neither of whom shall have any interest in the success or otherwise of this application) with whom the applicant has had regular contact over the past 5 years and of whom the Commission may enquire regarding the applicant's character and reputation: Name Address Occupation

6. Does the applicant have an interest in one or more shares in any company, the shares of which are quoted on a securities exchange, the aggregate of the nominal amount of which

constitutes not less than 5% of the aggregate of the nominal amount of all issued shares of the company? (Answer "Yes" or "No". If "Yes", give full details of such interest including names of companies and percentage of interest). 7. Set out any additional information (including any formal qualifications or training of the applicant and the name of the institution that conducted the course) considered relevant to this application. 8. I am aware of the provisions of section thirty of the Act relating to fraudulent applications. 9. I declare that all information given in this application and in the attached annexure (if any) are true and correct. Dated this..........................................................day of...........................................................19.......... Signature........................................................ (Signed by Applicant) Note: (a) This application should be accompanied by a certificate in or to the effect of the following form: To the Commission: On the basis of due and diligent enquiry of the background of the applicant named in this form who is in my direct employment or acting for or on behalf of me, and other information available, I believe him to be of good character and reputation and to have the competence and experience to perform the function of a representative. Dated this..................................................day of...................................................19.......... Signature: Name: Capacity: (b) Subject to paragraph (c) of this Note, the certificate should be signed by each licensee by whom the applicant is to be employed or for or by arrangement with whom he is to act. (c) Where the applicant is to be employed by or to act for or by arrangement with(i) a firm, the individual partners of which are licensees-the certificate should be signed by one such partner on behalf of all the partners; (ii) a licensee which is a company-by a director or the secretary of that company.

Form 7 (Section 21(1) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 APPLICATION FOR RENEWAL OF REPRESENTATIVE'S LICENCE Application is hereby made for the renewal of: A dealer's representative's/an investment representative's* licence and the following statements are made in respect of the application. *Delete whichever is inapplicable. 1. (a) Applicant's name (b) Expiry date of licence (c) Residential Address Licence No. Telephone No.

(d) Present remuneration arrangement with principal; salary, commission or both 2. (Answer "Yes" or "No" in space provided. If "Yes" attach annexures giving all relevant particulars.) Since the last application has the applicantAnswer (a) been suspended from membership of any securities exchange or other-................ wise disciplined by a securities exchange? .............................. (b) been convicted of any offence other than a traffic offence in Zambia .................. or elsewhere or are there any proceedings now pending which may lead to such a conviction? .............................. (c) had judgement including findings in relation to fraud, misrepresen- ..................... tation or dishonesty been given against him in any civil proceedings, in Zambia or elsewhere? (If "Yes", using an annexure, give full details, including whether judgement is unsatisfied.) .............................. (d) been declared bankrupt or compounded with or made an assignment .................. for the benefit of his creditors, in Zambia or elsewhere? .............................. (e) been engaged in the management of any corporation other than those .................. referred to in the last application? .............................. (f) been a director of any corporation other than those referred to in the ................... last application? .............................. (g) (h) (i) been refused a fidelity or surety bond in Zambia or elsewhere .............................. been the subject of any disciplinary action taken by his firm? .............................. been disciplined by any professional or other membership body? .........................

3. I am aware of the provisions of section thirty of the Act relating to fraudulent applications. 4. I declare that all information given in this application and in the attached annexure (if any) are true and correct. Dated this..........................................................day of...........................................................19.......... Signature............................................................ Name of Applicant................................................................................ Note: (a) This application should be accompanied by a certificate in or to the effect of the following form: To the Commission; On the basis of due and diligent enquiry made of the background of the applicant named in this form who is in my direct employment or acting for or on behalf of me, and other information available, I believe him to be of good character and reputation and to have the competence and experience to perform the function of a representative. Dated this.....................................................day of....................................................19.......... Signature:...................................................... Name:................................................................ Capacity:................................................................ (b) Subject to paragraph (c) of this Note, the certificate should be signed by each licensee by whom the applicant is to be employed or for or by arrangement with whom he is to act. (c) Where the applicant is to be employed by or to act for or by arrangement with(i) a firm, the individual partners of which are licensees-the certificate should be signed by one such partner on behalf of all the partners; (ii) a licensee which is a company-by a director or the secretary of that company.

Form 8 (Section 28) THE SECURITIES ACT, 1993 RECORD OF SECURITIES


Name of person having an interest: Particulars* Name of Security Unit Price No. of Units Acquired Disposed of No. of Units Balance

Date

Cost

Proceeds

in Units

*State how securities acquired or disposed of and if acquired or disposed of on the securities market, give broker's name.

Form 9 (Section 29 (1)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 NOTICE OF PLACE AT WHICH RECORD IS TO BE KEPT 1. Name: 2. Capacity in which section twenty-eight of the Act applies: 3. Residential address and telephone number of applicant: 4. Business address and telephone number: 5. Name of employer (if any): 6. Place at which record is to be kept: 7. Date of commencement of keeping record: Dated this..........................................................day of...........................................................19.......... Signature: Name: Capacity:

Form 10 (Section 29 (3)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 NOTICE OF CHANGE OF PLACE OF BUSINESS AND CHANGE OF PLACE AT WHICH RECORD IS KEPT 1. Name of licensee: 2. Type of licence held and licence number: 3. (a) Former address of place of business: (b) New address of place of business: (c) Date of change of place of business: 4. (a) Former address of place at which record was kept: (b) New address of place at which record is kept: (c) Date of change of address of place at which record is kept: Dated this...........................................................day of..........................................................19.......... Signature: Name: Capacity:

Form 11 (Section 29 (2)) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 NOTIFICATION OF CESSATION OF BUSINESS 1. Name of licensee: 2. Type of licence held and licence number: 3. Notice is hereby given that on the..............................day of.............................19.........., business ceased to be carried on in Zambia by the above licensee in respect of which he was licensed to carry on business. Dated this...........................................................day of..........................................................19.......... Signature: Name: Capacity:

Form 12 (Section 11) THE SECURITIES ACT, LAWS OF ZAMBIA-CAP. 354 NOTICE OF CHANGE OF REPRESENTATIVE'S PRINCIPAL AND NOTICE OF CHANGE OF PLACE AT WHICH RECORD IS KEPT 1. Name of licensee: 2. Type of licence held any licence number: 3. Residential Address: 4. Notice is hereby given that on the...................day of.......................19........the licensee will cease to be a representative of..........................................................and that from the.................................day of........................19.......the licensee will be a representative of.................................whose principal place of business is at............................................................................................................................. 5. (a) Former address of place at which record was kept: (b) New address of place at which record is kept: (c) Date of change of address of place at which record is kept: Dated this.............................................................day of........................................................19.......... Signature: Name:

THIRD SCHEDULE
(Rule 11) FEES 1. Application for a licence or renewal of a licence as a dealer: FEE UNITS 20,000

2. Application for a licence or renewal of a licence as an investment advisor:10,000 3. Application for a licence or renewal of a licence as a dealer's representative:5,000 4. Application for a licence or renewal of a licence as an investment representative: 5,000 5. Inspection of or taking extracts from the record kept under section twenty-eight of the Act: 100

6. Lodgement of application for licensing a securities exchange: 7. Replacement of licence: 8. Examination of Prospectus: 9. Registration of securities-

100,000 2,500 10,000

(a) securities issued before the one quarter of the 1% commencement of the Act issued share capitla and reserves, subject to a mnimum payment of:10,000 (b) securities issued persuant to one quarter of 1% of the total a prospectus in connection capital raised, subject to a with a public officer minimum payment of: 15,000 10. Authorisation of collective investment scheme: (As amended by S.I. No. 153 of 1995 and Act No. 13 of 1994) THE SECURITIES (REGISTRATION OF SECURITIES) RULES ARRANGEMENT OF RULES 50,000

PART I PRELIMINARY
Rule 1. 2. 3. Title Interpretation Application

PART II REGISTRATION STATEMENT


4. 5. 6. 7. 8. Registration statement Letter of application Bankers, etc. Declaration Supporting documents

PART III PROSPECTUS


9. 10. Information to be contained in prospectus False or misleading prospectus

PART IV CONTINUING OBLIGATIONS OF ISSUERS OF REGISTERED SECURITIES


11. 12. 13. 14. Corporate disclosure policy Closure of books Notice of general meeting Distribution of directors' report and annual accounts

15. Information to accompany directors' report and annual accounts 16. view 17. 18. 19. 20. Rule 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Basis of allotment Winding-up and liquidation Pre-emptive rights Approval of documents Directors' service contracts Subsequent registration Proxy forms Equality of treatment Response to inquiries Variation Additional information if accounts do not give true and fair Interim reports, etc. Board meetings After board meetings Commission to be notified of certain decisions

FIRST SCHEDULE-Information to be Provided in Letter of Application for Registration of Securities SECOND SCHEDULE-Information to be Contained in Prospectus THIRD SCHEDULE-Accountants Reports FOURTH SCHEDULE-Property Valuation Reports SECTION 32-SECURITIES (REGISTRATION OF SECURITIES) RULES Rules by the Securities and Exchange Commission Statutory Instrument 164 of 1993

PART I PRELIMINARY
1. These Rules may be cited as the Securities (Registration of Securities) Rules. 2. (1) Under these Rules, unless the context otherwise requires"articles" means articles of association; "Chief Executive" means a person who either alone or together with one or more persons is or will be responsible under the immediate authority of the board of directors for the conduct of the business of a registered securities issuer; "debt securities" means debenture or loan stock, debentures, bonds, notes and other securities or instruments acknowledging, evidencing or creating indebtedness, whether secured or unsecured and options, warrants or similar rights to subscribe or purchase any of the foregoing, and convertible debt securities; "convertible debt securities" means debt securities convertible into or exchangeable for equity securities or other property; "convertible equity securities" means equity securities convertible into or exchangeable for shares; "director" includes any person who occupies the position of a director, by whatever name called; "equity securities" means shares (including preference shares), Title

Interpretation

convertible equity securities and options, warrants or similar rights to subscribe or purchase shares or convertible equity securities; "issuer" means a company or other legal person any of whose equity or debt securities are the subject of an application for registration or some of whose equity or debt securities are already registered; "new applicant" means, in the case of equity securities, an applicant for registration none of whose equity securities is already registered and, in the case of debt securities, means an applicant for registration none of whose equity or debt security is already registered; "profit forecast" means any numerical or verbal indication of the level of profit for a future accounting period, or for a past accounting period for which results have not been announced to the public, including forms of words which may be used in conjunction with published data to arrive at an approximate figure for future profit by an arithmetical process; "prospectus" means a prospectus, notice, circular, advertisement of other invitation to the public to acquire or apply for any securities; "registered", in relation to securities, means registered under Part V of the Act; "reporting accountant" means the professional accountant who is responsible for the preparation of the accountants' report required to be included in the prospectus; "securities" has the same meaning as in section two of the Act; "substantial shareholder" means, in relation to a company, a person who is entitled to exercise, or control the exercise of, ten per cent or more of the voting power at any general meeting of the company. (2) For the purposes of these Rules, a company is a subsidiary of another company if(a) that other company-

(i) controls the composition of the board of directors of the first-mentioned company; (ii) controls more than half of the voting power of the first-mentioned company; or (iii) holds more than half of the issued share capital of the first-mentioned company (excluding any part of it which carries no right to participate beyond a specified amount in a distribution of either profits or capital); or (b) the first-mentioned company is a subsidiary of any company

which is that other company's subsidiary. (3) In these Rules, references to the certification of a document are references to its certification as a true copy or extract (as the case may be) by a director, the secretary or other authorised officer of the issuer or by a member of the issuer's auditors or solicitors. 3. (1) These Rules apply to all securities that are required to be registered under Part V of the Act. (2) The requirements of these Rules are not exhaustive in that an applicant for the registration of securities may be required by the Commission to supply such further documents and information as the Commission may require in any particular case or class of case. Application

PART II REGISTRATION STATEMENT


4. A registration statement for the purposes of section thirty-two of the Registration Act shall consist of the following: statement (a) a formal letter of application to the Commission signed by a duly authorised officer of the issuer whose securities are the subject of the application for registration, and which complies with the requirements of rules five, six and seven; (b) the various supporting documents specified in rule eight; and (c) in the case of a public offer, a prospectus that complies with the content requirements set out in Part III. 5. A formal letter of application for registration shall, in substantially the order given in the First Schedule to these Rules, embody the information indicated in that Schedule. 6. The application shall also containLetter of application

Bankers, etc.

(a) the names and addresses of the issuer's principal bankers, authorised legal or other representatives; and

(b) the name, address and professional qualifications of the issuer's auditors. 7. A letter of application must include a declaration, stated to be to the Declaration best of the issuer's knowledge, information and belief(a) where a prospectus is required, that all information required to be included in the prospectus pursuant to Part III has been included; and (b) that there are no other facts bearing on the issuer's application for registration which, in the issuer's opinion, should be disclosed to the Commission. 8. In support of its letter of application for registration the applicant must lodge with the Commission at the same time the following documents: (a) (b) a certified copy of its certificate of incorporation; a certified copy of its articles and all amendments to date; Supporting documents

(c) the annual report and accounts for each of the three completed financial years of the issuer and its subsidiaries, if any, immediately preceding the application or such shorter period as may be accepted by the Commission; (d) a certified copy of-

(i) the resolution of the issuer in general meeting authorising the issue of all securities for which registration is sought; and (ii) the resolution(s) of the board of directors authorising the issue and allotment of such securities, the making of the application for registration, and approving and authorising the issue of the prospectus is (where a prospectus is required). (e) a certified copy of any resolution of the issuer in general meeting or of the board of directors authorising any alterations in the share capital of the company, or any mergers or amalgamations, within the period of five years preceding the date of the application for registration; and (f) in addition, in the case of debt securities, a copy of the trust deed or other document securing or constituting the debt securities; and (g) such other documentation as may be required by the Commission.

PART III PROSPECTUS


9. Where a prospectus is required, the prospectus shall contain the Information to specific items of information specified in section A of the Second be contained in Schedule to these Rules with regard to equity securities, and in section B prospectus of that Schedule with regard to debt securities. 10. If a prospectus issued for the purposes of Part V of the Act is false False or or misleading in a material particular, each of the directors of the issuer misleading shall be guilty of an offence and shall be liable on conviction to a fine prospectus not exceeding five million kwacha or to imprisonment for a term not exceeding three years or to both.

PART IV CONTINUING OBLIGATIONS OF ISSUERS OF REGISTERED SECURITIES


11. Generally and apart from compliance with all the specific requirements of this Part, the issuer shall keep the Commission, members of the issuer and other holders of its registered securities informed as soon as reasonably practicable of any information relating to the issuer and its subsidiaries, if any, that(a) is necessary to enable them and the public to appraise the financial position of the issuer and its subsidiaries, if any; (b) is necessary to avoid the establishment of a false market in its securities; and (c) might reasonably be expected materially to affect market activity in the price of its securities. 12. The issuer shall publish in at least two newspapers circulating throughout Zambia notice of the closure of its register of members at least fourteen calendar days before such closure. Closure of books Corporate disclosure policy

13. The issuer shall publish in at least two newspapers circulating throughout Zambia notice of every general meeting not less than fourteen calendar days before such meeting. 14. The issuer shall send to every member of the issuer a copy of the directors' report and its annual accounts (which must be prepared in accordance with the requirements of the Act), not less than twenty-one calendar days before the date of the issuer's annual general meeting. 15. The issuer shall include in its directors' report and accounts-

Notice of general meeting

Distribution of director's report and annual accounts Information to accompany directors' report and annual accounts

(a) a description of the principal activities of the issuer and its subsidiaries, if any, and, where two or more such activities are so described, a statement giving in respect of each such activity the turnover; (b) a geographical analysis of consolidated turnover; and of its subsidiaries outside Zambia; (c) a statement showing-

(i) the name of every subsidiary, its principal country of operation, its country of incorporation and its main business; and (ii) particulars of the issued share capital and debt securities of every subsidiary: Provided that if, in the opinion of the directors of the issuer, the number of them is such that compliance with this paragraph would result in particulars of excessive length being given, compliance with this paragraph shall not be required except in the case of subsidiaries carrying on a business the results of the carrying on of which, in the opinion of the directors, materially affected the amount of the profit or loss of the issuer and its subsidiaries, if any, or the amount of the assets of the issuer and its subsidiaries, if any; (d) a statement as at the end of the relevant financial year showing-

(i) the interests of each director and chief executive of the issuer in the equity or debt securities of the issuer or any subsidiary; and (ii) the details of any right to subscribe for equity or debt securities of the issuer granted to any director or chief executive of the issuer, and

of the exercise of any such right; (e) (i) the statement required by paragraph (d) mustdistinguish between beneficial and non-beneficial interests; and

(ii) specify the company in which securities are held, the class to which those securities belong and the number of such securities held; (f) in the event of operating results shown by the accounts for the period under review differing materially from any published forecast made by the issuer, an explanation of the difference; (g) a statement by the directors as to the reasons for any significant departure from applicable standard accounting practices in Zambia; (h) a statement as at the end of the financial year showing as regards, first bank loans and overdrafts and, secondly, other borrowings of the issuer and its subsidiaries, if any, the aggregate amounts repayable(i) on demand or within a period not exceeding one year;

(ii) within a period of more than one year but not exceeding two years; (iii) within a period of more than two years but not exceeding five years; (iv) within a period of more than five years;

(i) in respect of the financial year, a statement of the amount of interest capitalised by the issuer and its subsidiaries, if any, during the year; (j) a statement as to the period unexpired of any service contract, which is not determinable by the employer within one year without payment of compensation, (other than any statutory compensation), of any director proposed for election at the forthcoming annual general meeting or, if there are no service contracts, a statement of that fact; (k) summary particulars of any contract of significance subsisting during or at the end of the financial year in which a director of the issuer is or was materially interested, either directly or indirectly, or, if there has been no such contract, a statement of that fact; (l) summary particulars of any contract of significance between the

issuer, or one of its subsidiary companies, and a controlling shareholder or any of its subsidiaries; (m) summary particulars of any contract of significance for the provision of services to the issuer and its subsidiaries, if any, by a controlling shareholder or any of its subsidiaries; (n) summary particulars of any arrangement under which a director has waived or agreed to waive any emoluments; (o) summary particulars of any arrangement under which a shareholder has waived or agreed to waive any dividends; (q) a summary, in the form of a comparative table, of the results and of the assets and liabilities of the issuer and its subsidiaries, if any, for the last five financial years, with any necessary explanations or adjustments for changes in capital to make the figures fully comparable one year with another. 16. If the relevant annual accounts do not give a true and fair view of the state of affairs and profit and loss of the issuer of the issuer and its subsidiaries, if any, more detailed and/or additional information must be provided. Additional information if accounts do not give true and fair view

17 (1) The issuer shall prepare in respect of the first six months of each Interim reports financial year of the issuer, unless that financial year is of six months or etc. less, an interim report containing at least the information required by subrule (2) and, not later than four months after the end of that period of six months, the issuer shall(a) publish in the newspapers an announcement containing the information required by subrule (2) to be contained in the interim report, the day after approval by or on behalf of the board; (b) supply the Commission immediately on publication with the names of the relevant newspapers and the date of the publication; and (c) as soon as reasonably practicable after such publication, send to every member a copy of the interim report. (2) Each interim report referred to in subrule (1) shall contain at least the following information stated in respect of the issuer and its subsidiaries, if any, and such information must be published in the

newspapers in accordance with subrule (1) (i)(a) turnover;

(b) profit (or loss) before taxation and extraordinary items, including the share of the profit (or loss) of associated companies with separate disclosure of any items included therein which are exceptional because of size and incidence; (c) taxation on profits (Zambia and overseas) in each case indicating basis of computation with separate disclosure of the taxation on share of associated companies' profits; (d) profit (or loss) attributable to minority interests;

(e) profit (or loss) attributable to shareholders before extraordinary items; (f) (g) extraordinary items (net of taxation); profit (or loss) attributable to shareholders;

(h) amount of dividend paid or proposed on each class of share (with particulars of each such class) and amounts absorbed thereby (or an appropriate negative statement); (i) transfers to and from reserves;

(j) earnings per share calculated on the basis of profits before extraordinary items; and (k) comparative figures of the matters specified in paragraphs (a) to (j) inclusive for the corresponding previous period. (3) Where the accounting information given in an interim report has not been audited that fact must be stated. If the accounting information contained in an interim report has been audited by the issuer's auditor, his report thereon including any qualifications must be set out in the interim report.

(4) Any preliminary announcement of results for the full year must also contain the information required by subrule (2). 18. The issuer shall inform the Commission at least three clear business days in advance of the date fixed for any board meeting at which the declaration, recommendation or payment of a dividend is expected to be decided or at which any announcement of the profits or losses for any year, half-year or other period is to be approved for publication. 19. The issuer shall inform the Commission immediately after approval by or on behalf of the board of(a) any decision to declare, recommend or pay any dividend or to make any other distribution on its listed securities and the rate and amount thereof; (b) any decision not to declare, recommend or pay any dividend which would otherwise have been expected to have been declared, recommended or paid in due course; (c) any preliminary announcement of profits or losses for any year, half-year or other period; (d) any proposed change in the capital structure, including any redemption of its listed securities; and (e) any decision to change the general character or nature of the business of the issuer or issuer and its subsidiaries, if any. 20. The issuer shall inform the Commission immediately of any decisions made in regard to(a) any proposed alteration of the issuer's articles; (b) any change in the rights attaching to any class of listed securities and any change in the rights attaching to any shares into which any listed debt securities are convertible or exchangeable; and (c) any changes in its secretary, auditors or registered address. Commission to be notified of certain decisions Board meetings

After board meetings

21. The issuer shall inform the Commission of the basis of allotment of Basis of securities offered to the public for subscription or sale or an open offer allotment and of the results of any rights issue and, if applicable, of the basis of any acceptance of excess applications, not later than the morning of the business day next after the allotment letters or other relevant documents

of title are posted. 22. (1) The issuer shall inform the Commission on the happening of any of the following events as soon as the same shall come to the attention of the issuer(a) the presentation of any winding-up petition, or equivalent application in the country of incorporation or other establishment, or the making of any winding-up order or the appointment of a provisional liquidator in respect of the issuer, its holding company or any major subsidiary; (b) the passing of any resolution by the issuer, its holding company or any major subsidiary that it be wound-up by way of members' or creditors' voluntary winding-up; (c) the entry into possession of or the sale by any mortgagee of a portion of the issuer's assets which in aggregate value represents an amount in excess of 15 per cent of the consolidated net tangible assets of the issuer and its subsidiaries, if any; or (d) the making of any judgement, declaration or order by any court or tribunal of competent jurisdiction whether on appeal or at first instance, which may adversely affect the issuer's enjoyment of any portion of its assets which in aggregate value represents an amount in excess of 15 per cent of the consolidated net tangible assets of the issuer and its subsidiaries, if any. (2) For the purposes of subrule (1), a "major subsidiary" means a subsidiary representing 15 per cent or more of the consolidated net tangible assets or pre-tax trading profits of the issuer and its subsidiaries, if any. 23. (1) Except in the circumstances mentioned in subrule (3) the Pre-emptive directors of the issuer shall obtain the consent of shareholders in general rights meeting prior to(a) (i) (ii) allotting, issuing or grantingshares; securities convertible into shares; and Winding-up and liquidation

(iii) options, warrants or similar rights to subscribe for any shares or for such convertible securities; and (b) any major subsidiary of the issuer making any such allotment, issue or grant so as materially to dilute the percentage equity interest of the issuer and its shareholders in such subsidiary. (2) Notwithstanding subrule (3) (b), the directors of the issuer shall obtain consent of the shareholders in general meeting prior to allotting any voting shares if such allotment would effectively alter the control of the issuer. (3) No such consent as is referred to in subrule (1) shall be required(a) for the allotment, issue or grant of such securities pursuant to an offer made to the shareholders of the issuer, and, where appropriate, to holders of other equity securities of the issuer entitled to be offered them, pro rata (apart from fractional entitlements) to their existing holdings; or (b) if, but only to that extent that, the existing shareholders of the issuer have by ordinary resolution in general meeting given a general mandate to the directors of the issuer, either unconditionally or subject to such terms and conditions as may be specified in the resolution, to allot or issue such securities or grant any offers, agreements or options which would or might require securities to be issued, allotted or disposed of, whether during the continuance of such mandate or thereafter, subject to a restriction that the aggregate number of shares allotted or agreed to be allotted must not exceed ten per cent of the existing issued share capital of the issuer. (4) A general mandate given under subrule (3) (b) shall only continue in force until(a) the conclusion of the first annual general meeting of the issuer following the passing of the resolution at which time it shall lapse unless, by ordinary resolution passed at that meeting, the mandate is renewed, either unconditionally or subject to conditions; or (b) revoked or varied by ordinary resolution of the shareholders in general meeting,

which occurs first. (5) For the purposes of subrule (1) (b) a "major subsidiary" has the same meaning as in subrule (2) of rule twenty-two. 24. In Addition to the specific requirements set out in these Rules, the Approval of issuer shall submit to the Commission, for approvaldocuments (a) copies of drafts, before they are issued, of any announcements or advertisements relating to the issue of new or further securities (other than pursuant to a capitalisation issue or a scrip dividend scheme) or any announcements or advertisements the subject matter of which may involve a change in or relate to or affect arrangements regarding trading in its registered securities (including a suspension of dealings); (b) copies of drafts, before they are issued, of any documents issued in connection with takeovers, mergers or offers; (c) copies of drafts, before they are issued, of any proposed amendments to its articles. Directors' 25. The issuer shall procure that no service contract of ten years or longer duration shall be granted by the issuer or any of its subsidiaries to service contracts any director or proposed director of the issuer or to any director or proposed director of any subsidiary without the prior approval of the shareholders of the issuer in a general meeting at which the relevant director did not vote on the matter. 26. The issuer shall apply for the registration of any further securities Subsequent which are of the same class as securities already registered, prior to their registration issue, and shall not issue such securities unless it has applied for the registration of those securities. 27. The issuer shall send with the notice convening a meeting of holders of registered securities to all persons entitled to vote at the meeting proxy forms, with the provision for two-way voting on all resolutions intended to be proposed thereat. 28. The issuer shall ensure equality of treatment for all holders of securities of the same class who are in the same position. Proxy forms

Equality of treatment

29. The issuer shall respond promptly to any queries made of the issuer Response to by the Commission concerning unusual movements in the price or inquiries trading volume of its registered securities or any other matters by giving such relevant information as is available to the issuer or, if appropriate, by issuing a statement to the effect that the issuer is not aware of any matter or development that is or may be relevant to the unusual price movement or trading volume of its registered securities and shall respond promptly to any inquiries made of the issuer by the Commission. 30. The Commission shall be entitled to require the publication of further information by, and impose additional requirements on, the issuer, where it considers that circumstances so justify, but will allow representations by the issuer before imposing any additional requirements on it which are not imposed on registered issuers generally. Variation

FIRST SCHEDULE
(Rule 5) INFORMATION TO BE PROVIDED IN LETTER OF APPLICATION FOR REGISTRATION OF SECURITIES (1) Title page (a) the name of the applicant and the date of incorporation; (b) the address of the principal registered office and the address of each office at which a securities register is kept; (c) the date of application and a formal request for the registration of the securities in respect of which application is made, specifying the amount, class and par value and whether they are to be fully paid; (d) the estimated market value of the applicant (or total capitalisation, in the case of debt securities); and (e) the estimated market capitalisation (or nominal amount in the case of debt securities) for which registration is sought. (2) Capitalisation A list in tabular form of(a) (b) (c) the designation or title of each class of security; the number of securities authorised; the number of securities issued;

(d) (e)

the par value; the amount paid up;

(f) the names of directors and officers of the issuer and their respective shareholdings; (g) so far as is known, or can be ascertained after reasonable inquiry, the names of substantial shareholders of the issuer and their respective shareholdings. (3) History and Nature of Business A short introductory paragraph describing the general nature of the business and products of the applicant. A brief history of the issuer from inception to the date of application. A description of the business now carried on by the issuer and its subsidiaries, including principal goods and services, main markets and main sources of supply, and volume of output for the preceding three financial years and for the current financial year to the latest date available (either in physical terms or at constant prices). (4) Summary of earnings A summary of earnings, on a consolidated basis if the applicant has subsidiaries, for the last three financial years, showing sales, earnings before charges for depreciation, interest and income tax, the amount of each of those charges, net income before extraordinary items, extraordinary items, net income and earnings per share. (5) Tabulation of Balance Sheet A tabulation of its balance sheet for each of the last three financial years (on a consolidated basis if the company has subsidiaries). The tabulation should include a statement of the net tangible assets per share for each of the three financial years. (6) Employees A statement as to the total number of persons regularly employed and, if subject to seasonal fluctuations, the maximum and minimum numbers employed during the preceding twelve months. (7) Subsidiaries A tabular list of all subsidiaries showing in respect of each such company(a) the name of the company; (b) a brief statement of the nature of its business and its relationship to the operations of the entire enterprise; and (c) capital share issues by classes, showing the par value, amount authorised, amount issued and the amount owned by the holding company.

(8) Dividend record State the number of consecutive years in which dividends have been paid. State the amount of dividend (per share and in the aggregate) paid by the applicant (and its subsidiaries) for each of the three preceding years. Indicate whether dividends have been paid on a quarterly, semi-annual or annual basis. State the record date, payment date and the date of declaration with respect to each dividend paid during the past two years. (9) Properties Describe briefly the general character of the properties of the applicant and its subsidiaries, including(a) (b) (c) (d) location; land area and land use; number and type of buildings; aggregate floor area of buildings;

(e) whether the property is owned or leased, and if leased, state total rental paid for each of the three preceding financial years and average term of years. (10) Litigation Particulars of any litigation or claims of material importance pending or threatened against the issuer or any member of a group to which the issuer belongs, or an appropriate negative statement. (11) Management (a) the full name, residential or business address and description (being his qualification or area of expertise or responsibility) of every director or proposed director (or any such person who performs an important administrative, management or supervisory function) and particulars of the principal functions performed by each of them within the issuer and its subsidiaries, if any, if significant to the issuer and its subsidiaries, if any. (b) the nature of any family relationship between the persons mentioned in (a); (c) a brief account of the business experience of each of these persons during the last five years; (d) indicate any other directorships held by each director or proposed director; (e) state if any director or proposed director has been convicted in any criminal proceeding or has had a bankruptcy petition filed against him or any partnership in which he was a partner or any body corporate of which he was a director.

SECOND SCHEDULE
(Rule 9) INFORMATION TO BE CONTAINED IN PROSPECTUS SECTION A-Equity Securities GENERAL INFORMATION ABOUT THE ISSUER, ITS ADVISERS AND THE PROSPECTUS 1. (1) The full name, and address of the registered office, of the issuer. (2) A statement as follows"The directors collectively and individually accept full responsibility for the accuracy of the information contained in this prospectus and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief there are no other facts the omission of which would make any statement herein misleading." (3) The names and addresses of the issuer's principal bankers, sponsor, authorised representative, stockbroker, solicitors and registrars and of the solicitors to the issue. (4) The name, address and professional qualifications of the issuer's auditors. (5) The date of incorporation. (6) The provisions, or a sufficient summary of the provisions, of the articles with regard to(a) any power enabling a director to vote on a proposal, arrangement or contact in which he is materially interested; (b) any power enabling the directors to vote remuneration (including pension or other benefits) to themselves or any members of their body and any other provision as to the remuneration of the directors; (c) borrowing powers exercisable by the directors and how such borrowing powers can be varied; (d) (e) (f) retirement or non-retirement of directors under an age limit; directors' qualification shares; changes in capital;

(g) any time limit after which entitlement to dividend lapses and an indication of the party in whose favour the time limit operates; and

(h) arrangements for transfer of the securities and (where permitted) any restrictions on their free transferability. (7) Where the prospectus includes a statement purporting to be made by an expert, a statement(a) specifying the qualifications of such expert and whether such expert has any shareholding in the issuer or any group to which the issuer belongs or the right (whether legally enforceable or not) to subscribe for or to nominate persons to subscribe for securities in the issuer or any such member and, if so, a full description thereof; (b) that the expert has given and has not withdrawn his written consent, prior to the issue of the prospectus, to the issue of the prospectus with the expert's statement included in the form and context in which it is in fact included; and (c) of the date on which the expert's statement was made and whether or not it was made by the expert for incorporation in the prospectus. STATEMENT THAT APPLICATION MADE 2. A statement that application has been made to the Commission for registration of the securities. INFORMATION ABOUT THE SECURITIES FOR WHICH REGISTRATION SOUGHT 3. (1) The nature and amount of the issue including the number of securities which have been or will be created and issued and a full description of, including a summary of the terms attaching to, the securities for which listing is sought. (2) The following information, so far is appropriate, concerning the terms and conditions of the issue of the securities in respect of which the application for registration is made(a) the total amount of the issue and the number of securities offered, where applicable, by category; (b) the issue price or offer price of each security, stating the nominal value of each security; (c) the methods of payment of the issue or offer price, particularly as regards the paying-up of securities which are not fully paid; (d) the procedure for the exercise of any right of pre-emption and the transferability of subscription rights; (e) the period during which the issue or offer of securities will

remain open after issue of the prospectus, the date and time of opening of the subscription list, and the names of the receiving bankers; (f) the methods of and the time limits for delivery of the securities; (g) the names, addresses and description of the persons underwriting the issue for the issuer; and (h) in the case of an offer for sale of securities, the names, addresses and descriptions of the vendor(s) of the securities or, if there are more than ten vendors, such details of the ten principal vendors and a statement of the number of other vendors and particulars of any beneficial interest possessed by any director of the issuer in any securities so offered for sale. PROFITS COVER 4. Where registration is sought for securities with a fixed income, particulars of the profits cover for payments in respect of bonds, preference shares or other fixed income securities. NET TANGIBLE ASSETS 5. A statement of the net tangible asset backing for each class of security for which registration is sought, after making allowance for any new securities to be issued, as detailed in the prospectus. INFORMATION ABOUT THE ISSUER'S CAPITAL 6. (1) The authorised share capital of the issuer, the amount issued or agreed to be issued, the amount paid up, the nominal value and a description of the shares. (2) The amount of any outstanding convertible debt securities and particulars of the conditions governing, and the procedures for conversion, exchange or subscription of, such securities. VOTING RIGHTS 7. (1) The voting rights of shareholders. (2) If there is more than one class of share, the rights of each class of share as regards voting, dividend, capital, redemption, and the creation or issue of further shares ranking in priority to or pari passu with each class other than the lowest ranking equity. (3) a summary of the consent necessary for the variation of such rights.

ALTERATIONS IN CAPITAL 8. Particulars of any alterations in the capital of the issuer or any member of a group to which the issuer belongs within the two years immediately preceding the issue of the prospectus, including(a) where any such capital has been issued or is proposed to be issued as fully or partly paid up otherwise than in cash, particulars of the consideration for which the same has been or is proposed to be issued and in the latter case the extent to which they are so paid up; and (b) where any such capital has been issued or is proposed to be issued for cash, particulars of the price and terms upon which the same has been or is proposed to be issued, details of any discounts or other special terms granted and (if not already fully paid) the dates when any instalments are payable with the amount of all calls or instalments in arrear, or an appropriate negative statement. PARTICULARS OF ANY CAPITAL UNDER OPTION 9. Particulars of any capital of the issuer or any member of a group to which the issuer belongs which is under option, including the consideration for which the option was or will be granted and the price and duration of the option, and the name and address of the grantee, or an appropriate negative statement: Provided that where options have been granted or agreed to be granted to all members or debenture holders or to any class thereof, or to employees under a share scheme, it shall be sufficient, so far as the names and addresses are concerned, to record that fact without giving the names and addresses of the grantees. GENERAL INFORMATION ABOUT ACTIVITIES OF THE ISSUER AND ITS SUBSIDIARIES, IF ANY 10. (1) A brief history and the general nature of the business of the issuer and its subsidiaries, if any, and, in cases where two or more activities are carried on which are material in terms of profits or losses, assets employed or any other factor, such figures and explanation as are necessary to demonstrate the relative importance of each such activity and details of the main categories of products sold and/or services performed and an indication of any significant new products and/or activities. (2) If the issuer and its subsidiaries, if any, trade outside Zambia a statement showing a geographical analysis of its trading operations, and where a material proportion of the assets of the issuer and its

subsidiaries, if any, are situated outside Zambia, a statement giving the best practicable indication of the amount and situation of such assets and the amount of assets situated in Zambia. (3) If the issuer is a member of a group, a brief description of that group covering the issuer's position within that group and, if a subsidiary, the names of and the number of shares held (directly or indirectly) by each holding company of the issuer. (4) Particulars of any licences, concessions, trade marks, patents or other intellectual or industrial property rights which are material in relation to the business of the issuer and its subsidiaries, if any, and, where such factors are of fundamental importance to the business or profitability of the issuer and its subsidiaries, if any, a statement regarding the extent to which the issuer and its subsidiaries, if any, are dependent on such factors. (5) Information concerning the policy of the issuer and its subsidiaries, if any, on the research and development of new products and processes over the past five financial years where significant. (6) Particulars of any interruptions in the business of the issuer and its subsidiaries, if any, which may have or have had a significant effect on the financial position in the last twelve months. (7) The number of people employed by the issuer and its subsidiaries, if any, and changes therein in the last financial year, if such changes are material in the context of the group with, if possible, a breakdown of persons employed by main categories of activity. (8) Particulars, including location, of the principal investments (if any), including such investments as new plant, factories and research and development, being made or planned by the issuer and its subsidiaries, if any. PARTICULARS OF SUBSIDIARIES, ETC. 11. (1) In regard to every subsidiary company the whole of, or a substantial proportion of, whose capital is held or intended to be held (either directly or indirectly) by the issuer, or whose profits or assets make or will make a material contribution to the figures in the accountants' report or the next published accounts, particulars of the name, date and country of incorporation, general nature of business, issued capital and the proportion thereof held or intended to be held. (2) In regard to the issuer and its subsidiaries, if any, particulars of the location of the principal establishments. FINANCIAL INFORMATION ABOUT THE ISSUER AND ITS SUBSIDIARIES, IF ANY

12. (1) A report by the reporting accountants prepared in accordance with the Third Schedule to these Rules. (2) A statement of whether or not the accountants' report is qualified by the reporting accountants and if so, such qualifications must be produced in full and the reasons for such qualifications given. Details of Indebtedness 13. A statement as at the most recent practicable date, which must be stated, of the following on a consolidated basis(a) the total amount of any debt securities of the issuer and its subsidiaries, if any, issued and outstanding, and authorised or otherwise created but unissued, and term loans, distinguishing between guaranteed, unguaranteed, secured (whether the security is provided by the issuer or by third parties) and unsecured, or an appropriate negative statement; (b) the total amount of all other borrowings or indebtedness in the nature of borrowing of the issuer and its subsidiaries, if any, including bank overdrafts and liabilities under acceptances (other than normal trade bills) or acceptance credits or hire purchase commitments, distinguishing between guaranteed, unguaranteed, secured and unsecured borrowings and debt, or an appropriate negative statement; (c) all mortgages and charges of the issuer and its subsidiaries, if any, or an appropriate negatives statement; and (d) the total amount of any contingent liabilities or guarantees of the issuer and its subsidiaries, if any, or an appropriate negative statement. TURNOVER, ETC. 14. A statement showing the sales turnover figures or gross trading income of the issuer and its subsidiaries, if any, during the three financial years immediately preceding the issue of the prospectus which should contain an explanation of the method used for computation of such turnover or income and a reasonable breakdown between the more important trading activities. FINANCIAL AND TRADING PROSPECTS 15. (1) General information on the trend of the business of the issuer and its subsidiaries, if any, since the date to which the latest audited accounts of the issuer were made up. (2) A statement as to the financial and trading prospects of the issuer and its subsidiaries, if any for at least the current financial year, together

with any material information which may be relevant thereto, including all special trade factors or risks (if any) which are not mentioned elsewhere in the prospectus and which are unlikely to be known or anticipated by the general public, and which could materially affect the profits. (3) Where a profit forecast appears in the prospectus the principal assumptions, including commercial assumptions, upon which it is based, must be stated and the accounting policies and calculations for the forecast must be examined and reported on by the reporting accountants and their report must be set out. (4) The reporting accountant, financial adviser or sponsor, in the case of a new applicant, must report in addition that they have satisfied themselves that the forecast has been stated by the directors after due and careful inquiry, and such report must be set out. SUFFICIENCY OF WORKING CAPITAL 16. A statement by the directors that in their opinion the working capital available to the issuer and its subsidiaries, if any, is sufficient or, if not, how it is proposed to provide the additional working capital thought by the directors to be necessary. MATERIAL ADVERSE CHANGES 17. A statement by the directors of any material adverse change in the financial or trading position of the issuer and its subsidiaries, if any, since the end of the period reported on in the accountants' report, or an appropriate negative statement. VALUATION REPORTS 18. In the case of a property investment or development company, or where property interests account for more than thirty per cent of the net asset value of the issuer, a valuation report on the issuer's interests in land or buildings prepared in accordance with the Fourth Schedule to these Rules. LITIGATION 19. Particulars of any litigation or claims of material importance pending or threatened against the issuer or any member of a group to which the issuer belongs, or an appropriate negative statement. INFORMATION ABOUT THE ISSUER'S MANAGEMENT

20. The full name, nationality, residential or business address and description (being his qualifications or area of expertise or responsibility) of every director or proposed director. SECRETARY 21. The full name and professional qualification, if any, of the secretary of the issuer. REGISTERED OFFICE 22. The address of the registered office and, if different, the head office and transfer office. DIRECTORS' INTERESTS 23. (1) A statement showing the interests (distinguishing between beneficial and non-beneficial interests) of each director and chief executive of the issuer in the equity or debt securities of the issuer or any associated corporation. (2) A statement showing the name, so far as is known to any director or chief executive of the issuer, of each person, other than a director or chief executive of the issuer, who is, directly or indirectly, interested in ten per cent or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the issuer or any member of a group to which the issuer belongs, and the amount of each person's interest in such securities, together with particulars of any options in respect of such capital, or, if there are no such interests, an appropriate negative statement. DIRECTORS' CONTRACTS 24. (1) Particulars of directors' existing or proposed service contracts with the issuer or any member of a group to which the issuer belongs (excluding contracts expiring or determinable by the employer within one year without payment of compensation), or an appropriate negative statement. (2) The aggregate of the remuneration paid and benefits in kind granted to the directors of the issuer by the issuer or any member of a group to which the issuer belongs in respect of the last completed financial year under any description whatsoever. (3) An estimate of the aggregate remuneration payable to, and benefits

in kind receivable by, the directors or any proposed directors of the issuer by the issuer or any member of a group to which the issuer belongs in respect of the current financial year under the arrangements in force at the date of the prospectus. DIRECTORS' INTERESTS IN CONTRACTS 25. Full particulars of any contract or arrangement subsisting at the date of the prospectus in which a director of the issuer is materially interested and which is significant in relation to the business of the issuer and its subsidiaries, if any, or an appropriate negative statement. USE OF PROCEEDS 26. In the case of issue of new shares, an estimate of the net proceeds of the issue and details of the intended use of such proceeds. MATERIAL CONTRACTS 27. The dates of and parties to all material contracts (not being contracts entered into in the ordinary course of business) entered into by the issuer or any member of a group to which the issuer belongs within the two years immediately preceding the issue of the prospectus together with a summary of the principal contents of such contracts and particulars of any consideration passing to or from any member of a group to which the issuer belongs. DOCUMENTS FOR INSPECTION 28. Details of a reasonable period of time, being not less than fourteen calendar days, during which, and a place in Zambia at which, the following documents, or copies thereof, where applicable may be inspected(a) the articles of incorporation of the issuer; (b) each contract disclosed pursuant to paragraphs twenty-four and thirty-seven and or, in the case of a contract not reduced into writing, a memorandum giving full particulars thereof; (c) all reports, letters or other documents, balance sheets, valuations and statements by any expert any part of which is extracted or referred to in the prospectus; (d) a written statement signed by the reporting accountants setting out the adjustment made by them in arriving at the figures shown in their report and giving the reasons therefor;

(e) the audited accounts of the issuer or, in the case of a group, the consolidated audited accounts of the issuer and its subsidiaries for each of the two financial years immediately preceding the issue of the prospectus. SECTION B-DEBT SECURITIES GENERAL INFORMATION ABOUT THE ISSUER, ITS ADVISERS AND THE PROSPECTUS 29. (1) The full name and nationality of the issuer. (2) A statement as follows"The directors collectively and individually accept full responsibility for the accuracy of the information contained in this prospectus and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief there are no other facts the omission of which would make any statement herein misleading." (3) The names and addresses of the issuer's principal bankers, sponsor, authorised representative, stockbroker, solicitors and registrars and of the solicitors to the issue. (4) The name, address and professional qualifications of the issuer's auditors; (5) The date of incorporation; (6) Where the prospectus includes a statement purporting to be made by an expert, a statement(a) specifying the qualifications of such expert and whether such expert has any shareholding in the issuer or any member of a group to which the issuer belongs or the right (whether legally enforceable or not) to subscribe for or to nominate persons to subscribe for securities in the issuer or any member of a group to which the issuer belongs and, if so, a full description thereof; (b) that the expert has given and has not withdrawn his written consent, prior to the issue of the prospectus, to the issue of the prospectus with the expert's statement included in the form and context in which it is in fact included; and (c) of the date on which the expert's statement was made and whether or not it was made by the expert for incorporation in the prospectus. STATEMENT THAT APPLICATION MADE 30. A statement that application has been made to the Commission for

the registration of the securities. ESTIMATED EXPENSES OF ISSUE 31. The estimated amount of the expenses of the issue and of the application for listing and by whom the same are payable. ESTIMATED NET PROCEEDS OF ISSUE 32. An estimate of the net proceeds of the issue and a statement as to how such proceeds are intended to be applied. TERMS AND CONDITIONS OF ISSUE 33. A description of or the text of the terms and conditions of the issue containing(a) the nominal amount of the issue or if this amount is not fixed, a statement to that effect, the nature and number of the debt securities and the denomination(s); (b) a summary of the rights conferred upon holders and particulars of the security; (c) except in the case of continuous issues, the issue price (or if different, offer price) and redemption prices and the nominal interests rate and if floating, how is it calculated; if several interest rates are provided for, an indication of the conditions for changes in the rate; if in any issue a discount is allowed or a premium is payable, a statement describing this; if any expenses of the issue are specifically charged to subscribers or purchasers, a statement describing this; (d) details of the method of payment of the issue price (or if different, the offer price) including a description of any instalment arrangement; (e) details of the arrangements for the armotisation or early redemption of the issue, including procedures to be adopted; (f) the names and addresses of the paying agent(s) and any registrar and transfer agent(s) for the debt securities in Zambia; (g) details of the arrangements for transfer of the securities (if not in bearer form); (h) details of the following time limits; (i) final repayment date and early repayment dates, specifying whether exercisable at the issuer's or the holder's option; (ii) the date from which interest accrues and the interest

payments fall due; (iii) prescription period for claims for payment of interest and repayment of principal; and (iv) procedures and time limits for delivery of the debt securities, whether there will be temporary documents of title and, if so, the procedures for the delivery and exchange thereof; and (i) except in the case of continuous issues, an indication of yield and the method whereby that yield is calculated should also be described in summary form. LEGAL INFORMATION 34. The following legal information:

(a) an indication of the resolutions, authorisation and approvals by virtue of which debt securities have been or will be created and/or issued and of the number of debt securities which have been or will be created and/or issued, if predetermined; (b) the nature and scope of the guarantees, sureties, and commitments (if any) intended to ensure that the issue will be duly serviced with regard to both the principal of and the interest on the debt securities and an indication of the places where the public may have access to copies of such guarantees, sureties and commitments; (c) details of the trustee, fiscal agent or any other representative for the debt securities holders as a whole, the name and function or description and head office of such representative of the debt securities holders, the conditions under which the representative may be replaced together with an indication of where the public may inspect copies of the documents detailing how the representative is to act; (d) a description of any subordination of the issue to other debts of the issuer already incurred or to be incurred; (e) an indication of any legislation under which the debt securities have been created, the governing law and of the competent courts in the event of litigation; (f) details of any restrictions on the free transferability of the debt securities (e.g. provisions requiring transfers to be approved); and (g) details of any material guarantees or covenants relating to borrowings. ALTERATIONS IN CAPITAL 35. Particulars of any alterations in the capital of the issuer or any member of a group to which the issuer belongs within the two years

immediately preceding the issue of the prospectus, including(a) where any such capital has been issued or is proposed to be issued as fully or partly paid up otherwise than in cash, particulars of the consideration for which the same has been or is proposed to be issued and in the latter case the extent to which they are so paid up, and (b) where any such capital has been issued or is proposed to be issued for cash, particulars of the price and terms upon which the same has been or is proposed to be issued, details of any discounts or other special terms granted and (if not already fully paid) the dates when any instalments are payable with the amount of all calls or instalments in arrear, or an appropriate negative statement. PARTICULARS OF ANY CAPITAL UNDER OPTION 36. Particulars of any capital of the issuer or any member of a group to which the issuer belongs which is under option, including the consideration for which the option was or will be granted and the price and duration of the option, and the name and address of the grantee, or an appropriate negative statement: Provided that where options have been granted or agreed to be granted to all the members or debenture holders or to any class thereof, or to employees under a share scheme, it shall be sufficient, so far as the names and addresses are concerned, to record that fact without giving the names and addresses of the grantees. OWN SHARES 37. Number, book value and nominal value or, in the absence of a nominal value, the accounting par value of any of its own shares which the issuer or any of its subsidiaries (being a company) has acquired and is holding, if such shares do not appear as a separate item in the balance sheet. GENERAL INFORMATION ABOUT ACTIVITIES OF THE ISSUER AND ITS SUBSIDIARIES, IF ANY 38. (1) The general nature of the business of the issuer and its subsidiaries, if any, and, in cases where two or more activities are carried on which are material in terms of profits or losses, assets employed or any other factor, such figures and explanation as are necessary to demonstrate the relative importance of each such activity and details of the main categories of products sold and/or services performed and an indication of any significant new products and/or activities. If the issuer and its subsidiaries, if any, trade outside Zambia a

statement showing a geographical analysis of its trading operations. Where a material proportion of the assets of the issuer and its subsidiaries, if any, are situated outside Zambia, a statement giving the best practicable indication of the amount and situation of such assets and the amount of the assets situated in Zambia. (2) If the issuer is a member of a group, a brief description of that group covering the issuer's position within that group and, if a subsidiary, the names of and the number of shares held (directly or indirectly) by each holding company of the issuer. (3) Particulars of any licences, concessions, trade marks, patents or other intellectual or industrial property rights which are material in relation to business of the issuer and its subsidiaries, if any and, where such factors are of of fundamental importance to the business or profitability of the issuer and its subsidiaries, if any, a statement regarding the extent to which the issuer and its subsidiaries, if any, are dependent on such factors. (4) Information concerning the policy of the issuer and its subsidiaries, if any, on the research and development of new products and processes over the past three financial years where significant. (5) particulars of any interruptions in the business of the issue and its subsidiaries, if any, which may have or had a significant effect on the financial position in the last twelve months. (6) The number of people employed by the issuer and its subsidiaries, if any, and changes therein in the last financial year, if such changes are material in the context of the issuer and its subsidiaries, if any, with, if possible, a breakdown of persons employed by main categories of activity. (7) Particulars, including location, of the principal investments (if any), including such investments as new plant, factories and research and development, being made or planned by the issuer and its subsidiaries, if any. PARTICULARS OF MATERIAL SUBSIDIARIES 39. (1) In regard to every material subsidiary, particulars of the name, date and country of incorporation, general nature of business, issued capital and the proportion held or intended to be held by the issuer. (2) In regard to the issuer and every material subsidiary, particulars of the location of the principal establishments. FINANCIAL INFORMATION ABOUT THE ISSUER AND ITS SUBSIDIARIES, IF ANY, AND PROSPECTS

40. A consolidated capitalisation statement and indebtedness statement for the issuer made up to a recent date acceptable to the Commission (normally not earlier than three months prior to the issue of the prospectus) giving information on short, medium and long-term debt (distinguishing between actual and contingent liabilities and including details of any debt securities issued and, if appropriate, the terms and conditions of any conversion, exchange or subscription rights) and shareholders' equity (including an indication of authorised and issued share capital by class, if appropriate, and the amount paid-up) duly adjusted to reflect the issue of the debt securities for which registration is sought accompanied by particulars of any material changes since that date, or an appropriate negative statement. 41. A statement showing the sales turnover figures or gross trading income of the issuer and its subsidiaries, if any, during the three financial years immediately proceeding the issue of the prospectus which should contain an explanation of the method used for computation of such turnover or income and a reasonable breakdown between the more important trading activities. FINANCIAL AND TRADING PROSPECTS 42. (1) General information on the trend of the business of the issuer and its subsidiaries, if any, since the date to which the latest audited accounts of the issuer were made up. (2) A statement as to the financial and trading prospects of the issuer and its subsidiaries, if any, for at least the current financial year, together with any material information which may be relevant thereto, including all special trade factors or risks (if any) which are not mentioned elsewhere in the prospectus and which are unlikely to be known or anticipated by the general public and which could materially affect the profits. (3) Where a forecast appears in the prospectus the principal assumptions, including commercial assumptions, upon which it is based, must be stated, the accounting policies and calculations for the forecast must be examined and reported on by the reporting accountants and their report must be set out. The reporting accountants, in the case of a new applicant, must report in addition that they have satisfied themselves that the forecast has been stated by the directors after due and careful inquiry, and such report must be set out. (4) Particulars of the profits cover for interest payments and of the net tangible assets. ACCOUNTANTS' REPORTS

43. (1) A report by the reporting accountants prepared in accordance with the Third Schedule to these Rules. If more than nine months have elapsed since the date to which the latest published audited accounts of the issuer were made up, an interim financial statement covering at least the first six months must be included in the prospectus or appended to it. If the interim financial statement is unaudited, this fact must be stated. (2) A statement of whether or not the accountants' report is qualified by the reporting accountants and if so, such qualification must be produced in full and the reasons for such qualification given. MATERIAL ADVERSE CHANGES 44. A statement by the directors of any material adverse change in the financial or trading position of the issuer and its subsidiaries, if any, since the end of the period reported on in the accountants' report, or an appropriate negative statement. VALUATION REPORTS 45. In the case of a property investment or development company, or where property interests account for more than thirty per cent of the net asset value of the issuer, a valuation report on the issuer's interests in land or buildings prepared in accordance with the Fourth Schedule to these Rules. LITIGATION 46. Particulars of any litigation or claims of material importance pending or threatened against the issuer or any member of a group to which the issuer belongs, or an appropriate negative statement. INFORMATION ABOUT THE ISSUER'S MANAGEMENT 47. The full name, residential or business address and description (being his qualifications or area of expertise or responsibility) of every director or proposed director. SECRETARY 48. The full name and professional qualification, if any, of the secretary of the issuer. REGISTERED OFFICE

49. The address of the registered office and, if different, the head office and transfer office. DIRECTORS' INTERESTS 50. (1) A statement showing the interests (distinguishing between beneficial and non-benefincial interests) of each director and chief executive of the issuer in the equity or debt securities of the issuer or any associated corporation (2) A statement showing the name, so far as is known to any director or chief executive of the issuer, of each person, other than a director or chief executive of the issuer, who is, directly or indirectly, interested in ten per cent or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the issuer or any member of a group to which the issuer belongs and the amount of each person's interest in such securities, together with particulars of any options in respect of such capital, or, if there are no such interests, an appropriate negative statement. DIRECTORS' INTERESTS IN CONTRACTS 51. Full particulars of any contract or arrangement subsisting at the date of the prospectus in which a director of the issuer is materially interested and which is significant in relation to the business of the issuer and its subsidiaries, if any, or an appropriate negative statement. CONTRACTS PERTAINING TO THE ISSUE 52. The dates of and parties to all documents pertaining to the issue entered into by the issuer or any member of a group to which the issue belongs within the two years immediately preceding the issue of the prospectus, together with a summary of the principal contents of such contracts. AVAILABILITY OF REPORTS 53. Details of where annual and any interim reports are available and how often interim reports are published. DOCUMENTS FOR INSPECTION 54. Details of a reasonable period of time (being not less than fourteen

calendar days) during which, and a place in Zambia at which, the following documents (or copies thereof) where applicable may be inspected(a) the articles of the issuer; (b) any trust deed, fiscal agency agreement or other document constituting the debt securities; (c) all reports, letters or other documents, balance sheets, valuations and statements by any expert a part of which is extracted or referred to in the prospectus; (d) a written statement signed by the reporting accountants setting out the adjustments made by them in arriving at the figures shown in their report and giving the reasons therefor; (e) the audited accounts of the issuer or, in the case of a group, the consolidated audited accounts of the issuer and its subsidiaries for each of the two financial years immediately preceding the issue of the prospectus.

THIRD SCHEDULE
(Second Schedule, paras. 12, 42) ACCOUNTS REPORTS PRELIMINARY 1. This Schedule sets out the detailed requirements for accountants' reports on the profits and losses, assets and liabilities of, and other financial information on, an issuer which must be contained in a prospectus. REPORTING ACCOUNTANTS 2. Accountants' reports must be prepared by professional accountants who are qualified for appointment as auditors of a company and who are independent of the issuer. BASIC CONTENTS 3. An accountants' report must include-

Three year history of results (1) The results of the issuer or, if the issuer is a holding company, the consolidated results of the issuer and its subsidiaries in respect of each

of the three financial years immediately preceding the issue of the prospectus or such shorter period as may be acceptable to the Commission. (2) The results of any business or subsidiary acquired, agreed to be acquired or proposed to be acquired since the date to which the latest audited accounts of the issuer have been made up (on the same basis, where the subsidiary is itself a holding company, as in (1) above) in respect of each of the three financial years immediately preceding the issue of the prospectus or in respect of each of the financial years since commencement ff such business or the incorporation of such subsidiary (as the case may be) if this occurred less than three years prior to such issue, or such shorter period as may be acceptable to the Commission. (3) The report on results under paragraph (1) and (2) must disclose separately the following information(a) turnover; (b) profit (or loss) before taxation and extraordinary items, including the share of the profit (or loss) of associated companies, with separate disclosure of any items included therein which are exceptional because of size or incidence; (c) taxation on profits (Zambian and foreign) in each case indicating the basis of computation, with separate disclosure of the taxation on its shares of associated companies' profits; (d) profit (or loss) attributable to minority interests; (e) profit (or loss) attributable to shareholders before extraordinary items; (f) (g) extraordinary items (net of taxation); profit (or loss) attributable to shareholders; and

(h) rates of dividend paid or proposed on each class of shares (with particulars of each such class) and amounts absorbed thereby and any waivers of dividend except that the accountants' report need not disclose this information if the accountants' report relates to an issue of debt securities. ASSETS AND LIABILITIES (4) The assets and liabilities (including contingent liabilities) of the issuer and, if the issuer is itself a holding company, the consolidated assets and liabilities of the issuer and its subsidiaries in each case as at the date to which the latest audited accounts of the issuer have been made up. (5) The assets and liabilities (including contingent liabilities) of any business or subsidiary acquired, agreed to be acquired or proposed to be

acquired since the date to which the latest audited accounts of the issuer have been made up (on the same basis, where the subsidiary is itself a holding company, as in (3) above) in each case as at the date to which the latest audited accounts of such business or subsidiary (as the case may be) have been made up. OTHER MATTERS (6) The earnings per share and the basis of computation in respect of each of the financial years referred to in (1) and (2) above except that the accountants' report need not include this information if, in the opinion of the reporting accountants, such information is not meaningful having regard to the purpose of the accountants' report or if the accountants' report relates to an issue of debt securities. (7) Transfers to and from any reserves arising on(a) consolidation or acquisition (i.e. the write off of good will/establishment of a capital reserve); (b) the revaluation of assets; or (c) the translation of accounts denominated in foreign currencies, if those transfers are not reflected in the results of each of the financial years referred to in (1) and (2) above. (8) A statement of the indebtedness as at the end of the period reported on showing, as regards bank loans and overdrafts and separately as regards other borrowings of the issuer (or of the issuer and its subsidiaries, including any company which will become a subsidiary by reason of any acquisition falling within paragraphs (2) and (4) of item three, the aggregate amounts repayable(a) on demand or within a period not exceeding one year; (b) within a period of more than one year but not exceeding two years; (c) within a period of more than two years but not exceeding five years. (9) The details of the principal accounting policies which have been applied in respect of the period reported on. (10) A statement of any significant subsequent events which have occurred to any business or company or within any group covered by the accountants' report since the end of the period reported on or, if there are not such events, a statement of that fact. (11) Any capital commitments. (12) Any other matters which appear to the reporting accountants to be relevant having regard to the purpose of the accountants' report.

4. In all cases the accountants' report must(a) state whether or not the accounts for the period reported on have been audited and, if so, by whom; and (b) state whether or not any audited accounts have been made up since the end of the last financial period reported on; (c) express an opinion as to whether or not the relevant information given, for the purposes of the accountants' report, a true and fair view of the results for the period reported on and of the assets and liabilities at the end of that period; (d) (e) (f) state that it has been prepared in accordance with item six below. name the reporting accountants; and be dated.

DISCLOSURE 5. The information to be disclosed in respect of items three and four must conform to the accounting standards and guidelines formulated by an accounting body approved by the Commission. ACCOUNTING STANDARDS 6. The financial history of results and the statement of assets and liabilities included in the accountants' report must be drawn up in conformity with accounting standards and guidelines formulated by an accounting body approved by the Commission. 7. Any significant departure from such accounting standards must be disclosed and explained and, if it is both relevant and practical, the financial effects of such departure quantified. 8. The relevant standards will be those current in relation to the last financial year reported on and, wherever possible, appropriate adjustments should be made to show profits for all periods in accordance with such standard. STATEMENT OF ADJUSTMENTS 9. (1) In preparing the accountants' report, the reporting accountants (if any) as are in their opinion appropriate for the purposes of the accountants' report and state therein that all adjustments considered necessary have been made, or (where appropriate) that no adjustments were considered necessary. Where adjustments are made, a written statement (the statement of adjustments) must be made available for public inspection, and should be signed by the reporting accountants

(see subparagraph (d) of paragraph twenty-eight and subparagraph (d) of paragraph fifty-four of the Second Schedule). (2) The statement of adjustments must set out, for each of the years reported upon, each adjustment made and be sufficiently detailed so as to reconcile the figures in the accountants' report with the corresponding figures in the audited accounts and must give the reasons therefor. OTHER REPORTS 10. Where the reporting accountants refer to reports, confirmations or opinions of valuers, accountants or other experts, the names, addresses and professional qualifications of such other persons or firms should be stated in the report. In any case, the prospectus will be required to include a statement that such other persons or firms have given and have not withdrawn their written consent to its issue with the inclusion of such references in the form and context in which they are included. QUALIFIED REPORTS 11. Where the reporting accountants qualify their accountants' report, they should refer to all material matters about which they have reservations. All reasons for the qualifications should be given and its effect quantified if this is both relevant and practical. A qualified accountants' report in respect of a new applicant may be acceptable where the qualification does not relate to a matter of significance to investors but will not be acceptable where the qualification does relate to a matter of significance to investors. 12. It is emphasised that these requirements are not exhaustive and that further information may be required or the required information varied, by the Commission where it considers it necessary. In cases of doubt or difficulty the reporting accountants should consult the Commission through the issuer's authorised representative.

FOURTH SCHEDULE
(Second Schedule, paras. 18, 45) PROPERTY VALUATION REPORTS PRELIMINARY 1. Valuations of and information on all the issuer's interests in land or buildings ("properties") are required to be included in a prospectus issued by a new applicant.

BASIC CONTENTS 2. Valuation reports shall contain all material details of the basis of valuation, which must be prepared in conformity with the standards and guidelines adopted or approved by the Surveyors' Institute of Zambia. 3. A valuation report shall contain the following information: (1) a description of each property including(a) an address sufficient to identify the property, which should generally include the postal address and such further designation as is registered with the appropriate government authorities in the jurisdiction in which the property is located; (b) a brief description (e.g. whether land or building, approximate area, etc.); (c) (d) the existing use (e.g. shops, offices, factories, residential etc.); the ground rent;

(e) a summary of the terms of tenants' leases or underleases (including repairing obligations, were material); (f) (g) the approximate age of buildings; the terms of tenure;

(h) the terms of any intra-group lease granted by a holding company to a subsidiary on property occupied by the group (identifying the properties); (i) the capital value in existing state at the effective date as at which the property was valued; (j) the current planning or zoning use; (k) the options or rights of pre-emption concerning or affecting the property; and (l) any other matters which may materially affect the value. (2) Where the property is not in the process of being developed, details of rentals of the property including(a) the existing monthly rental if the property is wholly or partly let together with the amount and a description of any outgoings or disbursements from the rent, and, if materially different, the estimated current monthly market rental obtainable, on the basis that the property were available to let on the effective date as at which the property was valued; (b) (c) a summary of any rent review provisions, where material; and the amount of vacant space, where material.

(3) Where the property is in the process of being developed the following additional details, where available(a) details of development potential and whether architectural plans have been approved or planning consent has been obtained and whether any conditions have been imposed in respect of such approval; (b) any material restrictions on development including building covenants and time limits for completion of the development; (c) (d) existing stage of development; estimated completion date;

(e) estimated cost of carrying out the development or (where part of the development has already been carried out) the estimated cost of completing the development; (f) estimated capital value in existing state at the effective date as at which the property was valued; (g) estimated capital value after completion; (h) any material special or general conditions affecting the development of the property; (i) any conditions imposed as to construction of roadways, pathways, drainage, sewage and other facilities or services for public use, if material; (j) any sales arrangements and/or letting arrangements existing at the effective date as at which the property was valued; and (k) any construction costs incurred up to the effective date as at which the property was valued. (4) Where the property is held for future development purposes the following additional details, where available(a) details of development potential and whether architectural plans have been approved or planning consent has been obtained and whether any conditions have been imposed in respect of such approval; (b) any material special or general conditions affecting the development of the property including building covenants and time limits for completion or the development; and (c) any conditions imposed as to construction of roadways, pathways, drainage, sewage and other facilities or services for public use, if material. (5) A classification of the property according to the purpose for which it is held. The acceptable categories are(a) property held for development;

(b) (c) (d)

property held for investment; property held for owner occupation; and property held for sale.

(6) details of any agreement or proposals as to any proposed transaction regarding the property between the issuer and any other member of a group to which the issuer belongs; (7) the name of the valuer, his address and professional qualification; (8) the effective date as at which the property was valued and the date of the valuation; and (9) such other information as the Exchange may require. EFFECTIVE DATE 4. The effective date as at which the property was valued must not be more than three months before the date on which the prospectus is issued and if such effective date is not the same as the end of the last period reported on by the reporting accountants (see the Third Schedule), it will be necessary for the prospectus to include a statement reconciling the valuation figure included in the balance sheet as at the end of that period. INDEPENDENCE OF VALUER 5. Unless dispensation is obtained from the Exchange, all valuations of properties must be prepared by an independent qualified valuer. THE SECURITIES (ACCOUNTING AND FINANCIAL REQUIREMENTS) RULES ARRANGEMENT OF RULES

PART I PRELIMINARY
Rule 1. 2. Title Interpretation

3.

Application

PART II ACCOUNTING RECORDS


4. 5. 6. 7. 8. 9. 10. 11. Duty to keep accounting records Reconciliation of customer money Records to be up to date Audit trail Conformity with accounting standards Retention of records Inspection of records Exchange may impose additional requirements on members

PART III FINANCIAL STATEMENTS


12. 13. 14. 15. 16. 17. 18. 19. Duty to prepare annual financial statements Balance sheet to give a true and fair view Profit and loss account to give a true and fair view Form and content of financial statements Licensee to obtain auditor's report etc. Annual financial statements to be submitted to Commission Contents of auditor's report Qualified reports

PART IV CUSTOMER MONEY


Rule 20. 21. 22. 23. Application Customer money Duty to segregate Duty to keep customer money safe

24. 25. 26. 27.

Customer money to be held on trust Accounting for and use of customer money Customer bank accounts Payment out of a customer bank account

PART V FINANCIAL RESOURCES


28. 29. 30. 31. Minimum net capital Minimum liquidity margin Duty of licensed dealer Interpretation

PART VI APPOINTMENT OF AUDITORS


32. 33. 34. 35. 36. 37. 38. Auditor required Qualification for appointment as auditor Ineligibility on ground of lack of independence Engagement letters Powers and duties of auditors Notification to Commission Resignation or removal of auditors

PART VII OFFENCES


39. Offences

SCHEDULE SECTION 45-SECURITIES (ACCOUNTING AND FINANCIAL REQUIREMENTS) RULES Rules by the Securities and Exchange Commission
Statutory Instrument 163 of 1993 152 of 1995

PART I

PRELIMINARY
1. These Rules may be cited as the Securities (Accounting and Financial Requirements) Rules. 2. In these Rules, unless the context otherwise requiresTitle

Interpretation

"auditor", in relation to a licensee, means the person appointed by the licensee to be his auditor for the purpose of these Rules; "customer bank account" means a bank account established for the purposes of rule twenty-two; "financial year", in relation to a licensee, means(a) the period of twelve months beginning with the day on which the licensee commences to carry on the business to which the licence relates; and (b) each subsequent period of twelve months beginning with the day following the day as at which an annual balance sheet of the licensee is prepared for the purposes of these Rules; "licensee" means a dealer or investment adviser, as the case may be, who is licensed under Part IV of the Act, and "licensed dealer" shall be construed accordingly; "licensed bank" means a bank registered under the Banking and Financial Services Act, or licensed or registered under any Act amending or replacing that Act; "money" includes any form of money, whether represented by a cheque, or other payable order, or otherwise; and "securities exchange" means a securities exchange established and operated by a company licensed to do so under the Act. 3. These Rules apply in relation to all dealers and investment advisers Application who are licensed under Part IV of the Act. Cap. 387

PART II ACCOUNTING RECORDS


4. (1) A licensee shall, in respect of his securities business, keep Duty to keep accounting records which are sufficient to show and explain the accounting licensee's transactions (whether effected on his own behalf or on behalf records of others) and shall be such as to(a) disclose with reasonable accuracy, at any time, the financial position of the licensee at that time; (b) demonstrate whether or not the licensee is at that time complying with any requirements of or made under Part V of these Rules; and (c) enable the licensee to prepare a balance sheet and a profit and loss account as at any time and which comply with the requirements of these Rules. (2) The accounting records shall in particular contain(a) entries from day to day of all sums of money received and expended by the licensee, and the matters in respect of which the receipt and expenditure takes place; (b) a record of all assets and liabilities of the licensee including any commitments or contingent liabilities; (c) entries from day to day of all purchases and sales of securities by the licensee distinguishing those which are made by the licensee on his own account and those which are made by the licensee on behalf of others; (d) entries from day to day of the receipt and dispatch of documents of title, or documents evidencing title, to securities which are in possession or control of the licensee; (e) entries from day to day of-

(i) all money which is paid into or out of a customer bank account maintained for the purposes of these Rules; (ii) receipts and payments of customer money not passed through such a customer bank account, identifying the persons to whom each such receipt or payment relates; (f) (i) a record ofbalances on individual customer bank accounts;

(ii) balances with individual customers stating the name of each customer and the amount held or received for that customer; and (iii) (g) reconciliations made pursuant to rule five; and details of all securities-

(i) which are the property of the licensee, showing by whom they are held and whether, if held otherwise than by the licensee himself, they are so held as collateral against loans or advances; and (ii) which are not the property of the licensee but for which the licensee is accountable, showing by whom and for whom they are held distinguishing those which are deposited with a third party whether as security for loans or advances made to the licensee or any related person or for any other purpose. 5. (1) A licensee shall, at least once every two months, reconcile the balance on each customer bank account (as recorded by the licensee) with the balance on that account (as set out on the statement issued by the bank). (2) Where a customer bank account contains the money of more than one customer a licensee shall, in addition to the reconciliation made under subrule (1), at least once every two months reconcile the balance on that account with the total of the credit balances in respect of each customer (both totals as recorded by the licensee). (3) Where any difference arises on reconciliation under subrule (1) or (2), the licensee shall correct it forthwith unless the difference arises solely as a result of timing differences between the accounting systems of the relevant bank and of the licensee. 6. The obligations under these Rules are continuing obligations and Records to be Reconciliation of customer money

continuous performance of them is required so as to ensure that records up to date are updated daily. 7. (1) Information required by these Rules to be recorded shall be recorded in such a way as to enable a particular transaction to be identified at any time and traced through from initiation of the order to final settlement. (2) All records shall be arranged, filed, indexed and cross referenced so as to permit prompt access to any particular record. 8. The accounting records required to be kept by a licensee shall conform with statements of standard accounting practice issued by the Zambian Institute of Certified Accountants. Conformity with accounting standards Audit trail

9. A licensee shall preserve the accounting records which it is required Retention of to keep under rule four for six years from the date on which they are Records made. 10. Accounting records which are required to be kept under rule four shall, at any time during the period in which they are required to be preserved, be produced to the Commission, or to any person with the authority of the Commission, on demand at such reasonable time and place as may be specified by the Commission or that person. 11. Nothing in this Part (or in Part III) shall prevent a licensed securities exchange from imposing on licensees who are members of the exchange any further obligations or requirements which it thinks necessary with respect to(a) the keeping of accounts, books and records; (b) the making of periodic financial reports to the exchange in the form and manner required by the exchange; (c) (d) the audit of accounts; or the information to be given in reports by auditors. Inspection of records

Exchange may impose additional requirements on members

PART III

FINANCIAL STATEMENTS
12. A licensee shall, in respect of his securities business, prepare for each of his financial years annual financial statements which shall consist of(a) (b) a balance sheet as at the last day of the financial year; a profit and loss account for the financial year. Balance sheet to give a true and fair view Profit and loss account to give a true and fair view Form and content of financial statements Duty to prepare annual financial statements

13. The balance sheet shall give a true and fair view of the state of affairs of the licensee as at the end of the financial year.

14. The profit and loss account shall give a true and fair view of the profit and loss of the licensee for the financial year.

15. (1) The financial statements of a licensee shall comply with the provisions of the Schedule (so far as applicable) with respect to the form and content of the balance sheet, the profit and loss account and any additional information to be provided by way of notes to the financial statements. (2) Where compliance with the provisions of the Schedule, and the other provisions of these Rules as to the matters to be included in the licensee's balance sheet or profit and loss account or in notes to them, would not be sufficient to give a true and fair view, the necessary additional information shall be given in the balance sheet or profit and loss account or in a note to them. (3) If in special circumstances compliance with any of these provisions is inconsistent with the requirements to give a true and fair view, the licensee shall depart from that provision to the extent necessary to give a true and fair view. (4) If the licensee departs under subrule (3) from any such provision, particulars of the departure, the reasons for it and its effect shall be given in a note to the financial statements.

16. (1) A licensee shall submit its annual financial statements to its Licensee to auditor for audit and shall obtain an auditor's report thereon which report obtain auditor's shall comply with the requirements of rule eighteen. report, etc. (2) A licensee shall submit his auditor's report to the Commission together with(a) the annual financial statements in accordance with rule seventeen; and (b) confirmation in writing that he has complied with each and every one of these Rules with which he is required to comply and such further information or confirmation as the Commission may by rules require from time to time. (3) Where the auditor's report is qualified on the grounds of the auditor's uncertainty as to the completeness or accuracy of the accounting records, that report shall when submitted by the licensee to the Commission be accompanied by a written document (signed in the case of a company, by two directors, and in the case of an individual, by the licensee) stating(a) whether all the accounting records of the licensee have been made available to the auditor for the purposes of his audit; (b) whether all transactions undertaken by the licensee have been properly reflected and recorded in the licensee's accounting records; and (c) whether all other records of the licensee and related information have been made available to the auditor. 17. Each financial year a licensee shall submit his audited annual Annual financial statements to the Commission within four months after the end financial of the financial year to which the annual financial statements relate. statements to be submitted to Commission 18. (1) The auditor's report shall be addressed to the Commission and Contents of

shall state whether the annual financial statements of the licensee have been audited in accordance with approved auditing standards. (2) The auditor's report shall also state whether in the opinion of the auditor(a) the annual financial statements of the licensee have been properly prepared in accordance with these Rules; (b) in the case of the balance sheet, a true and fair view is given of the state of affairs of the licensee as at the end of the financial year; (c) in the case of the profit and loss account, a true and fair view is given of the profit or loss of the licensee for the financial year; (d) the licensee has, throughout the financial year, kept proper accounting records in accordance with the requirements of these Rules; (e) the licensee has, throughout the financial year, kept customer money properly segregated in accordance with Part IV; (f) the balance sheet and the profit and loss account are in agreement with the licensee's accounting records; (g) he has obtained all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit; (h) the licensee has maintained throughout the financial year systems adequate to enable him to identify documents of title, or documents evidencing title, to securities held in safekeeping for the licensee's customers in accordance with rule twenty-nine of the Securities (Conduct of Business) Rules, 1993; and (i) the licensee was in compliance with the requirements of rule twenty-nine of the Securities (Conduct of Business) Rules, 1993 as at the date on which the balance sheet was prepared. 19. (1) If the auditor is of the opinion that one or more of the requirements of rule eighteen have not been met, he shall state that fact

auditor's report

Qualified reports

in his report and shall specify the relevant requirements and the respects in which they have not been met. (2) If the auditor fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit, he shall state that fact in his report. (3) If the auditor is unable to form an opinion as to whether one or more of the requirements of rule eighteen have been met, he shall state that fact in his report and shall specify those requirements and give the reasons why he has been unable to form an opinion.

PART IV CUSTOMER MONEY


20. This Part applies to any customer money held or received by a licensee in the course of carrying on securities business. 21. For the purposes of these Rules customer money is money of any currency which, in the course of carrying on securities business, a licensee holds or receives on behalf of a customer or which a licensee owes to a customer. Application

Customer money

22. A licensee shall pay all customer money coming into his hands for Duty to or from a customer into a specially created customer bank account segregate which is segregated from any account holding money belonging to the licensee. 23. Customer money, unless paid out to or for a customer, must be kept Duty to keep in an account at a licensed bank on trust for the customer. customer money safe Customer 24. Customer money shall be held by the licensee on trust for the respective customers for whom that customer money is received or held money to be according to their respective shares in it. held on trust

25. A licensee shall account properly and promptly for customer money and, in particular, shall ensure that(a) customer money and other money do not become mixed; (b) the licensee can at all times be sure how much customer money stands to the credit of each customer; and (c) money belonging to one customer is not used for another customer. 26. A licensee who receives or holds customer money shall open one or more customer bank accounts with a licensed bank. 27. (1) Subject to subrule (2), money may be withdrawn from a customer bank account only if-

Accounting for and use of customer money

Customer bank account Payment only of a customer bank account

(a) (b) or

it is not customer money; it is properly required for payment to or on behalf of a customer;

(c) it is properly transferred to another customer bank account or into a bank account in the customer's own name. (2) A licensee may withdraw money from a customer bank account for or towards payment of its own fees or commission only if the fees or commissions accord with the arrangements agreed with the customer.

PART V FINANCIAL RESOURCES


28. A licensed dealer shall provide and at all times maintain in his business as a dealer a net capital of not less than K50,000,000. (As amended by S.I. No. 152 of 1995) Minimum net capital

29. A licensed dealer shall maintain at all times in his business as a Minimum dealer a liquidity margin of not less than 10 per centum of the minimum liquidity margin net capital requirement specified in rule twenty-eight as the case may be. 30. If a licensed dealer becomes aware of his inability to comply with Duty of the minimum net capital or liquidity margin requirements, he shall licensed dealer forthwith(a) notify the Commission, and any securities exchange of which he is a member; and (b) cease dealing in securities otherwise than for the purpose of giving effect to any agreement or arrangement entered into before the time when he becomes so aware. 31. (1) For the purposes of this Part"approved assets" and "ranking liabilities" means such assets and liabilities as are specified to be approved assets and ranking liabilities by the Commission by notice; "liquid assets" means such of the approved assets as are specified as liquid assets by the Commission by notice; "liquidity margin" means the excess of liquid assets over ranking liabilities; "net capital" means the excess of approved assets over ranking liabilities. (2) Where the Commission specifies any assets as approved assets or liquid assets, it may also specify the percentage of the value of the assets that may be taken into account, or the percentage of the minimun net capital or liquid assets that the assets may comprise, in computing the net capital or the liquidity margin as the case may be. Interpretation

PART VI APPOINTMENT OF AUDITORS


32. A licensee shall not commence securities business until he has appointed an auditor in accordance with these Rules. Auditor required

33. A person shall not be qualified for appointment as the auditor of a Qualification licensee unless he is a member of the Zambia Institute of Certified for appointment Accountants and holds a valid practising certificate pursuant to sections as auditor 24 and 25 of the Accountants Act. 34. (1) No person shall act as an auditor to a licensee if he is ineligible Ineligibility on for appointment to the office. ground of lack of independence (2) A person is ineligible for appointment as auditor to a licensee if he is(a) a director, officer, employee, shareholder or partner of the licensee; or (b) a partner or employee of such a person.

(3) For the purposes of this rule an auditor of a licensee shall not be regarded as an officer or employee of the licensee. 35. A licensee shall ensure that the auditor appointed under these Rules Engagement has the powers and duties specified in rule thirty-six and thatletters (a) (b) and (c) those powers and duties are set out in an engagement letter; the engagement letter is signed by the licensee and the auditor; the licensee retains a copy of the engagement letter. Powers and duties of auditors

36. (1) An auditor shall have-

(a) a right of access at all times to the accounting and other records of the licensee and all other documents relating to his business; and (b) a right to require from the licensee such information and explanations as he thinks necessary for the performance of his duties as

auditor. (2) An auditor shall submit a report to the Commission on the annual financial statements in accordance with these Rules and the report shall state the matters specified in rule eighteen. (3) In preparing an auditor's report for the purposes of these Rules, the auditor shall carry out such investigations as will enable him to form an opinion as to the matters required by rule eighteen to be stated in his report. 37. A licensee shall, within seven days, give written notice to the Commission of the appointment, removal or resignation of an auditor. Notification to Commission

38. (1) Where an auditor resigns or is removed by a licensee, a notice to Resignation or that effect sent to the Commission under rule thirty-seven shall contain removal of eitherauditors (a) a statement signed by the auditor to the effect that there are no circumstances connected with his resignation or removal which the auditor considers should be brought to the attention of the Commission; or (b) a statement signed by the auditor of such circumstances as are mentioned in (a). (2) For the purposes of these Rules, a failure to appoint an auditor at the end of his term of office shall be deemed to be removal of that auditor.

PART VII OFFENCES


39. Any person who contravenes any of the provisions of these Rules shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding twelve months or to both. Offences

(As amended by Act No. 13 of 1994)

SCHEDULE
(Rule 15) FORM AND CONTENT OF FINANCIAL STATEMENTS PART I GENERAL RULES 1. Subject to the provisions of this Schedule, the annual financial statements of a licensee shall(a) in the case of the balance sheet show the items listed in the balance sheet format set out in Appendix 1 to this Schedule; and (b) in the case of the profit and loss account show the items listed in the profit and loss account format set out in Appendix 2 to this Schedule. 2. (1) In respect of every item shown in a licensee's balance sheet or profit and loss account or in notes thereto, the corresponding amount for the imemdiately preceding financial year shall also be shown. (2) Where the corresponding amount is not comparable with the amount to be shown for the item in question in respect of the financial year to which the balance sheet or profit and loss account relates, the former amount shall be adjusted and particulars of the adjustment and the reasons for it shall be disclosed in a note to the accounts. 3. In the case of a licensee who is sole proprietor, the items to be included in his financial statements prepared in accordance with these Rules shall be those which arise in the course of the securities business of that licensee. PART 2 ACCOUNTING PRINCIPLES AND RULES 4. Subject to paragraph 6, the amounts to be included in respect of all items shown in a licensee's balance sheet and profit and loss account shall be determined in accordance with the accounting standards and guidelines as approved or accepted by the Zambia Institute of Certified Accountants which are in force from time to time and with the following rules.

5. Subject to paragraph 4, items shall be included in such a way as to reflect the substance and not merely the form of the underlying transactions and balances. 6. If it appears to the licensee that there are special reasons for departing from any of the principles and rules stated above in preparing the licensee's financial statements in respect of any financial year the licensee may do so, but particulars of the departure, the reasons for it and its effect shall be given in a note to the financial statements. APPENDIX 1 BALANCE SHEET FORMAT A. FIXED ASSETS I. Intangible Assets 1. Development costs 2. Goodwill (1) 3. Other II. Tangible Assets 1. Freehold land and buildings 2. Leasehold land and buildings 3. Motor vehicles 4. Office equipment and computers 5. Fixtures and fittings 6. Payments on account 7. Other tangible assets III. Investments 1. Loans to and shares in group companies and connected companies 2. Other listed investments 3. Other unlisted investments B. CURRENT ASSETS I. Physical stocks II. Debtors (2) 1. Trade debtors (3) 2. Other debtors 3. Amounts due from connected and group companies

4. Prepayments and accrued income III. Investments IV. Cash at bank and in hand C. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 1. Bank loans and overdrafts 2. Subordinated loans (4) 3. Other debenture loans 4. Trade creditors (5) 5. Investments (short positions) 6. Income tax 7. Amount due to group and connected companies 8. Other creditors 9. Accruals and deferred income D. NET CURRENT ASSETS (LIABILITIES) E. TOTAL ASSETS LESS CURRENT LIABILITIES F. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 1. Bank loans and overdrafts 2. Subordinated loans (4) 3. Other debenture loans 4. Trade creditors (5) 5. Income tax 6. Amounts due to group and connected companies 7. Other creditors 8. Accruals and deferred income G. PROVISIONS FOR LIABILITIES AND CHARGES 1. Commissions on indemnity terms 2. Pension and similar obligations 3. Taxation including deferred taxation 4. Other provisions H. TOTAL ASSETS LESS TOTAL LIABILITIES I. CAPITAL AND RESERVES 1. Called up share capital 2. Share premium account

3. Partners' or proprietor's capital accounts 4. Partners' or proprietor's current accounts 5. Revaluation reserve 6. Other reserves 7. Profit and loss account Notes on the Balance Sheet Format (1) GOODWILL Goodwill shall be included only in so far as it was acquired for valuable consideration. (2) DEBTOR'S The amount falling due after more than one year shall be shown separately for each item included under debtors. (3) TRADE DEBTORS (a) Fees Outstanding for more than 30 days Outstanding for 30 days or less. (b) Commissions Outstanding for more than 30 days Outstanding for 30 days or less. (c) Other Amounts outstanding for more than 30 days Amount outstanding for 30 days or less. (4) SUBORDINATED LOANS (a) (b) (c) (d) (a) Long term subordinated loans Short term subordinated loans Committed undrawn subordinated loan facilities Bank Undertakings Amounts due to be paid against delivery of securities

(5) TRADE CREDITORS (b) Amounts due to be paid in respect of securities transactions otherwise than against delivery of securities (c) Others

APPENDIX 2

PROFIT AND LOSS ACCOUNT FORMAT A. DEALING Gains/losses on principal dealings (trading) 1. equities 2. debt instruments 3. units in collective investment schemes 4. foreign exchange 5. other - specify B. REVENUE I. Commissions on transactions in collective investment schemes 1. authorised mutual fund and unit trust schemes 2. other - specify II. Commissions on securities transactions 1. equities 2. debt instruments 3. other - specify III. Investment management fees IV. Fee income in respect of financial advice V. Company management fees VI. Trustee fees VII. Interest and dividends 1. investments positions 2. loan accounts and margin accounts 3. in respect of balances in customer bank accounts 4. other - specify VIII. Dealing and settlement services IX. Revenue from research and consulting services X. Retained underwriting and placing commissions XI. Other revenue - specify if material C. EXPENDITURE I. Commissions 1. paid to staff

2. paid to other investment businesses 3. other (specify) II. Salaries and other employment costs (exclusive of commission) III. Directors' emoluments IV. Staff bonuses V. Interest charges 1. payable to customer in respect of customer's money balances 2. other (specify) VI. Establishment costs VII. Communications and marketing VIII. Office equipment and services IX. Provisions for losses, bad and doubtful debts X. Professional charges XI. Securities exchange and clearing house charges XII. Regulatory fees and expenses XIII. Audit fees (including expenses) XIV. Miscellaneous office expenses XV. Other expenditure - specify if material D. PROFIT OR LOSS BEFORE TAXATION E. TAXATION F. PROFIT OR LOSS AFTER TAXATION G. EXTRAORDINARY ITEMS H. PROFIT OR LOSS FOR THE FINANCIAL YEAR SECTIONS 32, 38 AND 78-THE SECURITIES (REGISTRATION OF SECURITIES) (INVESTMENT COMPANIES) RULES Statutory Instrument 167 of 1993

Rules by the Securities and Exchange Commission 1. These Rules may be cited as the Securities (Registration of Securities) (Investment Companies) Rules. Title

2. (1) In these Rules, unless the context otherwise requires"associate" means(a) in relation to any director, chief executive or substantial shareholder (being an individual)(i) his spouse, and any child or step-child under the age of twenty-one years, of the director, chief executive or substantial shareholder or of his spouse; (ii) the trustees, acting in their capacity as such trustees, of any trust of which he or any of his close relations is a beneficiary or, in the case of a discretionary trust, is a discretionary object; or (iii) any company in the equity capital of which he or his close relations taken together are directly or indirectly interested so as to exercise or control the exercise of twenty per cent or more of the voting power at general meetings, or to control the composition of a majority of the board of directors and any other company which is its subsidiary or holding company or a fellow subsidiary of any such holding company; and (b) in relation to a company, any other company which is its subsidiary or holding company or is a fellow subsidiary of any any such holding company or one in the equity capital of which it or such other company taken together are directly or indirectly interested so as to exercise or control the exercise of twenty per cent or more of the voting power at general meetings, or to control the composition of a majority of the board of directors; "chief executive" means a person who either alone or together with one or more other persons is responsible under the immediate authority of the board of directors for the conduct of business of the company; "connected person" in relation to a company means a director, chief executive or substantial shareholder of the company or any of its subsidiaries or an associate of any of them; "director" includes any person who occupies the position of a director, by whatever name called; "investment company" means a company having as its purpose the investment of its funds with the aim of spreading investment risk and giving its members the benefit of the results of the management of those funds by or on behalf of the company; "substantial shareholder" means a person who is entitled to exercise, or control the exercise of, ten per cent or more of the voting power at any general meeting of a company.

Interpretation

(2) For the purposes of these Rules, a company is a subsidiary of another company if(a) that other company-

(i) controls the composition of the board of directors of the first-mentioned company; (ii) controls more than half of the voting power of the first-mentioned company; or (iii) holds more than half of the issued share capital of the first-mentioned company (excluding any part of it which carries no right to participate beyond a specified amount in a distribution of either profits or capital); or (b) the first-mentioned company is a subsidiary of any company which is that other company's subsidiary. Application 3. (1) Subject to clause (2), these Rules, which are additional to the requirements of the Securities (Registration of Securities) Rules 1993, apply to an investment company any of whose securities are registered, or are required to be registered, under the Act. (2) These Rules apply to an investment company in respect of such of its activities as are not regulated by the provisions of the Securities (Collective Investment Schemes) Rules, 1993. 4. The following additional conditions for registration apply in respect Additional of investment companiesconditions for registration (a) the Commission must be satisfied as to the fitness and competence of the directors of an investment company and its management company or investment adviser, if any, and must be satisfied that they have had satisfactory experience in the management of investments or other appropriate business experience; (b) an investment company shall have a custodian or trustee which shall be independent from the company and must be acceptable to the Commission; (c) an investment company and its management must normally be bound, either in its articles of association or equivalent constitutive document or in such other manner as is acceptable to the Commission,

to ensure compliance with the following requirements(i) that the investment company will not either on its own or in conjunction with any connected person take legal, or effective, management control of underlying investments and that in any event the investment company will not own or control more than thirty-five per cent (or such lower percentage as may from time to time be specified in the Takeover Code as being the level at which a general offer becomes mandatory) of the voting rights in any one company; (ii) that a reasonable spread of investments will be maintained by the investment company which means generally that the value of its holding of investments issued by any one company or body shall not exceed twenty per cent of the investment company's net asset value at the time when such investment is made; (iii) that, in the case of a newly formed investment company, it will not change its stated investment objectives and policies for a minimum period of three years, without shareholders' consent; (iv) that shareholders' meetings are convened and conducted in a manner which is acceptable to the Commission; (v) that any custodian, management company, any of their connected persons and every director of any investment company and management company is prohibited from voting their own shares at, or being part of a quorum for, any meeting to the extent that they have or any of their associates has, a material interest in the business to be conducted; (vi) that the investment company's auditors are independent of the investment company, any management company and any custodian, to the same extent as that required of an auditor under the Securities (Accounting and Financial Requirements) Rules, 1993, and that, in the case of an overseas investment company, the accounts of the investment company are audited to a standard comparable to that required in Zambia and all reports conform to international accounting standards as promulgated from time to time by the International Accounting Standards Committee; (d) it will normally be a condition of registration that, in the case of a newly formed investment company, at the conclusion of the initial offering of shares, and in the case of an existing investment vehicle, at the time of the issue of the prospectus, no person shall control thirty-five per cent (or such lower amount as may from time to time be specified in the Takeover Code as being the level at which a general offer becomes mandatory) or more of the votes exercisable at any general meeting of

the investment company. 5. In addition to the requirements of the Securities (Registration) Rules, 1993, every prospectus issued by or on behalf of an investment company no part of whose securities is already registered must contain the following: (a) details of all costs and charges and in particular the fees of any management company payable from the investment company's assets which an investor would be likely to consider material, and all deductions made from money subscribed for securities; (b) a statement of any costs of establishing the investment company which are to be paid by the investment company together with an estimate of their size and the period over which they are to be amortised; (c) details of the investment objectives, including capital and income objectives, and the investment policy, including a summary of the restrictions which will be observed on the investment of the investment company's assets and the intended diversification of assets by country or region and, in the case of a newly formed investment company, a statement that such investment policy will be adhered to for at least three years following the issue of the prospectus, unless otherwise agreed by the shareholders on the investment company in general meeting; and in particular, the prospectus must disclose the extent to which it is intended to invest in options, warrants, commodities, futures contracts, unlisted securities, and precious metals and must include an appropriate negative statement if there is an intention not to invest in any such investments; (d) details of the principal taxes levied on the investment company's income and capital (including taxes withheld at source on distributions received by the investment company) and tax, if any, deducted on distributions to shareholders; (e) a summary of the borrowing powers of the investment company, if any, stating that at no time will it exceed a certain amount, and stating the circumstances under which borrowing might take place; (f) a statement as to whether certificates for securities will be issued in registered or bearer form, or in both forms; (g) the name, address and description of any management company, custodian, investment adviser, and any alternate custodian; (h) the full names, addresses and descriptions of every director of the investment company and every director of the management company; (i) a description of the relevant experience of any management Additional prospectus requirements where no securities registered

company, investment adviser and the directors of the investment company; (j) particulars of what reports will be sent to registered shareholders and when; (k) a statement as to whether or not the directors of the investment company, the management company or any investment adviser, or any associate of any of those persons, is or will become entitled to receive any part of any brokerage charged to the investment company, or any re-allowance of other types on purchases charged to the investment company; (l) a warning that an investment in the investment company is subject to abnormal risks, if the nature of the investment policy so dictates; (m) a statement that the investment company will not change its stated investment objectives and policies for a minimum period of three years, without shareholders' consent; (n) details of the investment company's foreign exchange policy and in particular details of any foreign exchange controls or restrictions of relevance to the investment company or its investment policy or objectives; (o) in the case of an existing investment company, full details of all exchange-traded investments and all other investments with a value of more than five per cent of the investment company's gross assets, and details of at least the ten largest investments, stating, in respect of each such investment(i) (ii) (iii) a brief description of the business; proportion of the share capital owned; cost;

(iv) directors' valuation and, in the case of listed investments, market value; (v) dividends or other income received during the year from such investment (indicating any abnormal dividends); (vi) (vii) dividend cover or underlying earnings; any extraordinary items; and

(viii) net assets attributable to the investment; and (p) in the case of an existing investment company, an analysis of any provision for diminution in value of investments, naming the investments against which provision has been made and stating for each investment-

(i) (ii) (iii) (iv)

cost; provision made; book value; and reason for the provision. Additional prospectus requirements where some securities already registered

6. In addition to the information required by the Securities (Registration of Securities) Rules, 1993, every prospectus issued by or on behalf of an investment company some part of whose securities is already registered must contain the information required in rule five with the exception of that required by paragraphs (b), (g), (j) and (k) of that rule.

Continuing 7. An investment company shall, in addition to the continuing obligations imposed by the Securities (Registration of Securities) Rules, obligations of investment comply with the following continuing obligations: companies (a) the annual report and accounts shall include(i) a list of all investments with a value greater than five per cent of the investment company's gross assets, and at least the ten largest investments stating, with comparative figures where relevant(aa) (bb) (cc) a brief description of the business; proportion of share capital owned; costs;

(dd) directors' valuation and, in the case of listed investments, market value; (ee) dividends received during the year (indicating any abnormal dividends); (ff) (gg) (hh) dividend cover or underlying earnings; any extraordinary items; and net assets attributable to investment;

(ii) an analysis of any provision for diminution in the value of investments, naming the investments against which provision has been made and stating for each investment(aa) (bb) (cc) cost; provision made; and book value; and

(iii) an analysis of realised and unrealised surpluses, stating separately profits and losses as between investments which are traded on a regulated securities exchange which is recongised by the Commission and those investments which are not so traded; (b) the interim report and any preliminary announcement of results for the full year shall include a division of income between(i) dividend and interest received; and (ii) other forms of income (which may be income of associated companies); distinguishing where significant between underwriting income and the results of dealings by subsidiaries; (c) the investment company must adhere to the investment policy set out in the prospectus for at least three years following the issue of the prospectus except as sanctioned by shareholders in a general meeting of the investment company; and (d) the investment company must publish, in at least one leading newspaper which is published daily and circulates generally in Zambia, a statement of its net asset value as at the end of each month within fifteen days of that date. SECTION 23-THE SECURITIES (COLLECTIVE INVESTMENT SCHEMES) Rules by the Securities and Exchange Commission Statutory Instrument 161 of 1993 Title

1. These Rules may be cited as the Securities (Collective Investment Schemes) Rules. 2. In these Rules, unless the context otherwise requires-

Interpretation

"bond scheme" means a scheme, the primary objective of which is to invest in debt securities which have a remaining term to maturity of one year or more; "collective investment scheme" or "scheme" means a collective investment scheme as defined in section seventy-two of the Act; "connected person", in relation to a company, means(a) any person or company beneficially owning, directly or indirectly, twenty per cent or more of the ordinary share capital of that company or able to exercise, directly or indirectly, twenty per cent or more of the total votes in that company; (b) any person or company controlled by a person who meets one or both of the descriptions given in paragraph (a); (c) any member of the group of which that company forms part;

(d) any director or officer of that company or of any of its connected persons as defined in paragraph (a), (b) or (c); "constitutive documents" means the principal documents governing the formation of the scheme, and includes the trust deed in the case of a unit trust and the articles of association of an investment company and all material agreements; "distribution function" refers generally to those functions described in clause eighty-three (a)-(d) of the Schedule; "eligible nominee" means a person approved by the Commission to act as a nominee; "holder", in relation to a unit or share in a scheme, means the person who is entered in the register as the holder of that unit or share or the bearer of a bearer certificate representing that unit or share; "investment company" has the same meaning as in section seventy-two of the Act; "investment plan" means an arrangement under which an investor

undertakes to make a series of contributions to a scheme of a specified minimum value over a period of time; "offering document" means that document, or documents issued together, containing information on a scheme calculated to invite offers by the public to subscribe for or purchase units or shares in the scheme; "open-ended investment company" has the same meaning as in section seventy-two of the Act; "real estate scheme" means a collective investment scheme which invests more than twenty-five per cent of its net assets in any type of real estate (including buildings) or interests in real estate (including options or rights but excluding shares in real estate companies); "recognised market" means any stock exchange, over-the-counter market or other organised securities market that operates regularly, is open to the international public, and is recognised by the Commission; "Schedule" includes the Appendices to the Schedule; "these Rules" includes the Schedule to these Rules; "trustee/custodian", "trustee" or "custodian" means the entity appointed pursuant to Part I of the Schedule. 3. These Rules apply to all collective investment schemes owned by, or managed by or on behalf of, open-ended investment companies. Application of Rules

4. (1) Collective investment schemes established or to be established in Schemes Zambia or elsewhere shall comply with the provisions of the Schedule established in to these Rules in order to be authorised in Zambia. Zambia or elsewhere (2) Collective investment schemes established or to be established outside Zambia which are to be promoted in Zambia shall in addition appoint a Zambian representative and also conform with part III of the Schedule to these Rules.

(3) An application for authorisation which seeks a waiver of any of the provisions of these Rules shall give detailed reasons as to why a waiver is sought. 5. (1) An application to the Commission for the authorisation of a collective investment scheme shall be made by a dealer or investment adviser licensed under Part IV of the Act who shall submit a written application containing the information specified in Appendix I to the Schedule to these Rules. (2) The application shall be accompanied by the following: (a) the scheme's offering and constitutive documents; Application to Commission for authorisation

(b) the scheme's latest audited report (if any) and if more recent, the latest unaudited report; (c) the management company's latest audited report and resumes of its directors (if required by Appendix I); (d) the trustee/custodian's latest audited report (if required by Appendix I); (e) and (f) a letter of consent to the appointment from the trustee/custodian;

the prescribed application fee.

(3) In addition to the documents specified in subrules (1) and (2), an application for the authorisation of a non-Zambian based scheme shall include the following: (a) (b) a Zambian representative agreement; and a Zambian covering Document,

in accordance with Part III of the Schedule to these Rules. 6. The Commission may authorise collective investment schemes Authorisation

which comply with the requirements specified in the Schedule to these Rules.

of schemes

7. (1) In so far as the Schedule to these Rules imposes continuing Withdrawal of obligations with regard to an authorised scheme, in the event of a failure authorisation to comply with any such obligation the Commission may(a) suspend its authorisation of the scheme for such time, or until the happening of such event, as it may determine; or (b) withdraw its authorisation of the scheme.

(2) Where the Commission suspends or withdraws its authorisation under subrule (2), the scheme shall be taken for the purposes of the Act not be authorised.

SCHEDULE
(Rules 4-7)

PART I STRUCTURE AND OPERATION OF A COLLECTIVE INVESTMENT SCHEME SECTION A-ROLE OF THE TRUSTEE/CUSTODIAN
1. Every collective investment scheme for which authorisation is requested shall appoint a trustee/custodian acceptable to the Commission. (NOTE: Scheme established under trust must have a trustee, and all other collective investment schemes must have a custodian. This Part of the Schedule lists the general obligations of the trustee/custodian, whichever is appointed. Trustees are expected to fulfil the duties imposed on them by the general law of trusts. The responsibilities of a custodian, which are the same as those of a trustee, should be reflected in a constitutive document such as a Custodian Agreement (see Appendix III) 2. A trustee/custodian shall beQualifications Appointment of trustee/custodian

(a) a bank registered under the Banking Act, or licensed or registered under any Act amending or replacing that Act; or (b) (c) a trust company which is a subsidiary of such a bank; or a trust company registered under the Companies Act; or

for appointment

(d) a banking institution or trust company incorporated outside Zambia, which has a subsidiary incorporated in Zambia, and which is acceptable to the Commission. 3. A trustee/custodian shall be independently audited and have minimum issued and paid-up capital and non-distributable capital reserves of fifty million kwacha or its equivalent in foreign currency. 4. The trustee/custodian shallIndependent audit and liquidity

General (a) take into his custody or under his control all the property of the obligations of scheme and hold it in trust for the holders (in the case of a unit trust) or trustee/custodian the scheme (in the case of any other type of collective investment scheme) in accordance with the provisions of the constitutive documents; cash and registrable assets shall be registered in the name of or the order of the trustee/custodian; (b) be liable for any act or omission of any agent with whom any investments in bearer form are deposited as if they were the act or omission of any nominee in relation to any investment forming part of the property of the scheme; (c) take reasonable care to ensure that the sale, issue, repurchase, redemption and cancellation of units/shares effected by a collective investments scheme are carried out in accordance with the provisions of the constitutive documents; (d) take reasonable care to ensure that the methods adopted by the management company in calculating the value of units or shares are adequate to ensure that the sale, issue, repurchase, redemption and cancellation prices are calculated in accordance with the provisions of the constitutive documents; (e) carry out the instructions of the management company in respect of investments unless they are in conflict with the provisions of the offering or constitutive documents; (f) take reasonable care to ensure that the investment and borrowing limitations set out in the constitutive documents, and the conditions under which the scheme was authorised, are complied with; (g) issue a report to the holders to be included in the annual report on whether in the trustee/custodian's opinion, the management

company has in all material respects managed the scheme in accordance with the provisions of the constitutive documents; if the management company has not done so, the respect in which it has not done so and the steps which the trustee/custodian has taken in respect thereof; (h) take reasonable care to ensure that unit or share certificates are not issued until subscription moneys have been paid; (i) ensure that any registrable investments which are held for shareholders or unit holders in the scheme are properly registered in the names of the shareholders or unit holders or, with the consent of the shareholder or unit holder, in the name of an eligible nominee; and (j) where title to investments is recorded electronically, to ensure that entitlemets are separately identified from those of the manager of the scheme in the records of the person maintaining records of entitlement. 5. (1) The trustee/custodian shall not be entitled to retire except upon the appointment of a new trustee/custodian and subject to the prior approval of the Commission. (2) The retirement of the trustee/custodian shall take effect at the same time as the new trustee/custodian takes up office. 6. The trustee/custodian and the management company shall not be connected persons and shall be persons who are independent of each other. Independence of trustee/custodian and the management company Retirement of trustee/custodian

SECTION B-ROLE OF THE MANAGEMENT COMPANY AND AUDITOR


7. Every collective investment scheme for which authorisation is requested shall appoint a management company acceptable to the Commission, except as provided for self-managed schemes below. Appointment of the manage-ment company Requirements for management company

8. (a)

A management company shallbe engaged primarily in the business of fund management;

(b) have sufficient financial resources at its disposal to enable it to conduct its business effectively and meet its liabilities; in particular, it

shall have a minimum issued and paid-up capital and capital reserves of ten million kwacha or its equivalent in foreign currency; (c) (d) not lend to a material extent; and maintain at all times a positive net asset position.

9. The directors of the management company shall be of good repute ad in the opinion of the Commission possess the necessary experience for the performance of their duties.

Qualifications of directors

10. (1) In determining the acceptability of the management company, Management the Commission may also consider the qualifications and experience of company employees persons employed by the management company. (2) Biographical details and an account of the professional qualifications and experience of the directors and of every person succeeding them in office shall be supplied to the Commission. 11. If the management company appoints an investment adviser, the Commission may require evidence that the investment adviser is appropriately qualified for the performance of his functions. Investment adviser

Licence 12. (1) The type of licence required depends on the functions requirement performed by the management company in Zambia. (2) Except as provided by subclause (3), a management company that is incorporated in Zambia shall be licensed as an investment adviser under the Act. (3) However, should it undertake the distribution function in Zambia or otherwise deal in securities, it shall be licensed as a dealer. 13. (1) Notwithstanding clause seven, a scheme could be managed by Self-managed its own board of directors who are to perform the functions of a schemes management company. (2) In this case, references in this Schedule to the directors of a management company shall be deemed to be references to the directors of a self-managed scheme. 14. The directors of a self-managed scheme are prohibited from dealing with the scheme as principals. Directors of self-managed scheme not to

deal as principal 15. In addition to compliance with clause forty-seven, a self-managed Requirements scheme shall contain the following provisionsfor (a) that holders may convene a meeting and, by way of an ordinary self-managed schemes resolution, remove any of the directors considered no longer fit and proper to manage the scheme's assets; and (b) that the directors' fees and remuneration shall be fixed by the holders at a general meeting. 16. A management company shallGeneral obligations of a management company

(a) manage the scheme in accordance with the scheme' constitutive documents in the exclusive interest of the holders and fulfil the duties imposed on it by the general law; (b) maintain or cause to be maintained the books and records of the scheme and prepare the scheme's accounts and reports, including at least two reports to be published in respect of each financial year and sent to all registered holders in accordance with clause forty-nine; and (c) ensure that the constitutive documents are made available for inspection by the public in Zambia, free of charge at all times during normal office hours at its place of business or that of its Zambia representative and make copies of such documents available upon the payment of a reasonable fee.

17. The management company shall be subject to removal by notice in Retirement of a management writing from the trustee or custodian in any of the following eventscompany (a) the management company goes into liquidation, becomes bankrupt or has a receiver appointed over its assets; (b) for good and sufficient reason, the trustee or custodian is of the opinion and so states in writing that a change in management company is desirable in the interest of the holders; or (c) in the case of a unit trust, holders representing at least fifty per cent in value of its units outstanding (excluding those held or deemed to be held by the management company), deliver to the trustee a written request to dismiss the management company. 18. (a) (b) In addition, the management company shall retirein all other cases provided for in the constitutive documents; or when the Commission withdraws its approval of the Other causes of retirement

management company. 19. The Commission shall be informed by the trustee or the custodian Commission to of any decision to remove the management company. be informed of retirements 20. Upon the retirement or dismissal of the management company, the Appointment of trustee or the custodian shall appoint a new management company as new soon as possible, subject to the approval of the Commission. management company 21. The management company shall, at the outset and upon any vacancy, appoint an auditor for the scheme. 22. (1) A person shall not be qualified for appointment as auditor unless he is a member of the Zambia Institute of Certified Accountants and holds a valid practising certificate under the Accountants Act. (2) The auditor shall be independent of the management company and of the trustee/custodian. Appointment of Auditor Qualifications of auditor

23. The management company shall cause the scheme's annual report Audit of annual to be audited by the auditor, and such report shall contain the report information provided for in Appendix IV.

SECTION C-OPERATIONAL REQUIREMENTS


(1) SCHEME DOCUMENTATION 24. Schemes shall issue an up-to-date offering document, which shall be equivalent so far as is applicable to a prospectus issued under the Securities (Registration) Rules, 1993, and shall contain all the information necessary for investors to be able to make an informed judgement of the investment proposed to them, and in particular shall contain the information listed in Appendix II. Matters to be disclosed in offering document

25. The offering document shall be accompanied by the scheme's most Accompaniment recent audited annual report and accounts, together with its semi-annual to offering report if published after the annual report. document

26. No application form may be supplied to any person not a holder unless accompanied by the offering document, except that an advertisement or report containing all the requirements of Appendix II may be allowed to incorporate an application form.

Offering document accompanyment application form Inclusion performance data

27. (1) If performance data or estimated yield is quoted in an offering document, advertisement or any other invitation to the public to invest, the Commission may require justification of the calculation. (2) No forecast of the scheme's performance may be made. (3) The publication of a prospective yield does not constitute a forecast of performance.

Constitutive 28. (1) The constitutive documents of a scheme shall contain the documents information listed in Appendix III. (2) Nothing in the constitutive documents may provide that the trustee/custodian, management company or directors of the scheme be exempted from any liability to holders, imposed under the law of Zambia or the law of the scheme's place of domicile, or breaches of trust through fraud or negligence, nor may they be indemnified against such liability by holders or at holders' expense. 29. (1) The constitutive documents may be altered by the management company and trustee/custodian without consulting holders, provided that the trustee/custodian certifies in writing that in its opinion the proposed alteration(a) is necessary to enable compliance with fiscal or other statutory or official requirements; or (b) does not materially prejudice holders' interests, does not to any material extent release the trustee/custodian, management company or any other person from any liability to holders and does not increase the costs and charges payable from the scheme property; or (c) is necessary to correct a manifest error. (2) In all other cases no alteration may be made except by a special or extraordinary resolution of holders. 30. (1) All proposed alterations or additions to the offering constitutive Alterations to documents shall be submitted to the Commission for prior approval. Constitutive (2) The Commission shall determine whether holders should be notified documents to be Constitutive documents may be altered by company

and the period of notice (if any) that should be applied before the changes are to take effect. (3) Such notice period shall not exceed three months unless the Commission, having regard to the merits of the case, otherwise determines. (2) INVESTMENT PLANS

approved by Commission

Requirements for investment plan

31.

If investment plans are offered-

(a) before contracting for a plan, a prospective plan holder shall be given full details in writing of his rights and obligations, of all costs and charges levied on planholders and of the consequences of terminating his plan; (b) unless he has requested to the contrary, each planholder shall be advised at least once a year of the opening balance of units, latest transaction details and closing balance of units; (c) the plan shall include a direction to potential investors that they should refer to the offering document of the scheme to which they are considering linking their plan; (d) an investment plan leaflet to be distributed in Zambia shall not solicit investment in schemes which have not been authorised by the Commission; and (e) in respect of any increase of initial fee of investment plans up to the maximum permitted level, at least three months prior notice shall be given to holders concerned. (3) PRICING, ISSUE AND REDEMPTION OF UNITS/SHARES 32. If an initial offer is made, no investment of subscription money can Initial offers be made until the conclusion of the first issue of units or shares at the initial price. 33. (1) Offer and redemption prices shall be calculated on the basis of Valuation and the scheme's net assets value divided by the number of units or shares pricing outstanding. (2) Such prices may be adjusted by fees and charges for management of the scheme, which shall first be charged against investment income, next against dealing profits from the issue and redemption of units or shares in the scheme, and lastly against the capital value of the investments of the fund.

(3) The amount or method of calculating such fees and charges shall be clearly disclosed in the offering document. 34. The value of investments not listed or quoted on a recognised market shall be determined on a regular basis by a professional person approved by the trustee/custodian as qualified to value such investments. Valuation of unquoted securities

35. (1) There shall be at least one regular dealing day per month. Dealing (2) Any price offer which the management company or the distribution company quotes or publishes shall be the maximum price payable on purchase and any redemption price shall be the net price receivable on redemption. 36. The maximum interval between the receipt of a properly documented request for redemption of units or shares and the payment of the redemption money to the holder may not exceed one calendar month. 37. Where a scheme deals at a known price and where, based on information available, the price exceeds or falls short of the current value of the underlying assets by more than two per cent, the management company shall defer dealing and calculate a new price as soon as possible. 38. A permanent change in the method of dealing may only be made after one month's notice to holders. Redemptions to be prompt

Changes to dealing

Notice of change in method of dealing Temporary changes

39.

A temporary change may only be made-

(a) in exceptional circumstances, having regard to the interests of holders; (b) if the possibility of a change and the circumstances in which it can be made have been fully disclosed in the offering document; and (c) 40. with the approval of the trustee/custodian. Suspension of dealings may be provided for only in exceptional

Suspension and

circumstances, having regard to the interests of holders.

deferral of dealings

41. (1) The management company or the Zambia representative shall Commission to immediately notify the Commission if dealing in units or share ceases or be notified of is suspended. cessation or suspension (2) The fact that dealing is suspended shall be published immediately following such decision and at least once a month during the period of suspension, in the newspaper in which the scheme's prices are normally published. 42. Where redemption requests on any one dealing day exceed ten per Deferral of cent of the total number of units or shares in issue, redemption requests redemptions in excess of ten per cent may be deferred to the next dealing day. (4) TRANSACTIONS WITH CONNECTED PERSONS 43. No person shall be allowed to enter on behalf of the scheme into Underwriting underwriting or sub-underwriting contracts without the prior consent of contracts the trustee/custodian and unless the scheme or the management company provides in writing that all commissions and fees payable to the management company under such contracts and all investments acquired pursuant to such contracts shall form part of the scheme's assets. 44. If cash forming part of the scheme's assets is deposited with the Interest on trustee/custodian, the management company, the investment adviser or deposits with any connected person of these companies (being an institution authorised to accept deposits), interest shall be received on the deposit at a rate not lower than the prevailing commercial rate for a deposit of that size and term. 45. (1) All transactions carried out by or on behalf of the scheme shall Transaction to be at arm's length. be at arm's (2) In particular, any transactions between the scheme and the length management company, investment adviser, the directors of the scheme or any of their connected persons as principal may only be made with the prior consent of the trustee/custodian. (3) All such transactions shall be disclosed in the scheme's annual report.

46. (1) No single connected dealer shall account for fifty per cent or more of the scheme's transactions in value in any one financial year of the scheme. (2) The Commission may consider each case on its merits and may permit the fifty per cent to be exceeded if the connected dealer offers advantages to the scheme not available elsewhere. (3) The annual report shall disclose that one dealer accounted for fifty per cent or more of the scheme's transactions in value in any one financial year. (5) MEETINGS 47. A scheme shall arrange to conduct general meetings of holders as follows(a) holders shall be able to appoint proxies; (b) votes shall be proportionate to the number of units or shares held, or to the value of units or shares held where there are accumulation units or shares. (c) The quorum for meetings at which a special or extraordinary resolution is to be considered shall be the holders of twenty-five per cent of the units or shares in issue, and ten per cent if only an ordinary resolution is to be considered; (d) if within half an hour from the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned for not less than fifteen days. The quorum at an adjourned meeting shall be those persons present in person or by proxy; (e) if the possibility exists of a conflict of interests between different classes of holder there shall be provisions for class meetings; (f) an Extraordinary General Meeting shall be called for the following purposes(i) to modify, alter or add to the constitutive documents, except as provided in clause twenty-nine; (ii) to terminate the scheme (unless the means of termination of the scheme are stipulated in the constitutive documents, in which case termination shall be effected in accordance with the provisions of the constitutive documents); (iii) to increase the maximum fees paid to the management company, trustee/custodian or directors of the scheme; or (iv) to impose other types of fee. (g) where bearer units are in issue, proper provision shall be made for notification to bearer holders in Zambia of the timing and agenda of

Diversity of dealers

Requirements for meetings

forthcoming meetings and voting arrangements; (h) the directors of the scheme, the trustee/custodian, the management company, investment adviser and their connected persons are prohibited from voting their beneficially owned shares at, or counted in the quorum for, a meeting at which they have a material interest in the business to be conducted; (i) an ordinary resolution may be passed by a simple majority of the votes of those present and entitled to vote in person or by proxy at a duly convened meeting; and (j) a special or extraordinary resolution may only be passed by seventy-five per cent or more or the votes of those present and entitled to vote in person or by proxy at a duly convened meeting. (6) MEMBERS REGISTER 48. (1) A scheme shall maintain a register of holders. (2) The Commission shall be advised on request of the address where the register is kept. (3) The register may be formed, in whole or in part, of records maintained by a securities depository approved by the Commission. (7) REPORTING REQUIREMENTS 49. (1) At least two reports shall be published in respect of each financial year. (2) Annual reports shall be published and distributed to holders within four months of the end of the the scheme's financial year and interim reports shall be published and distributed to holders within two months of the end of the period they cover. 50. Notification to holders shall be made in respect of any changes to the offering or constitutive documents as determined by the Commission pursuant to clause thirty. Notice of changes to documents Report to holders Maintenance of register

51. (1) The scheme's latest available offer and redemption prices or net Reports on prices and asset asset value shall be published at least once a month in at least one values leading Zambia daily newspaper. (2) If dealing is suspended, notice of this fact shall be published in accordance with clause forty-one.

52. Subsequent to the authorisation of the scheme, all financial reports Reporting to produced by or for the scheme, its management company and Commission trustee/custodian shall be filed with the Commission. 53. The management company shall supply to the Commission, upon request, all information relevant to the scheme's financial reports and accounts. Commission may require further information

54. The management company shall notify the Commission as soon as Changes to data possible of any change to the data in the application form. in application form (8) FEES 55. The level/basis of calculation of all costs and charges payable from Statement as to the scheme's property shall be clearly stated, with percentages expressed costs and charges on a per annum basis (see Appendix II). 56. Commission to sales agents in respect of dealing in units or shares Sales agents of the scheme shall not be payable from the scheme's property. commission 57. In respect of any increase of the management fee up to the Notice of maximum level permitted under the scheme, at least three months prior increase of notice shall be given to all holders. management fee (9) ADVERTISING AND PUBLIC ANNOUNCEMENTS 58. (1) Advertisements and other invitations to the public in Zambia to Commission to invest in a scheme, including public announcements, shall be submitted approve advertisements to the Commission for approval prior to their issue or publication in Zambia. (2) Any publication submitted for approval which concerns the trustee shall be accompanied by its written consent. (3) The approval so granted may be varied or withdrawn by the Commission as it deems fit. (4) Once authorised, the advertisement may be used for a maximum

period of six months, provided there are no material changes in that period to the scheme or to the advertisement itself. (5) Unless the Commission disapproves submitted material within fourteen calendar days of its submission, the Commission shall be deemed to have approved it. 59. (1) If a scheme is described as having been authorised by the Commission it shall be stated that, in giving this authorisation, the Commission does not take responsibility for the financial soundness of the scheme or for the correctness of any statements made or opinions expressed in this regard. (2) Such a statement shall comply with the requirements of clause sixty-two. Statements as to authorisation of scheme

60. Advertisements and other invitations to the public in Zambia shall Mention of not refer to any scheme which has not obtained authorisation from the unauthorised Commission. schemes 61. Advertisements shall include a warning statement thatWarning statements

(a) the price of units or shares, and the income from them (if the scheme pays a dividend), may go down as well as up; and (b) Investors are reminded that in certain circumstances their right to redeem their units or shares may be suspended.

62. (1) Warning statements shall be printed in type of the same size as Format of the rest of the text in the advertisement. warning (2) Notwithstanding subclause (1), they may be in smaller text if printed statements in bold type or prominently outlined. (3) In all cases the warning shall be capable of being read with reasonable ease by anyone scanning the advertisement.

PART II INVESTMENT OF A COLLECTIVE INVESTMENT SCHEME


(NOTE: this Part sets out the core requirements of the investment limitations and prohibitions of a collective investment scheme.)

63. The value of a scheme's holding of securities issued by any single Spread of issuer may not exceed twenty per cent at book value nor twenty-five per investments cent at market value. 64. A scheme may not hold more than ten per cent of any class of security issued by any single issuer. 65. The value of a scheme's holding of securities not listed or quoted on a recognised market may not exceed fifteen per cent of its total net asset value. 66. (1) Clauses sixty-three and sixty-four shall not apply to Government securities. (2) Up to thirty per cent of a scheme's total net asset value may be invested in Government Securities of the same issue. Class of securities Unlisted securities

Government securities

67. A scheme may not enter into any financial futures contracts save in Futures and respect of currencies for hedging purposes. commodities 68. The only physical commodities that may be held by a Scheme are Commodities gold, silver, platinum and copper which may not exceed in aggregate twenty per cent of its total net asset value. 69. (1) The value of a scheme's holding of units or shares in other Investment in collective investment schemes may not in aggregate exceed ten per cent other schemes of its total net value. (2) In addition, such scheme's objective may not be to invest primarily in any investment prohibited by this Chapter and where such scheme's objective is to invest primarily in investments restricted by this Chapter, such holdings may not be in contravention of the relevant limitation. 70. (1) Notwithstanding clause sixty-nine, a scheme may invest all of Feeder funds its assets in a single collective investment scheme and be authorised as a feeder fund. (2) In such a case(a) the underlying scheme shall be authorised by the Commission; (b) the offering document shall state that the scheme is a feeder fund into the underlying scheme; and

(c) the borrowing of the feeder fund may not exceed ten per cent of its total net asset value and shall be restricted to facilitating redemptions or defraying operating expenses. 71. No increase in the overall total of initial charges, management company's annual fee or any other costs and charges borne by the holders or by the scheme shall result, if the schemes in which a scheme invests are managed by the same management company or by a connected person of that company. 72. (1) A real estate scheme shall not, at any time after the commencement of these Rules, be operated as an open-ended scheme, except as provided by clause (2). (2) A real estate scheme that was operated, immediately before the commencement of these Rules, as an open-ended scheme may continue to be so operated for a period of six months after the commencement of these rules. (3) A real estate scheme shall comply with the following additional requirements: (a) (b) the provisions of Part IV; and the provisions of Appendix V. Limitations on making loans Limitation on overall costs and charges

Restriction on real estate investments

73. A scheme may not lend, assume, guarantee, endorse or otherwise become directly or contingently liable for or in connection with any obligation or indebtedness of any person without the prior written consent of the trustee/custodian. 74. A scheme may not acquire any asset which involves the assumption of any liability which is unlimited. 75. A scheme may not invest in any security of any class in any company or body if any director or officer of the management company owns more than one-half of one percent of the total nominal amount of all issued securities of that class, or, collectively the directors and officers of the management company own more than five per cent of those securities. 76. The portfolio of a scheme may not include any security where a call is to be made for any sum unpaid on that security unless that call

Unlimited liability Limitations on securities in which directors/officers have interests

Limitations on nil-paid/partly

could be met in full out of cash or near cash by the scheme's portfolio. 77. A scheme may not borrow.

paid securities Borrowing prohibition

78. (1) The provisions of this Part shall not, unless the contrary is Applicability of provided, apply to an umbrella fund as if it were a single scheme, but restrictions to shall apply to each subfund of the umbrella fund as if each such separate umbrella funds part were a single scheme. (2) Notwithstanding subclause (1), clause sixty-four shall apply so that the total collective investment by the sub-funds in any class of security issued by any one issuer shall not exceed ten per cent of that class. 79. If the investment limits in this Part are breached, the management Breach of company shall take as a priority objective all such steps as are necessary investment limits within a reasonable period of time to remedy the situation, taking due account of the interests of the holders. Name of 80. If the name of the scheme indicates a particular objective, geographic region or market, the scheme shall invest at least seventy per scheme cent of its non-cash assets in securities and other investments to reflect the particular objective or geographic region or market the scheme represents.

PART III ADDITIONAL REQUIREMENTS FOR NON-ZAMBIA BASED SCHEMES SECTION A-APPOINTMENT OF A ZAMBIA REPRESENTATIVE
81. A scheme shall be required to appoint a representative in Zambia if When its management company is not incorporated and does not have a place representative of business in Zambia. to be appointed 82. If a representative is appointed, the scheme has to maintain the representative throughout the period it is authorised in Zambia. Maintenance of representative

83. (1) The representative is not required to take responsibility for the acts and omissions of the management company or in the case of the scheme being a company, the directors of the scheme. (2) It shall however, be authorised on behalf of the scheme and the management company to(a) receive applications and money for units or shares from persons in Zambia; (b) issue receipts in respect of the application moneys received in accordance with paragraph (a); (c) issue contract notes to the applicants in accordance with the terms of the scheme; (d) receive redemption notices, transfer instructions and conversion notices from holders for immediate transmission to the management company or the scheme; (e) accept any notices or correspondence, including service of process, which holders may wish to serve on the scheme, trustee/custodian or the management company; (f) notify the Commission immediately if redemption of units or shares ceases, or is suspended; (g) make available for public inspection in Zambia, free of charge, and offer for sale at a reasonable price to holders, all constitutive documents of the scheme; (h) provide holders with information on the scheme including the scheme's financial reports and sales literature; (i) deliver to the Commission, if it so requests, all accounts and records relating to the sale and redemption of units or shares of the scheme in Zambia; and (j) represent the scheme and the management company in relation to all matters in which any holder normally resident in Zambia has a pecuniary interest or which relates to units or shares sold in Zambia.

Functions of a representative

84. The distribution function of the representative amounts to dealing Criteria for in securities, and therefore the representative shall be licensed as a appointment dealer under the Act. 85. The representative shall be properly appointed to represent the scheme and the management company. Representative to be duly authorised

86. The representative shall provide the Commission with a written undertaking that it will perform the duties required of a representative under this Schedule. 87. Should the representative retire or be dismissed, it shall be replaced as soon as possible, by another representative whose appointment is subject to the approval of the Commission.

Written undertaking

Retirement and replacement of the representative Zambia representative agreement

88. (1) Details of all contracts between the representative, the scheme and or the management company shall be supplied to the Commission. (2) Any subsequent amendments of these contracts shall be notified to the Commission.

SECTION B-ADMINISTRATIVE REQUIREMENTS


89. (1) The zambia covering document of a scheme shall contain the information required in Appendix II. (2) A scheme that is not based in Zambia may supplement the information contained in the overseas offering document with a Zambia covering document supplied with the overseas offering document. 90. Where investment plans are offered, the provisions of clause thirty-one shall be complied with. Zambia covering document

Investment plans

SECTION C-REPORTING, FEES AND ADVERTISING


91. A scheme shall in all cases comply with the requirements of clauses forty-nine to sixty-two, which provide for the continuing obligations of all schemes with respect to reporting, fees, advertising and public announcements in Zambia. Continuing obligations

SECTION D-JURISDICTION
92. Nothing in the constitutive documents may exclude the jurisdiction Jurisdiction not of the courts of Zambia to entertain an action concerning the scheme. capable of exclusion

PART IV ADDITIONAL REQUIREMENTS FOR REAL ESTATE COLLECTIVE INVESTMENT SCHEMES


93. In addition to the documents specified in rule five, an application for authorisation of a real estate scheme shall be accompanied by a property valuation report. 94. In addition to the requirements of clause twenty-four, the offering documents for a real estate scheme shall include a property valuation report which shall contain the information listed in Appendix V. Application to Commission for authorisation Offering document

95. The valuation of real estate assets shall be determined quarterly by Valuation of an independent professional person approved by the trustee/custodian as real estate qualified to value real estate. agents 96. The maximum interval between the receipt of a properly documented request for redemption of units or shares in a real estate scheme shall not exceed twelve calendar months. Redemption

97. Deferment of payment beyond one calendar month shall be subject Deferment of redemptions to the approval of the Commission which shall only be given if the scheme's cash resources cannot be maintained at an adequate level by orderly disposal of real estate assets. 98. If payment is deferred and the properties being sold realise less Apportionment than the price upon which the redemption request was based, the of losses redemption payment shall be scaled down proportionately so that there is equitable treatment of the continuing holders of the shares or units and those who have sold. 99. Advertisements shall include a warning statement thatWarning statements

(a) the price of units or shares, and the income from them (if the scheme pays a dividend), may go down as well as up; (b) investors are reminded that in certain circumstances their right to their units or shares may be suspended; and (c) money for redemption of units or shares may not be paid for

twelve months and may not be paid in full. 100. A real estate scheme may invest up to a maximum of eighty per cent of its net asset value in any type of real estate provided that at all times a minimum of twenty per cent of its net asset value shall be invested in cash or government treasury bills. Restriction on investments

APPENDIX I
INFORMATION TO BE CONTAINED IN THE APPLICATION FOR AUTHORISATION General details of the scheme 1. 2. 3. 4. Name of the scheme. Names of the sub-funds (if any). Structure of the scheme. Applicable law and the date and country of incorporation.

5. Quotation on any securities exchange and authorisation granted by other regulatory bodies. 6. 7. 8. 9. 10. 11. Undertakings given to other regulatory bodies. Launch: date and place. Dealing: daily/weekly/other. Valuation of assets: daily/weekly/other. Pricing: forward/historic/other. Investment plans to be offered in Zambia.

For each scheme or sub-fund 12. (a) Fee structure(i) (ii) (i) (ii) level of all charges payable by investor; and level/basis of calculation of all charges payable by the scheme. investment objective and borrowing powers; and Currency of denomination.

(b) For equity/bond funds-

(c) Minimum initial subscription and the minimum subsequent holding. Details of the parties to the scheme 13. (a) The management company (Section B of Part 1 of the Schedule)Name.

(b) (c)

Registered/business address. Name of the ultimate holding company.

(d) Previously approved by the Commission to manage authorised schemes? If no, the resumes of the directors and most recent audited financial report. (e) Person(s) for contact with the Commission.

14. In the case of a self-managed scheme, the resumes of the directors of the scheme and person(s) for contact. 15. (a) (b) (c) The trustee/custodian (Section A of Part 1 of the Schedule)Name. Registered/business address. Name of the ultimate holding company.

(d) Previously approved by the Commission as trustee/custodian of authorised schemes? If no, names of the directors and most recent audited financial report. (e) (a) (b) (c) Person(s) for contact with the Commission. Name. Registered/business address. Name of the ultimate holding company.

16. The investment adviser (if any)-

17. For the trustee/custodian, management company and investment adviser(a) which, if any, of these companies are connected persons. (b) name anyone who holds appointments, as director or offer, with more than one of these companies. 18. The Zambia representative/distribution company (Part III of the Schedule)(a) (b) (c) (d) (e) Name. Registered/business address. Name of the ultimate company. Person(s) for contacts with the Commission. If a separate distribution company is appointed in Zambia(i) name; and (ii) registered/business address.

19. (a) (b) 20. (a) (b)

The auditorName. Registered/business address. The principal dealer (if any)Name. Registered/business address.

(c) The approximate percentage of the scheme's transactions in value of securities carried out by the principal broker within the latest financial year of the scheme. (d) Whether the trustee/custodian, the directors of the scheme, the management company or the investment adviser is a connected person of the principal broker. 21. (a) (b) Legal representatives in Zambia (if any)Name. Person(s) for contacts with the Commission.

APPENDIX II
INFORMATION TO BE DISCLOSED IN THE OFFERING DOCUMENT (Note: This list is not intended to be exhaustive. The directors of the scheme or the management company are obliged to disclose any information which may be necessary for investors to make an informed judgement.) Constitution of the scheme 1. Name, registered address and place and date of creation of the scheme, with an indication of its duration if limited. Investment objectives and restrictions 2. Details of investment objectives and policy, including summary of the investment and borrowing restrictions. If the nature of the investment policy so dictates, a warning that investment in the scheme is subject to abnormal risks, and a description of the risks involved. Operators and principals 3. The names and registered addresses of the following parties (where applicable)(a) the directors of the scheme/management company and its board of directors;

(b) (c) (d) (e) (f) (g) (h) 4.

the trustee/custodian; the investment adviser; the Zambia representative; the Zambia distribution company, if different from (d) above; the auditors; the registrar; and the lawyers to the scheme. Minimum investment (if any).

Characteristics of units or shares 5. A description of the different types of units or shares, including their currency of denomination. 6. 7. Form of certification. Frequency of valuation and dealing, including dealing days.

Application and redemption procedures 8. The name(s) of the Zambia daily newspaper(s) in which prices will be published. 9. Procedure for subscribing/redeeming units or shares, and in the case of umbrella funds, conversion of units or shares. 10. The maximum interval between the request for redemption and the despatch of the redemption proceeds. 11. A summary of the circumstances in which dealing in units or shares may be deferred or suspended. 12. It shall be stated that no money should be paid to any intermediary in Zambia who is not a licensed dealer or investment adviser. Distribution policy 13. The distribution policy and the approximate dates on which dividends (if any) will be paid (if applicable). Fees and charges 14. (a) The level of all fees and charges payable by an investor, including all charges levied on subscription and redemption, and conversion (in the case of umbrella funds); and (b) The level of all fees and charges payable by the scheme, including management fees, custodian fees and start-up expenses. 15. Disclosure of entitlement to brokerage or other transactions benefits of any connected persons to the scheme. Taxation

16. Details of Zambian and principal taxes levied on the scheme's income and capital, including tax, if any, deducted on distribution to holders. Reports and accounts 17. The date of the scheme's financial year. 18. Particulars of what reports will be sent to registered holders and when. If there are bearer units in issue, information shall be given on where in Zambia reports can be obtained. Warnings 19. The following statements/warnings shall be prominently displayed in the offering document(a) "Important-if you are in any doubt about the contents of this offering document, you should consult your stockbroker, bank manager, lawyer, accountant or other financial adviser"; (b) a warning that the price of units or shares and the income from them (where income is distributed) may go down as well as up. General information 20. A list of constitutive documents and an address in Zambia where they can be inspected free of charge or purchased. 21. The date of publication of the offering document. 22. A statement that the directors of the scheme or the management company accept responsibility for the information contained in the offering document as being accurate as at the date of publication. 23. Details of schemes not authorised shall not be shown in the offering document. Where names of such schemes are mentioned, these shall be clearly marked as unauthorised and not available to Zambian residents. Termination of scheme 24. A summary of the circumstances in which the scheme can be terminated.

APPENDIX III
REQUIRED CONTENTS OF THE CONSTITUTIVE DOCUMENTS 1. 2. Name of scheme Participating parties-

A statement to specify the participating parties including the management company, trustee/custodian, and investment adviser (if

appointed). 3. For unit trusts only(a) A statement that the deed is binding on each holder as if he had been a party to it and so to be bound by its provisions and authorises and requires the trustee and the management company to do as required of them by the terms of the deed. (b) A provision that a holder is not liable to make any further payment after he has paid the purchase price of his units and that no further liability can be imposed on him in respect of the units which he holds. (c) A declaration that the property of the scheme is held by the trustee on trust for the holders of the units pari passu according to the number of units held by each holder. (This may be modified as appropriate for schemes offering income and accumulation units). (d) A statement that the trustee will report to holders in accordance with paragraph (f) of clause four of the Schedule. (e) A statement that the trustee should retire in the manner as stipulated in clause five of the Schedule. 4. For all other collective investment schemes(a) A declaration that the property of the scheme is held by the custodian on trust for the scheme. (b) A statement to list the obligations of the custodian as set out in clause four of the Schedule. (c) A statement that the custodian should retire in the manner as stipulated in clause five of the Schedule. 5. Role of management company(a) a statement to list the obligations of the management company as set out in clause sixteen of the Schedule. (b) a statement that the management company should retire in the manner as stipulated in clause seventeen of the Schedule. 6. Investment and borrowing restrictionsA statement to list the restrictions on the investment of the deposited property and the maximum borrowing limit of the scheme. 7. Valuation of property and pricing-The following requirements on valuation of property and pricing shall be stipulated(a) the method of determining the value of the assets and liabilities of the property of the scheme and the net asset value accordingly; (b) the relationship between the prices at which the management

company bids or offers units or shares and the most recent net asset value per unit or share; (c) the permitted spread between bid and offer prices; (d) the circumstances under which the relationship to asset value or the spread may change; and (e) the front-end load management charge to purchase units or shares and, if different, the charge to investors to re-invest the proceeds of realising a holding in the scheme. 8. Dealing, suspension and deferral of dealing-The following shall be stated(a) the circumstances under which the dealing of units or shares can be deferred or suspended; and (b) the maximum interval between the receipt of a properly documented request for redemption of units or shares and the payment of the redemption money to the holder should not exceed one calendar month. 9. Fees and charges-The following shall be stated(a) the maximum percentage of the initial charge payable to the management company out of the issue price of a unit or share; (b) the maximum fee payable to the management company out of the property of the scheme, expressed as an annual percentage; (c) fee payable to trustee/custodian; (d) preliminary expenses to be amortized against the property of the scheme; and (e) all other material fees and charges payable out of the property of the scheme. 10. Meeting-Provision shall be made as to the manner in which holders' meetings are to be conducted in accordance with clause forty-seven of the Schedule. 11. Transactions with connected persons-The following shall be stated(a) cash forming part of the property of the scheme may be placed as deposits with the trustee/custodian, management company, the investment adviser or with any connected persons of these companies (being an institution authorised to accept deposits) so long as that institution pays interest thereon at no lower rate than is, in accordance with normal banking practice, the commercial rate for deposits of the size of the deposit in question negotiated at arm's length. (b) money can be borrowed from the trustee/custodian, management

company, the investment adviser or any of their connected persons (being a bank) so long as that bank charges interest at no higher rate, and any fee for arranging or terminating the loan is of no greater amount than is in accordance with normal banking practice, the commercial rate for a loan of the size and nature of the loan in question negotiated at arm's length. (c) any transactions between the scheme and the management company, the investment adviser, directors of the scheme or any of their connected persons as principal may only be made with the prior written consent of the trustee/custodian. 12. Distribution policy and date-The approximate date(s) in the calendar year on which annual income, if any, will be distributed. 13. Annual accounting period-The date in the calendar year on which the annual accounting period ends. In the case of an umbrella fund, the accounting period shall be the same for all constituent funds. 14. Base currency-A statement of the base currency of the scheme. 15. Modification of the constitutive documents-A statement of the means by which modification to the constitutive documents can be effected. 16. Termination of scheme-A statement of the circumstances in which the scheme can be terminated.

APPENDIX IV
(Schedule, Clause 23) CONTENTS OF FINANCIAL REPORTS General 1. Annual reports shall contain all the information required in this Appendix. Interim reports shall at least contain the Statement of Assets and Liabilities and the Investment Portfolio. Where the scheme has paid or proposes to pay an interim dividend, the amount of dividend shall be disclosed. 2. All reports shall contain comparative figures for the previous period except for the investment Portfolio. 3. The mention of any unauthorised schemes in the reports shall be indicated as "Not authorised in Zambia and not available to Zambian Residents". 4. The items listed under the Statement of Assets and Liabilities,

Revenue Statement, Distribution Statement, Statement of Movements in Capital Account and the Notes to the Accounts, where applicable, shall be disclosed. It is however, not mandatory to adopt the format as shown or to disclose the items in the same order. Statement of Assets and Liabilities 5. The following shall be separately disclosed(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) total value of investments bank balances formation costs dividends and other receivables amounts receivable on subscription bank loans and overdrafts or other forms of borrowing amounts payable on redemption distributions payable total value of all assets total value of all liabilities net asset value number of units or shares in issue net asset value per unit or share

Revenue Statement 6. The following shall be separately disclosed(1) total investment income net of withholding tax, broken down by category (2) (3) total other income, broken down by category equalisation on issue and cancellation of units or shares

(4) an itemised list of various costs which have been debited to the scheme including* fees paid to the management company * remuneration of the trustee/custodian * amortization of formation costs * directors' fee and remuneration * safe custody and bank charges * auditors' remuneration * interest on borrowings * fees paid to investment adviser, if any

* other amounts paid to any connected persons of the scheme * legal and other professional fees * any other expenses borne by the scheme (5) (6) (7) taxes amounts transferred to and from the capital account net income to be carried forward for distribution

Distribution Statement 7. The following shall be separately disclosed(1) (2) (3) (4) (5) amount brought forward at the beginning of the period net income for the period interim distribution per unit or share and date of distribution final distribution per unit or share and date of distribution undistributed income carried forward

Statement of Movements in Capital Account 8. The following shall be separately disclosed(1) value of the scheme as at the beginning of the period (2) number of units or shares issued and the amounts received upon such issuance (after equalization if applicable) (3) number of units or shares redeemed and the amount paid on redemption (after equalisation if applicable) (4) any items resulting in an increase/decrease in value of the scheme including-surplus/loss on sale of investments -exchange gain/loss -unrealised appreciation/diminution in value of investments -net income for the period less distribution (5) (6) amounts transferred to and from the revenue account value of the scheme as at the end of the period

Notes to the Accounts 9. The following matters shall be set out in the notes to the accounts-Principal accounting policies, including(a) the basis of valuation of the assets of the scheme including the basis of valuation of unquoted and unlisted securities; (b) the revenue recognition policy regarding dividend income and other income;

(c)

foreign currency translation;

(d) the basis of valuation of forward foreign exchange and futures contracts; (e) (f) the basis of amortization of formation costs; taxation;

(g) any other accounting policy adopted to deal with items which are judged material or critical in determining the transactions and in stating the disposition of the scheme. Any changes to the above accounting policies and their financial effects upon the accounts shall also be disclosed. Transactions with Connected Persons 10. The following transactions shall be disclosed(a) details of all transactions entered into during the period between the scheme and the management company, investment adviser, the directors of the scheme or any entity in which these parties or their connected persons have a material interest; and (b) name of any director of the scheme or any connected person of such a director if any such person becomes entitled to profits from transactions in shares or from management of the scheme and the amount of profits to which such person becomes entitled. Borrowings 11. It shall be stated whether the borrowings are secured or unsecured and the duration of the borrowings. Contingent Liabilities and Commitments 12. Details of any contingent liabilities and commitments of the scheme shall be made available. 13. If the free negotiability of any asset is restricted by statutory or contractual requirements, this shall be stated. Commissions, etc. 14. The total commission paid to dealers in connection with portfolio transactions during the period reported on shall be stated. 15. The total compensation, other than commissions, paid to dealers in connection with portfolio transactions during the period reported on shall be stated and, where the figure provided is an estimate, the basis for calculating the compensation, and where compensation to a dealer for the sale of shares or units in the scheme includes an allocation of the execution of portfolio transactions to that dealer, the compensation so allocated. Legal Proceedings

16. Any legal proceedings material to the operation of the scheme to which the operator is a party or of which any of the property of the scheme is the subject shall be briefly described. A similar statement shall be made as to any such proceedings known to be contemplated (including the date instituted, the principal parties, the nature of the claim, the amount claimed, whether the proceedings are being contested and the present status of the proceedings). Contents of Auditors' Reports 17. The report of the Auditor shall state(a) whether in the Auditor's opinion, the accounts prepared for that period have been properly prepared in accordance with the relevant provisions of the trust deed (if a unit trust) and this Schedule; (b) whether in the auditor's opinion, all persons involved with the conduct and operation of the scheme have acted properly and in accordance with the requirements of this Schedule; (c) without prejudice to the foregoing, whether in the auditor's opinion, a true and fair view is given of the disposition of the scheme at the end of the period then ended, and whether the reports and valuations produced on behalf of the scheme during the year were produced on a basis consistent with the figures at the end of the year and with the provisions of this Schedule; (d) if the auditor is of the opinion that proper books and records have not been kept by the scheme, or the accounts prepared are not in agreement with the scheme's books and records, that fact (which shall be reported forthwith by the auditor to the Commission); and (e) if the auditor has failed to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of the audit, that fact (which shall be reported forthwith by the auditor to the Commission). Investment Portfolio 18. The following shall be stated(1) Number of quantity of each holding together with the description and market value. Distinguish between listed and unlisted and categorise by country. (2) (3) The total investment stated at cost. The value of each holding as a percentage of net asset value.

(4) Statement of movements in portfolio holdings since the end of the preceding accounting period. Performance Table 19. The following shall be provided-

(1) A comparative table covering the last three financial years and including, for each financial year, at the end of the financial year(a) the total net asset value; (b) the net asset value per unit or share. (2) A performance record over the last ten financial years or, if the scheme has not been in existence during the whole of that period, over the whole period in which it has been in existence, showing the highest issue price and the lowest redemption price of the units or shares during each of those years.

APPENDIX V
ADDITIONAL INFORMATION TO BE DISCLOSED IN THE OFFERING DOCUMENT FOR A REAL ESTATE SCHEME 1. A description of each property, including(a) an address suficient to identify the property; (b) a brief description (e.g. whether land or building, approximate area etc.); (c) (d) existing use (e.g. shops, offices, factories, residential, etc.); ground rent;

(e) summary of terms of headleases, and underleases, (including repairing obligations where material); (f) (g) (h) (i) (j) the approximate age of the buildings; capital value in existing state; current planning or zoning use; options or rights of pre-empting concerning the property; and other matters which may materially affect the value.

2. Where the property is not in the process of being developed, details of rentals of the property. 3. (a) (b) (c) (d) (e) (f) Where the property is being developed: details of development potential; material restrictions on development; existing stage of development; estimated completion date; estimated cost of completing the development; estimated capital value in existing state;

(g) (h) (i) use; (j) (k)

estimated capital value after completion; material or special conditions affecting the development; any conditions imposed as to construction of facilities for public any sales arrangements or letting arrangements; and any construction costs incurred so far.

4. Where the property is held for future development the following details (where available): (a) (b) (c) use. details of development potential; material or special conditions affecting development; any conditions imposed as to constructing facilities for public

5. A classification of the properties according to the purpose for which they are held, as follows: (a) (b) (c) (d) for development; for investment; for owner occupation; for sale.

6. Details of any agreement or proposals as to any proposed transaction regarding the property between the management company and any other member of a group to which the management company belongs. 7. The name of the valuer, his address and professional qualifications. 8. The effective date of valuation.
Statutory Instrument 170 of 1993

SECTION 39-THE SECURITIES (TAKEOVERS AND MERGERS) RULES Rules by the Securities and Exchange Commission

1. These Rules may be cited as the Securities (Takeovers and Mergers) Title Rules, 1993. 2. (1) In these Rules, unless the context otherwise requires"acquisition of voting rights" includes the exercise of control or direction over voting rights other than by way of a revocable proxy given for no consideration for the purpose of one meeting of shareholders only; "acting in concert" means persons who, pursuant to an agreement or Interpretation

understanding, actively co-operate to obtain or consolidate control of a company through the acquisition of voting rights of the company; "control" shall be deemed to mean a holding, or aggregate holdings, of thirty-five percent or more of the voting rights of a company, irrespective of whether that holding or holdings gives de facto control; "director" includes any person who occupies the position of a director by whatever name called; "document" includes any announcement, advertisement or offer document issued or published by any party to an offer or possible offer in connection with such offer or possible offer; "offer" includes(a) takeover and merger transactions however effected, including schemes of arrangement which have similar commercial effect to takeovers and mergers, and offers by a parent company for shares in its subsidiary; (b) (c) partial offers; and mandatory offers;

"offer period" means the period from the date when an announcement is made of a proposed or possible offer (with or without terms) until the first closing date or (if this later) the date when such offer becomes or is declared unconditional in all respects or is declared to have lapsed; "person" includes an individual and a company; "rights over shares" include any rights acquired by a person by virtue of an agreement to purchase shares or an option to acquire shares or an irrevocable commitment to accept an offer to be made by him; "these Rules" includes the general principles set out in the Second Schedule and the provisions set forth in the Third Schedule; "securities exchange offer" means an offer in which the consideration includes securities of the offeror or any other corporate body; "substantial shareholder" means a person who holds ten per cent or more of the voting rights of a company; "Stock Exchange" means any securities exchange on which the offeror or offeree company is listed; and "voting rights" means all the voting rights currently exercisable at a general meeting of a company whether or not attributable to the share capital of the company. (2) For the purposes of these Rules, persons falling within each of the following classes will be presumed to be acting in concert with others in

the same class unless the contrary is established(a) a company, its parent, its subsidiaries, its fellow subsidiaries, associated companies of any of the foregoing, and companies of which such companies are associated companies; (b) a company with any of its directors (together with their close relatives, related trusts and companies controlled by any of the directors, their close relatives and related trusts); (c) a company with any of its pension funds, provident funds and employee share schemes; (d) a fund manager with any collective investment scheme, or other body, whose investments such fund manager manages on a discretionary basis, in respect of the relevant investment accounts; (e) a financial or other professional adviser, including a dealer, with its client in respect of the shareholdings of the adviser and persons controlling, controlled by or under the same control as the adviser; (f) directors of a company (together with their close relatives, related trusts and companies controlled by such directors, their close relatives and related trusts) which is subject to an offer or where the directors have reason to believe a bona fide offer for their company may be imminent; (g) partners; and

(h) an individual with his close relatives, related trusts and companies controlled by him, his close relatives or related trusts. (3) For the purposes of these Rules, a company shall be deemed to be an associated company of another company if one of them owns or controls twenty per cent or more of the voting rights of the other or if both are associated companies of the same company. 3. The objects of these Rules are set out in the First Schedule hereto. Objects of Rules

4. (1) These Rules shall apply to all takeover and merger transactions affecting public companies. (2) All persons engaged in takeover or merger transactions shall observe the general principles set out in the Second Schedule hereto and shall comply with the provisions of the Third Schedule hereto. 5. Any person who contravenes any of the provisions of the Third Schedule shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten million kwacha or to imprisonment for a term not exceeding twelve months or to both.

Application

FIRST SCHEDULE
(Rule 3) OBJECTS OF RULES 1. (1) The primary purpose of these Rules is to afford fair treatment for Spirit of the shareholders who are affected by takeover and merger transactions. Rules (2) The Rules seek to achieve fair treatment by requiring equality of treatment of shareholders, requiring the disclosure of timely and adequate information to enable shareholders to make an informed decision as to the merits of an offer and ensuring that there is a fair and informed market in the shares of companies affected by takeover and merger transactions. (3) The Rules also provide an orderly framework within which takeovers and mergers are to be conducted. 2. (1) Those who wish to take advantage of the securities markets in Zambia shall conduct themselves in matters relating to takeovers and mergers and in accordance with the Rules. (2) If they do not do so they may find, by way of sanction, that the facilities of such markets are withheld. (3) The Rules Governing the Listing of Securities on the Lusaka Stock Exchange Limited require compliance with the Rules. (4) Where a breach of these Rules amounts to a contravention of any of the provisions of the Securities Act, 1993, or of subsidiary legislation made under that Act, sanctions under such provisions will apply and be Sanctions on conduct

enforced. 3. The responsibilities provided for in the Rules apply to: Scope of Rules

(a) directors of public companies; (b) persons or groups who seek to gain or consolidate control of public companies; (c) their professional advisers; and (d) those who are actively engaged in the securities market in all its aspects. 4. In addition, any other persons who issue circulars or advertisements Promoters to shareholders in connection with takeovers and mergers must observe the highest standards of care and consult with the Commission prior to the release thereof. 5. The role and responsibility of financial and other professional advisers is of particular importance, and it is part of their responsibility to use all reasonable efforts, subject to any relevant requirements of professional conduct, to ensure that their clients understand, and abide by, the requirements of these Rules and to cooperate to that end by responding to enquiries from the commission. Advisers

6. These Rules are not concerned with the financial or commercial Commercial advantages or disadvantages of a takeover or merger, as the case may be, Considerations which are matters for the company and its shareholders. 7. (1) The provisions of these Rules are additional to the provisions of Other Rules the Securities Act, 1993, and to other subsidiary legislation made under that Act. (2) In particular all persons involved in takeover activities must have full regard at all times to the relevant provisions of the Securities (Advertisements) Rules, 1993, the Securities (Conduct of Business) Rules, 1993, and the Securities (Registration of Securities) Rules, 1993. Structure of (2) First, there are general principles of conduct contained in the Second Rules Schedule which are to be observed in takeover and merger transactions. 8. (1) The provisions of these Rules fall into two categories. (3) Secondly, the Rules lay down in the Third Schedule a series of

specific provisions. (4) Some of the provisions of the Third Schedule are no more than examples of the application of the general principles and the Commission will interpret them in accordance with those principles. (5) The Rules through the general principles, may apply to a situation not specifically covered by a provision of the Third Schedule. (6) The Commission may modify or relax the application of a provision of the Third Schedule in exceptional circumstances, for example, when it considers that its strict application would operate harshly. 9. (1) These Rules apply to takeovers and mergers affecting public companies in Zambia. (2) As a result, although it is generally the nature of the offeree company, the potential offeree company, or the company in which control may change or be consolidated that is relevant, there are also circumstances in which it is necessary to consider the treatment of the offeror's shareholders in order to carry out the objectives of these Rules. 10. (1) These Rules are administered by the Commission. (2) The Commission undertakes the investigation of takeover and merger transactions and the monitoring of related dealings in connection with these Rules. (3) It is available for consultation and to give rulings on all matters before or during takeovers and mergers, as the case may be. Consulting the 11. (1) When there is any doubt as to whether a proposed course of Commission conduct is in accordance with the general principles contained in the Second Schedule or the provisions of the Third Schedule, parties or their advisers should always consult the Commission in advance. (2) In this way, the parties can obtain clarification of the basis on which they can properly proceed and thus minimise the risk of taking action which might, in the event, be a breach of these Rules. (3) However, while the Commission will respond to questions respecting an interpretation of these Rules, it should not be expected to answer purely hypothetical questions, or to give provisional rulings when the parties with an interest in such rulings cannot be identified. 12. (1) Any request for a ruling under these Rules shall take the form of Requests for a written submission addressed to the Commission. rulings Companies to which these Rules apply

The Commission

(2) The submission shall be made by or on behalf of the party or parties required to make representations in support of the submission. (3) The submission shall be comprehensive and contain all relevant information which the Commission will require to reach a fully informed decision. 13. (1) Subject to confidentiality considerations, it will be the policy of Publication of the Commission to publish their important rulings, and the reasons for rulings them, so that their activities may be understood by the public. (2) All rulings will normally be announced to the parties as soon as possible. (3) Important rulings suitable for publication will then be constituted as a written statement and will be issued as promptly as possible. 14. (1) Information given to the Commission will be treated in the strictest confidence. (2) Because of the overriding importance of maintaining a fair market and suppressing improper activities, this information is available to the Commission to be held subject to its own obligations of confidentiality. (3) Subject to those obligations, the Commission may from time to time give information received by it to other regulatory authorities, so they can discharge their own duties. (4) Conversely, the Commission may from time to time receive information from other regulatory bodies which is relevant to a matter then current. (5) Co-operation with other regulatory authorities is regarded as an important part of the Commission's functions. Co-operation with other authorities

SECOND SCHEDULE
(Rule 4) GENERAL PRINCIPLES FOR CONDUCT OF TAKEOVERS AND MERGERS 1. (1) It is impracticable to devise rules in sufficient detail to cover all circumstances which can arise in offers. (2) Accordingly, persons engaged in offers should be aware that the spirit as well as the precise wording of the general principles and Rules Spirit of the Rules

must be observed. (3) Moreover, the General Principles and the spirit of the Rules will apply in areas or circumstances not explicitly covered by any of the provisions of the Third Schedule. 2. A board which receives an offer, or is approached with a view to an Competent offer being made, shall seek competent independent advice in the independent interests of its shareholders. advice Limitations on 3. (1) While the boards of an offeror and of an offeree company and their respective advisers and associates have a primary duty to act in the director's best interests of their shareholders, they must accept that there are actions limitations in connection with takeover and merger transactions on the manner in which the pursuit of those interests can be carried out. (2) Inevitably, therefore, the general principles contained in the Second Schedule and the provisions of the Third Schedule will impinge on the freedom of action of boards and persons involved in such transactions. 4. All shareholders are to be treated even-handedly and all shareholders of the same class are to be treated similarly. Equality of treatment

5. If control of a company changes or is acquired or is consolidated, a Control general offer to all other shareholders is normally required. 6. If, after a takeover or merger transaction is reasonably in No less contemplation, a written offer has been made to, or shares have been favourable purchased from one or more shareholders of, an offeree company, any terms subsequent general offer made by or on behalf of the same offeror, or any person acting in concert with it, to the shareholders of the same class shall not be on less favourable terms. 7. (1) During the course of an offer, or when an offer is in contemplation, neither an offeror, nor the offeree company, nor any of their respective advisers may furnish information to some shareholders which is not made available to all shareholders. (2) This principle does not apply to the furnishing of information in confidence by the offeree company to a bona fide potential offeror or vice versa. Information to shareholders

8. (1) An offeror shall announce an offer only after careful and Announcements responsible consideration. (2) The same applies to making acquisitions which may lead to an obligation to make a general offer. (3) In either case the offeror and its financial advisers shall be satisfied that it can and will continue to be able to implement the offer in full. 9. (1) Shareholders shall be given sufficient information, advice and Sufficient time to reach an informed decision on an offer. information and (2) No relevant information shall be withheld. time (3) Documents and advertisements issued in connection with takeovers and mergers shall be prepared with the highest possible degree of care, responsibility and accuracy. 10. (1) All persons concerned with takeovers and mergers shall make full and prompt disclosure of all relevant information and take every precaution to avoid the creation or continuance of an uninformed market. (2) Parties involved in offers must take care that statements are not made which may mislead shareholders or the market. 11. Rights of control shall be exercised in good faith and the oppression of minority or non-controlling shareholders is always unacceptable. Full and prompt disclosure

Oppression of minority

12. Directors shall have regard to the interests of the shareholders as a Duties of whole, and not to their own interests or those derived from personal and directors family relationships. 13. At no time after a bona fide offer has been communicated to the No frustration board of the offeree company, or after the board of the offeree company of offer by has reason to believe that a bona fide offer might be imminent, may any offeree board action be taken by the board of the offeree company in relation to the affairs of the company, without the approval of shareholders in general meeting, which could effectively result in any bona fide offer being frustrated or in the shareholders being denied an opportunity to decide on its merits. 14. All parties concerned with takeovers and mergers are required to Full

co-operate to the fullest extent with the Commission, and to provide all relevant information.

co-operation

THIRD SCHEDULE
(Rule 4) SPECIFIC REQUIREMENTS FOR CONDUCT OF TAKEOVERS AND MERGERS

SECTION I-OFFERS
1. An offer shall be put forward in the first instance to the board of the Offer offeree company or to its advisers, and before the offer is announced to the public. 2. If an offer or an approach with a view to an offer being made is not Identity of made by the ultimate offeror or potential offeror, the identity of that offeror person or the ultimate controlling shareholder must be disclosed at the outset to the board of the offeree company. 3. A board which is approached is entitled to be satisfied by the offeror Implementation that the offeror will be in a position to implement the offer in full. of offer 4. (1) Absolute secrecy before an announcement of an offer or proposed offer is of vital importance. (2) All persons who have confidential information, particularly if it is price sensitive, are required to take the greatest care to prevent a leak. (3) This requirement is additional to the law against insider dealing. Confidentiality

SECTION II-INDEPENDENT ADVICE, INDEPENDENT COMMITTEES AND SHAREHOLDER APPROVAL


5. (1) A board which receives an offer, or is approached with a view to Board of an offer being made, shall, in the interests of shareholders, retain an offeree independent financial adviser to advise the board as to whether the offer company is, or is not, fair and reasonable. (2) Such advice, including reasons, shall be obtained in writing and such written advice shall be made known to shareholders by including it

in the offeree's circular along with the recommendation of the offeree's board regarding acceptance of the offer. (3) If any of the directors of an offeree company is faced with a conflict of interest, the offeree board shall, if possible, establish an independent committee of the board to discharge the board's responsibilities in relation to the offer. 6. (1) If any director of an offeror which is a public company in Zambia Board of offeror company is faced with a conflict of interest as a result of a proposed offer, the offeror's board shall, if possible, establish an independent committee to assess the proposed offer. (2) If the conflict is a material one the Commission shall be consulted to establish, having regard to, among other things, the materiality of the offer to the offeror, whether the offeror's board shall retain an independent financial adviser to advise the shareholders or independent shareholders, of the offeror, as the case may be, and whether the offer should be made conditional upon approval of the offer by a majority of the votes cast by such shareholders in attendance either in person or by proxy at a duly convened general meeting of the offeror's shareholders. 7. A person who has, or had, a connection, financial or otherwise, with the offeror or offeree company of a kind likely to create a conflict of interest will not be regarded as a suitable person to give independent advice. 8. (1) A financial adviser will not normally be considered to be independent if he is considered to have a relationship with the offeror, the offeree company, or the controlling shareholder(s) of either of them, which is reasonably likely to affect the objectivity of his advice. Persons not suited to give independent advice

Independent financial advisers and independent (2) If there are shareholders who are not independent because they have shareholders an interest in the proposed transaction other than their interest as a shareholder of the offeror or offeree company, as the case may be, the independent adviser shall endeavour to represent the best interests of the offeror or the offeree company, respectively, by concerning itself only with the interests of the independent shareholders, i.e. those shareholders of the company who have no interest in the proposed transaction other than their interest as a shareholder of the company. 9. (1) Members of an independent committee of a company's board of Independent directors shall consist of directors of the company who have no direct or committees indirect interest in the offer for consideration by the independent committee other than as a shareholder of the offeree.

(2) For this purpose, it is presumed that employees of an offeree company that is an associated company of the offeror have an indirect interest in the offer and are therefore not independent. (3) The same presumption is applicable to employees, directors, agents, partners, close relatives and affiliates of any person that exercises control or direction over the business and operations of the offeree company if such person has a direct interest in the offer. (4) For such purpose an affiliate is a person which controls, is controlled by, or is under common control with, the person in question. (5) In case of doubt the Commission should be consulted. (6) If a committee of a board of directors is not truly independent it shall not be characterised as such. (7) If it is not possible to form an independent committee, responsibility for representing the interests of any independent shareholders shall reside primarily with the independent financial adviser.

SECTION III-ANNOUNCEMENTS
Offers or (a) when a firm intention to make an offer is notified to the board of the possible offers offeree company from a serious source, irrespective of the attitude of the board to the offer; 10. An announcement is required(b) immediately upon an acquisition of shares which gives rise to an obligation to make an offer under clause fifty-seven (for which purpose, the announcement that an obligation has been incurred shall not be delayed while full information is being obtained-additional information can be the subject of a later supplementary announcement); (c) when, following an approach to the offeree company, the offeree company is the subject of rumour and speculation or there is undue movement in its share price, or a significant increase in the volume of share turnover, whether or not there is a firm intention to make an offer; (d) when, before an approach has been made, the offeree company is the subject of rumour and speculation or there is undue movement in its share price, and there are reasonable grounds for concluding that it is the potential offeror's actions (whether through inadequate security, purchasing of offeree company shares or otherwise) which have led to the situation; or (e) when negotiations or discussions are about to be extended to include more than a very restricted number of people (outside those who need to know in the companies concerned and their immediate advisers).

11. (1) Before the board of the offeree company is approached, the Responsibilities responsibility for making an announcement can lie only with the offeror. of offeror and offeree for (2) The offeror shall, therefore, keep a close watch on the offeree announcements company's share price and volume for any signs of undue movement. (3) The offeror is also responsible for making an announcement once an obligation has been incurred to make a mandatory offer under clause fifty-six. (4) Following an approach to the board of the offeree company which may or may not lead to an offer, the primary responsibility for making an announcement will normally rest with the board of the offeree company which must, therefore, keep a close watch on its share price and volume. 12. (1) When an announcement is required the offeror or offeree, as the Suspension of trading case may be, shall notify the Commission and the Stock Exchange immediately that an announcement is imminent and if there is any possibility that an uninformed market for shares of the offeror or offeree could develop prior to publication of the announcement serious consideration shall be given to requesting a suspension of trading in such shares pending publication of the announcement. (2) A potential offeror must not attempt to prevent the board of an offeree company from making an announcement or requesting the Stock Exchange to grant a temporary suspension of listing at any time the board thinks appropriate. 13. (1) When a firm intention to make an offer is announced, the announcement must contain(a) the terms of the offer; (b) the identify of the ultimate offeror or the ultimate controlling shareholder; (c) details of any existing holding of voting rights in the offeree company(i) which the offeror owns or over which it has control or direction; (ii) which is owned or controlled or directed by any person acting in concert with the offeror; (iii) in respect of which the offeror or any person acting in concert with him has received an irrevocable commitment to accept the offer; and (iv) in respect of which the offeror or any person acting in Announcement of firm intention to make an offer

concert with him holds an option to purchase or warrants or other convertible securities; (d) all conditions (including normal conditions relating to acceptance, listing and increase of capital) to which the offer or the posting of it is subject; and (e) details of any arrangement (whether by way of option, indemnity or otherwise) in relation to shares of the offeror or the offeree and which might be material to the offer. (2) The announcement of an offer shall include confirmation by the financial adviser or by another appropriate third party that resources are available to the offeror sufficient to satisfy full acceptance of the offer. Announcement 14. (1) Acquisitions of voting rights of an offeree company by an offeror or by any person acting in concert with the offeror may give rise of certain purchases to an obligation to make a cash offer (clause fifty-one), to increase an offer (clause fifty-two) or to make a mandatory offer (clause fifty-six). (2) Immediately after any acquisition giving rise to any such obligation, an announcement must be made, stating the number of voting rights acquired and the price paid, together with the information required by clause thirteen (to the extent that it has not previously been announced). 15. (1) Once a bona fide offer has been communicated to the board of No frustrating action an offeree company or the board of an offeree company has reason to believe that a bonafide offer may be imminent, no action which could effectively result in an offer being frustrated, or in the shareholders of the offeree company being denied an opportunity to decide on the merits of an offer, shall be taken by the board of the offeree company in relation to the affairs of the company without the approval of the shareholders of the offeree company in general meeting. (2) In particular the board must not, without such approval(a) (b) issue any shares; issue or grant options in respect of any unissued shares;

(c) create or issue or permit the creation or issue of any securities carrying rights of conversion into, or subscription for, shares of the company; (d) sell, dispose of or acquire or agree to sell, dispose of or acquire assets of material amount; (e) enter into contracts, including service contracts, otherwise than in the ordinary course of business; or (f) cause the company or any subsidiary or associated company to

purchase or redeem any shares in the company or provide financial assistance for any such purchase. (3) Where the company is under a prior contractual obligation to take any such action, or where there are other special circumstances, the Commission must be consulted at the earliest opportunity. (4) In appropriate circumstances the Commission may grant a waiver from the general requirement to obtain shareholders' approval. 16. When there has been announcement of a firm intention to make an No withdrawal offer, except with the consent of the Commission, the offeror must of an offer proceed with the offer unless the posting of the offer is subject to the prior fulfilment of a specific condition and that condition has not been met. 17. (1) Relevant information relating to the offeree, including particulars of shareholders, given by the offeree shall, on request, be furnished equally ad promptly to any other bonafide potential offeror, who shall specify the questions to which it requires answers. (2) An offeror is not entitled, by asking in general terms, to receive all the information supplied to its competitor. Information to offerors

SECTION IV-OBLIGATIONS OF DIRECTORS


18. Except with the consent of the Commission the directors of an offeree company shall not resign until the first closing date of the offer, or the date when the offer becomes or is declared unconditional, whichever is the later. Resignation of directors of offeree company

19. When directors (and their close relatives, related trusts and Sale of shares companies controlled by them, their close relatives or related trusts) sell by directors shares to a purchaser as a result of which the purchaser is required to make an offer under clause fifty-six, such directors must ensure that as a condition of the sale the purchaser undertakes to fulfil his obligations under that Rule.

SECTION V-TIMING AND CONTENT OF DOCUMENTS


20. Information about companies involved in an offer must be made equally available to all shareholders as nearly as possible at the same Availability of information

time and in the same manner. 21. (1) The offer document, which must not be dated more than three Offer document days prior to despatch, should normally be posted by or on behalf of the time limit offeror company within twenty-one days (or, in the case of a securities exchange offer, thirty-five days) of the announcement of the terms of the offer. (2) The consent of the Commission is required if the offer document may not be posted within this period. 22. The offer document submitted by the offeror to the offeree Contents of shareholders shall contain all such information as is necessary to enable offer document offeree shareholders to reach a properly informed decision. 23. The offeree company shall send to its shareholders within fourteen Offeree circular days of the posting of the offer document a document containing all such information as it considers to be necessary to enable its shareholders to reach a properly informed decision on the offer 24. (1) The offeree company's document must include the views of its board on the offer and the written advice of its financial adviser as to whether the offer is, or is not, fair and reasonable and the reasons therefor. (2) Reference is made in this regard to clause five. (3) If the offeree company's financial adviser is unable to advise whether the offer is, or is not, fair and reasonable the Commission should be consulted. Views of offeree's board and financial adviser

25. (1) Documents subsequently sent to shareholders of the offeree Subsequent company by either party must contain details of any material changes in documents information previously published by or on behalf of the relevant party during the offer period. (2) If there have been no such changes this must be stated.

SECTION IV-STANDARD OF CARE AND RESPONSIBILITY


26. (1) Any document must be prepared with the same standard of care Prospectus as if it were a prospectus. standard (2) This applies whether the document is issued by the company, or by

an adviser on its behalf, or by any other person in relation to an offer. (3) Those who issue any such document must ensure that it remains accurate and up to date throughout the offer period, and must notify shareholders of any material change as soon as possible. 27. (1) Shareholders must be given sufficient information and advice to Sufficient enable them to reach a properly informed decision as to the merits or information demerits of an offer. (2) Such information must be available to shareholders early enough to enable them to make a decision in good time. (3) The obligation of an offeror in these respects towards the shareholders of the offeree company is no less than the offeror's obligation towards its own shareholders. Directors' joint 28. Documents shall state that all directors of the offeror, or, as appropriate, the offeree, jointly and severally accept full responsibility and several for the accuracy of information contained in the document and confirm, responsibility having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in the document have been arrived at after due and careful consideration and there are no other facts not contained in the document, the omission of which would make any statement in the document misleading. 29. (1) If it is proposed that any director shall be excluded from such a statement, the Commission's consent is required. (2) In such cases, the exclusion and reasons for it shall be stated in the document. Commission's consent required for exclusion of directors

SECTION VII-PROFITS FORECASTS


30. (1) A profit forecast must be compiled with due care and objectivity Standard of care by the directors, whose responsibility it is. (2) The financial advisers must report whether or not they are able to satisfy themselves that the forecast has been so compiled with such report must be set out in the relevant document. 31. (1) When a profit forecast appears in any document, the assumptions, including the commercial assumptions, upon which the forecast is based must be stated in the document. Assumptions

(2) Such assumptions shall be specific rather than vague. (3) All-embracing assumptions and those relating to the general estimates made in the profit forecast shall be avoided. (4) Furthermore it will not normally be acceptable for assumptions to relate to matters which the directors, by virtue of their particular knowledge and experience in the business, are best able to take a view on, or over which they are able to exercise control, since such matters should be reflected directly in the profit forecast.

SECTION VIII-ASSET VALUATIONS


32. When revaluations of assets of either the offeror or offeree Disclosure of company are made in connection with an offer, details of the revaluations revaluations or an appropriate summary thereof must be included in the offer document or other document circulated to the shareholders of the offeree company by its board. 33. (1) The revaluations must be carried out or confirmed by an independent, professionally-qualified valuer or other expert and the basis of valuation clearly stated. (2) The document shall include a statement that the valuer or other expert has given and not withdrawn his consent to the issue of the document with the inclusion of the valuation in the form and context in which it is included. Preparing revaluations

SECTION IX-ISSUANCE OF DOCUMENTS


34. (1) Two copies of all documents must be filed with the Commission Filing of for comment prior to release or publication and must not be released or documents for published until the Commission has confirmed that it has no further comments comments thereon. (2) The final copy of the document must be filed with the Commission and the Stock Exchange in duplicate. 35. All announcements must be published as a paid announcement in at least one daily newspaper of general circulation throughout Zambia. Publication of announcements

SECTION X-OFFER TIMETABLE


36. An offer must be open for at least 21 days following the date of Minimum

posting of the offer. 37. If the offer is conditional, it must specify the latest day when the offeror can declare the offer unconditional.

period Conditions

38. (1) Where a conditional offer becomes or is declared unconditional, Fourteen day it shall remain open for acceptance for not less than fourteen days period for acceptance thereafter. (2) In any announcement of an extension of an offer, either the next closing date must be stated or, if the offer is then unconditional, a statement may be made that the offer will remain open until further notice. (3) In the latter case, at least fourteen days notice in writing must be given before the offer is closed to those shareholders who have not accepted the offer. 39. Except with the consent of the Commission, an offer shall not be Final day kept open after the expiry of sixty days from the date of the posting of the intial offer document unless it has previously become unconditional. 40. (1) If, in the course of an offer, the offeror revises its terms, all Revised offer offeree shareholders, whether or not they have already accepted the offer, will be entitled to the revised terms. (2) A revised offer must be kept open for at least fourteen days form the date of posting written notification of the revision to shareholders. 41. An acceptor shall be entitled to withdraw his acceptance after twenty-one days from the first closing date of the offer, if the offer has not by then become unconditional. Such entitlement to withdraw shall be exercisable until the offer becomes unconditional. Acceptor's right to withdraw

SECTION XI-ANNOUNCEMENT OF RESULTS OF OFFER


42. (1) The offeror shall immediately inform the Commission and the Stock Exchange that an offer has been revised or extended, has expired or has become or has been declared unconditional and shall publish an announcement on the following day to that effect. (2) The announcement shall state the number of shares which it or any person acting in concert with it has or controls, the number of shares for Nature of announcement

which acceptances of the offer have been received, and the number of shares otherwise acquired by the offeror and any person acting in concert with it during the offer period. (3) The statement must also specify the percentages of the relevant classes of share capital, and the percentages of voting rights, represented by these numbers. 43. (1) The Commission shall be consulted if an offeror is unable to comply with any of the requirements of clause forty-two. (2) The Commission may require that acceptors be granted a right of withdrawal, on terms acceptable to the Commission, until the requirements of this rule can be met. Consequences of failure to announce

SECTION XII-RESTRICTIONS ON DEALINGS BEFORE AND DURING THE OFFER


44. (1) No dealings of any kind in the securities of the offeree company Restrictions on may be transacted by any person with a commercial interest who has dealings before confidential price sensitive information concerning an actual or the offer contemplated offer or revised offer between the time when there is reason to suppose that an approach or an offer or revised offer is contemplated and the announcement of the approach, the offer, the revised offer, or of the termination of the discussions. (2) Such restriction does not apply to an offeror, or persons acting in concert with the offeror, in respect of such dealings if such dealings are transacted for purposes of the offer unless the offeror, or a person acting in concert with the offeror, is a director or employee of the offeree company. (3) No such dealings may take place in the securities of the offeror except where the offer in not price sensitive in relation to those securities. 45. During an offer period, the offeror and persons acting in concert with the offeror must not sell any securities in the offeree company except with the prior consent of the Commission and following twenty-four hours public notice that such sales might be made. 46. During an offer period for an offer consisting of shares of the offeror traded on a Stock Exchange (and for which there is no cash alternative) the offeror, and persons acting in concert with him, may not engage in any purchase of the offeror's shares until the later of the date Restrictions on dealings during the offer

Restrictions on dealings by offeror during non-cash offers

the offeror abandons its intention to conduct the offer and the date the related offer period expires. 47. If discussions are terminated or the offeror decides not to proceed Dealings after with an offer after an announcement has been made that offer termination of discussions are taking place or that an approach or offer is contemplated, discussion no dealings in securities of the offeree company by any person privy to this information may take place prior to an announcement of the position.

SECTION XIII-DISCLOSURE OF DEALINGS DURING OFFER PERIOD


Dealings in 48. (1) During an offer period all parties to a takeover or merger transaction and their advisers and any persons acting in concert with any relevant of them are free to deal, subject to clauses forty-four, forty-five, securities forty-six, forty-seven, fifty-two, fifty-three and fifty-four and to the disclosures and restrictions mentioned in this clause being made and complied with by them, as follows: (a) Own account-Dealings in relevant securities by any such person for his own account during an offer period must be disclosed forthwith in writing to the Commission. (b) Discretionary accounts-Dealings in relevant securities by any such person for discretionary accounts (but not for non-discretionary accounts) of investment clients during an offer period must be disclosed forthwith in writing to the Commission. (c) Material trading arrangement-Dealings in relevant securities by any company having a material trading arrangement with an offeree company must be disclosed forthwith in writing to the Commission. (2) For the purposes of this rule(a) dealings include the purchase and sale of securities, the exercise or conversion of rights over securities, subscriptions for securities, and redemptions or purchases by a company of its own securities; (b) disclosure of dealings must include the following information(i) the total of the relevant securities in question purchased or sold, or redeemed or purchased by the company itself; (ii) the prices paid or received; (iii) the identity of the person(s) dealing; (iv) if the dealing is by a person acting in concert with the offeror or the offeree company, an explanation of how that status arises;

(v) if the disclosure is made by a five per cent shareholder, a statement to that effect; and (vi) the resultant total amount of relevant securities owned or controlled by the person(s) in question (including those of any person with whom there is an agreement or understanding) and the percentage which it represents. 49. During an offer period, if a person, or group of persons acting in Dealings by concert, owns or controls (directly or indirectly) five per cent or more of five per cent any class of relevant securities, or as a result of any transaction will so shareholders own or control five per cent or more, dealings in such securities of that company by such person or persons (or any other person through whom ownership or control is derived) must be disclosed to the Commission. 50. If a person manages investment accounts on a discretionary basis, Discretionary Accounts relevant securities so managed will be treated, for the purpose of this rule, as controlled by that person and not by the person on whose behalf the relevant securities are managed.

SECTION XIV-CASH OFFER


When cash (a) shares of any class under offer in the offeree company have been offer required purchased for cash by an offeror, and any person acting in concernt with the offeror, during the offer period and within six months prior to its commencement and such shares carry ten per cent or more of the voting rights or the offeree company; (b) an offeror making a non-cash offer (for which there is no cash alternative) acquires shares of the offeree for cash during the offer period and thereby becomes obligated to increase its offer pursuant to clause fifty-two; or (c) in the view of the Commission there are circumstances which render such a course necessary in order to give effect to General Principal One set forth in the Second Schedule, the offer or revised offer, as the case may be, shall be in cash or accompanied by a cash alternative and, in the case of (a) and (c), the offer price shall not be less than the highest price paid by the offeror or any person acting in concert with it for shares of that class during the offer period and within six months prior to its commencement. 51. (1) Where-

(2) The consent of the Commission is required if the offeror wishes to make its offer for a price other than the highest price paid by it, or any person acting in concert with it for shares of the class that is the subject of the offer during the offer period and within six months prior of its commencement.

SECTION XV-PURCHASES AT ABOVE OFFER PRICE


52. If the offeror or any person acting in concert with its purchases Highest price securities in the offeree company in the market or otherwise during the paid offer period at above the offer price, then the offeror must increase the offer to not less than the highest price (excluding stamp duty and dealing costs) paid for any securities so acquired. 53. (1) If the offer involves a further issue of securities of a class already traded on a Stock Exchange, the current value of the offer on a given day should normally be established by reference to the average traded price of such securities traded during the immediately preceding trading period. (2) If the offer involves a combination of cash and securities and further purchases of the offeree company's shares oblige the offeror to increase the value of the offer, the offeror must endeavour, as far as practicable, to effect such increase while maintaining the same ratio of cash to securities as is represented by the offer. Offers involving a further issue of listed securities

54. Shareholders of the offeree company must be notified in writing of Shareholder the increased price at least fourteen days before the offer closes, and an notification announcement must be made stating the number and class of securities purchased and the price paid. 55. Except with the consent of the Commission neither the offeror nor Special dates any person acting in concert with it may enter into arrangements to purchase or sell securities of the offeree company, or to accept an offer, either during an offer or when one is reasonably in contemplation if such arrangements have special conditions which are not extended to all shareholders.

SECTION XVI-MANDATORY OFFER

When mandatory offer (a) any person acquires, whether by a series of transactions over a period of time or not, thirty-five percent or more of the voting rights of a required company; 56. Subject to the granting of a waiver by the Commission, if(b) two or more persons are acting in concert, and they collectively hold less than thirty-five per cent of the voting rights of a company, and any one or more of them acquires voting rights and such acquisition has the effect of increasing their collective holding of voting rights to thirty-five per cent or more of the voting rights of the company; (c) any person holds not less than thirty-five per cent, but not more than fifty per cent, of the voting rights of a company and that person acquires additional voting rights and such acquisition has the effect of increasing that person's holding of voting rights of the company by more than five per cent from the lowest percentage holding of that person in the twelve-month period ending on and inclusive of the date of the relevant acquisition; or (d) two or more persons are acting in concert, and they collectively hold not less than thirty-five per cent, but not more than fifty per cent, of the voting rights of a company, and any one or more of them acquires additional voting rights and such acquisition has the effect of increasing their collective holding of voting rights of the company by more than five per cent from the lowest collective percentage holding of such persons in the twelve-month period ending on and inclusive of the date of the relevant acquisition, that person, or the principal members of the concert group, as the case may be, shall extend offers, on the basis set out in this rule, to the holders of each class of equity share capital of the company, whether the class carries voting rights or not, and also to the holders of any class of voting non-equity share capital in which such person, or persons acting in concert with him, hold shares. Offers for different classes of equity share capital must be comparable and the Commission shall be consulted in advance in such cases. 57. Except with the consent of the CommissionConditions

(a) offers made under clause fifty-six must be conditional upon, and only upon, the offeror having received acceptances in respect of voting rights which, together with voting rights acquired or agreed to be acquired before or during the offer, will result in the offeror and any person acting in concert with it holding more than fifty per cent of the voting rights; and (b) no acquisition or voting rights which would give rise to a requirement for an offer under clause fifty-six may be made if the

making or implementation of such offer would or might be dependent on the passing of a resolution at any meeting of shareholders of the offeror or upon any other conditions, consents or arrangements. 58. (1) Offers made under clause fifty-six must, in respect of each class Consideration or equity share capital involved, be in cash or be accompanied by a cash alternative at not less than the highest price paid by the offeror or any person acting in concert with it for voting rights of the offeree within the preceding six months. (2) The cash offer or the cash alternative must remain open after the offer has become or is declared unconditional for not less than fourteen days thereafter. (3) The Commission shall be consulted where there is more than one class of voting capital involved or where there are no relevant purchases within the preceding six months. (4) The Commission's consent is required if the offeror considers that the highest price should not apply in a particular case. Restrictions on 59. Except with the consent of the Commission, no nominee of an offeror or persons acting in concert with it may be appointed to the control by board of the offeree company, nor may an offeror and persons acting in offeror concert with it exercise offeree company voting rights, until the offer document has been posted. 60. The board and officials and registrars of an offeree company shall Prompt use their best endeavours to ensure the prompt registration of transfers registration of during an offer period so that shareholders can freely exercise their transfers voting and other rights.

SECTION XVII-CONDITIONS
61. An offer must not normally be made subject to conditions which depend on judgments by the offeror or the fulfilment of which is in its hands. Subjective conditions

62. (1) Except with the consent of the Commission, all offers (other Acceptance than partial offers), whether voluntary or mandatory, shall be condition conditional upon the offeror having received acceptances in respect of shares which, together with shares acquired or agreed to be acquired before or during the offer, will result in the offeror and persons acting in

concert with it holding more than fifty per cent of the voting rights of the offeree company. (2) A voluntary offer may be made conditional on an acceptance level of shares carrying a higher percentage of the voting rights. (3) Mandatory offers made under clause fifty-six shall be subject to no other conditions, whether as to minimum or maximum levels or acceptances required to be received or otherwise. (4) It follows that the offer should be unconditional as to acceptances where the offeror and persons acting in concert with it hold more than fifty per cent of the voting rights before such offer is made.

SECTION XVIII-DELAY BEFORE SUBSEQUENT OFFER


63. (1) Except with the consent of the Commission, where an offer has Temporary ban been announced or posted but has not become unconditional in all respects, and has been withdrawn or has lapsed, neither the offeror nor any person who acted in concert with it in the course of the original offer, nor any person who is subsequently acting in concert with any of them, may within twelve months from the date on which such offer withdrawn or lapses either(a) make an offer for the offeree company; or (b) acquire any voting rights of the offeree company if offeror or persons acting in concert with it would thereby become obliged under clause fifty-six to make an offer. (2) The restriction in this Rule may also apply where a person, having made an announcement which, although not amounting to the announcement of an offer, raises or confirms the possibility that an offering might be made, does not announce a firm intention either to make, or not to make, an offer within a reasonable time thereafter. 64. (1) The restrictions in clause sixty-three also apply following a partial offer which could result in a holding of not less than thirty-five per cent of the voting rights of the offeree company whether or not the offer has become or been declared wholly unconditional. (2) When such an offer has become or been declared wholly unconditional, the period of twelve months runs from the date. 65. (1) Except with the consent of the Commission, if a person, together with any person acting in concert with him holds more than fifty per cent of the voting rights of a company, neither that person nor an person acting in concert with him may, within six months of the Partial offers

Six months delay before acquisition above offer

closure of any previous offer made by him to the shareholders of that price company which become or was declared wholly unconditional, make a second offer to shareholders, or purchase any shares of that company at a higher price than that made available under the previous offer. (2) For this purpose the value of a securities exchange offer shall be calculated as at the day the offer became, or was declared, unconditional.

SECTION XIX-SUBSTANTIAL ACQUISITIONS


66. (1) Following an acquisition or disposal of shares carrying voting Disclosures rights in a company, or rights over such shares, a person must disclose that acquisition or disposal and his total holding to the company not later than 9.00 a.m. on the dealing day following the date of the acquisition or disposal, if(a) as a result of the acquisition he comes to hold, with any shares or rights over shares already held by him, shares or rights over shares representing twenty per cent or more but less than thirty-five per cent of the voting rights in a company; or (b) as a result of the acquisition or disposal his holding of shares or rights over shares already represents twenty per cent or more of the voting rights and is increased or decreased to or beyond any whole percentage figure representing twenty per cent or more but not exceeding thirty-five per cent; or (c) as a result of a disposal his holding of shares or rights over shares decreases from one representing twenty per cent or more of the voting rights to one representing less than twenty per cent. (2) Where two or more persons act by agreement or understanding in the acquisition by one or more of them of shares carrying voting rights in a company, or rights over such shares, their holding and acquisitions must be aggregated and treated as a holding or acquisition by one person for the purpose of this Rule. (3) Each person acting in such manner must ensure that the obligations arising under this Rule are fulfilled. (4) The terms of such disclosures are the same (with any necessary modifications as may be appropriate) as for clause forty-eight. SECTION 3-THE SECURITIES (ACCOUNTING AND FINANCIAL REQUIREMENTS) RULES Statutory Instrument 171 of 1993

RULE 31-THE SECURITIES (SPECIFICATION OF APPROVED ASSETS, LIQUID ASSETS AND RANKING LIABILITIES) NOTICE Notice by the Securities and Exchange Commission 1. This Notice may be cited as the Securities (Specification of Approved Assets, Liquid Assets and Ranking Liabilities) Notice. 2. In this Notice, unless the context otherwise requires"licensed bank" means a bank registered under the Banking Act or licensed or registered under any Act amending or replacing that Act; "the Rules" means the Securities (Accounting and Financial Requirements) Rules, 1993. 3. The following assets of a licensed dealer or investment adviser, Approved which form part of his business of dealing in securities and are assets beneficially owned by the dealer or investment adviser, as the case may be, are hereby specified as approved assets for the purposes of rule thirty-one of the Rules, to the extent of their valuation in accordance with clause six: (a) (b) cash and foreign currency in hand; money or foreign currency on account with a licensed bank; Title

Interpretation

(c) certificates of deposit, acceptances and floating-rate notes issued by a licensed bank; (d) amounts receivable in the ordinary course of business of dealing in securities, but excluding amounts receivable which are due to be settled against delivery of securities and remain outstanding for more than five bank trading days; (e) (f) (g) prepaid expenses; shares in a licensed securities exchange at nominal value; treasury bills issued by the government;

(h) eighty per cent by value of net investment in bonds issued by the government with a remaining term of five years or more, ninety per cent by value of those with a remaining term of less than five years but not more than one year, one hundred per cent by value of those with a remaining term of one year or less;

(i) sixty per cent by value of net investment in shares traded on a licensed securities exchange; (j) sixty per cent by value of net investment in a collective investment scheme authorised under Part X of the Act; (k) gold bullion and coins; and (l) certificates representing any of the assets included in paragraph (g), (h), (i) or (j), valued consistently with the prices ascribed to those assets under this notice; (m) repurchase agreements with the Bank of Zambia; and (n) interests in immovable (real) property in Zambia, subject to a maximum value of twenty-five per cent of the requisite minimum net capital required under rule twenty-eight of the Rules. Liquid assets 4. The following approved assets of a licensed dealer or investment adviser are hereby specified as liquid assets for the purposes of rule thirty-one of the Rules to the extent of their valuation in accordance with clause six; (a) (b) cash and foreign currency in hand; money or foreign currency on account with a licensed bank;

(c) certificates of deposit, acceptances and floating-rate notes issued by a licensed bank; (d) amounts receivable in the ordinary course of dealing in securities, but excluding amounts receivable which are due to be settled against delivery of securities and remain outstanding for more than five bank trading days; (e) treasury bills issued by the government; (f) eighty per cent by value of net investment in bonds issued by the government with a remaining term of five years or more, ninety per cent by value of those with a remaining term of less than five years but not more than one year, one hundred per cent by value of those with a remaining term of one year or less; (g) sixty per cent by value of net investment in shares traded on a licensed securities exchange; (h) sixty per cent by value of net investment in a collective investment scheme austhorised under Part X of the Act; (i) gold bullion and coins; certificates representing any of the assets included in paragraph (j) (e), (f), (g) or (h), valued consistently with the prices ascribed to those

assets under this notice; and (k) repurchase agreements with the Bank of Zambia. Ranking liabilities

5. (1) Subject to subclause (2), the following liabilities of a licensed dealer or investment adviser are hereby specified as ranking liabilities for the purposes of rule thirty-one of the Rules: (a) amounts payable in the ordinary course of business of dealing in securities; (b) (c) overdrafts and loans from licensed banks or overseas banks; accrued expenses;

(d) tax payable or provided for, including that on current year profits; (e) any liability that is secured on an approved asset within the meaning of clause three; (f) all other liabilities that are regarded as liabilities under generally accepted accounting principles; and (g) provision for contingent liabilities in accordance with generally accepted accounting principles. (2) Notwithstanding subclause (1) where a licensed dealer or investment adviser in the acquisition of any fixed asset that is used in the ordinary course of business of dealing in securities, incurs any liability that is not required to be settled within twelve months, the liability shall not, to the extent of the net book value of the asset, be included as a ranking liability for the purposes of calculating the liquidity margin of the dealer or investment adviser, as the case may be. 6. Subject to subclauses (2) and (3), all approved and liquid assets shall Valuation of be valued in accordance with generally accepted accounting principles. approved and liquid assets (2) The following assets shall be valued at the market value of each

such asset: (a) shares traded on a licensed securities exchange;

(b) investment in a collective investment scheme authorised under Part X of the Act; and (c) gold bullion and coins.

(3) An interest in immovable (real) property shall be valued at market value by an independent valuer accepted to the Commission. SECTION 78-THE SECURITIES (ADVERTISEMENTS) RULES Rules by the Securities and Exchange Commission Statutory Instrument 166 of 1993 13 of 1994

1. These Rules may be cited as the Securities (Advertisements) Rules. Title 2. (1) In these Rules, unless the context otherwise requires"advertisement" includes every form of advertising, whether in a publication, brochure, handout, or letter-head, or by the display of notices, or by means of circulars or other documents, or by an exhibition of photographs or cinematograph films or videos, or by way of sound broadcasting or television, or by the distribution of recordings or in any other manner, but shall not include lealers' circulars to customers, nor any communications between licensees or between licensees and issuers of securities; "image advertisement" means an advertisement that does no more than(a) promote public awareness of the licensee; (b) describe the services the licensee provides or the types of investment the licensee markets; (c) commend the licensee in general, but not any particular service the licensee provides or types of investment the licensee markets; or (d) offer to supply further information on request; "securities advertisement" means any advertisement for or in connection with securities or securities business; Interpretation

"licensee" means a person licensed under Part IV of the Act; "promotion" means advertising, issuing a prospecturs, application form or proposal form, or circulating or making available promotional material; "prospectus" means any prospectus, notice, circular, or other document which is an offer to the public of any securities for subscription, purchase or exchange; "Securities" has the meaning given in section two of the Act, and includes investments in collective investment schemes; "securities business" means dealing in, or advising in relation to, securities; "short form advertisement" means advertisement that contains the licensee's name and in respect of the business of the licensee's securities business does no more than some or all of the following: (a) display the licensee's address, telephone number, symbol or logogram; (b) describe the licensee's business and the fees charged; (c) contain a statement that the licensee is regulated in the conduct of the licensee's business by the Commission; (d) state, in relation to securities that the licensee will or may buy or sell (or arrange to buy or sell), their names, indicative prices, difference of prices from previous prices, their income and yields and their earnings (or price/earnings ratio); (e) state, simply as a matter of fact, and not so as to imply any offer to deal, that the licensee alone or with others named, arranged the issue of or a transaction in a particular security. (2) For the purposes of these Rules, an advertisement issued outside Zambia shall be treated as issued in Zambia if(a) it is directed to persons in Zambia; or

(b) it is made available to persons in Zambia as a newspaper, journal, magazine or [illegible word] published and circulating principally outside Zambia or in a sound or television broadcast transmitted principally for reception outside Zambia. 3. Subject to rule four, no person other than a licensee shall issue or cause to be issued a securities advertisement in Zambia. Restrictions on advertising

4. Rule three does not apply to an advertisement issued or caused to be Exceptions issued by, and relating only to securities issued byfrom (a) the Government of Zambia or the government of any country or restrictions on advertising territory outside Zambia; or (b) the central bank of any country or territory. Advertisements to comply with Schedule

5. A licensee shall not issue or cause to be issued, whether in Zambia or elsewhere, a securities advertisement unless the requirements of the Schedule to these Rules are complied with in relation to that advertisement. 6. (1) If the Commission considers that any securities advertisement issued, caused to be issued or proposed to be issued by a licensee is misleading or is otherwise in breach of these Rules, the Commission may by notice in writing give the licensee a direction under this rule. (2) A direction under this rule may contain all or any of the following prohibitions or requirements(a) a prohibition on the issue of advertisements of a specified kind;

Advertisement directions

(b) a requirement that advertisements of a particular description shall be modified in a specified manner; (c) a prohibition on the issue of any advertisements which are, wholly or substantially, repetitions of an advertisement which has been issued or is proposed to be issued and which is identified in the direction; (d) a requirement to take all practical steps to withdraw from display in any place or from circulation any advertisement or any advertisements of a particular description specified in the direction; (e) a requirement, in respect of a particular advertisement, that a correction be published in the manner and form specified by the Commission.

7. A copy of every securities advertisement issued or caused to be issued by a licensee shall be forwarded forthwith by the licensee to the Commission.

Advertisements to be copied to the Commission

8. Any person who issues or causes to be issued in Zambia a securities Offences advertisement the issue of which is prohibited by rule three, or which does not comply with rule five or with a direction under rule six, commits an offence and is liable on summary conviction to a fine not exceeding one hundred thousand penalty units. (As amended by Act No. 13 of 1994)

SCHEDULE
(Rule 5) 1. The significance of any statement or other matter required by the Prominence of provisions of this Schedule to be included in an advertisement shall not required be disguised either through lack of prominence in relation to the statements remainder of the advertisement or by the inclusion of matter calculated to minimise the significance of the statement or the other matter required to be included. 2. (1) The content of a securities advertisement and the manner of its Advertisements to be clear and presentation shall be such that the advertisement is not likely to be not misleading misunderstood. (2) A securities advertisement shall not contain any statement, promise or forecast unless the licensee issuing it has taken all reasonable steps to ensure that each such statement, promise or forecast is not misleading in the form or context in which it appears. (3) A securities advertisement shall not contain any statement, purporting to be a statement of fact that the licensee issuing it does not reasonably believe at the time, on the basis of evidence of which he has a record in his possession, to be true. (4) If the securities or securities business to which an advertisement relates is available in limited quantities, or for a limited period or on special terms for a limited period, the advertisement may say so but, if that is not the case, the advertisement shall not contain any statement or matter that implies it is so.

3. (1) The terms of a securities advertisment and the manner of its presentation shall be such that it appears to be an advertisement issued with the object of promoting the securities, securities business or licensee to which it relates. (2) Where the medium in which the advertisement is carried contains or presents other matter the advertisement shall be distinguished from that other matter so that the part that is an advertisement clearly appears as such. 4. Except in the case of a short form advertisement or an image advertisement, the nature of the securities or securities business to which the advertisement relates shall be clearly described.

Advertisements to be distinguished from other matter

Advertisements to identify the securities or securities business to which they relate

5. No securities advertisement shall be issued with the intention not of Promotions to persuading persons who respond to the advertisment to pursue the be genuine subject matter of the advertisement but, with the intention instead, of persuading them to enter into an agreement, or use business services, of a description not mentioned in the advertisement. 6. A securities advertisement shall not contain any matter that states or implies that the securities or securities business which is the subject of the advertisement or any matter in the advertisement has the approval of any Government department or of the Commission. Advertisements not to imply governmental approval

7. A securities advertisement that states some only of the rights and obligations attaching to an investment in securities or some only of the terms and conditions of a securities agreement shall(a) state sufficient of them to give a fair view of the nature of the investment in securities, of the financial commitment undertaken by an investor in acquiring the investment in securities and of the risks involved; and (b) state how a written statement of all of them can be obtained.

Synopses to be fair

8. A securities advertisement shall not compare or contrast one Comparison investment in securities with an alternative investment, or one securities with other

service with an alternative securities service, unless the comparisons and contrasts are fair in relation to what is promoted and to the alternative having regard to what is not stated as well as to what is stated. 9. (1) A securities advertisement that refers to taxation shall contain a warning that the levels and bases of taxation can change. (2) A securities advertisement that contains any matter based on an assumed rate of taxation shall state what that rate is. (3) A securities advertisement that refers to reliefs from taxation(a) shall state that the reliefs are those that currently apply; and (b) shall contain a statement that the value of a relief from taxation depends upon the circumstances of the tax payer.

investments or services

Taxation

10. Where a securities advertisement states that an investor who enters Cancellation into an investment agreement to which the advertisement relates will be rights given an opportunity to cancel the agreement, the advertisement shall define the period during which the investor will have that right and the time when the period will begin. 11. A securities advertisement shall not contain information about the Past performance past performance of securities investments of any description unless(a) it is relevant to the performance of the securities investment the subject of the advertisement; (b) except where the source of the information is the advertiser itself, the source of the information is stated; (c) if the whole of the information is not set out(i) what is included is not unrepresentative, unfair or otherwise misleading; and (ii) the exclusion of what is excluded does not have the effect of exaggerating the success of performance over the period to which the information that is included relates; (d) if the information is presented in the form of a graph or chart, no part of the information is omitted so as to give a misleading impression of the rate at which variable quantities have changed; (e) in the case of an advertisement of units or shares in a collective investment scheme, any comparison made between the value of an investment in those units or shares at different times is on an offer to bid basis, that is to say, on the basis of what it would have cost to acquire an

amount of the units at the earlier time and what a disposal of that amount of those units would have realised at the later time, and the fact that that is the basis of the comparison is stated; (f) the period which is selected as illustrating past performance is a period of not less than three years which period must end no more than three months before the date of the issue of the advertisement; and (g) the advertisement contains a warning that the past is not necessarily a guide to the future. 12. (1) A securities advertisement shall not contain any statement indicating the scale of the activities or the extent of the resources of a licensee, or of any group of which the licensee is a member, so as to imply that the resources available to support the performance of the licensee's obligations are greater than they are. (2) Statements which relate to resources of members of a group other than the licensee shall clearly state that fact. Risk warnings 13. (1) This paragraph applies to any securities advertisement that is not a short form or image advertisement. (2) An advertisement shall contain a statement in accordance with this paragraph warning of the risks involved in acquiring or holding the securities investment the subject of the advertisement. (3) Where the advertisement relates to a securities investment in the case of which deductions for charges and expenses are not made uniformly throughout the life of the investment but are loaded disproportinately onto the early years, the advertisement shall draw attention to that fact and that accordingly, if the investor withdraws from the investment in the early years, he may not get back the amount he has invested. (4) Where the advertisement relates to an investment that can fluctuate in value in money terms, the statement shall draw attention to that fact and to the fact that the investor may not get back the amount he has invested. (5) Where the advertisement offers an investment as likely to yield a high income or as suitable for an investor particularly seeking income from his investment, the statement shall draw attention to that fact that income from the investment may fluctuate in value in money terms. (6) Where the advertisement relates to an investment denominated in a currency other than that of the country in which the advertisement is issued, the advertisement shall draw attention to the fact that changes in rates of exchange between currencies may cause the value of the investment to diminish or to increase. Indications of the scale of business activities

(7) Where the advertisement contemplates the investor entering pay unspecified additional amounts later, the statement shall draw attention to the fact that the investor may or, as the case may be, will have to pay more money later and that accordingly a transaction in that investment can lose the investor more than his first payment. (8) Where the advertisement relates to an investment that is not readily realisable(a) if the investment is not traded on an established securities exchange, the statement shall draw attention to the fact that there is no established market for investment so that it may be difficult for the investor to sell the investment or for him to obtain reliable information about its value or the extent of the risks to which it is exposed; or (b) if the investment is traded on an established securities exchange but is dealt in so irregularly or infrequently(i) that it cannot be certain that a price of that investment will be quoted at all times; or (ii) that it may be difficult to effect transactions at any price that may be quoted; the statement shall draw attention to that fact. 14. A securities advertisement shall not describe a prospective investment return as being in any way guaranteed, secured, assured or promised, either expressly or impliedly, unless the advertisement has been approved in writing by the Commission prior to its issue. Guaranteed returns

15. (1) Each securities advertisement in a publication shall state in the Dating bottom right hand corner of the advertisement the date on which it was first issued. (2) Any securities advertisement by way of a prospectus, brochure, handout or similar marketing literature shall state the date on which it was first issued on either the front or back outside cover page. (3) Any securities advertisement by way of a cinematograph film, video or TV broadcast shall bear the date on which it was first issued prominently at the beginning or end of the advertising material. THE SECURITIES (COMPENSATION FUND) REGULATIONS [ARRANGEMENT OF RULES]

Regulation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Title Interpretation Ownership of compensation fund Compensation fund to be kept in dedicated bank account Accounts of compensation fund Investment of compensation fund Application of compensation fund Claims against compensation fund Notice calling for claims against compensation fund Power of Committee in respect of claims Appeals

12. Prosecution or conviction not a condition precedent to payment of compensation 13. 14. Authority to pay claimant Power of Committee to require production of securities, etc.

15. Subrogation of Commission to rights, etc., of claimant upon payment from fund 16. 17. 18. 19. 20. Payment of claims only from compensation fund Provision where compensation fund insufficient to meet claims Provision where claims exceed total amount payable Power of Committee to enter into contracts of insurance Application of insurance moneys Statutory Instrument 162 of 1993 Title

SECTION 27-SECURITIES (COMPENSATION FUND) REGULATIONS Regulations by the Minister

1. These Regulations may be cited as the Securities (Compensation Fund) Regulations. 2. In these Regulations, unless the context otherwise requires"compensation fund" and "fund" mean the compensation fund

Interpretation

established by the Minister under section sixty-four of the Act; "Compensation Fund Committee" and "Committee" mean the Compensation Fund Committee appointed under section sixty-five of the Act; "default", in relation to the failure by a licensee to perform a legal obligation, means a default arising from(a) (b) the bankruptcy, winding up or insolvency of the licensee; any breach of trust committeed by the licensee; or

(c) any defalcation, fraud or misfeasance committed by the licensee, or by any representative, director or employee thereof; "legal obligation" includes an obligation arising under a contract or quasi contract or under a trust (including a constructive trust); "Licensee" means a dealer of an investment adviser, as the case may be, licensed under Part IV of the Act; "prescribed" means prescribed by the Commission; "representative" has the same meaning as section two of the Act. 3. The assets of the fund shall be the property of the Commission but shall be kept separate from all other property and shall be held in trust for the purposes set out in these Regulations. 4. All moneys forming part of the fund shall, pending the investment or application thereof in accordance with these Regulations, be paid or transferred into a dedicated bank account with a registered bank in Zambia. Ownership of compensation fund Compensation fund to be kept in dedicated bank account

5. (1) The Compensation Fund Committee shall establish and keep Accounts of proper accounts of the fund and shall before 30th June, in each year compensation cause a balance sheet in respect of such accounts to be made out as at the fund preceding 31st March.

(2) The Committee shall appoint an auditor to audit the accounts of the fund. (3) The auditor appointed by the Committee shall regularly and fully audit the accounts of the fund and shall audit each balance sheet and cause it to be laid before the Committee not later than three months after the balance sheet was made out. (4) The costs of audit pursuant to clause (3) shall be borne by the Commission. 6. Any moneys in the fund that are not immediately required for its purposes may be invested by the Committee in any manner in which trustees are for the time being authorised by law to invest trust funds. Investment of compensation fund

7. (1) Subject to these Regulations, the fund shall be held and applied Application of compensation for the purpose of compensating persons who suffer pecuniary loss as referred to in section sixty-seven of the Act from any default committed fund by a licensee, or by any representative director or employee thereof, in relation to any money or other property which, in the course of or in connection with the business of that licensee(a) was entrusted to or received by the licensee, or any representative director or employee thereof, for or on behalf of any other person; or (b) (in the case of a licensee who, in respect of the money or other property, was either the sole trustee or trustee with any other person), was entrusted to or received by such licensee, or by any representative director or employee thereof, as trustee or for or on behalf of the trustees of that money or property. (2) Subject to clause (3) the total amount of compensation that may be paid out of the fund under these Regulations to all persons who suffer loss through default by a licensee, or by any representative director or employee thereof, shall not exceed in respect of that licensee the sum of one million kwacha, which shall cover-

(a)

all claims arising out of that default; and

(b) all claims arising out of any earlier default by that licensee which have not been the subject of a determination under regulation thirteen. (3) Notwithstanding clause (2), the Minister may, by order, direct the Committee to increase the total amount in such sum as he may determine, which shall be applied from the fund in respect of a particular licensee in payment to persons who suffer loss through default by that particular licensee, or by any representative, director or employee thereof: Provided that the total amount to be so applied shall not in the case of any default exceed by more than fifty per cent the maximum sum specified in clause (2). 8. (1) Subject to these Regulations, every person who suffers pecuniary Claims against compensation loss as provided in clause (1) of regulation seven shall be entitled to claim compensation from the fund and to take proceedings in the Court fund against the Committee to establish such claim. (2) Subject to these Regulations, the amount which any claimant shall be entitled to claim as compensation from the fund shall be the amount of the actual pecuniary loss suffered by him (including the reasonable costs of and disbursements incidental to the making and proof of his claim) less the amount or value of all moneys or other benefits received or receivable by him from any source other than the fund in reduction of the loss. (3) In addition to any compensation payable under these Regulations, interest shall be payable out of the fund on the amount of the compensation, less any amount attributable to costs and disbursements, at such rate as the Commission may determine, calculated from the day upon which the default was committed and continuing until the day upon which the claim is satisfied. (4) Clause (1) does not entitle any licensee to make a claim against the fund.

9. (1) The Committee may cause to be published in a daily newspaper published and circulating generally in Zambia a notice, in or to the effect of the form prescribed, specifying a date, not being earlier than three months after the said publication, on or before which claims for compensation from the fund, in relation to the person specified in the notice, may be made. (2) A claim for compensation from the fund in respect of a default shall be made in writing to the Committee(a) on or before the date specified in the notice, where a notice under clause (1) has been published; or (b) within six months after the claimant became aware of the default, where no such notice has been published; and any claim which is not so made shall be barred unless the Committee otherwise determines. (3) No action for damages shall lie against the Committee or against any member or offer of the Committee by reason of any notice published in good faith and without malice for the purposes of this regulation.

Notice calling for claims against compensation fund

10. (1) Where the Committee is satisfied that a claim for compensation Power of under these Regulations is a proper claim, it shall, subject to these Committee in Regulations, make a determination allowing the claim. respect of claims (2) If the Committee is not satisfied as to the propriety of a claim for compensation, it shall make a determination disallowing the claim or, if it is satisfied as to the propriety of part of such a claim, it shall make a determination allowing the claim as to that part. (3) The Committee after disallowing (whether wholly or partly) any claim for compensation from the fund shall serve notice of such disallowance in the prescribed form on the claimant or his legal representative. (4) In any proceedings brought to establish a claim, evidence of any

admission or confession by, or other evidence which would be admissible against, the licensee or other person by whom it is alleged a default was committed shall be admissible to prove the commission of the default, notwithstanding that the licensee or other person is not the defendant in or a party to those proceedings, and all defences which would have been available to that licensee or person shall be available to the Committee. 11. (1) A person aggrieved by a decision of the Committee under regulation ten may appeal to the High Court. (2) No appeal shall be commenced after the expiration of three months after service of notice of disallowance under clause (3) of regulation ten. (3) The Court shall have and may exercise, subject to the same limitations, the same powers as the Committee in determining the claim in respect of which an appeal has been brought. 12. The Committee or, where appeal proceedings are brought, the Court, if satisfied that the default on which the claim is founded was actually committed, may allow the claim and act accordingly, notwithstanding that the person who committed the default has not been convicted or prosecuted therefor or that the evidence on which the Committee or Court (as the case may be) acts would not be sufficient to establish the guilt of that person upon a criminal trial in respect of the default. 13. The determination of the Committee under regulation ten or the decision on appeal of the Court under regulation eleven shall be sufficient authority to the Commission to pay the claimant the amount allowed. Prosecution or conviction not a condition precedent to payment of compensation Appeals

Authority to pay claimant

14. The Committee may at any time and from time to time require any Power of the person to produce and deliver any securities, documents or statements of Committee to evidence necessaryrequire production of (a) in order to substantiate any claim made against the fund; or securities, etc. (b) for the purpose of enabling criminal proceedings to be brought against any person in respect of a default, being a default which is or involves the commission of a criminal offence.

(2) Where any claimant required to produce any securities, documents, or statements of evidence under clause (1) fails to produce them, the Committee may refuse to allow the claimant's claim until such time as he produces them. 15. On payment out of the fund of any moneys in respect of any claim under these Regulations, the Commission shall be subrogated to the extent of such payment to all the rights and remedies of the claimant in relation to the loss suffered by him from the default. Subrogation of Commission to rights, etc., of claimant upon payment from fund Payment of claims only from compensation fund Provision where compensation fund insufficient to meet claims

16. No moneys or other property belonging to the Commission, other than the fund, shall be available for the payment of any claim under these Regulations whether the claim is allowed by the Committee or, on appeal, by order of the court.

17. Where the amount at credit in the fund is insufficient to pay the whole amount of all claims against it which have been allowed, the amount at credit in the fund shall, subject to clause (2), be apportioned between the claimants in such manner as the Committee thinks equitable, and any such claim so far as it then remains unpaid shall be charged against future receipts of the fund and paid out of the fund when moneys are available therein. 18. (1) Where the aggregate of all claims which have been allowed in relation to default by or in connection with a licensee exceeds the total amount which may pursuant to clause (2) of regulation seven be paid under these Regulations in respect of that licensee, then the said total amount shall be apportioned between the claimants in such manner as the Committee thinks equitable. (2) Upon payment out of the fund of the said total amount in accordance with such apportionment, all other claims against the fund which may thereafter arise or be made in respect of the same default shall be absolutely discharged.

Provision where claims exceed total amount payable

19. (1) The Committee may in its discretion enter into any contract with Power of

any person or body of persons, corporate or unincorporate, carrying on fidelity insurance business in Zambia whereby the fund will be insured or indemnified to the extent and in the manner provided by such contract against liability in respect of claims under these Regulations. (2) Any such contract may be entered into in relation to licensees generally, or in relation to any particular licensee named therein, or in relation to licensees generally with the exclusion of any particular licensee named therein. (3) No action shall lie against the Committee or against any member or officer of the Committee for injury alleged to have been suffered by any licensee by reason of the publication in good faith of a statement that any contract entered into under this regulation does or does not apply with respect to the licensee.

Committee to enter into contracts of insurance

20. No claimant against the fund shall have any right of action against Application of insurance any person or body of persons with whom a contract of insurance or indemnity is made under these Regulations in respect of such contract, moneys or have the right to claim in respect of any moneys paid by the insurer in accordance with any such contract. CHAPTER 355 THE LOANS (AUTHORISATION) ACT
ARRANGEMENT OF SECTIONS

Section 1. 2. 3. 4. 5. 6. 7. Short title Interpretation Power to raise loans Application of loans Amounts of loans Trust funds Other loans

CHAPTER 355

LOANS (AUTHORISATION) An Act to make provision for the raising of loans; and to provide for matters incidental thereto and connected therewith. [26th July, 1957]

26 of 1957 44 of 1961 28 of 1963 29 of 1964 Government Notices 221 of 1964 497 of 1964 Statutory Instrument 159 of 1965 Short title Interpretation

1.

This Act may be cited as the Loans (Authorisation) Act.

2. In this Act, unless the context otherwise requires"the Capital Fund" means the Fund established in accordance with a motion adopted by the Legislative Council of the former Protectorate of Northern Rhodesia on the 19th July, 1955; "the Capital Fund Estimates" means those estimates of expenditure from the Capital Fund which are approved specifically by the National Assembly from time to time by motion; "net amount" means the amount of a loan less any sum necessary to defray the cost of the issue of the loan. (No. 28 of 1963 as amended by G.N. No. 221 of 1964 and S.I. No. 159 of 1965)

3. Authority is hereby given for the raising on behalf of the Republic of Power to raise a loan or loans by the following methods: loans Cap. 353 (a) by the President, who is hereby authorised so to do, issuing Cap. 350 either at one time or by instalments, as may be convenient, stock or securities or both under the provisions of the Local Loans (Registered Stock and Securities) Act, the General Loan and Stock Act, or any other Act prescribing the terms and conditions of the loans; (b) when the President so authorises, by the Permanent Secretary, Ministry of Finance, who is hereby authorised so to do, borrowing by way of loan or overdraft from a bank or by way of loan or advance from any other source such sum and for such period as the President may

authorise. (As amended by No. 44 of 1961, G.N. No. 221 of 1964 and S.I. No. 159 of 1965) 4. (1) Subject to the provisions of subsection (4), the net amount of all Application of moneys raised under this Act, other than moneys raised by overdraft loans from a bank, shall be paid into the Government fund or account specified in or under the provisions of this section and shall be applied to the purposes so specified and to no other purpose. (2) In the case of loans for a period exceeding four years, the net amount raised shall be paid into the Capital Fund and may be appropriated and applied to any of the purposes of the Capital Fund Estimates. (3) In the case of loans raised by the issue of treasury bills and of loans for a period not exceeding four years, the net amount raised shall be paid into a deposit account of the Government and may be used to defray any Government expenditure or debt: Provided that the President may in any case direct that the net amount raised or any part of that amount shall be paid into or transferred to any other Government fund or account specified in such direction and shall be used for the purposes of such fund or account or for any particular purpose or purposes specified in such direction. (4) Notwithstanding any other provision contained in this Act, any loan raised under this Act for a specific purpose shall be applied to that purpose and to no other purpose. (No. 28 of 1963 as amended by G.N. No. 221 of 1964) 5. (1) Any loans raised under the provisions of this Act for a period not Amounts of exceeding two years and any amounts raised by the issue of treasury loans bills or by overdraft from a bank shall not at any time exceed in the aggregate thirty million kwacha: Provided that where the President, in exercise of the powers conferred by subsection (3) of section four, directs that any moneys raised by any borrowing to which this subsection applies shall be paid into the Capital Fund, the amount so paid and any moneys raised under subsequent loans

which are applied to the repayment of the moneys so paid into the Capital Fund shall not be taken into account for the purposes of this subsection. (2) The net amount of all loans raised under the provisions of this Act Cap. 373 for a period in excess of two years, together with the amount of any moneys paid into the Capital Fund in pursuance of a direction given by the President under the provisions of subsection (3) of section four and any loans raised under the provisions of the Development (United Kingdom Government) Loan Act, shall not exceed in the aggregate one hundred and fifty million kwacha. (No. 28 of 1963 as amended by No. 29 of 1964 and G.N. No. 221 of 1964) 6. Stock or securities issued under the provisions of this Act shall be deemed for all purposes within the Republic to be an authorised investment for trust funds. (As amended by S.I. No. 159 of 1965) 7. From the commencement of this Act, no further loans shall be raised Other loans under the provisions of the Specific Loan Act or the Specific Loan (Local Loan) Act, Chapters 227 and 255 of the 1958 Edition of the Laws respectively. CHAPTER 356 THE TAX RESERVE CERTIFICATES ACT
ARRANGEMENT OF SECTIONS

Trust funds

Section 1. 2. Short title Issue of tax reserve certificates

3. Moneys received for tax reserve certificates to be paid into a deposit account 4. Moneys received for tax reserve certificates not to be regarded as borrowings under the General Loan and Stock Act
CHAPTER 356

TAX RESERVE CERTIFICATES

44 of 1963 Statutory An Act to make provision for the issue of tax reserve certificates; and to Instrument provide for incidental matters. 159 of 1965 [6th September, 1963] 1. This Act may be cited as the Tax Reserve Certificates Act. Short title

2. (1) The Minister is hereby empowered to issue certificates called tax Issue of tax reserve certificates of such denominations and subject to such reserve conditions as he may by regulation prescribe. certificates (2) Such certificates shall be accepted by the Government at their face value, plus any interest due thereon, in payment by the holder thereof of any amount payable by him in respect of any direct tax specified by the Minister by statutory notice. (As amended by S.I. No. 159 of 1965) 3. All moneys received for the purchase of tax reserve certificates under this Act shall be paid into a deposit account of the Government established by the Minister for the purpose, and any amounts required for the redemption of such tax reserve certificates shall be paid out of such deposit account. Moneys received for tax reserve certificates to be paid into a deposit account Moneys received for tax reserve certificates not to be regarded as borrowings under the General Loan and Stock Act. Cap. 350

4. Moneys received for the purchase of tax reserve certificates issued under this Act shall not be regarded as loans for the purpose of the General Loan and Stock Act.

SUBSIDIARY LEGISLATION

TAX RESERVE CERTIFICATES THE TAX RESERVE CERTIFICATES REGULATIONS [ARRANGEMENT OF REGULATIONS]

Regulation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Title Interpretation Denomination of certificates Value of certificates held to be limited to one million kwacha Applications for certificates Procedure on receipt of application Interest One month to elapse before certificate valid for payment of tax Disposal of balance remaining after payment of tax Certificate to mature two years after date of issue Certificate not transferable

12. Save as provided in regulations 13 and 14, certificate to be accepted solely in payment of tax 13. In certain circumstances, certificate may be accepted otherwise than in payment of tax 14. Special circumstances in which certificate may be accepted for an amount equal to its face value, plus interest 15. Loss, destruction or defacement of certificate

SCHEDULE-Employer's application form for Tax Reserve Certificates SECTION 2-THE TAX RESERVE CERTIFICATES REGULATIONS Regulations by the Minister Government Notice 314 of 1963 Act No. 57 of 1964 Statutory Instrument 157 of 1976 39 of 1980

1. These Regulations may be cited as the Tax Reserve Certificates Regulations. 2. In these Regulations, unless the context otherwise requires"authorised officer" means an officer authorised by the Minister for the purposes of these Regulations; "certificate" means a tax reserve certificate issued under subsection (1) of section two of the Act; "holder", in relation to a certificate, means the person specified thereon as being the holder of the certificate; "surrendered" means surrendered to an authorised officer for the payment of tax or under regulation 13 or 14; "tax" means any direct tax specified by the Minister by statutory notice under subsection (2) of section two of the Act. 3. Certificates shall be issued in denominations of two kwacha or an integral multiple of two kwacha not exceeding one million kwacha. (As amended by S.I. No. 157 of 1976).

Title

Interpretation

Denomination of certificates

4. No person shall at any one time be the holder of certificates of a total Value of value exceeding one million kwacha. certificates held to be limited to (As amended by S.I. No. 157 of 1976). one million kwacha. 5. (1) Subject to the provisions of sub-regulation (2), an application for Applications for a certificate shall be made at an office of the Department of Taxes or at certificates such post offices as may be authorised by the *Minister to accept applications for the issue of certificates. * See General Notice No. 1885 of 1963 and Gazette Notice No. 1723 of 1966.

(2) An employer who provides facilities to his employees for the purchase of certificates by means of regular deductions from salaries or wages shall submit an application for certificates in respect of his employees in duplicate in the form set out in the Schedule, with the appropriate remittance, to an office of the Department of Taxes. 6. (1) On receipt of an application for a certificate accompanied by the Procedure on appropriate remittance, an authorised officer shall issue a certificate to receipt of the applicant or to each person in respect of whom application is made, application as the case may be. (2) The certificate shall specify(a) (b) (c) the date of issue of the certificate; and the face value of the certificate; and the name and address of the holder;

and shall be signed by the authorised officer. 7. (1) Interest as provided for in sub-regulation (2) shall be paid on every certificate. (2) The interest payable on a certificate shall be simple interest calculated at the rate of six per centum per annum for each completed month from the date of issue of the certificate to the date on which the certificate is surrendered. (3) In the calculation of interest any fraction of an ngwee shall be disregarded. (As amended by S.I. No. 39 of 1980). 8. A certificate shall not be valid for the payment of tax until at least one month has elapsed from the date of issue of the certificate. One month to elapse before certificate valid for payment of tax Interest

9. Where a certificate is surrendered for the payment of tax and after deducting the tax payable by the holder there is a balance outstanding, the amount of the balance shall be refunded to the holder.

Disposal of balance remaining after payment of tax Certificate to mature two years after date of issue

10. A certificate which has not been surrendered shall mature two years after the date of issue and an amount equal to the face value thereof, plus any interest due thereon, shall be credited to the tax account of the holder. (As amended by S.I. No. 157 of 1976) 11. A certificate shall not be transferable and any purported transfer thereof shall be void of tax. 12. A certificate shall be issued solely for tax purposes and, save as provided in regulations 13 and 14, a certificate shall not be valid for any purpose other than for payment by the holder of any amount due in respect of tax.

Certificate not transferable Save as provided in regulations 13 and 14, certificate to be accepted solely in payment In certain circumstances, certificate may be accepted otherwise than in payment of tax

13 (1) If the holder of a certificate-

(a) (b) (c)

dies; or is adjudged or otherwise declared insolvent or bankrupt; or in the case of a company, is being wound up;

and proof thereof to the satisfaction of an authorised officer is furnished, the authorised officer shall, subject to the provisions of sub-regulation

(2), pay to the executor, trustee or liquidator, as the case may be, on the surrender of the certificate, an amount equal to the face value of the certificate, plus any interest due thereon. (2) Before making any payment under sub-regulation (1), the authorised officer shall deduct from the amount payable under that sub-regulation the amount of tax payable by the holder of the certificate or his estate, as the case may be. *14. If in any particular case there are special circumstances which, in the opinion of an authorised officer, justify the acceptance of a certificate otherwise than in payment of an amount due in respect of tax, the authorised officer shall, on the surrender of the certificate by the holder, pay to the holder an amount equal to the face value of the certificate, plus any interest due thereon. *See section 8 of the Income Tax (Employments) Act (Act No. 7 of 1966) which remains in force until 30th June, 1971, as if that Act had not been repealed by the Income Tax Act (Cap. 668). Special circumstances in which certificate may be accepted for an amount equal to its face value, plus interest

15. (1) If a certificate is lost or destroyed and the loss or destruction is Loss, proved by the production to an authorised officer ofdestruction or defacement of certificate (a) a declaration giving the circumstances of the loss or destruction, sworn by the holder before a commissioner for oaths or like authority; and (b) such additional proof of the loss or destruction as the authorised officer may reasonably call for; the authorised officer shall, on receipt of an indemnity to his satisfaction given by the holder, issue to the holder a duplicate copy of the lost or destroyed certificate. (2) If a certificate is defaced, an authorised officer may, on the surrender of the defaced certificate, issue to the holder a duplicate copy of the defaced certificate.

SCHEDULE

(Regulation 5 (2))

EMPLOYER'S APPLICATION FORM FOR TAX RESERVE CERTIFICATES


(to be submitted in duplicate) To:

Date: . Schedule of deductions from salaries or wages of the employees of ....................................................................... ......