Thursday, March 28, 2024

Government to stop funding statutory agencies-Sichinga

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Commerce Minister Robert Sichinga
Commerce Minister Robert Sichinga

STATUTORY agencies which have for a long time depended on Government grants will have to sustain themselves next year to remove the financial burden on the treasury, Minister of Commerce, Trade and Industry, Bob Sichinga has said.

Mr Sichinga said all statutory bodies will be required to sustain their operations considering that Government has limited resources.

And the Zambia Weights and Measures Agency (ZW&MA) requires about US$ 1.2 million to meet its capital requirement in the medium term and has a statutory debt of K4 billion.
Mr Sichinga said it is long overdue that parastatal companies are weaned off Government financial support to channel resources to other social sectors.

He said this during the familiarisation tour of the ZW&MA offices in Lusaka on Wednesday.

Mr Sichinga said supporting recurrent costs of statutory institutions has become costly on the part of Government due to limited resources.

“Business as usual is over, we all have to pull our socks and roll our sleeves to sustain our institutions. As ZW&MA, you will be entitled to settle all your costs and build a fund that will enable you buy the equipment you require to operate to full capacity,” he said.

Mr Sichinga said the boards appointed in parastatal companies are not there to have fun but help in the management of companies.

“To survive, there is need to change…from 2012 we expect you to be independent and if you want salary increment, work for it. Every deductions taking place whether National Pensions Scheme Authority (NAPSA) or Zambia Revenue Authority (ZRA) should be remitted,” he said.

Mr Sichinga urged ZW&MA to ensure that all outstanding accrues are settled by the end of the year.

Earlier, ZW&MA chief executive officer Sokwani Chilembo said the agency is working on system failures that date back five years, adding that by the first quarter of 2012 all the agency’s system will be automated.

Mr Chilembo said the key challenge faced by the agency is limited manpower.

Commenting on the debt, he said the company is solvent and has negotiated a timeframe on key statutory obligations that were accrued from 2003 when the agency was formed.

“We have liquidated the principle on NAPSA dues and we are liquidating the principle on the ZRA dues that expires next month. We are current on all other legal obligations,” he said.

The agency’s aim is to improve the range of services provided.

[Zambia Daily Mail]

34 COMMENTS

  1. # 1 ZAWA can be one of them, Statutory agencies are bodies appointed by the government to help in monitoring and making sure laws are followed Hope this will help

  2. Do these organisations operate as quangos (quasi-autonomous non-governmental organisations)?

    Some of these organisations are necessary.

  3. These bodies can be independent if boards and management are appointed on merit no cadres, internal audit and AG reports are acted on, culprits punished and GRZ pays the acrued arrears which have been there todate

  4. Atleast they will know now they reap only what they sow. GRZ must also ensure they do not reach into these bodies whenever they need money to run unplanned for programmes so the companies can really sustain themselves. Interesting news. We will wait and see how this gets on.

  5. In most of these organisations, you will find people doing nothing but busy fattening their bellies – way to go GRZ.

  6. @ No. 1, wala – thanks for asking. I’m sure many of the Daily Mail’s readers are asking themselves the same question and it would have been much better if the journalist could have defined the term and given some examples of what these agencies are.

    As for how these agencies are going to stand on their own….and clear accumulated debt…… my crystal ball says user fees, user fees, and more user fees.

  7. And how will ZRA operate because they are not in any business apart from collecting on behalf of Govt.Mr Sichinga,you are no longer in opposition,time for criticising is over.

  8. More money in our pockets. 
    “To survive, there is need to change…from 2012 we expect you to be independent and if you want salary increment, work for it. Every deductions taking place whether National Pensions Scheme Authority (NAPSA) or Zambia Revenue Authority (ZRA) should be remitted,” he said.
    90 Days

  9. If implemented this could be good! Except it might not be actionable because the same government appoints incompetent leaders and friends in most of the statutory agencies who will get away with it. Most of these statutory agencies cant even create a simple vision structure of their organization or produce /execute a simple strategic plan.

  10. If implemented this could be good! Except it might not be actionable because the same government appoints incompetent leaders and friends in most of the statutory agencies who will get away with it. Most of these statutory agencies cant even create a simple vision structure of their organization or produce /execute a simple strategic plan.

  11. Mr. Sichinga too many pronouncements. Have the codes you requested for been submitted to your office? The majority bloggers applauded your initiative but we need feedback. How is the issue of codes going on and what is the compliance ration? Do not join these ministers who are full of hot air and no action

  12. ba sichinga kwikalafye ngatamukwete ifyakulanda..those grants are budgeted for and some statutory agencies are not money making ventures.

  13. As usual blwoing wind to be heard..You might need to amend the Acts that create those Statutory Bodies..if you look under ‘sources of funding’ for most of those SBs you will or just might find wording quoted stating ‘ the sources of funding of this SB will be a grant form the GRZ..’ so evne if this is your intiative you might need to send al these acts back to Parliament for them to grant you your wish Hon. Minister..but hey you have been to parliament before so you knwo what could happen there..word of advise try a graduated approach form 100% to say 30% and then reduce accordingly…

  14. Statutory bodies are those formed by Acts of Parliament and are mandated by law to execute duties on behalf of Government. They are agencies that act on behalf of Government and because they are formed/established by Acts of Parliament it is mandatory for all affected to abide by them , that is what they are in short.

  15. no. 1 no need to feel bad to ask. friends statutory simply means they were formed through an act of parliament which also specifies their terms of reference including function, staffing and funding among other things. most of them are important but it is another issue whether thy function well or not. so many times they have been used by govt or the ruling party to syphon tax payers’ money or conducting other forms of theft or corruption. some examples have been given but you can also think ZNBC, LAZ, MEDICAL COUNCIL i.e. some parastatals and regulatory bodies

  16. I think this is a good move because it also means government can not dip into the coffers of these agencies as and when they want because this is the reason capacity has not been created in these institutions. Way to go guys!!!

  17. How do  raise our own money. Govt should stop paying politicians.let then also raise their own money .for allowances and car loans.

  18. AWEE BANE KANSHI ABENGI INCITO SHALYAPWA BECASUE THEY ARE LOT OF STATUTORY BODIES UNDER THESE MINISTRIES, ESPECIALLY SCIENCE AND TECHNOLOGY. THE WHOLE NATION WILL BE UNEMPLOYED IYEE

  19. Mr Bob, you seem to be u turning on the theory of more cash in the ordinary Zambians. who is driving the development agenda kashi? some of the bodies are like PRA, which implies these will have to increase fees. then who will pay for these fees are the ordinary Zambians through increase cost for their medicines. This govt for sure is not taking time to consult and analyse the issues at hand. Some of these bodies can only stand on their own if most Zambian are well to do and not the current status. Unless you are still sticking to the 90 days theory so that by next year all will be well to do. Dream on Bob. However, we expect more from you uncle Bob. Look into how we can increase manufacturing base and not what you are taking about. By the way this approach will only increase cost of living

  20. This is crazy. How do these entities survive since the majority of Zambians cannot afford high service charges to support the expected high service fees? How will wealth distribution occur if the majority are denied services that an ordinary citizen should get from the government? The first thing they should have done is increase the number of employed citizens so that more can afford to pay for inflated services in order to support these organizations.

  21. Good move. This means here at ZRA we will keep all the money corrected to ourselves. No remitting to Finance. Great thinking Bob!!!!!

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