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Financing arrangements for the Lundazi-Chama Road was above board- Ministry of Finance

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Ministry of Finance Public Relations Officer Chileshe Kandeta (L)
Ministry of Finance Public Relations Officer Chileshe Kandeta (L)

Lusaka, Tuesday, 2nd September, 2014. The Ministry of Finance is concerned that some Government officials have engrained the habit of “stealing information”, distorting it, and supplying the media without authority. This Ministry echoes the calls of the authorities and concerned members of the public for corrective sanctions to be taken against the errant officials.

Today, there was a report in the media quoting an official in the Ministry of Finance who was insinuating that we had irregularly identified a contractor for the Lundazi-Chama road. This is a total fabrication. The Ministry hastens to say the identification of the contractor was done by relevant public entities and endorsed by the Zambia Public Procurement Authority in accordance with the lending policy of the Export-Import Bank of China.

The Lundazi-Chama road is one of the priority projects under the Link Zambia 8000, which will be undertaken at an estimated cost of US $90 Million. The said road is a portion of the Chipata-Lundazi-Chama-Chinsali road stretch.

As a background to this matter, members of the public may wish to know that this project was conceived in 2010, when the Government, through the then Ministry of Works and Supply, identified the said road as a key component of the ‘Nacala Development Corridor’, a regional transport network, linking Zambia to Malawi and the deep water port of Nacala in Mozambique.

After obtaining a no-objection from the Zambia Public Procurement Authority, the Government, through the then Ministry of Works and Supply signed a commercial contract with Shanghai Construction (Group) General Company of China on 19th August 2011 to facilitate financing arrangements for the project. Members of the public may wish to note that the commercial contract to engage Shanghai Construction (Group) General Company of China was signed by the Ministry of Works and Supply and not the Ministry of Finance. It is also important to note that the Contract was signed in August 2011 way before Honourable Alexander B. Chikwanda, MP became Minister of Finance.

In 2012, the Government undertook a review of the projects which were earlier submitted to the Export-Import Bank of China. The review process was intended to align key developmental projects to the Patriotic Front (PF) Manifesto.

On the basis of the foregoing, the PF Government, re-confirmed the priority nature of the Lundazi-Chama Road project under the Revised Sixth National Development Plan [R-SNDP] in a letter dated June 2014, in which Exim Bank of China, was requested by this Ministry to consider financing the project; consistent with the no-objection obtained from ZPPA in August 2011.

While we appreciate that it is the duty of the media to keep the public informed, it is also important that media practitioners assess the credibility of their news sources. This Ministry assures the public that it has instituted stringent financial governance systems and will strive to stay above board in all its transactions. We reiterate our commitment to fiscal prudence so that the people of Zambia obtain value for money from public investments.

We are confident that the completion of this project will boost economic growth and development among the beneficiary countries by reducing the cost of doing business and promoting growth of international trade.

//Signed//
Chileshe Kandeta
For/MINISTRY OF FINANCE

17 COMMENTS

  1. ‘Nacala Development Corridor’ was meant to link Tanzania, Nakonde, Chama, Lundazi, Chipata, Mozambique. Chinsali was not there

  2. It is how time that Zambians demand to Know how this Fred Mmembe treats his workers to. There is no way a person can not read between lines to admit the fact that Wninter Kabimba the so called friend was in the fore front trying to disorganize the ruling party. Whether Mmembe likes it or not,Winter is not an organizer but a destroyer. He made sure to Lubinda was dismissed.He made sure there was animosity between GBM and the President.He took confusion to Chipata with Lameck Mangani and the list is endless.What kind of leadership is this?? Nor wonder he failed to be voted even in his own home town twice.
    Leadership is about caring for pipo and in leadership you have to be identified not fighting your colleagues.

  3. Just give us the list of contractors who won the contracts then and who are working on the project at the moment on the ground…as the names of directors. Fossil Chikwanda is highly compromised individual capable of anything.
    That is what you call transparency and accountability.

    • Why should you be given a list of contractors when you can easily get it from RDA website? Don’t politicise everything and please learn to be humble and respect elderly people because at some point in time you will also become old.

    • @Evans,Do you know the tender process or you just want to support blindly even if you know the project was dubiously awarded?
      All tenders have to be advertised for a specified period of time after which a transparent process to chose the winning bid is made.Was this one transparent?Can the the RDA website prove that?

    • I am surprised that Chileshe can resort to this poor display to defend his Minister. The Ministry of Finance like other Ministries are audited by the Auditor General, her reports are a subject of the PAC and it is at that point that any irregularities perceived or real are raised. Kandeta must not confuse his job with that of SG of a party or indeed the often confused post of Party Spokes person and Minister for Information. Infact the Ministerial Spokes person was a job created so that Kandeta could be in employment it should be scrapped as it serves no purpose and no other Ministry has one.

  4. Mr Bagger.
    What delivering is PF doing? read the back ground of this project, way long before failures came to be this was crafted by MMD like all other projects except renaming of public facilities and creation of districts without supporting budgets.
    PF should just swallow their pride and complete these national projects without re-aligning them to PF non exist manifesto. KKI airport, Kapwepwe Airport, roads, schools, health centres initiated by MMD need to be non political matters for the benefit of the nation. RDS at state house is a departure from normal working procedures and delivery will be tented with corruption as Mr Sata is no where to be seen and cronies like old Alex, Nsanda, Sata jr. etc will corruptly give projects to themselves.

  5. The once mighty PF is crumbling miserably before our very eyes. The reason is simple ‘they had no foundation.’ They built on a foundation of deception and that is not a foundation at all.

    My own prediction is that the whole structure will crumble even before end of September. Wait and see.

  6. Awe ba Post na bo yaba! Now they have resorted to quoting names of non-existent people just to support their cause. Yesterday it was an Isaac Kalifungwa, to day it is a Zebbies Mumba, what a name! And never heard of them until they were “revealed” by the Post!

  7. @ sc, tomorrow they will quote Zombson Sakala Procurement expert, and next day Zorange Mumbi Mines Economist, and next day Zebediah Mpombo Corruption Specialist who once worked as Executive Teaman at TIZ.

  8. PF lies!!!

    If PF has “instituted stringent financial governance” how come they now owe mines $600m of undocumented interest free loan from VAT refunds?

    Sata cultivated and encouraged these whistleblowers before 2011. Way back in 2005, he even had a fake State House letter which he delivered to the PFost. Now PF is experiencing the effects of this devious and deviant culture they introduced into Zambia. Just eat your vomit and stay quiet.

  9. THE POST NEWSPAPER AT IT AGAIN FOR WHAT? WYNTER IS GONE AND WE WAITING FOR SUMMER THROUGH HON. A. CHIKWANDA WHO IS IN THE POSITION OF POWER. AWAIT MORE SANCTIONS MR Mmembe the post editor.

  10. ze Post, kabimba, sata, chikwanda, Nchito!! all of you, your time is coming. Mmembe has now woken up bcoz his power source has been taken away, wow!! He now can see corruption, tribalism, regionalism in PF. The neutral, incorruptible have been saying this all along. Muzapayana mweka mweka, we are just watching. We warned you b4, Lesa tabepwa!!

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