Cabinet has directed the reversal of the concession of three borders namely Kasumbalesa, Nakonde, Jimbe, Kipushi, Mwami and Chanida and the reversal of the tax concession offered to Varum Beverages Limited, the promoters of the Pepsi Zambia project.

Finance and national planning Minister Alexander Chikwanda revealed during a press briefing in Lusaka today that Cabinet has deemed it desirable and expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts with Bradwell International, and Cargo Scan.

He says in addition, Cabinet has directed the implementation of other administrative measures incidental to the same as recommended by the Zambia Revenue Authority commission of inquiry.

Mr Chikwanda says Cabinet at its sitting of Wednesday 25th January,2012 accepted without reservations the report on the findings of the Commission of Inquiry into the operations of Zambia Revenue Authority.

He says consequently Cabinet has ordered the termination with immediate effect the Cargo Scan contract on the operations and maintenance of Smith Detection scanners, the Bradwell contract on the operation and maintenance of Nuctech scanners, and that Nuctech be compelled to perform their contractual obligations of installation, operation and maintenance of the eight scanners.

Mr Chikwanda adds that the pre-requisites for the installation and operations of the scanners shall be met by government, and that ZRA assumes ownership of the scanners and work out appropriate measures for loan repayment for the scanners.

The finance minister has also disclosed that Varum Beverages Zambia Limited will have to pay outstanding tax arrears and criminal investigations will be instituted on persons found wanting for unlawful conduct, for granting the company a tax deferment of 5 years.

Mr Chikwanda says the PF government has no scores to settle warning that there will be no sanctuary given to those who have committed crimes against society through fragrant abuse of office and trust which the people of Zambia reposed in them.

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49 COMMENTS

  1. Shame on ”Commissions of witch hunting”!!
    It si so appaling that PF has started to sink so low and incorrigible to the principles of basic economics and governance.It is inevitable that the rattled investors will withdraw their investments and ordinary zambians will suffer in the name of ”Donchi Kubeba”.

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  2. Yes please no exception let everyone pay taxes. Thats the only way GRZ will be able to execute the much needed economical development….

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  3. I am sick and tired of seeing these past their prime, semi retired people, given positions of this magnitude.

    He looks lost as a Finance Minister, He should be enjoying his retirement, People with fresh minds, and heavily educated with desire like myself are people that should be heading these ministries.

    It is ridiculous that the cabinet’s average age is 57.

    This man does not know what he is talking about, he is clearly punching above his weight and should be relived of his duties, I cant even pronounce his surname, as I have forgotten Bemba having been in the United Kingdom for so long, My accent is now all British and when I talk people think I am white

    Thanks

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    • Rubbish, what kind of an ***** are you Mushota,You think you are the first one to live in Britain or overseas, After all we know how you are suffering cleaning peoples mess and working in bars to get some little money. I wish you could live in other parts of Europe someday. You will see how poor and useless you are in UK. Shame on you. For your own information its inferiority complex that leads to wanting the change of accent. I would rather remain an African than an ***** like you.
      Never come back to Zambia. For me, am going back to make more money after I get what I need in Europe, certainly not in UK. I hate that place with so much lawlessness.

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  4. That is the way to go PF! The concessions made to Varun flaglantly illegal even for a non legal mind. How can a company be allowed to keep money that does not belong to them. VAT is paid by the final consumer and the VAT vendor only acts as a conduit for these monies. The actions of the MMD government were reckless, corrupt and not in the best interest of the Zambian people.

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  5. # 6. IM U ARE BEMBA. ULICHIKOPO. READ PROJECT MANAGEMENT – APPPRAISAL. WHAT ABOUT VARUM INVESTED MONEY? WHEN WILL THEY RECOVER THEIR LOSES. REMEMBER WE ALL FIGHTING FOR THE SAME INVESTORS. REMEMBER ITS THE PROJECT THAT REPAYS THE LOANS AND NOT ITS OWNERS. SIMPLE MANAGEMENT

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  6. Yes everyone should pay tax. This should  be extended to even companies that have been enjoying so called tax rebate because they pull out when its time to start paying tax. Viva pabwatoooooooooo! I end here!

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  7. I guess “fragrant abuse” of office is when someone has bad BO or passes gas? I agree, that is shameful and must not be tolerated! 

    Now if we’re talking about the extra-judicial termination of contracts that is something else. In this case I don’t see how a COI report is any substitute for a court ruling or that it is any less of a flagrant violation of power for GRZ to go around throwing out contracts (with immediate effect) that the GRZ itself signed because it now has issues with terms or process. Who is ever going to believe the GRZ’s word again since the next batch of leaders may decree that PF acted illegally and throw out the contracts being signed now? 

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  8. Zambians you are in for hard times ahead.Unfortunately there is so iignorance like #6 “Robert”.If you cant open your eyes now to see that this Govt is on a very dangerous path, i’m sorry for you.Dont believe the rubbish that PF Govt are doing as being in your interest. dont know that taxing Acts provides powers for the Govt to give tax concession since when has this become a crime, and you want to investor to pay K15B in arrears.Forget it and you are the ones to lose out.Watch this space in the next twelve months. PF is simply anti private sector and the earlier you understand that the better.

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  9. The judiciary is being trampled upon.

    And as for the tax deferment, has anyone actually bothered to look at what the law says on this matter before pronouncing illegality?

    saflii.org/zm/legis/consol_act/vata132/

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    • some People dont understand for an investor has tO ask what incentives are there to properly establish their businesses to cover up sunken costs before they even break even.Tax concessions are there for anybody(micro,small and medium entrep can get tax incentives) who applies to ZDA.Let this be extended to the mines in this case.MORE POPCORNS PLEASE

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  10. what a Governement.It is a case destroying everything that RB Government did.Backward president.No wonder we did not want to vote for recycled people doing things the same way and hoping to improve.Never.This is a very hostile Govt to doing serious business.How do you see corruption whwere there is no corruption.

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  11. @ Mushota, u r so iriatin u gat diarrohoea of da mouth……u calibre is jst 2 low. So wht if u r in UK damn!!

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  12. Articles 3 to 4 of the PF constitution:

    ARTICLE 3
    PUBLIC INSTITUTIONS
    The Party shall ensure that all the public institutions, State-owned enterprises and popular mass and similar organizations are led by persons who are members of the Party and who are uncompromisingly committed to achievements of the Party.

    ARTICLE 4

    STRUGGLE AGAINST EXPLOITATION

    The Party shall wage a relentless struggle against all domestic and international forces of reaction. It shall fight for the eradication of Capitalism, with its offshoots; poverty, with its offshoots of Hunger, Ignorance, Disease, Crime, Corruption and the exploitation of man by man.

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  13. All the tax ACts in Zambia have provisions for giving tax concessions like any other good tax law.And some *****s right here are busy applauding this stupid and careless move. No wonder some of doubt the motive for taking Zamtel back.It has nothing to do with the reasons given out in so called COI.Tax concession issues are matters a particular Govt policy and if the PF do not beleive in giving concessions they simply negotiate to cut the period and not call for payment of arrears pertaining the period under MMD Govt.This sis shocking.Not too long from now some of these mininsters will start dissa ssaciating themselves from these decisions.

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  14. Nchito ni nchito. Too many people to arrest. I like the last page of the report. 60% of the names are bembas. Anyway, is it RB former vice president or George Kunda? What is wrong there? Please make correction in the report and resend, ba Chana wesu.
    The sword of justice is moving without looking at tribe. Easterners and bemba involved. Ni ba ring leader.

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  15. #1 Njombwinjo you are a f.o..ol. what basic econmics are you talking about? Is giving tax break on remmitting the taxes (VAT) you collect from consumers on behalf of GRZ making econmic sense to you? Why do you comment on things that you do not understand? Even if Situmbeko is you uncle please think. What that man in essence did is lend GRZ money to that shum company called Varum for there operations. I thoght investors are suppossed to come with their money to invest. Dont be foolish please.

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    • Next time before you go calling someone foolish, perhaps you should check your spelling (and learn the difference between there and their) first – it will improve people’s perception of what you have to say.

      That advice given…. tax breaks certainly are a viable and widely used tool for attracting investment in many countries. On the other hand, the “strategy” of invalidating contracts that government itself agreed to without due process is not widely accepted as a way to attract investment. Any questions?

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  16. Hahaha

    Very interesting now we know why Mulongoti was baking the write words to Sata. The commission found to that he signed the border cons sessions. Lets see where this will go…

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  17. shake them like ch-shakeshake! if pipo dont pay tax how does govt function and bring development?

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  18. njombwinjo na Mushota, you should get married. Ubupuba bwapitilila and sex will be good thorugh mubupuba bwenu. You will enjoy it and since you seem to both be in the UK from inspection of flags, you can start hitting it here mpaka mukakumane mu sex club somewhere ku Scotland.

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  19. Mushota is such an *****, You are so iritating. We know how u make money in UK. I would rather get my education and retain to Zambia and get a desent job,u cleaners in UK and bartenders. Sweeping streets of London. I hate London with so much lawlessness. I thnk you have not seem the beuty of other European countries. Umwana ashyenda,atashishe Nyina ukwipika.
    Shame on u Mushota. Many of u have just been working in sex clubs. We will see u on a porn video soon

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  20. @ 5 buy white paint and paint urself if u want to be white… unafunta.. kapena usuka mapoto ku UK mu kantemba!

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  21. Reading the report it appears as though RB will end up in jail. The Varun Beverages concession shows that RB had a hand in it seeing that SM objected to it initially and only changed his mind after visiting State House. GK also gave advise as though he was not a lawyer didnt even bother to read the Tax laws. We await reaction from the individuals found wanting in the report.

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  22. What about the Ministers who have not paid tax for past many years, but sitting on prime properties. There are many like that. What a shame ! Zambia is soon  going to earn the trophy of a Banana Republic, if this goes on. We are unlucky. God save us.

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  23. Mushota, You deserve to work in a Pub as a Cleaner.You are the Zambians who run away to the so called mangalande to clean toilets and sweep the streets of London.You are behind the the current events happening in our Country so just shut Up!!!!!!!! *****.Keep on cleaning toilets my brother in London. Dollar, Livingstone. 

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  24. I am dumbstruck at the fact that the inquiry can make such reccomendations at cancelling signed contracts and they have no idea as to what implications this will have in the future. ZRA has not the capacity to employ 300 new staff to operate the scanners and budget to pay them, this will open doors to corruption as seen at the Livinstone border post where trucks are to be scanned literally drive around the scanner after speaking to ZRA officers. By having these international companies they will employ zambians to manage and operate the scanners, train and mentor as well as have specialized software that is yet to be established. It is a shame that Zambia was to be the forefront in Africa as they have the best training facility in Africa to date. Not for long though a real shame.

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  25. Zambians made a huge mistake electing a Grade 7 for a President. At the rate Mr Sata is going he will destroy the little Zambia has achieved and the people he is purporting to protect will stone him in the streets. Just to bring context and balance yet to another useless report: Varun Beverages are not a small business; they are PepsiCo’s biggest bottler in South Asia. How can Mr Sata say offering tax concessions to varun is abuse of authority? This is lunacy at best. 

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  26. Yes we are cleaning in London Stations so that we can become Presidents like Sata down the line when we come back to rule you stu.pid Zambians.

    Ka Mushota to you are also stupi.d, why would you like to go and become a minister in a country that you don’t like? So that you can go and bury money underground. Shut up!

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  27. Yes we are cleaning in London Stations so that we can become Presidents like Sata down the line when we come back to rule you stu.pid Zambians.

    Ka Mushota to you are also stupi.d, why would you like to go and become a minister in a country that you don’t like? So that you can go and bury money underground. Shut up! Kumablocko

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  28. Can anything GOOD come out of the current ZRA management, lets not bury our heads in the sand and think we have a Black MOSES as Commissioner General.Lets look back at this office and see how it was abused by the current Mwine Mushi. The institution had a run down infrastructure , lacking basic necessities like Bond paper, tissue, pens etc while they were getting huge salaries
    at the expense of juniors. Let this current CG emulate the President and cut down on luxuries and be with the workers

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  29. It seems some people can’t see that before we can move forward wrongs have to be righted first! Sata is doing a commendable job so far. Culprits must be sent to jail and internal control measures to be in place to prevent corrupt activities. It boggles the mind there people out here who would rather we ignore anomalies committed by the previous GVT and just move on. 

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  30. CABINET,CABINET WHAT ABOUT THE NEW BUILDING WE ARE RENTING AS A COUNTRY FOR 25 YEARS???????????????????????????????????????????????????????????????????????????????ARE WE TAKING OVER IT AS WELL???.

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  31. Who are the directors of the and beneficial owners of the Zambia Kasumbalesa Venture Company (ZKVC) kanshi?

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  32. Nevers Mu mba is a lia r and a mon ey lau ndering ma chine

    Him and the de puty Mr Nz oya are ste aling tax pa yers money. They had fired Mr Tem bo beca use he knew about this sc am and was aga inst it. They also have a office slut , Caro lina Rod- riguez who is also abus ing the money. The Ottawa Zam bian mis sion are th ieves

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  33. It is evident that there is dodging charactures in state house who feel justified to give wrong information to President Sata which and allow him to make rash decisions. The cancellation of ZRA signed contracts which are legal and binding will cost Zambia in the end. Not only from the companies taking the government to court but also ZRA having to employ additional staff and salaries, allowances where the contracted companies would funded these expenses and trained zambians who are educated. This would have at least helped over 300 zambians with jobs and a better future. This government is scaring international investors from investing, Chanda report was a joke and reading it made it clear his team had no clue either just making money for stupid and groundless findings. Shocking

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