Zambia Railways Managing Director Prof. Clive Chirwa says there is nothing irregular about his salary demands and other hefty allowances.

Prof. Chirwa said the K140 million salary per month and the K38 million rentals on his upmarket villa at Fallsway Apartment is nothing for a Chief Executive Officer of his stature.

“This is nothing, infact there are some many people staying there (Fallsway Villas), even Ministers, Permanent Secretaries, NGO leaders, they are all there,” Prof. Chirwa said.

He revealed that it was government that offered to take him to Fallsway Apartment when he was recalled from the UK.

“I didn’t take myself there. It was government that looked for that apartment for me and the board was asking for tenancy agreement but there is no tenancy agreement because the place is like a lodge, you pay per night,” Prof. Chirwa said.

[pullquote]“This is nothing, infact there are some many people staying there (Fallsway Villas), even Ministers, Permanent Secretaries, NGO leaders, they are all there,” Prof. Chirwa said.[/pullquote]

He was speaking on Sunday Interview television programme on ZNBC after a dramatic day which saw the board dissolved shortly after it issued a statement accusing him of gross mismanagement and making “obscene” executive demands.

But Prof. Chirwa said the demands he made to the board were part of the negotiating tool that his lawyers drafted for him before taking up the appointment.

“Those were my demands as advised by my lawyers because when I was offered the job, I had to go and consult my lawyers and that was basically my negotiating tool which the lawyers came up with.”

On demands to be offered 25 percent of ZRL after serving five years as CEO, Prof Chirwa said he believes he is entitled to a share option in the company as a Zambian.

“There is nothing irregular because in the turnaround plan for the company, we want to offer shares to the public through the stock exchange and I believe as CEO I should be offered a certain percentage to buy.”

He revealed that he differed with the dissolved board after it started demanding to be paid huge sitting allowances.

“We differed because they started pressurizing the Finance Director for allowances for merely seeing the Minister for five minutes. They had 25 board meeting in three months. That’s madness. I refused to have the Director of Finance release payments for those meetings because some of them were not even minuted,” he said.

[pullquote]“Am ready to fly back to the UK if am pushed. I came here to help and am not demanding a lot, if anything I’m the one losing much by being in Zambia.”[/pullquote]

He said the executive pay demands are not irregular because he was making two million pounds per year before he came to Zambia to take up the position of CEO of Zambia Railways.

“Am ready to fly back to the UK if am pushed. I came here to help and am not demanding a lot, if anything I’m the one losing much by being in Zambia.”

Prof. Chirwa dismissed allegations that he had refused to move to Kabwe saying the house is not yet ready. He explained that he was not the only one staying at Fallsway saying there were Ministers, Permanent Secretaries and other CEO.

On allegations that he tried to engage Clavel Incorporated, the firm he owns with his wife and two children to train ZRL engineers, Prof. Chirwa said the matter was closed after the board objected citing procurement rules.

“I dropped those demands after they said no. It’s not an issue anymore but what i wanted for Clavel to come and train the workers here because of IPR (Intellectual Property Rights) issues and that’s not corruption,” he said.

The dissolved Zambia Railways board has described governments to dismiss it as a relief.

Earlier yesterday, Transport Minister Chris Yaluma held a news briefing at his house at which he announced the dissolution of the Zambia Railways board with immediate effect.

Outgoing Board Vice Chairman Professor Oliver Saasa said the board members are happy to see the board dissolved because of the many problems they faced.

Professor Saasa said it is such a relief to leave the Zambia Railways board as it will give him and other board members time to concentrate on their private engagements.

He said working with Zambia Railways Managing Director Clive Chirwa was difficult as he continued undermining the authority of the board.

“We are so happy that this decision has been taken but we are even more resolved to see to it that investigative arms of government move in and investigate the corruption which is rife at Zambia Railways,” Professor Saasa said.

Professor Saasa was speaking in Lusaka yesterday afternoon when some board members held a news conference to clarify some issues surrounding corruption allegations at the railway firm.

“For us, it became apparent that Professor Chirwa was undermining our authority and we sought the intervention of the Transport Minister who assured us that we will see to it that Professor Chirwa is fired but only to hear today that we have been dismissed.”

“The man wanted to listen to no one, imagine you as the employer and your employee dictating terms to you. It’s like a tail waggling the dog,” Professor Saasa said.

He said, “Professor Chirwa’s demands were extravagant and as the board we had to put a stop to this in order to protect public funds.”

[pullquote]“For us, it became apparent that Professor Chirwa was undermining our authority and we sought the intervention of the Transport Minister who assured us that we will see to it that Professor Chirwa is fired but only to hear today that we have been dismissed.”[/pullquote]

And Mark Chona who was until now Board Chairman of the Zambia Railways Board said Professor Chirwa must be fired it the public resources are to be safeguarded.

“With Clive Chirwa at the helm, we are sorry Zambia Railways is not going anywhere.”

Mr. Chona said accused Prof Chirwa of gross management adding that he tried to undermine the authority of the board on several occasions.

He said the board rejected Prof Chirwa’s attempts to move the corporate head office from Kabwe to Lusaka.

Mr. Chona further revealed that the board objected to his continued stay at the K 72 million per month rental Fallsway apartments which it describes as obscene.

“The man made obscene demands from a company which is insolvent,” Mr. Chona said.

Mr. Chona also revealed that Prof Chirwa is receiving K140 million as monthly salary after the board negotiated downwards from the K 248 million per month he initially demanded.

Zambia Railways has been embroiled in a scandal over the past few weeks which saw accusations and counter accusations between Prof Chirwa and the board bordering on corruption and gross mismanagement.

Government has with immediate effect dissolved the Board of Zambia Railways Limited (ZRL) and that forensic investigations and audits will be instituted to ascertain the truth on alleged gross mismanagement of the company.

Works, Supply, Communications and Transport Minister Christopher Yaluma said in Lusaka today that he has written letters to the ZRL Board about Government’s decision to dissolve them.

Mr Yaluma told journalists that Government was concerned with operations of ZRL and the first step it had taken to restore sanity after the revelations was to dissolve the Board.

He said Government’s desire was to realign the objectives of ZRL and that forensic investigations and audits would be engaged to ascertain revelations of financial misuse.

[pullquote]“The ZRL Board was dissolved on Thursday last week in the afternoon. For now, they have no blessings from Government in whatever they will do because that will be done in their individual capacities.[/pullquote]

“The ZRL Board was dissolved on Thursday last week in the afternoon. For now, they have no blessings from Government in whatever they will do because that will be done in their individual capacities.

“ZRL is an important industry that we need as a country and when we hear of allegations we have to carry out smooth investigations on the matter and the first step to restore sanity now, is by dissolving the board,” he said.

Mr Yaluma said Government had embarked on an ambitious developmental programme to revamp the railway sector by redesigning it to higher standards in order for it to bring desired revenues.

He said Government was resuscitating ZRL and could not remain quiet with allegations of financial misconduct and subsequent a ‘war of words’ between the dissolved Board and management.

Government recently said that the financially beleaguered ZRL would receive capital injection amounting to $120 million (K600 billion) for use in undertaking a major facelift following Zambia’s successful issuance of the first sovereign bond amounting to $750 million.

The Board comprised former Task Force chairperson Mark Chona as board chairperson economist Oliver Saasa as deputy. Other members are Transport Permanent Secretary (PS) Muyenga Antanga, Commence and Trade PS Stephen Mwansa and Ministry of Finance PS for budget Pamela Chibonga.

Solicitor General Musa Mwenye, Road Transport and Safety Agency executive director Zindaba Soko, a consultant Jornam Mwansa, a lawyer Irene Zeko Mbewe, a mechanical engineer and consultant Geoffrey Mulenga and a retired ZRL worker Richard Chipanama, are others.