By The Candidates
CHINESE DISHONESTY ON THE LUSAKA-NDOLA CONTRACT
We jumpstart this journey of Punka Story with a reflection on the dishonesty surrounding the 321 km Lusaka-Ndola dual carriage road project which the former ruling party the Patriotic Front had awarded to China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC).
The contract was awarded at a cost of $1.2 billion.
When Hakainde Hichilema won the elections and government changed, this contract was reexamined.
Infrastructure Minister Charles Milupi has revealed that actually there are other contractors who are willing to do the road project at a cost of between $600 to $700 million than what China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) was quoting the Patriotic Front government.
Road Development Agency sources have revealed that CJIC has suddenly become willing to undertake the same project at half the cost than what they earlier quoted.
Questions arise.
If China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) initially quoted Zambians $1.2 billion to do the 321 km, what has made them to change and suddenly become willing to do the same project at half the price of $600 million?
Is this sudden change confirmation that this contract was dubiously awarded by the PF administration? And if it was dubiously awarded by the previous administration, what was CJIC’s own role in this dishonesty? Did CJIC act in the interest of Zambia?
This contract smells of corruption. And we know that for corruption to take place, two or more parties have to be involved.
This brings us to yet another important aspect about China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC).
CJIC has also built a number of key road projects and is currently constructing a government university in Kitwe, the economic hub of the Copperbelt. It is also building a pineapple processing plant in Mwinilunga, North Western Province. It has also built the Kenneth Kaunda International Airport at a questionable cost of $369,235,359. The Auditor General’s Report on Accounts of the Republic for the financial year ended 31st December 2020 initially raised alarm on this contract.
The report revealed that the decision to revise the contract between government and China Jiangxi Corporation for infrastructure upgrade at Kenneth Kaunda International Airport was not approved by government and had no clearance from the Attorney General.
The report stated that the contract price was first inflated at $385 million but was later reduced to $360 million and it was converted to a turnkey project.
Turnkey project is a contract under which a firm agrees to fully design, construct and equip a service facility and turn the project over to the purchaser when it is ready for operation. In this case, government of Zambia was the buyer.
In fact, when this contract was being turned into a turnkey, the final design of the facility was not yet approved by the government and therefore the contract price could not be justified. Further, there was no clearance from the Attorney General for change of the contract terms.
Then, the contract sum increased by $9,235,359 to $369,235,359 without the Attorney General’s approval whatsoever.
It is now very clear that whatever projects which China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) involved itself into are laced with dishonesty.
EDITOR’S NOTES:
What is the relationship between China Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) and the Patriotic Front party? It seems PF allowed CJIC to do anything wrong. Something is not right here.