NAPSA, ZNBS, Oaktic systems & the Society Business Park Scandal
Editorial
The recent announcement of an indefinite shut down with a ten (10) day notice of Society Business Park – SBP, has not only raised eyebrows on how prudent the Nation Pension Scheme Authority – NAPSA top management is running the fund, but has also shined the light on how engineering firms seem to be used to rubber stamp suspected waste, substandard works and at times looting of public funds.
This building complex has been subject to engineering reports stating that there are structural defects and that these needed to be attended to for continued use of the building. Photos of cracks in the building are available, but the public was meant to believe that some re-enforcements and remedial works had been done. The complex went on to attract credible and local clients who it now seems have been risking their dear lives spending their working lives in its various shops, offices, restaurants, an international hotel etc opening up a minefield for legal and personal liabilities – a topic for another day.
So, when the sudden announcement of the closure of the entire Society Business Park was made by NAPSA board chairperson Shipango Muteto flanked by his Director General Muyangwa Muyangwa, it raise further questions as to whether the board and management had received new information which had not been available all alone since this park is a hive of business and social activities.
The other big question was whether the NAPSA team was merely avoiding the burning question as to how NAPSA had ended up purchasing SBP which its owners – ZNBS had valued at $1.2 million for $9 million using public pensions funds, effectively bailing out the Zambia National Building Society – ZNBS from the present and future liabilities of the structurally problematic business park as the original owners. In any way, what would be the motivation of NAPSA doing this deal and pumping in more money?
The media statement which Muteto as board chairperson signed off and availed to the Zambian Business Times – ZBT did not address the question on how NAPSA ended up purchasing the problematic building, and why ZNBS as previous owner was relieved of the liabilities by NAPSA – which manages pension funds. It is still questionable even today why NAPSA, despite being a custodian of pension funds and backed by pension contribution would be so keen to proceed and buy off the troubled building complex??
But the NAPSA press conference went on, announced the immediate closure but did not address the elephant in the room. However, for those with a keen eye for details, the statement had a note to editors, under which NAPSA mentioned HOPKAS engineering consultants as having provided the latest report which it was insinuated, may have called for the immediate closure of SBP.
ZBT immediately contacted HOPKAS CEO Hopeson Kasumba enquiring as to what his new finding were, what could have necessitated such a drastic action such that tenants and workers were left with a 10 days notice. Some jobs are at risk of being lost, an international hotel – Hilton Garden Inn was still taking reservations – leaving question marks on how much claim they will make from NAPSA, Pick n Pay supermarket was still trading with hordes of customers still thronging their premises and banks such as FNB posting a notice of an unexpected branch closure, Young Phiroz – a popular local store telling ZBT that there were completely caught unaware and some over 17 jobs are at risk among some of the notable tenants.
Hopeson Kasumba as CEO for HOPKAS which NAPSA had specifically named in its statement of announcing the shut down stated that his firm had like previous engineering consultants found some structural defects and that his firm had recommended repair and remedial measures. He however indicated that the firm did not recommend for immediate closure and shutdown of the complex.
Further investigations by ZBT found that HOPKAS was actually not the only latest consulting engineering firm to have issued a solicited structural engineering report, but that Oaktic Systems – an engineering consultancy firm is actually the latest. NAPSA however had omitted (not sure whether intensional or not) mentioning Oaktic in its media statement, further raising suspicion as to why this was the case.
ZBT then contacted Oaktic Systems through its listed principal officer Malijani Lungu, to get his side of the story as well as confirm if their findings were so grave to warrant the immediate closure of Society Business Park and the adjoining tower that houses Hilton Garden Inn, an international hotel which had also been caught up in the sudden turn of events.
The ZBT checks also revealed that Oaktic systems Ltd had in 2022 won a tender with the Ministry of Local Government for Euro 545,000 for consulting services for the design and supervision for roads in Mazabuka and Monze districts. Malijani Lungu however refused to categorically confirm or deny if his firms report recommended for the immediate closure of Society Business Park.
If one follows the sequence of events, it raises concerns that there has been and continue to be wrong doings around Society Business Park. Whatever is happening with these transactions, the companies involved and actions surrounding Society Business Park, NAPSA, ZNBS, Engineering firms and experts involved, there is need for an independent inquiry and investigations by experts to ensure that public funds are not wasted, abused or simply looted. The Anti-Corruption Commission – ACC should also take keen interest in this matter before critical evidence is erased. By calling for an independent review and investigation, we as a business media are simply playing our role in the safeguarding of public funds.
You can imagine that just the action of shutting down Society Business Park, as asset bought using public funds for $9 million (K320 million) is likely to be written down or written off completely. More so, if demolition is the final outcome, more costs will have to be incurred over and above the already comfirmed $9 million bill charged against pensioners funds. The refunds, legal costs and possible compensation to tenants, some of whom are multinationals will have to be borne by NAPSA which ultimately falls on the humble salaried employees and pensioners money.
Fears are new emerging that NAPSA investments are being made not out of sound and expert business analysis, but under undue influence, a recipe for more loss making ventures in future and risking the cashflow position of Zambias biggest pension fund. If you look at the value for money which pensioners are getting, its hard to not accuse NAPSA of not serving the interests of its core stakeholders – the pensioners.
That is why it is important that an independent review and investigation is conducted to restore public confidence. Two wrongs will never make a right. Our initial review shows that wrong doing most likely transcends the period when the first warning were reported to the current purchase and later shut down of SBP
Hence the call and need to conduct these investigations transparently. The review should cover the entire period from the time the initial concerns were raised to the current transactions of buying an already known structurally defective building using pensioners funds. It is hard for a sound mind not to suspect foul play and corrupt activities.
Photo below courtesy of Hilton Garden Inn hotel Lusaka which is housed in the Society Business Park complex