THE LUSAKA-NDOLA DUAL CARRIAGEWAY DEAL, NAPSA’S SURPRISING STAKE SURRENDER RAISES LEGAL EYEBROWS- Chanoda Ngwira

THE LUSAKA-NDOLA DUAL CARRIAGEWAY DEAL, NAPSA’S SURPRISING STAKE SURRENDER RAISES LEGAL EYEBROWS

By Chanoda Ngwira F

In a controversial turn of events, the recent agreement between the Zambian government’s National Pension Scheme Authority (NAPSA) and consortium of concessionaires regarding the Lusaka to Ndola dual carriageway has sparked intense scrutiny. The deal involves NAPSA injecting funds into the project but shockingly ceding a majority stake to the consortium granting them operational control for a staggering 25 years to recuperate their investment. This decision raises critical questions, primarily regarding the apparent disregard for the NAPSA INVESTMENTS ACT, which mandates NAPSA’s automatic major shareholder status in projects it funds.

The perplexing decision to sideline NAPSA’s established rights as a major investor in this venture, effectively diminishing the government’s stake, signifies a potential breach of Zambia’s laws and regulations. The glaring imbalance in ownership becomes even more concerning considering the consortium’s absence of financial contribution. How can a crucial investor like the Government of Zambia, working through NAPSA, be relegated to a minor shareholder position when it is NAPSA’s resources fueling the initiative?

Comparisons to past projects further complicate the matter, notably the Chingola to Solwezi road initiative, where NAPSA’s strategic investment model ensured financial gains. Under that arrangement, the National Road Fund Agency (NRFA) currently manages funds on behalf of NAPSA, NRFA is only receiving a modest 20% for administrative purposes while 80% goes to NAPSA. This stark contrast begs the question: why was the Lusaka to Ndola project not executed in a similar vein, allowing NAPSA to safeguard its interests and maximize returns as intended?

Speculations loom regarding possible political motivations behind the unconventional deal, with conjectures suggesting that the UPND Government may have pushed for cost reductions for political gains. However, the looming threat of inflated figures during future valiations could swiftly erase any perceived savings, potentially mirroring previous administration’s figure for the project. This apparent daylight robbery against the Zambian populace, paired with a blatant flouting of legal norms, signifies a worrying trend of impunity and disrespect for established regulations. The Zambian people deserve transparency, accountability, and adherence to laws to uphold the nation’s integrity and safeguard their interests.

(Chanoda Ngwira is a public administrator, Teacher, former Trade Unionist, writer, politician and political commentator. For private engagements, email: chanodangwira@yahoo.com/orisonconsult@gmail.com)